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 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 current zone was created in 1987. The goal was to provide tax
incentives to businesses in order to promote growth of new
facilities or to expand existing operations. In order for a
community to qualify, it had to show that there was a high rate of
unemployment and that allowing tax breaks for businesses would help
reduce unemployment.
Due to the size and location of the city of Lincoln, new additions
to the Enterprise Zone added since then have often included a
portion of the city.
When the original zone was established, no geographical boundaries
were specified. Instead, each recipient was given 13 square miles of
zone potential, with the rule being the zone borders had to be
contiguous. Due to a number of expansions and its three-foot-wide
connecting corridors over the years, the current zone has been
referred to as a spider web of sorts.
The current zone, as well as every zone in the state, is set to
expire in 2017, and there was a time where it was thought the
program would go away altogether. With the upcoming expiration date,
a new application will need to be filed by the end of 2015.
 There are ten criteria to be considered as part of a zone
application. 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, and Equalized Assessed Valuation.
According to what is known so far, the criteria score is only a
portion of the new Enterprise Zone application process.
Consideration will be given to other factors, and the panel scoring
the applications is also not required to award or deny any
application. Furthermore, having a zone in place already will not
necessarily give an applicant advantage.
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 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.
Also, if applicants are turned down this year, there is a chance
they will re-apply for the next round of awards when Lincoln and
Logan County are set to apply.
Steve McClure from Opportunity Alliance commented on the Thursday
meeting after it was finished. Since 2004, Opportunity Alliance has
represented businesses from nearby areas that could benefit from the
Lincoln/Logan County Enterprise Zone. McClure and Andrew Hamilton
contributed significantly during the first meeting between the
Lincoln City Council and Logan County Board to discuss the
reapplication process this past January. McClure worked with the
state and was part of writing the current zone program under former
Governor Oglesby.
“We know the process of applying for an Enterprise Zone really
well,” said McClure. “It is a very competitive process.”
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McClure has worked with several companies in the area since the zone
was first approved. McClure said there are many businesses in
Lincoln and the rest of the county that have benefitted greatly from
having an Enterprise Zone.
McClure said that the meeting was held for a few reasons. The first was to
inform business owners of what was happening. Another purpose of the meeting was
to explain what exactly an Enterprise Zone is and how it operates, and how it is
different from other zones, such as TIF districts. McClure said that overall,
the meeting was held to educate business owners on this process.
“There were a couple of businesses that didn’t even know the Enterprise Zone was
ending until today,” said McClure. “They thought it was something that would
stay forever.”
Another reason for the meeting was to ask the businesses to help in the
application process. McClure said the business owners have been asked to write
letters of support for the application. “These letters need to show why the
businesses believe that the zone is important,” said McClure. McClure said the
letters need to include data on job creation and money that is invested because
of the zone. This data will be used in a model study that will be used to
project fifteen years of economic data.
McClure said that the Enterprise Zone has been a very good thing for the county.
As an example, he has worked with a lot of grain elevators that have a presence
in the county. Because of the Enterprise Zone, the grain elevators have chosen
to invest millions of dollars and created many jobs in Logan County.
“A lot of the grain elevators have businesses all over the country,” said
McClure. He said that these grain elevators have likely been encouraged by the
presence of an Enterprise Zone to build and improve business here. “They have to
make a choice on where the make their investments,” said McClure.
Altogether, an estimated 25 to 30 businesses were present at the meeting.
McClure said he was very happy with the turnout. “I don’t know if I’ve seen that
many businesses at a meeting like this before,” said McClure.
[Derek Hurley]
Past related articles
02/05/2015 -
Lincoln and Logan County prepare to join
forces for next Enterprise Zone application
01/22/2015 -
Commerce Department to Review Proposals for Enterprise Zones
06/09/2014 -
County subdivision regulations nearing
completion Enterprise Zone reapplication eyed
12/12/12 -
Enterprise zone legislation, bicycle trail
planning, comprehensive plan revisions top regional planning
commission discussions
09/22/2004 -
Lincoln-Logan Enterprise Zone extension helps
Sangamon County |
