By Gloria Casas | The Courier-News/Chicago Tribune/Daily Herald
A proposed agreement under which 74 acres of property would be annexed into East Dundee includes a provision that would allow a data center to be among its future development options.
Plote Properties has no immediate plans to build on the site, located west of Beverly Road and south of Route 72, officials said. The annexation agreement is “still in negotiations,” Village President Dan Pearson said.
The land is part of a larger 253-acre parcel owned by East Dundee-based Plote, a portion of which was annexed into the village in January 2025 and zoned for manufacturing so that Plote could continue its mining operations and have space for truck parking.
Under the proposed annexation agreement, the village would agree to create a tax increment financing (TIF) district for the area.
The agreement for the eastern portion of the land is similar to the one for the western portion approved in 2025 — with a few additional provisions, Assistant Village Attorney Stew Weiss said at a public hearing for the deal held as part of a recent village board meeting.
One provision would require the village to provide financial incentives for the development of the full 253 acres, Weiss said. A “qualifying development,” or any development of 100,000 square feet or larger, could receive a 25% reimbursement for TIF-eligible expenses, an electricity tax rebate of 25% and an electricity tax freeze for a 20-year term, according to the agreement under discussion.
The agreement will detail the scope and nature of the proposed development incentives, lay out how a “qualifying development” is defined, and establish development performance standards for future uses, including data centers.
The proposed M-1 zoning designation would allow for several permitted “future uses” and “would require no additional zoning relief” if Plote wants to use it for a data center, electrical substation, accessory use facility or high-voltage transmission line at a height of 300 feet. Data centers are allowed in M-1 districts.
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