Wednesday, July 09, 2008
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City approves 3 enterprise zone expansions

Includes prime development areas to market near Lincoln and extensions to Monsanto's Illiopolis and Farmer City sites

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[July 09, 2008]  A request from Monsanto to extend the Lincoln/Logan County Enterprise Zone to its two Illinois sites was presented to the Lincoln City Council on Monday. [click on map for larger image]

CivicInitially Monsanto requested the designation for just their Illiopolis site. The Lincoln/Logan County Enterprise Zone was already extended to Illiopolis.

The current request was modified to include Monsanto's Farmer City site also.

The major benefit to the company would be in relief from a state natural gas tax.

In addition to approvals from the city of Lincoln and Logan County, the governments of each of the other participants would need to approve the expansion. These include DeWitt County, where the Farmer City plant resides, and Sangamon County, where the Illiopolis plant resides, as well as a sign-off from Elkhart.

Phil Mahler, director of the Logan County Regional Planning Commission, previously explained that an area to the north of Lincoln has been identified for its potential to attract big business and is included in this request. The area north of Lincoln includes acreage extending from Eaton to the East Lincoln Grain Elevator. It has great infrastructure in place that includes easy access to Interstate 55 and railroads.

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Mahler said he would be working at marketing the new area for Lincoln. He has already made a connection with a large seed company to review the possibilities.

Once all parties have signed off or reached an agreement, the application is sent to the state for approval.

Logan County unanimously approved it last month.

The council approved the request this past Monday, 8-1. Alderman Dave Armbrust voted no.

Armbrust also serves on the regional planning commission and was one of two "no" votes when it was presented there last month. He had expressed concern for selling the limited resource to a big company.

Monsanto agreed to pay each of the holders of the enterprise zone, Lincoln and the Logan County, $20,000 per year for as long as the enterprise zone is active.

The city's approval was given pending an amendment to the wording of the agreement, so that it would state that the money would be used for administration of the enterprise zone or to promote new investments of business for the enterprise zone.

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How the three expansions would affect the available territory:

  • Extensions to the two Monsanto sites:
    0.8 square miles

  • Potential site developments around Lincoln:
    2.8 square miles

  • Total additions:
    3.6 square miles

Add the above expansions to the current 6 square miles in use, and approximately10 square miles will have been used in 22 years. About 5 1/2 square miles would remain available for future developments.

According to Steve McClure, an expert on enterprise zones, Speaker of the House Michael Madigan decided a few years ago that no more enterprise zones would be created. Madigan declared that the 94 or 95 zones already in existence should be expanded. Neither Mason County nor DeWitt County has an enterprise zone. Springfield has an enterprise zone but has not chosen to extend outside its city limits, so Sangamon is without an enterprise zone also.

It is not known right now if the state will continue renewals of the program. The Lincoln/Logan County Enterprise Zone expires on June 30, 2017.

Mahler said that he has another enterprise zone request in process for Remington Seed. Remington is planning to build a 44,000-square-foot building. Their expansion would create three to five new jobs and would involve 3-5 acres. The company is located two miles out of Lincoln on Route 10.

Both Mahler and Joel Smiley, director of the Lincoln & Logan County Development Partnership, endorse the proposed expansions.

[By JAN YOUNGQUIST]

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