For the past couple of decades, the I-94 North-South Corridor between Milwaukee County and the Illinois state line has been the region’s most visible engine of growth.

Millions of square feet of industrial space, sprawling corporate campuses and new housing have reshaped communities along the roughly 25-mile stretch of freeway in Racine and Kenosha counties.

While Kenosha, Pleasant Prairie and Mount Pleasant have captured a bulk of the development action, other municipalities that border the freeway have also seen increased development pressures and have had to grapple with questions of how — or whether — growth fits with local identity, infrastructure and long-term financial stability.

BizTimes asked leaders in each of those municipalities how development pressures have changed and what growth priorities are guiding their decisions.

Union Grove

Located in central Racine County, Union Grove sits just west of I-94 and has experienced growth largely as a byproduct of development elsewhere in the corridor.

Village administrator Connor LaPointe said development pressure in the village has increased significantly in recent years, driven mostly by residential demand rather than large-scale commercial or industrial projects. That’s primarily because Union Grove is landlocked by Yorkville and doesn’t have the large undeveloped properties needed for modern industrial or commercial development.

Still, LaPointe said he meets with developers almost weekly, most of whom are seeking tax incremental financing, which the village is “completely extended” on its capacity to offer.

That residential growth has been accompanied by modest downtown commercial activity, including the recent opening of a brewery and a bookstore, among other consumer-facing businesses. The village’s focus, LaPointe said, is on strengthening its small-business core rather than pursuing transformative projects.

“We’re focused on preserving local character to the extent we can,” LaPointe said. “We want to grow commercially. We want to grow our small businesses like mom and pop shops to come in.”

Much of the recent growth, LaPointe said, is spillover from broader regional growth in the industrial sector bringing new jobs, with many new residents relocating from Illinois. Prior to this wave, Union Grove’s last significant growth period was roughly 25 years ago.

Yorkville

Development interest in Yorkville has been cyclical, with attention largely concentrated along I-94 between Highway 11 and Highway 20, according to village administrator Mike McKinney, who has worked for the village for more than 12 years.

One of the most intense periods of pressure came between the Foxconn announcement in late 2017 and the onset of the COVID-19 pandemic in 2020. Outside of that window, McKinney said development inquiries have tracked broader economic trends.

Most proposals Yorkville receives are light industrial or commercial, but a lack of municipal water and sewer infrastructure along much of the I-94 corridor has constrained development. Currently, utilities serve only areas adjacent to and south of the I-94/Highway 20 interchange, which is where Yorkville has seen its commercial growth. While expansion has been discussed, those conversations have not advanced beyond the exploratory phase.

Yorkville’s leadership has adopted a conservative growth philosophy, favoring organic development over financial incentives.

“This has resulted in very slow, steady and sustainable growth,” McKinney said.

Areas outside the freeway corridor remain largely agricultural or rural residential, a direction reinforced by the village’s 2020 comprehensive plan amendment process, which showed strong community support for preserving open space and limiting large-scale development.

In December, a local real estate broker floated the idea of Microsoft locating its data center that had been planned for Caledonia in Yorkville. But Yorkville officials made it clear that a data center would have little chance of winning approval in the village if one were proposed.

Somers

Somers, located between Racine and Kenosha, is seeing development interest across a broader range of housing types and commercial uses.

Proposals include single-family subdivisions, townhomes and multifamily developments totaling several hundred units, including a 257-home redevelopment of the former Maplecrest Country Club.

At the same time, Somers has seen increased interest from manufacturing, commercial and data center-related businesses. One of the most significant recent projects is a $43 million investment by radiator manufacturer IEA that relocated operations to an existing industrial building in the village.

“We are very intentional in maintaining our historical uniqueness,” the village said, noting strong resident interest in preserving agribusiness roots and rural lifestyle amenities.

Somers’ location between Racine and Kenosha, with three east-west highways connecting directly to I-94, continues to drive interest. Officials also point to the presence of the University of Wisconsin–Parkside and portions of Carthage College as economic assets that support local businesses.

“We are focused on ensuring high-quality construction, protecting property values, maintaining a diversified tax base to help reduce the tax burden on residents, and preserving the overall visual character of the village.”

Raymond

By most outward measures, the Village of Raymond looks much as it always has. Wide-open fields stretch between farmhouses, families trace their roots back generations, and until recently, single-family homes were required to sit on five-acre lots.

But village leaders say that low-density, low-tax model is no longer sustainable.

With a new village president in office and a long-awaited utility connection approaching, Raymond is looking to I-94 as a financial lifeline.

“The opportunity is right there in front of us,” said village president Doug White, who took office in April. “Building around the interstate is the only thing that’s going to save this village.”

The push for development is driven by mounting financial pressure. Raymond’s population has grown by just 75 residents since 2020, with only four or five new homes built in a typical year. Even high-value homes on large lots generate relatively little property tax revenue for the village, which operates on an annual budget of about $2.5 million and maintains one of the lowest mill rates in Racine County.

Under the village’s 2050 Comprehensive Plan, all land directly abutting I-94 is designated for business park and commercial development, with denser residential uses planned just west of the freeway. Everything farther inland would remain agricultural or rural residential.

“I’m not looking to raise anybody’s property taxes or change their way of life,” White said. “It’s just the opposite. I want to keep our property taxes low and maintain our rural character — but the only way you can do that is to develop the I-94 corridor.”

A key piece of the equation is infrastructure. The Milwaukee Metropolitan Sewerage District is planning to extend a sewer line to the Racine County line, allowing Raymond to connect and potentially build out utilities east of 43rd Street. Village leaders are exploring the creation of a tax incremental financing district to help fund that buildout, though they say an anchor development will be needed before construction can begin.

Officials from Caledonia and Paris did not respond to requests for comment.

Officials from Bristol shared its 2050 land use plan, which envisions most of the village’s land being preserved for agricultural and residential uses, with some pockets along I-94 for commercial development, including industrial.