Council reviews draft agreement for major 'Project Crossroads' data center

Developer to fund $4 million in electrical infrastructure upgrades

Future expansion requires new agreements and council approval

Water usage cap reduced to 50,000 gallons per day

Steward Road to undergo urbanization paid by developer

Council plans update to city sound ordinance

Projected tax revenue estimated at $3.5 million annually

City anticipates $450,000 annual boost from utility taxes

Rochelle police win Pinewood Derby trophy

Council reviews draft agreement for major 'Project Crossroads' data center

ROCHELLE, Ill. — The Rochelle City Council reviewed a draft development agreement Monday regarding "Project Crossroads," a proposed data center located on Steward Road south of Interstate 88. Interim City Manager Sam Tesreau presented the details of the agreement with the developer, identified as LFF Industrial, which has been in negotiation for over a year following a public meeting in November. The draft agreement outlines the responsibilities for infrastructure improvements and utility usage for the site, which is currently zoned for industrial use. Tesreau noted the agreement is approximately 95 percent complete and will require a final council vote at a future meeting.

Developer to fund $4 million in electrical infrastructure upgrades

ROCHELLE, Ill. — Under the terms of the proposed agreement, LFF Industrial will be responsible for all costs associated with bringing electrical service to the site, estimated at over $4 million for the first phase. Blake Toliver, the municipal utilities electric superintendent, confirmed that the developer must pay for the equipment necessary to provide up to 50 megawatts of power. The agreement includes language ensuring the developer pays 100 percent of any excess capacity or transmission charges, protecting existing Rochelle Municipal Utilities customers from rate increases caused by the new high-load demand.

Future expansion requires new agreements and council approval

ROCHELLE, Ill. — City officials clarified that the current agreement covers only Phase 1 of the development, capped at 50 megawatts of power. Any future expansion, referred to as Phase 2 or 3, would require a completely new development agreement, a fresh council vote and significant involvement from Commonwealth Edison, the regional electric utility, to reconductor transmission lines. Toliver assured the council that the current 50-megawatt allocation leaves the city with roughly 60 percent of its excess capacity available for other local growth, ensuring the data center does not stifle other development.

Water usage cap reduced to 50,000 gallons per day

ROCHELLE, Ill. — Responding to community concerns raised during a November town hall, city staff negotiated a reduction in the data center's daily water allowance from 100,000 gallons to 50,000 gallons. Adam Lanning, superintendent of water and water reclamation, stated the facility will utilize a closed-loop cooling system, likely requiring significantly less than the cap. The developer is also required to fund approximately $2.8 million in water and sewer improvements, including boring new lines under the BNSF Railway tracks to create a pressure loop that benefits the wider system.

Steward Road to undergo urbanization paid by developer

ROCHELLE, Ill. — The development agreement necessitates significant upgrades to Steward Road to meet city standards for a Class II truck route. The project will urbanize the roadway from the current improvements near South Main Street up to the bridge, adding curb, gutter and storm sewers. Interim City Manager Sam Tesreau confirmed that while the data center is expected to generate low traffic volume—approximately 300 vehicles per day—the road improvements are vital for continuity. The developer will post a surety bond or place funds in escrow to cover the full cost of these roadworks.

Council plans update to city sound ordinance

ROCHELLE, Ill. — Addressing noise concerns associated with data center cooling fans, Interim City Manager Sam Tesreau announced plans to update Rochelle's sound ordinance. While the site is already located in a high-noise area bounded by Interstate 88 and the BNSF Railway, the city intends to establish more specific reasonable approval rights over noise-suppression measures. Tesreau indicated staff would review the current code to ensure it includes specific decibel-level limits to protect nearby residents, with a revised ordinance to be presented to the council soon.

Projected tax revenue estimated at $3.5 million annually

ROCHELLE, Ill. — Despite a request for a 50 percent property tax abatement over six years through the Enterprise Zone, the project is expected to generate roughly $3.5 million in annual property tax revenue. City staff presented data indicating the local school districts would receive the majority of these funds, with Rochelle Township High School District 212 projected to receive roughly $900,000 and Rochelle Elementary School District 231 projected to receive $1.2 million. The city's portion of the property tax is estimated at $375,000 annually, helping to offset recent losses in other revenue streams such as the grocery tax.

City anticipates $450,000 annual boost from utility taxes

ROCHELLE, Ill. — Beyond property taxes, the City Council discussed the significant revenue expected from utility taxes on the data center's electric usage. Finance Director Matt Hoffman projected the facility would generate approximately $450,000 annually in utility taxes alone—nearly doubling the city's current total collection in that fund. These funds are earmarked for capital improvements, such as street and sidewalk repairs, providing a recurring funding source for infrastructure maintenance without impacting residential tax rates.

Rochelle police win Pinewood Derby trophy

ROCHELLE, Ill. — The Monday meeting opened with a recognition of the results from the recent Cub Scout Pack 553 Pinewood Derby. The Rochelle Police Department took first place in the competition, besting the Kiwanis Golden K, which took second. The Rochelle Fire Department received the award for best design. It was noted that the Mayor's Office finished in last place, and city departments were thanked for participating in the community event.

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