The Galesburg city council on Monday approved up to $200,000 in economic development assistance aimed at keeping ILPEA Industries in operation locally and potentially adding eight jobs.
ILPEA, which operates a facility at 611 S. Linwood Road, produces gaskets, seals, and custom plastic extrusions. The company is considering consolidating its Galesburg operation with its facility in Anderson, South Carolina.
State and local incentives are meant to prevent that from happening.
The city’s incentive will match $200,000 offered by the Illinois Department of Commerce and Economic Opportunity.
City Manager Eric Hanson thanked Ken Springer of the Knox County Area Partnership for Economic Development for his assistance and Sal Garza of DCEO and the state for their support.
“Obviously with recent announcements to the north,” Hanson said, hinting at Tyson recently closing its Joslin, Ill., plant, “any chance that we get to retain industries, big or small, is important.”
Under the agreement, Galesburg will make an initial $100,000 payment tied to retaining 32 existing jobs, with a minimum annual payroll of $1.5 million. A second $100,000 payment will be made if the company adds eight jobs, bringing employment to 40 and minimum annual payroll to $1.8 million.
The council approved the agreement unanimously. The city incentives will be paid from the economic development fund.
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