Operating Overview

Transportation

Our central location is backed by a strong transportation network that lets you:

• Minimize the impact of congestion--a problem that costs the US economy more than $87 billion each year*
• Compensate for volatile fuel prices
• Speed products to market

*Texas Transportation Institute, 2009 Urban Mobility Report

Highways:

• I-88 (a key east/west route)
• I-39
• I-80
• I-74

Rail:

• Main line for Union Pacific Railroad
• Direct connections to West coast, Chicago, Clinton, Iowa port, and Global III Intermodal hub

Air Service:

• Whiteside County airport (4 miles from Sterling)
• Quad City International airport (50 miles from Sterling)
• Chicago Rockford International airport (66 miles from Sterling)
• O’Hare International airport (111 miles from Sterling)

Major motor carriers:

• Rock River Cartage
• Con-Way Central Express
• Dohrn Transfer Company
• Northern Illinois Transit

Labor Shed
The Greater Sterling area has a stable population of over 158,000 and competitive wage and benefit rates that are up to 15% lower than those in suburban Chicago.

Source: Proprietary research conducted for the Greater Sterling Development Corporation

Utilities

Sterling has a deregulated power system, a low-cost and reliable natural gas supply, water/sewer with excess capacity to support future growth, and multiple provider options for basic and high-speed data services. And because the same utilities provide many key services, rates are very similar to the Chicago market.

Electric:

Deregulated power system

• Provider: Commonwealth Edison  www.ucm.com

Natural Gas:

• Two major transmission lines
• Provider: Nicor Gas  www.nicor.com/en_us/commercial/default.htm

Water:

• Sourced from five wells; combined capacity of 5.2 million gallons/day
• Provider: Illinois American Water Company

Sewer:

• Municipally owned
• Current capacity of 4.4 million gallons/day; can be expanded to 9 million gallons/day

Telecommunications:

• Basic and high-speed available
• Providers:  AT&T, Insight Cable, T6 Broadband

Taxes

• Corporate Income Tax
  4.8% of net income (statewide)
• Personal Income
  3% of net income (statewide)
• Personal Property Tax
  2.5% of net income
• Inventory
  None in the state of Illinois
• Sales
  6.75%

Source: Illinois Department of Revenue

Workers’ Compensation
Cost for a typical manufacturing job in Illinois is $3.65 per $100 of payroll.

Source: U.S. Bureau of Labor Statistics

Incentives

The Greater Sterling Development Corporation and the Whiteside County Enterprise Zone offer a variety of programs designed for qualifying new, expanding and relocating businesses.

Tax credits

• 0.5% investment tax credits on machinery, equipment and existing buildings
• $500 tax credit for each job created for which a certified dislocated worker is hired

Tax exemption

• 5% tax exemption on machinery used or consumed in operation of pollution control facilities to qualifying companies
• 5% state utility tax exemption

Tax abatements

• Five-year property tax abatement (from 35% to 94%) for qualifying new construction/renovation
• Ten-year property tax abatement for qualifying new construction/renovation projects that create 500 full-time jobs and invest at least $25,000