The state's new tax incentive program is designed to help Illinois compete with neighboring states for relocating and expanding businesses. It provides tax credits for businesses that create jobs and make capital investments in the state.

Businesses creating new jobs can claim state income tax credits equal to a portion of the income tax generated from the new employment. In addition, the new legislation calls for the development of the Illinois Technology  Enterprise Corp., a regional network to cultivate technology-based businesses in Illinois.

Technology Center to be nation's largest

One high-tech development already in motion in Chicago involves the historic 1 million square foot R.R. Donnelley Co. Lakeside Press building. 

The building is being renovated into a "carrier hotel" full of high-tech equipment that will allow people to communicate all over the world via the Internet. When completed, the site will be known as the Lakeside Technology Center.

The center, which will be the largest Internet and telecommunications facility in America, is expected to open for its first tenant by late fall. Frontier Communications, a national provider of integrated communications services, will be the anchor tenant.

"Choosing Chicago as the site for our Midwest content distribution hub was easy," says Joseph P. Clayton, CEO of Frontier Communications. "Mayor Daley's vision has made Chicago the most data-savvy major city we have ever worked with. We feel like  Chicago is part of our data team."

Lakefront redevelopment project unfolds

Another successful development in the Windy City has risen up as a redevelopment project. Solo Cup announced in June that it will open a manufacturing and distribution complex on 107 acres of the former South Works steel mill site.

"We have simply outgrown our current facility and need a larger site where we can continue to expand our operations," says Ron Whaley, executive vice president for Solo Cup. "The South Works site accommodates not only our current needs, but allows room to grow in future years."

Solo Cup will begin designing its new 107-acre facility immediately and will open the site in 2001. Several existing operations in Chicago will be relocated to the new property.

"We will expand our current base of 550 employees in Chicago and continue to draw new employees from the same South Chicago neighborhoods which we have worked with for more than 23 years," Whaley says.

German firm expands headquarters

Much activity extends beyond Chicago, into the suburbs, as well.  The Village of Schaumburg, north of Chicago, continues to grow largely because of its proximity to Chicago's O'Hare International Airport.

Heidenhain Corp., a German company involved in the manufacturing and assembling of over 20,000 linear scales and rotary encoders, is expanding its North American headquarters into a 106,000 square foot building. The new site will be on 13.5 acres in the Woodfield Business Center 1 Industrial Park.

In addition, S & S Truck & Tractor Parts Inc. is constructing a 120,000 square foot office/warehouse building on a seven-acre lot in Schaumburg, where MCI also recently purchased 12 acres for a switching station.

Nearby, Elk Grove Village is home to the largest, most diversified and planned industrial complex of its kind in the nation. 

The five-square-mile manufacturing, warehousing and distribution complex houses 3,800 firms employing approximately 100,000 employees. 

State Farm plans mega-expansion

In central Illinois, State Farm Insurance, which is headquartered in Bloomington, is adding 900,000 square feet to its Corporate South complex. The addition, which expands the company's customer service operations, is expected to open in 2001.

Also in Bloomington, American Sunroof Co. is completing work on its 20,000 square foot manufacturing facility. At least 30 employees will be hired initially, and an expansion may be in the works.

Meanwhile, Bloomington-Normal Airport is adding a $27.5 million terminal to its operations for passenger and cargo use. Airborne Express is adding a 19,000 square foot district hub at the airport. Construction began in July.

In Salem, in southern Illinois, American Building Products is expanding its production line. The company began powder painting its products in-house, then realized the business held promise for other local companies desiring the service. Favorable rates offered by Soyland Power helped the company in its expansion.

And on the far western edge of Illinois, in Quincy, Wis-Pak has started operations at its new 168,000 square foot bottling and canning facility. 

Wis-Pak is one of the largest cooperative companies in the soft drink industry and produces and distributes over 120 brands of soft drinks in the Midwest.

The company received financial incentives including state grants, transportation funds, and a low-interest loan from the city of Quincy.

"The Quincy site was chosen for a number of reasons," said Barbara Parish, president, "including Wis-Pak's relationship with the local Pepsi franchise, the community's interest in economic development, the central location to our major markets and the existing and planned highway systems."