Economic Development Program
Purpose of the Economic
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 permanent full-time 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 these
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.
The EDP program is designed to provide up to 50
percent state funding for eligible locally owned roadways, and 100
percent state funding for roadway improvements on state owned
routes. The remaining 50 percent match will be provided by local
government entities or private sources. However, IDOT can only enter
into an agreement with a local body of government (i.e. township,
city, village or county). Although it is a requirement of the
program for the sponsor to contribute local money to the project, as
of January 1, 2012, IDOT will allow grants from other state agencies
as an allowable funding source for the sponsor’s 50 percent match if
the local agency has participated in the project in some fashion
such as preliminary engineering, donation of land, etc).
The EDP is a program for reimbursement of a portion
of eligible costs of an approved project and is not a grant program.
Each year the department sets aside $10 million for the program.
This funding allows the department to contribute up to $2 million
maximum to local economic development projects. Due to the program’s
overall size, costs beyond the $2 million project limit must be
absorbed by the local community, company or developer. Inquiries and
notification of a particular project should be directed to the
Bureau of Statewide Program Planning at the address listed below.
After initial contact, IDOT staff in the Central Office and each of
the nine highway districts are available to work with local
government sponsors in the development of an application for EDP
funds and the determination of needed roadway improvements. The
department’s staff is available to meet with parties involved in the
project and answer questions.
Generally, the review and selection process for EDP
candidates is as follows:
IDOT is contacted by a local sponsor of a
potential project and sets up a meeting with the department to
The local sponsor submits an application with
the information requested in the guidelines to IDOT.
The application is reviewed for complete
eligibility and 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 Local Agency/IDOT Joint Agreement is
prepared. (See below for joint agreement example.) The district
office for the project will write the joint agreement.
After the joint agreement has been executed, the
project may be let for bids.
Development Program Agreement (Word document)
Development Program/TARP Agreement (Word document)
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.
Since it is imperative that the department received an “accurate”
cost estimate with the EDP application, Preliminary Engineering (PE)
work must be completed 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
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.
A letter requesting funds from the sponsor.
This letter should contain the following information:
• Name of Local Government to Sponsor the project
• Contact Person with phone number
• Company’s Name
• Type of Industry or Project
• Tourism Event (if applicable) & Peak Day Attendance
• Explanation of why these roadway improvements are necessary to
A general description of the scope of the
project and a location map.
The location map should be a simple map showing where the
company is located in relation to the necessary roadway
A detailed engineer’s cost estimate
A commitment letter from the company describing
their intent to locate or expand at this site.
Employee Reporting Form signed by the company.
Local Agency/Company Employment Agreement
This is an agreement strictly between the sponsoring agency and
the company. This form is not a requirement to have at the time
of application; however, IDOT suggests all local agencies have
this in place to protect themselves from unforeseen default of
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
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
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.
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.
The Corporate Accountability for Tax Expenditures
Act requires EDP recipients to submit an Employee Reporting form
stating the recipient’s commitment to specific employment levels.
This form shall be submitted with the initial application from the
sponsor and shall be completed 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
Any questions should be direct to Denise Todd at
For more information on this program, please
Chief, Bureau of Statewide Program Planning
IDOT, 2300 S. Dirksen Parkway, Rm. 307
Springfield, IL 62764
The purpose of the TARP is to help local governments
upgrade roads to accommodate 80,000 pound truck loads. The
department has a set aside amount of TARP funding that coincides
with funding for Economic Development Program projects. This should
not be confused with the annual TARP solicitation through our IDOT
District Offices (see below). When a local sponsor applies for EDP
funding, they can also request TARP funding for the same route
provided the roadway connects to an already existing designated
truck route or municipality and ends at another designated truck
route, truck generator, or municipality. The department will provide
up to $45,000 per lane mile and $22,000 per intersection for an
eligible roadway. Please note that when requesting TARP funding in
conjunction with an EDP application, the TARP funding is capped at
$150,000 for the overall project. Please include the exact length of
the roadway and how many intersections are involved in the project
with your EDP application. This information is necessary to
calculate TARP funding.
TARP Fall Solicitation
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 District Local Roads and Streets office that serves your
county. The state participation will not exceed 50% of the total construction
costs or $900,000 whichever is less. Please contact your District Local Roads
and Streets office for details of how to apply for the TARP annual program.
The following information is needed for all TARP applications:
A general description of the project
A location map
The limits of the project
Total mileage, including lane miles
Number of trucks per day
Intersections with designated truck routes only
Anticipated letting date
For more information on this program, please contact:
Bureau of Local Roads and Streets
Highway Systems Manager
Illinois Department of Transportation
2300 South Dirksen Parkway
Springfield, Illinois 62764
Phone (217) 782-3401
Fax (217) 782-3971
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. The department 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 costs 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,
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 retention, transportation savings, etc.)
The name of the industries involved, and the
name title, address and telephone number of the principal
contract for the project.
An engineer’s cost estimate, if available.
For more information on the program, please contact:
Chief, Bureau of Railroads
IDOT, 100 W. Randolph Street
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
Manager, Railroad Safety
Grade Crossing Protection
Illinois Commerce Commission
527 East Capitol, P. O. Box 19280
Springfield, IL 62794