Illinois Invests $500M to Revitalize Vacant State Properties for Economic Growth

In a historic move aimed at jumpstarting local economies and reclaiming long-idle government-owned land, the State of Illinois has pledged $500 million to prepare vacant state properties for private-sector redevelopment. The landmark initiative represents the largest such investment in Illinois history and is designed to convert underutilized sites into economic assets.

The funding will be split between two programs:

• $300 million for "Surplus to Success" – spearheaded by the Illinois Department of Central Management Services (CMS) to transform dormant state-owned properties into sites primed for industrial or commercial use.
• $200 million for the Department of Commerce and Economic Opportunity (DCEO) – to bolster its existing Site Readiness Program, enhance energy infrastructure, and aid local governments and developers in preparing sites for business attraction.

State officials say the effort is targeted at attracting new business investments, generating jobs, and delivering renewed value to communities that have long contended with deteriorating or unused state facilities.

“These properties have long sat vacant, draining public resources and blighting the communities where they sit,” said CMS Director Raven A. DeVaughn. “With this funding, CMS can begin the hard but necessary work of transforming the sites into assets—returning them to the tax rolls to drive growth and attract businesses.”

The Surplus to Success program has already identified five high-priority state-owned sites for redevelopment:

• Dwight Correctional Center – 160 acres
• Singer Mental Health Center in Rockford – 100 acres
• Jacksonville Developmental Center – 100 acres
• Lincoln Developmental Center – 100 acres
• Shapiro Developmental Center (unused land in Kankakee) – 70 acres (with active operations at the center remaining intact)

Under the plan, Illinois will oversee remediation and marketing of the properties in coordination with local governments. The goal is to align final redevelopment decisions with community needs, whether that be workforce housing, manufacturing space, or expanded infrastructure.

The $200 million allocated to DCEO will address a common hurdle in large-scale development—utility and infrastructure readiness. Many otherwise promising sites are overlooked by investors due to costly delays in getting them prepared for construction.

“The demand for ready-to-go industrial and commercial sites is high,” said DCEO Director Kristin Richards. “This investment allows us to meet that demand by preparing strategic locations across the state for new economic activity.”

By investing in site preparation and infrastructure upgrades now, state officials hope to not only spur job creation but also reclaim tax revenue from properties that have long been liabilities.

Originally reported by Chicago Construction News.