DOCUMENTS > ECONOMIC DEVELOPMENT COUNCIL
Lexington Welcomes Wirtz Distribution Center
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By Amy Denham on July 02, 2013 | 0 Comments
Mike O'Grady, Interim CEO and Ken Springer, Director of Research & Client Services attended the ground breaking ceremony for the new Wirtz Beverage Distribution Center in Lexington, IL.
Lexington Welcomes Wirtz Beverage Distribution Center Contruction
Article from WGLT.org by Willis Kern
A scene regularly played out during the 1990s is repeating itself in the mostly-farming community of Lexington in northern McLean County. Business and government leaders gathered off the side of busy Interstate 55 to unveil the site for a new $8 million beverage distribution center. As WGLT's Willis Kern reports, officials are excited about the new facility and the prospects for similar events in the future.
"Good morning! My name's John Mohr and I'd like to welcome you to Lexington."
The mayor of Lexington--population just over 2,000--can hardly contain his excitement. A major Chicago corporation is about to unveil the site for its new downstate distribution hub and it will pop up right off the busy highway next to the Subway and McDonald's that have, up to now, served as town markers for motorists zooming by between Chicago and St. Louis. John Mohr says Lexington is still basking in the glow of its recently-completed sewer and waste-water treatment project, but he says this will give the community an above ground and visible point of pride.
"It may be the single largest private investment that we've seen in many, many, many years. They're estimating to have 30-50 full-time jobs, and their sales force this location will support, more than a hundred, so we're pleased that this private investment is taking place here. It's going to be a great benefit to McLean County."
Location, location, location
The company opening this 50,000 square foot facility on 14 acres of legacy McLean County farmland is the Wirtz Corporation out of Chicago, specifically its beverage distribution arm. About a half dozen Wirtz Corporation executives, clad in their white long-sleeve business shirts, stand out from some of the Lexington townies on hand for the unveiling. One of the executives is William "Rocky" Wirtz, President of the corporation which also happens to own the wildly popular Chicago Black Hawks of the National Hockey League. Wirtz says the new Lexington center, to be dubbed the Heartland headquarters, will provide key access for the company because of Lexington's central location and proximity to Interstates 55, 74 and 39.
"In our business, we're in the middle tier, so we service retailers. We have a wholesale license, they have a retail license, so we do door-to-door delivery. It's very important for us to be in a strategic location and McLean County certainly is that location."
Wirtz Beverage is consolidating some of its central and southern Illinois hubs into the Lexington site. That means some offices will close, including one in Peoria. Some of the jobs there and elsewhere will transfer to Lexington, but Interim Bloomington-Normal Economic Development Council head Mike O'Grady says a good number of employment opportunities will grow out of the new site.
"100 to 120 positions, and we already know, having worked with Wirtz, these are well-paying jobs that they're bringing to the community."
Tax incentive package
The workers will operate out of a 35,000 square foot warehouse with 20 truck docks. All that will be attached to 15,000 square feet of office space, where Wirtz will house its regional sales staff. Putting up new buildings is nothing new for Wirtz. The company just completed a huge $70 million regional distribution and training center in Cicero last year. The $8 million cost of the Lexington center will be partially offset by a property tax-sharing agreement negotiated with Lexington officials. Mayor John Mohr says the deal worked out well for both sides.
"We offered 75% of the property taxes to reimburse them for those development costs and the city's share is 25% of the property taxes. That still allows us to meet some of our city goals as well."
State jobs picture
That tax abatement schedule will be in effect for about 18 years, or the remaining life of the Tax Increment Financing District Lexington created in 2011 for econommic development. Such incentive plans aren't new. Illinois communities have been using them for decades as fuel for an economic engine. It's an engine that many say is sputtering with high tax rates. Republicans say the current economic climate in the state is poisonous, a condition only exacerbated by what they call much friendlier conditions in neighboring states. But EDC director Mike O'Grady, a long time fixture of the McLean County Republican Party, says things aren't quite what they seem.
"We all wring our hands about the state of Illinois' situation. Quite frankly, we are the fifth-largest economic-driving state in the United States, and while our taxes aren't the greatest and we're all unhappy, if you look at the big picture, all taxes, we're in the middle of the pack in the United States. We need to start talking about the positive things in this state instead of the negative."
O'Grady says those positive things are beginning to emerge, in central Illinois and elsewhere. He points to residential real estate figures in Bloomington-Normal last month that set seven year highs for units sold and dollar volume. O'Grady says housing improvements are usually on the leading edge of an economic upswing. And while major corporate warehouse groundbreakings such as the one in Lexington aren't as numerous as they used to be, O'Grady says they're coming. He says by the end of the month, another new business will be set to announce they're moving to McLean County. He didn't provide details, but said when they come it will be clear the economic shift forward is taking another big step.
Go Black Hawks!
Rocky Wirtz is also owner of the Chicago Black Hawks National Hockey League team. They're currently embroiled in the Stanley Cup Finals against the rival Boston Bruins. Wirtz talks about the Finals, and the season cut short due to labor strife.
Click here to see the WGLT article with sound bites.
Categories: "Economic Development", Lexington, Wirtz
Mike O'Grady, Interim CEO and Ken Springer, Director of Research & Client Services attended the ground breaking ceremony for the new Wirtz Beverage Distribution Center in Lexington, IL.
Lexington Welcomes Wirtz Beverage Distribution Center Contruction
Article from WGLT.org by Willis Kern
A scene regularly played out during the 1990s is repeating itself in the mostly-farming community of Lexington in northern McLean County. Business and government leaders gathered off the side of busy Interstate 55 to unveil the site for a new $8 million beverage distribution center. As WGLT's Willis Kern reports, officials are excited about the new facility and the prospects for similar events in the future.
"Good morning! My name's John Mohr and I'd like to welcome you to Lexington."
The mayor of Lexington--population just over 2,000--can hardly contain his excitement. A major Chicago corporation is about to unveil the site for its new downstate distribution hub and it will pop up right off the busy highway next to the Subway and McDonald's that have, up to now, served as town markers for motorists zooming by between Chicago and St. Louis. John Mohr says Lexington is still basking in the glow of its recently-completed sewer and waste-water treatment project, but he says this will give the community an above ground and visible point of pride.
"It may be the single largest private investment that we've seen in many, many, many years. They're estimating to have 30-50 full-time jobs, and their sales force this location will support, more than a hundred, so we're pleased that this private investment is taking place here. It's going to be a great benefit to McLean County."
Location, location, location
The company opening this 50,000 square foot facility on 14 acres of legacy McLean County farmland is the Wirtz Corporation out of Chicago, specifically its beverage distribution arm. About a half dozen Wirtz Corporation executives, clad in their white long-sleeve business shirts, stand out from some of the Lexington townies on hand for the unveiling. One of the executives is William "Rocky" Wirtz, President of the corporation which also happens to own the wildly popular Chicago Black Hawks of the National Hockey League. Wirtz says the new Lexington center, to be dubbed the Heartland headquarters, will provide key access for the company because of Lexington's central location and proximity to Interstates 55, 74 and 39.
"In our business, we're in the middle tier, so we service retailers. We have a wholesale license, they have a retail license, so we do door-to-door delivery. It's very important for us to be in a strategic location and McLean County certainly is that location."
Wirtz Beverage is consolidating some of its central and southern Illinois hubs into the Lexington site. That means some offices will close, including one in Peoria. Some of the jobs there and elsewhere will transfer to Lexington, but Interim Bloomington-Normal Economic Development Council head Mike O'Grady says a good number of employment opportunities will grow out of the new site.
"100 to 120 positions, and we already know, having worked with Wirtz, these are well-paying jobs that they're bringing to the community."
Tax incentive package
The workers will operate out of a 35,000 square foot warehouse with 20 truck docks. All that will be attached to 15,000 square feet of office space, where Wirtz will house its regional sales staff. Putting up new buildings is nothing new for Wirtz. The company just completed a huge $70 million regional distribution and training center in Cicero last year. The $8 million cost of the Lexington center will be partially offset by a property tax-sharing agreement negotiated with Lexington officials. Mayor John Mohr says the deal worked out well for both sides.
"We offered 75% of the property taxes to reimburse them for those development costs and the city's share is 25% of the property taxes. That still allows us to meet some of our city goals as well."
State jobs picture
That tax abatement schedule will be in effect for about 18 years, or the remaining life of the Tax Increment Financing District Lexington created in 2011 for econommic development. Such incentive plans aren't new. Illinois communities have been using them for decades as fuel for an economic engine. It's an engine that many say is sputtering with high tax rates. Republicans say the current economic climate in the state is poisonous, a condition only exacerbated by what they call much friendlier conditions in neighboring states. But EDC director Mike O'Grady, a long time fixture of the McLean County Republican Party, says things aren't quite what they seem.
"We all wring our hands about the state of Illinois' situation. Quite frankly, we are the fifth-largest economic-driving state in the United States, and while our taxes aren't the greatest and we're all unhappy, if you look at the big picture, all taxes, we're in the middle of the pack in the United States. We need to start talking about the positive things in this state instead of the negative."
O'Grady says those positive things are beginning to emerge, in central Illinois and elsewhere. He points to residential real estate figures in Bloomington-Normal last month that set seven year highs for units sold and dollar volume. O'Grady says housing improvements are usually on the leading edge of an economic upswing. And while major corporate warehouse groundbreakings such as the one in Lexington aren't as numerous as they used to be, O'Grady says they're coming. He says by the end of the month, another new business will be set to announce they're moving to McLean County. He didn't provide details, but said when they come it will be clear the economic shift forward is taking another big step.
Go Black Hawks!
Rocky Wirtz is also owner of the Chicago Black Hawks National Hockey League team. They're currently embroiled in the Stanley Cup Finals against the rival Boston Bruins. Wirtz talks about the Finals, and the season cut short due to labor strife.
Click here to see the WGLT article with sound bites.
Categories: "Economic Development", Lexington, Wirtz