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 The evening began with Lincoln aldermen introducing themselves,
saying how long they have served the city, and making comments on
what they would like to see for the future of Lincoln, as well as
the relationship between the city and county. The county board
members introduced themselves, told how long they had served on the
board and discussed the committees they serve on and the work those
committees do.
After the introductions, new Logan County Board Chairman David
Hepler who called for the meeting, said, "We're not supposed to
agree all of the time, but we probably should agree most of the
time, as we have a lot more in common." He also noted that during
their introductions, the city aldermen offered the same purposes in
their service as the county board members, which most said their
purpose was to make Lincoln and Logan County a good place to raise
families and a place that is attractive to businesses.
The priority topic of the evening though was the upcoming expiration
of the Lincoln and Logan County Enterprise Zone and the need for
filing a new application by the end of 2015. The Enterprise Zone is
a sales and property tax abatement program offered through the state
of Illinois for the purpose of attracting businesses to an area to
build or rebuild economic prosperity.
 The local Enterprise Zone administrator, Will D’Andrea, took the
lead on the topic, beginning with a PowerPoint presentation on the
new application process.
The current EZ was issued in 1987, the result of an initiative by
the Illinois Department of Commerce and Community Affairs. The goal
was to provide tax incentives to businesses willing to invest in new
facilities or expand existing facilities within the zone. In order
for a community to qualify for an Enterprise Zone, it had to
document that there was a high rate unemployment and that allowing
tax breaks for businesses would help reduce unemployment within the
zone.
As the city of Lincoln is the largest municipality in Logan County
with the most business area, therefore offered the most areas with
higher rates of unemployment, new additions to the Enterprise Zone
often include a portion of the city of Lincoln.
When the original zone was established, there was no geographical
boundaries specified. Instead, each awardee was given 13 square
miles of zone potential, with the rule being the zone borders had to
be contiguous.
Over the years, the zone has been expanded on several occasions, and
has reached out beyond the county borders, creating what Will
D’Andrea referred to last week as "a spider effect."
The current Lincoln and Logan County Enterprise Zone is set to
expire in 2017. For a time, it was thought that the State might
dissolve the program completely at the expiration date. It was also
hoped that the State would keep the program and do some type of
renewal for existing zones as they came to their expiration dates.
However, more than a year ago, the State announced the EZ
application process would be redefined, and there would be no
automatic renewals of current zones.
On Wednesday night, D’Andrea shared through a PowerPoint
presentation and a handout the new criteria for applying for an
Enterprise Zone. He explained there will be ten criteria with points
assigned to each one. Those criteria are: Unemployment, Employment
Opportunities, Poverty, Abandoned Coal Mine, Brownfield, or Federal
Disaster Area, Large Scale Business closings, Vacant Structures, Tax
Base Improvement Plan, Public Infrastructure Improvement Plan,
Career Skills Programs, Equalized Assessed Valuation
(For a complete
description of each criteria
Click here).
D’Andrea said that the criteria score was only a portion of the
application process. He said there would be consideration given to
other factors, and at this time at least, those factors are not
being disclosed by the state panel that will make the decisions. He
also noted that the panel would not be required to award or deny any
application based solely on the applicant score. And finally, having
a zone in place already, will not necessarily give the applicant an
advantage.
In January, the State released the results of the first round of
applications. For this year, there are 49 designations available
with 67 applications filed. The applications will be reviewed, and
the awards will be granted by the end of this year to take effect
January 2016.
The next round of awards will be given to only 13 applicants. Those
applications will be due in to the State of Illinois Department of
Commerce and Economic Opportunity by the end of 2015. The
applications will be reviewed and scored, and awards will be granted
by the end of 2016 to take effect in 2017.
D’Andrea explained that this second group of applicants would
include Logan County. He said that of the applicants turned down
this year; there was a good chance many would re-apply for the next
round of awards. In addition, there would be a good chance that like
Logan County, the 13 expiring zones would apply to keep their zone.
He concluded saying that now was the time for the county and the
city to get organized and get started on preparing an application.
He told the group “the clock is ticking.”
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As the topic was discussed, questions were asked about what
the zone does for new businesses. In short, it gives new
businesses tax breaks for building inside a zone. In Logan
County tax breaks are given for property tax from specific
taxing bodies -- District 27 Schools, Lincoln Park District, the
city of Lincoln, and Logan County. The tax break is 100 percent
abatement for the first five years after construction and then a
50 percent abatement for the second five years. In addition,
and possibly more importantly, the business receives sales tax
exemptions on construction materials. There is also a savings on the
state portion of the natural gas tax, which is a significant savings
for large users such as in the agricultural industry drying grains.
County board member Jan Schumacher asked if D’Andrea knew if there
were businesses who sought out Logan County because it had an
Enterprise Zone. D’Andrea said he didn’t have any documentation, but
there had been occasions when that was expressed.
With the current zone set to expire in 2017, the question was asked,
would anyone taking advantage of the Enterprise Zone now be able to
get the full ten years of property tax credits. D’Andrea said they
would not. Currently, there are two grain elevators looking to
expand that have asked to be added to the zone; Burtonview and
Grainland, in Emden. If added to the zone, those two businesses will
get their sales tax exemption, but they will only get two years of
property tax breaks.
Comments were made on the stretch of the current zone. The Logan
County Zone has extended into other counties. The two specifically
mentioned were to Illiopolis in Sangamon County and Farmer City in
DeWitt County.
Steve McClure and two other representatives from Opportunity
Alliance were on hand for the Wednesday meeting. McClure represents
private businesses seeking Enterprise Zone designations. He said
that reaching outside the county had been good for the current zone,
and he pointed out that even though construction took place outside
of Logan County, it may have had an effect on employment in Logan
County, which is one of the goals of the zone in the first place.
At the same time, D’Andrea noted that Sangamon County is applying
for its designation with Springfield. He said that would eliminate
at least one county from the existing Lincoln/Logan Zone.
A question was asked about the ten criteria for applying for a new
Enterprise Zone and would that same criteria be used locally when
considering applicants. D’Andrea said, not specifically. When
looking at a new business to add to the zone, yes, consideration
needs to be given to what effect the business can have on reducing
unemployment and poverty, but businesses will not be scored or asked
to meet all of the 10 criteria.
At the same time, McClure noted that adding geographical area to the
zone that meets a specific criterion could be to the county’s
advantage. He noted specifically the criteria pertaining to
abandoned mines, and said if the county could include an abandoned
mine in its zone, it would gain 20 points in the application
process.
As the discussion of the topic drew to a close, it was suggested
that the county and city should work together with D’Andrea to
complete the new application. Hepler said he would be willing to
serve on a committee with D’Andrea and perhaps Mayor Snyder. Many of
the county board members expressed agreement that a committee
representing the city and county together would be a good move.
Hepler asked for a vote from his board and received an affirmative
response that the board wanted to work with the city. Snyder
explained that city by-laws would not allow him to ask for a vote,
but he said, “I don’t see anyone nodding against it.”
Present for the Logan County Board were Andy Anderson, Rick
Aylesworth, Kevin Bateman, David Blankenship, Emily Davenport, David
Hepler, Pat O’Neill, Gene Rohlfs, Chuck Ruben, Jan Schumacher and
Scott Schaffenacher. Present for the Lincoln City Council were
Michelle Bauer, Scott Cooper, Jeff Hoinacki, Kathy Horn, Todd
Mourning, and Marty Neitzel.
[Nila Smith]
Complete description of Enterprise Zone
criteria
Past related articles
01/22/2015 -
Commerce Department to Review Proposals for
Enterprise Zones
Program Promotes Job Growth in Communities Across the State
06/09/2014 -
County subdivision regulations nearing
completion
Enterprise Zone reapplication eyed |
