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.

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