As Galesburg works through the federal approval process for construction of new rail track and switching as part of a planned agricultural export terminal at its Business Park, the city council has approved an agreement aimed at determining what other developments are possible.
The memorandum of understanding with Burlington Junction Railway was approved at Monday’s council meeting.
It allows the short-line railroad company to evaluate development potential for 98 acres of rail-served industrial land at the site.
Here’s what to know about the new agreement, and where the larger Business Park project stands.
What is the larger project?
In January 2025, the city was awarded a $25 million federal transportation grant to install rail track and switching at the Business Park as part of the planned containerized agricultural terminal.
The goal of the terminal is to significantly reduce cargo transit and open new export markets for agricultural commodities produced in the region — and to make Galesburg an attractive location for new industries.
The terminal will occupy around 100 acres of the city-owned, 330-acre Business Park.
City Manager Eric Hanson said the project includes around 15,000 feet of rail, new switches connecting the site to the existing rail line, and construction of the terminal itself.
Where does the larger project stand?
The city is still working through the federal review process required before construction of the rail, switching, and terminal can begin.
“Obviously, when you get $25 million from the federal government, it comes with a lot of requirements,” Hanson told the council.
Hanson said the city has completed initial assessments and is preparing for a required public comment period. He estimated the city is around two-thirds of the way through the grant administration process.
“Right now, we are on target to be done with the grant evaluation somewhere around January,” Hanson said. “At that point, the grant funds would be released and available to construct the project in 2027.”
What did the council approve Monday?
Burlington Junction Railway specializes in rail-served industrial development.
The council-approved agreement with the company carries no cost to the city. But it gives the company the opportunity to evaluate 98 acres of the Business Park that are not expected to be part of the agricultural terminal.
Hanson said Burlington Junction Railway will work with the city and the Knox County Area Partnership for Economic Development to identify opportunities for additional investment at the site.
“Hopefully not just investment but also jobs,” Hanson said.
Any project that emerges from the agreement with Burlington Junction would require separate council approval.
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