Illinois launches $500M site readiness initiative to spur redevelopment

Illinois is launching a $500 million Site Readiness investment as part of its fiscal year (FY) 2026 balanced budget under Gov. JB Pritzker. The goal is to repurpose underutilized or state-owned properties to attract private investment, create jobs and revitalize local economies.

The initiative includes two components, both of which offer substantial opportunities for economic development.

The Illinois Department of Central Management Services (CMS) is leading the Surplus to Success program, which will redevelop idle state-owned properties. The state is investing $300 million through bonds to prepare these properties for productive, revenue-generating uses. Funding will support environmental cleanup, site remediation and marketing of these properties for redevelopment.

Five state-owned properties have been identified by CMS for redevelopment under Surplus to Success, totaling 530 acres. These sites will be remediated and marketed for industrial, commercial or community-based development:

• Dwight Correctional Center – Dwight, Ill.
• Singer Mental Health Center – Rockford, Ill.
• Jacksonville Developmental Center – Jacksonville, Ill.
• Lincoln Developmental Center – Lincoln, Ill.
• Shapiro Developmental Center (Unutilized Land) – Kankakee, Ill. (Note: operational portions of the center will remain unaffected.)

The second component allocates $200 million to the Illinois Department of Commerce and Economic Opportunity (DCEO) to expand existing Site Readiness programs. These funds support business attraction and site infrastructure, including utility upgrades, permitting and grading. Similar to the Surplus to Success program, the objective is to prepare sites for shovel-ready development—but this program is also open to public and private ownership. Municipalities, economic development organizations and private landowners may apply for funding to support large-scale projects.

The $500 million investment is expected to reduce project timelines through pre-development work, expand the tax base through job creation, eliminate blight and help revitalize communities across the state.

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