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Formosa spearheaded and financed the plan, which was packaged by a
former state employee who is knowledgeable about the intricacies of
getting an extension passed. Formosa will not only see savings on
construction material and property taxes paid to Sangamon County,
but will continue to see benefits of approximately $200,000 per year
savings on relief from a state-imposed natural gas tax for as long
as they are in the enterprise zone. Without these benefits it is
possible the plant would not be able to rebuild.
What does an
enterprise zone do?
The
purpose of enterprise zones is to develop property for industry. It
helps bring industrial, manufacturing operations or service jobs to
an area. It could be factory production, telemarketing, health
facility or any number of other businesses that are something other
than retail or residential. Incentives are offered help get
businesses here, Logan County zoning officer Phil Mahler said.
Enterprise zones were established throughout the state of Illinois
to help with economic development. Each of the zones has specific
needs parameters that new territories must meet. Lincoln-Logan
County extensions must meet a 120 percent unemployment increment.
The
zones have a 10-year life span and come up for renewal in 1997.
Incentives to
businesses:
>Property tax relief
Businesses receive temporary, partial or full city, county and state
tax relief.
Enterprise zone participants are relieved of paying the increased
portion of the property tax that comes when they develop or
improve a property -- 100 percent the first five years and 50
percent the next five years.
>Retail tax relief
Businesses are exempt from retail taxes paid on construction
materials for permanent structures when they buy from another
business in an enterprise zone anywhere in Illinois.
>Some state taxes
The
state has added a natural gas tax to large consumers, which has
increased costs 75 percent to 80 percent over the last couple years.
Formosa uses a lot of natural gas in the processing of their PVC
product. They expect to see an estimated $200,000 savings from this
alone.
How does the area
benefit?
Sangamon and Logan County businesses will benefit from the purchase
of some construction materials. All areas with new development will
gain from temporary construction and continuing good-paying industry
jobs, as well as worker support businesses (cottage industries),
such as fuel and food and increased numbers of residents in the
area.
In
appreciation of the benefits that the enterprise zone offers,
Formosa will be paying Lincoln and Logan County $5,000 each to be
used toward the enterprise zone. Formosa will also cover the work
and cost of the next 10-year renewal process that carries the
enterprise zone to June 30, 2017.
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There was little discussion before the vote was taken Tuesday
evening. Board member John Stewart asked Steve McClure, who
presented the plan, if the state economic development and commerce
department and Sangamon County approved of this.
McClure said yes.
Chairman Dale Voyles added that he received a letter from the chairman of
the Sangamon County Board thanking us for our help and cooperation.
“They are very happy that we are willing to work with them,” he
said.
The
plan has passed the Regional Planning Commission Enterprise Zone
Board, the city of Lincoln, Sangamon County Board and now the Logan
County Board. It will be presented at the next monthly meeting of
the village of Elkhart, and then it will go to the state enterprise
zone board for final review and approval.
The
request was 100 percent approved.
New information
system approved
The
county approved a recommendation of new software and some hardware
changes and upgrades for the computer information system that
integrates the county departments and offices. Research of the
county information needs was performed by a local firm, Integrity
Data Inc. Patrick Doolin of Integrity Data began meeting with county
departments in June and through the summer sorted through software
options that best fit the county's current and future information
system needs.
The
major emphasis was placed on financial accounting, payroll
processing and tax records. Software will be purchased from
Microsoft Business Solutions, Tectura and DevNet. There will be a fee
paid to the current software supplier, Manatron. And some additional
hardware will be purchased from Computer Consulting Associates, a
local company. A total cost of $578,872 is expected to be spread out
in payments over five years.
The
manner of financing the system will be determined with further
research by the finance committee. Voyles said that if
it is legally permissible and a good deal can be found with a local
bank, they would prefer to pursue that avenue. If it is not an
option, then there are several other options, including financing
through Microsoft, finance committee chairman Chuck Ruben said.
Timing of the changeover is important to avoid excess fees for using the
old software past its renewal time, and careful consideration was
given to not interrupt annual busy times in some departments.
Financials will be up and running on the new system by Dec. 1. Some
other parts are expected to take until January, Doolin said.
The proposal was 100
percent approved.
[Jan
Youngquist]
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