A revived industrial property in north Normal has expanded, and economic developers hope it's the first sign McLean County can become an industrial hub in central Illinois.
“It’s hard to imagine what one million square feet looks like until you are actually standing in it,” beamed Colin Logue, vice president of Bloomington-Normal operations for P.J. Hoerr, the general contractor for the expansion project. “Just visualize 6 1/2 football fields long.”
Logue spoke Friday during a ribbon-cutting ceremony inside the facility at 301 W. Kerrick Road.
Milwaukee-based Phoenix Investors bought the former Wildwood Industries warehouse in 2020. It had been vacant for more than a decade.
This year, Phoenix Investors doubled the facility's size as part of project worth more than $60 million. Electric automaker Rivian has leased the existing building for storage, and plans to occupy the half million-square-foot addition.
Rivian senior manager of public affairs Zach Dietmeier said the company stores parts at a dozen warehouses throughout central Illinois. He said Rivian wants to bring parts closer to the plant as it ramps up production in Normal.
“When Rivian purchased the facility, it was 2.6 million square feet. It’s a little over 4 million now. As those production needs grow, we need more space for warehousing and this is a great opportunity the community is showing that it’s committed to providing what Rivian will need for decades to come,” Dietmeier said.
Rivian is not the only company that may need warehouse space. Phoenix Investors founder Frank Crivello said demand is vast. He said the firm, which specializes in vacant and partially-completed buildings, is talking with nearby property owners so it can build more warehouses, potentially for Rivian suppliers and other companies.
“Once we are in a market, we like to grow in a market,” said Crivello, adding the company owns property in 29 states.
Bloomington-Normal Economic Development Council head Patrick Hoban said his office gets lots of proposals from companies needing industrial space, but until now the area didn't have what those industries needed.
He thinks the Phoenix Investors project will spur more development in manufacturing and logistics.
“We are known for being an insurance town and an education town. Everyone has always asked ‘Why don’t we have more distribution?’ We are really hoping this is going to change the model and let people know that with our highway access, this is a great place to do distribution,” Hoban said.
The Town of Normal approved a redevelopment agreement with Phoenix Investors in June 2020 that includes property tax rebates through a tax increment financing (TIF) district, an economic development tool that diverts future property tax revenue to help fund a project.
“I always focus on the schools as the major beneficiary of that,” Normal Mayor Chris Koos said of the additional tax revenue Phoenix Investors is expected to generate from the building renovation and expansion. “It’s much needed for them and it’s good for the community that we get that additional support.”
Town officials said no reimbursements have been issued to Phoenix Investors yet. The only other cost to the town is to cover Kerrick Road improvements. The town received a $600,000 grant from the Illinois Department of Commerce and Economic Opportunity to help pay for the roadwork, according to Ryan Otto, director of engineering and public works. The town also can use up to $2 million in TIF funds for the project.
Phoenix is eligible for a sales tax break on building materials too, because the site is in an enterprise zone, a program administered by the state.
Crivello said the financial incentives helped, but he said the project would have proceeded without them.
"(The incentives) show the investors we bring to the table that the community stakeholders are behind the project and they want to see us grow and succeed," he said.
