EAST PEORIA, Ill. (AP) Caterpillar is selling 87 acres of a former factory site for approximately $9.8 million to the city of East Peoria.

City officials hope the deal with the construction equipment maker will encourage development and possibly inspire a new downtown district in the central Illinois city.

According to the agreement, East Peoria will pay the Caterpillar Foundation —which is the company’s philanthropic arm — approximately $9.8 million.

The city will fund the deal through the sale of the land to private developers.

City council member Tim Jeffers described it as a “pay-as-you-go” kind of deal.

East Peoria Mayor Dave Mingus said the sale has been a long time coming.

Today's top stories

Reconstruction of Frank J. Wood Bridge in Maine Under Way

Buffalo Looks to Improve, Protect Ralph Wilson Park

Webuild Ready to Rebuild Collapsed Baltimore Bridge

Make Eliminating Jobsite Distractions Company Safety Goal

VIDEO: Komatsu Holds Demo Days at Cartersville Customer Center

Tracey Road Equipment Plans Major Expansion in Utica

Rototilt Investing in Factory Expansion in Sweden

New TEC Equipment Rental Location in Columbia, S.C., Joins Takeuchi Dealer Network