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Purpose of the EDP Program
The purpose of the Economic Development Program (EDP) is
to provide state assistance in improving highway access
to new or expanding industrial distribution or tourism
developments. The intent is to make available state
matching funds that will be a positive contribution in
the location-selection process and to target those
projects which will expand the state's existing job base
or create new employment opportunities. The focus of the
program is on the retention and creation of primary
jobs. Funding will be available to construct highway
facilities that provide direct access to industrial,
distribution or tourism developments. The program is
designed to assist in those situations where development
of theses types of facilities is imminent. Projects
which only improve opportunities for development or are
speculative in nature are not eligible for EDP funding.
Projects providing access to retail establishments,
office parks, government facilities or
school/universities are not eligible for EDP funding.
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State Funding
The EDP program is designed to provide up to 50
percent state matching funds for eligible local agency
roadway-related construction and engineering items. The
remaining funds will be provided by local or private
sources. This basic funding arrangement may be altered
on a case-by-case basis for projects involving
improvements on roads under state jurisdiction. The EDP
is a program for reimbursement of a portion of eligible
costs of an approved project and is not a grant program.
All candidate projects must be constructed to Motor
Fuel Tax standards and, in addition, must have a local
government sponsor (a county, municipality, township or
other taxing body). If a project is selected for
funding, a joint local-state agreement must be executed
between the governmental entities involved to serve as
the basis of understanding for financial
responsibilities.
It has been a long standing departmental requirement
that the local sponsor provide their financial share of
the improvement. Our EDP policy was based on the intent
that the locals have a financial responsibility towards
the project as well and should have a vested interest in
the project. EDP policy requires that the locals provide
matching funds and that state funds from other state
agencies cannot be used towards the local match.
However, for those businesses that are EDP eligible
and have been approved for both EDP and other state
agency (such as DCEO) infrastructure improvement funds,
we will allow the amount of those funds the sponsor
receives to be subtracted from the total amount of the
project cost. The department will then calculate the EDP
participation from the remaining balance of those items
which are EDP eligible. It is critical for the
department to coordinate this effort between all
affected parties as early as possible. The local project
sponsor should report any outside funding sources to
IDOT as soon as possible.
If the outside agency funds are not reported on the
initial EDP application, they must be reported prior to
execution of an intergovernmental agreement between the
department and local sponsor. Should the department
receive notification from the local sponsor of their
intent to use other state funds after the EDP commitment
was made, this may cause the department to review its
commitment and alter the EDP funds allocated to the
project.
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Sources of Local
Funding
Local matching funds may be comprised of the local
jurisdiction's motor fuel tax allocation, local road and
bridge tax funds, or other local revenues. In some
cases, local acceptance of the jurisdictional transfer
of a state-owned unmarked highway may be used as
payment-in-kind toward the local share of the total
project cost. Truck Access Route Program funds
(discussed later), if awarded, can be applied towards
the local matching funds. Local matching funds cannot
include grant funds received from other state agencies,
such as the Department of Commerce and Economic
Opportunity (DCEO).
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Eligibility
Criteria
The cost-effectiveness of each investment of EDP dollars is a major factor in
the evaluation of proposed projects. Priority considerations are:
- Need for the highway improvement and imminence of
development.
- Compatibility of the proposed roadway with the
design of the existing roadway system.
- Primary jobs created or retained in Illinois and
total developer site cost estimate.
- Annual and peak day attendance at tourist
developments.
- Commitment of the industrial/distribution/tourist
development to the site to be served by facility.
- Willingness of the sponsoring local government to
participate in the local share of the improvement
cost.
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Examples of Non
Eligible Items
-
Land Acquisition
- Building demolition
- Landscaping
- Sidewalks
- Street lighting
- Utility adjustments
Note: Due to the nature of construction practices,
some items not typically eligible for EDP funding may be
considered. These would have to be reviewed on a case by
case basis and approved by the Central Office.
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Application for
EDP Funds
To apply for EDP funds, local governments should
submit the following information for all projects:
- Name of company, type of product and total
company site investment.
- Location (include a map showing the location of
the site) and general description of improvement.
- Estimate of the number of primary jobs created
and/or retained.
- Anticipated opening date for the company.
- Projected visitors at tourist attraction (if a
tourism project).
- Letter of commitment from the company to expand
or locate.
- Engineer's cost estimate for the improvement (see
example in appendix).
- Extent of local participation and source of local
matching funds.
- A completed Employment Reporting Form (see link
under EDP Compliance with Public Act
93-552)
An Economic Development Pre-Application form titled,
Notification of Intent to Apply for Economic Development
Funds is available in the appendix or on-line at
http://www.dot.il.gov/edpapp.pdf. Please be advised
that the pre-application form is being utilized as an
initial notification for your project. The Department of
Transportation will require additional information
before EDP funds can be committed.
Two copies of each submittal should be forwarded to:
-
Chief, Bureau of Statewide Program Planning
- Economic Development Program
- Illinois Department of Transportation
- 2300 South Dirksen Parkway, Room 307
- Springfield, Illinois 62764
- (217) 782-2755
- FAX: 785-8140
An additional copy should be forwarded to the local
District Department of Transportation office (see
Appendix for District map).
General questions concerning the Economic Development
Program can also be directed to
the Bureau of Statewide Program Planning at
1-800-493-3434.
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IDOT Assistance with Application
Sponsor agencies or developers are encouraged to
initiate inquiries and requests for assistance to the
Bureau of Statewide Program Planning at the above
address. After initial contact, IDOT staff in each of
the nine districts are familiar with the EDP and are
willing to work with local government sponsors in the
development of an application for EDP funds and the
determination of needed highway improvements. The state
map in the appendix shows district boundaries and gives
the location and telephone numbers of district offices.
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Project Review and
Selection Process
Generally, the review and selection process for EDP candidates is as follows:
- The local sponsor submits the information
requested in the guidelines to IDOT.
- The application is reviewed to determine whether
the proposed project is eligible for EDP funding.
- The local sponsor is then notified of the results
of the review (i.e., request for additional
information; application denied or accepted).
- Once the department commits to fund the project through
the EDP a joint agreement is prepared. (An example of a
joint agreement is included in the appendix.) The
district office will initiate the joint agreement process.
- After the joint agreement has been executed, the
project may be let for bids.
For further instructions on downloading visit the
Tips and Tools Page.
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When to Apply
The local sponsor should apply for funding as soon as
possible after the project site and an appropriate range
of access needs are identified. Notification of the
Bureau of Statewide Program Planning will trigger a site
evaluation process which must occur before review of the
funding application can begin. An application can be
submitted before all of the details of firm cost
estimates and local participation have been finalized.
This advance effort can help to expedite final review
and disposition of the application.
There are occasions when it may be necessary for the
developer, the company or the local agency to begin
preliminary engineering work prior to applying for or
being approved for Economic Development Program (EDP)
funds. In order to address this, IDOT will allow for
reimbursement of the eligible engineering related to the
EDP project as long as the following three conditions
are met:
- the department has been contacted prior to the
work being undertaken;
- the schedule for the incoming EDP eligible
business investment requires the work to begin (in
order to make the "opening" date of the proposed
business activity); and
- the Secretary (or his designee) has provided a
letter authorizing such work.
The Secretary's authorization will state:
- that this work will be undertaken at the
sponsor's risk * and
- that only work dated after the Secretary's
letter will be eligible for reimbursement.
Normal procedures for engineering agreements involving
MFT funds must be followed and coordinated through the
appropriate IDOT District Local Roads office.
Notice that this applies only to engineering work.
Only engineering work associated with EDP eligible
businesses and EDP eligible pay items can be reimbursed.
If actual construction has begun prior to the department
approving an EDP application, this will jeopardize the
ability for EDP participation.
* If the EDP project is not selected for funding, the
engineering will not be reimbursable.
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EDP Compliance with Public Act 93-552
As of January 1, 2004, the Illinois Department of
Transportation (IDOT) is required to comply with the
legislation of Public Act 93-552 (PA 93-552), Corporate
Accountability for Tax Expenditures Act. PA 93-552
requires any recipient which receives development
assistance from a state granting body, such as the
Department of Transportation's Economic Development
Program (EDP), to submit an initial report stating the
recipient's commitment to specific employment.
This report must be turned in to the Illinois Department
of Transportation with the initial EDP application. Any
company receiving EDP funding will then be required to
fill out an Employee Reporting form annually for 5 years
from the date of an executed joint agreement with IDOT.
All annual forms will be completed on-line through the
Department of Commerce and Economic Opportunity.
For the purpose of the EDP
Program, the local sponsor will
be required to enter into an
agreement with the business in
question to assure the business
is aware of their responsibility
to fulfill the reporting
requirements. This agreement
must be in place prior to the
intergovernmental agreement
between the Illinois Department
of Transportation and the local
sponsoring agency. The agreement
between the local sponsoring
agency and the business must be
in place prior to disbursement
of any EDP Program funds.
Questions should be directed to either Tim Milam at
217/785-2910 or Denise Todd at 217/785-8643.
Illinois General Assembly Public Acts
Employment Reporting
Form
Local Agency/Company
Agreement (PDF File)
Mail completed Employment Reporting Form to
:
Illinois Department of Transportation
Mr. Keith Sherman
Office of Planning and Programming, Rm 307
2300 S. Dirksen Parkway
Springfield , Illinois 62764-0001
Attention: Economic Development Program
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Other Illinois
Department of Transportation Programs to Assist Economic
Development
 TRUCK
ACCESS ROUTE PROGRAM (TARP) - The purpose of the TARP is to help local governments upgrade roads to accommodate 80,000 pound truck loads. The routes are to provide access to points of loading and unloading and to facilities for food, fuel, truck repair and driver rest. Projects must connect to a truck route and end at another truck route or truck generator. IDOT will provide up to $30,000 per lane mile and $15,000 per intersection.
Every fall IDOT solicits local projects that can be constructed during the upcoming fiscal year. We encourage you to submit your inquiries and requests for assistance to the Deputy Director, Region Engineer’s office that serves your county. The state participation will not exceed 50% of the total construction cost or $600,000 whichever is less.
Please note that when requesting TARP funding in conjunction with an EDP application, the TARP funding is capped at $75,000 for the overall project.
The following information is needed for applications:
- A general description of the project and a map showing project site and connections to existing truck routes
- Total mileage, including lane miles and number of intersections
- Description of truck generators and number of trucks per day
- Total cost of the project along with the local funding share
- Anticipated letting date
For more information on this program, please contact:
- Chief, Bureau of Local Roads and Streets
- Truck Access Route Program
- Illinois Department of Transportation
- 2300 South Dirksen Parkway, Room 205
- Springfield, IL 62764
- (217) 782-3805
- FAX (217) 782-3971
- WEB site:
www.dot.il.gov/tarp.html
RAIL FREIGHT PROGRAM (RFP) - The purpose of the
RFP is to provide capital assistance to communities,
railroads and shippers to preserve and improve rail
freight service in Illinois. The primary role of the
program is to facilitate investments in rail service by
serving as a link between interested parties and
channeling government funds to projects that achieve
statewide economic development. IDOT will generally
provide low interest loans to finance rail improvements
and, in some cases, provide grants. The focus is on
projects with the greatest potential for improving
access to markets and maintaining transportation cost
savings, and where state participation will leverage
private investments to foster permanent solutions to
rail service problems. A benefit/cost ratio is used to
evaluate potential rail freight projects.
Requests for RFP funds should be sent to the Bureau
of Railroads (address below), and should include the
following information:
- A general description of the project and a
location map depicting the beginning and ending
points.
- Benefits expected from the project (e.g., job
creation and/or retention, transportation savings,
etc.)
- The name of the industries involved, and the name,
title, address and telephone number of the principal
contact for the project.
- An engineer's cost estimate, if available.
For more information on this program, please contact:
- Chief, Bureau of Railroads
- Illinois Department of Transportation
- 2300 South Dirksen Parkway, Room 302
- Springfield, IL 62764
- (217) 782-2835
- FAX (217) 524-1889
- WEB site:
www.dot.il.gov/rfp.html
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Other State
Resources
If there is a railroad crossing within the limits of the proposed access
improvement, additional funding may be available from the Illinois Commerce
Commission's Grade Crossing Protection fund through separate application to the
ICC.
For more information on this program, please contact:
- Manager, Railroad Safety
- Grade Crossing Protection
- Illinois Commerce Commission
- 527 East Capitol, P. O. Box 19280
- Springfield, IL 62794
- (217) 782-7660
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