Dixon celebrates $2M in federal funding for flood ponds; opens up further commercial development
U.S. Rep. Darin LaHood, R-Peoria, formally announced Friday $2 million in federal funds secured for the creation of retention ponds to the west of Dixon's major economic development near Interstate 88.
LaHood and Dixon city and public works officials gathered behind the Fairfield Inn at 1755 Fulfs Lane in Dixon to make the announcement. They stood near the site of the future ponds, which is one of the top two areas where water detention or retention was found to be needed during a study the city engaged in more than eight years ago.
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U.S. Rep. Darin LaHood, R-Peoria, speaks Friday, May 8, 2026, about the Dixon project for the creation of retention ponds to the west of Dixon's major economic development near Interstate 88. (Payton Felix)
"What a great day for Dixon," LaHood said. "Projects like this are all about strengthening the foundation of our communities. By making this investment, we are supporting economic development, enhancing public safety and preventing future damages...for the city of Dixon related to flooding."
The ponds are planned to be part of the soon-to-be Bloody Gulch Park, the 40-acre property that was donated to the city in October 2024. It's located off Bloody Gulch Road between the economic development along South Galena Avenue, known as the Gateway Project, and a neighborhood called Overlook Gardens.
"Fargo Creek is the number one contributor to the floodway and floodplain designation in Dixon's downtown commercial business district along the Rock River. Flooding along Fargo Creek has led to devastating damage to the southwest side of Dixon, severely impacting residents and halting commercial growth in the area," LaHood said.
Detention and/or retention ponds are used to collect stormwater and release it gradually, which prevents flooding, erosion and water contamination.
City officials are planning for that now-empty green space to be complete with a multi-use path, the retention ponds, fishing piers and picnic areas. That pathway is planned to connect to the pedestrian bridge being constructed over the Rock River, which is expected to be completed in June, Dixon City Manager Danny Langloss said.
"It's really going to be a quality-of-life amenity and it's going to drive all the additional development," Langloss said.
Construction of the ponds will be about an 18-month project. The city is waiting for the go ahead to draw up the engineering agreements before that can begin, Langloss said.
The pond would start behind Pirups Landing, an 18-acre rental development off Taylor Court owned by local real estate broker Ted Hvarre, and run parallel to the future multiuse path through a 17-acre, city-owned property into Bloody Gulch Park, Langloss said.
That 17-acre property was given to the city through a deal with Hvarre that enabled him to begin constructing Pirups Landing.
Once the ponds are completed, it will open up 3.31 acres currently used for flooding mitigation to, instead, be available for more commercial development in the Gateway Project, which is the 27-total acre development on the east side of South Galena Avenue between Keul and Bloody Gulch roads.
Several businesses have opened within the development so far, including a Chipotle, Jersey Mike's, Casey's gas station, T-Mobile, Wynn Nail Spa, a cannabis dispensary, a child care center operated by the Dixon Family YMCA, Water Castle Car Wash, a Fairfield Inn by Marriott and a Tropical Smoothie. Other businesses are on the way, including an OSF OnCall urgent care, McDonald's and a 7 Brew coffee shop.
Langloss said Gateway's developer already has people with active interest in the two sites the ponds will open up.
"We're always looking at how can we invest federal dollars through infrastructure that create economic development? This project is going to create more tax revenue, more jobs, more opportunities for Dixon. That's really what we focused on...and it didn't take long for people to grasp onto that," LaHood said about making the case for funding this project at the federal level.
"This is exactly the type of project that demonstrates responsible use of taxpayer money and I will defend every nickel of the $2 million that's coming here to Dixon for this project," LaHood said. Depending on how things play out with this project and economic development in Lee County, "I think there'll be opportunities for further federal funding."
LaHood has "really been a champion for his district and he's been a champion for Dixon," Langloss said.
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