Wednesday, July 24

[JULY 24, 2002]  The resignation of director Mark Smith won’t stop the Economic Development Council from continuing to look for ways to bring more jobs to the Lincoln/Logan County area, members say.

"We are going to pick up where he left off. It’s like a ball team; we’ll put another player in his place," county board chairman Dick Logan said.

"The EDC will not disband," said Bobbi Abbott, head of the Lincoln/Logan Chamber of Commerce. "We are right now open to ideas from the city, the county and the chamber board about regrouping and rehiring. We are considering several different ways to reorganize the office.

[Bobbi Abbott]

"We will continue to look for ways to stimulate the economy and to keep LDC open," she added.

Smith’s resignation is effective at the close of the business day Aug. 2. He will become director of planning and development for Macon County, with headquarters in Decatur.

"It was an offer I couldn’t refuse," Smith said of the new appointment. He has served as director of the Lincoln EDC for three years and two months and helped develop the plan for a new commercial and industrial park on the north side of town.

The commercial park plan calls for the county to purchase 63.5 acres of land north of town for about $800,000 and for the city to run a sewer line to the property at a cost of about $1.1 million. Neither the city council nor the county board has as yet made a financial commitment to the project.

"His resignation was definitely a surprise," Abbott said. "We are disappointed he wasn’t able to stay to see the commercial park through to completion, but we understand if he got a better job offer he must think about himself and his family.

"My phone has been ringing constantly with calls from people encouraging us to continue and recommendations for filling the position," she said.

Logan said he thought EDC should hire a new director, but he would consider some changes in the position.

"The county has been looking at hiring a grant writer. There might be a way to combine positions. We are open to various ideas," he said.

Steve Fuhrer, city alderman and EDC member, said he believed the EDC would continue to pursue the commercial park plan. He also said the city has already identified some funds that could be used for the project but has not made a decision about allocating them.

"We are waiting on answers from financial adviser Andrew Hamilton out of Springfield," he said. Fuhrer has supported the idea of the north-side commercial park at city council sessions.

County board member Terry "T.W." Werth said the EDC has already talked about a couple of potential new directors.

"We intend to continue with plans for the commercial park project we have been working on until the city and county tell us no," he said. The north-side park has recently had a letter of intent from one potential tenant, he added.

Werth said he campaigned for his seat on the board on only one issue, the north-side commercial/industrial park, and he will continue to work for it. Unless new jobs are created, Lincoln young people will not be able to stay in the area, he said.

He said he has seen communities that have done very well after establishing industrial parks, such as Danville.

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"Alcoa Aluminum came in after looking at 300 different cities. They chose Danville because it was ready. If we’re not ready, we don’t ever get the chance for new industries. We’ve got to be committed."

He said he hoped the threatened closing of Lincoln Developmental Center, with the loss of another 400 to 500 jobs, would wake up the community to the need to support new ideas for economic development.

"In the midst of adversity, good ideas come out," he said.

"Smith did a very good job with the industrial park in the time he was here," said EDC member John Dreusicke. "Hopefully we will continue where he left off."

The nine-member Industrial Development Commission is made up of two members each from the city, the county and the chamber of commerce, and three members at large. City representatives are Fuhrer and Mayor Beth Davis. Logan and Werth represent the county, and Todd Lowman and Abbott represent the chamber. At-large members are Dreusicke, John White and Jerry Johnson of Atlanta.

[Joan Crabb]

[JULY 24, 2002]  The city of Lincoln may ask voters to approve a one-half of 1 percent sales tax increase to help alleviate the city’s budget problems, if finance chairman Verl Prather’s suggestion is approved by the rest of the city council.

"Something’s got to be done," Prather told the council at its work session Tuesday. "We are down on revenue."

After making deep cuts and transferring money from set-aside funds, the city passed a deficit budget in April in which spending was about $270,000 more than estimated revenue. Steve Fuhrer, then finance chairman, urged the council to look for ways to boost the city’s income over the long term.

Prather also suggested the city might look at utility tax increases but said he would prefer the sales tax hike.

According to Fuhrer and City Clerk Juanita Josserand, the proposed increase might bring the city between $400,000 and $500,000 annually, if spending remains at last year’s level. However, Josserand said, people may not spend as much on big-ticket items in the current economic downturn. In the last fiscal year, the city received almost $2 million in sales tax revenue, she said.

The present city sales tax is 6.25 percent. With the increase, it would become 6.75 percent, which Prather said was less than the sales tax in Springfield or Bloomington. The city gets back 1 percent of all sales tax money sent to the state, Josserand said.

Any sales tax increase would have to be approved by voters in November, and the referendum must be filed with the county clerk by September 3. Before that date the city must pass a resolution approving the referendum.

"We’ve got to educate the public and let them know we need this. We can’t let too many police or firemen go off the payroll," Prather said. "Also, there is no money in the budget for road repairs this year."

The sales tax increase, if approved, would not help the fiscal 2002-2003 budget but would put more money in the city’s treasury the following year, he said. The city treasurer, Les Plotner, said he would work with the finance committee to put together a report for the council.

Prather also said he was working with Kevin Heid of First Midstate on another general obligation bond issue. The last payment on the present issue will be made in October, and it is time to start renewing, he said.

Options include a three-year bond issue that would give the city between $490,000 and $510,000, or a four-year bond that would bring in about $620,000. Prather said Heid would attend a committee meeting Aug. 27 to further explain the bond issue.

Funds from the sales tax increase and the bonds would probably be used to maintain the city’s infrastructure, he said. Major street repair work was cut from the present fiscal year budget because of lack of funds.

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In other business, Mayor Beth Davis announced that Economic Development Director Mark Smith has resigned and asked the city how they wanted to proceed.

She said she believed the city should continue working on plans for economic development.

Fuhrer, a member of the Economic Development Council, asked if the city was going to back the EDC in its plans for attracting new industries.

"A lot of information has been brought up, and nothing has been acted upon at all," he said. "We have to make a commitment and stand behind it. We have to work for what’s best for Logan County and Lincoln. I hate to sit here and spin our wheels and not do anything the committee asks us to do."

The EDC has come up with a plan to develop a 64-acre commercial/industrial park north of the city and has suggested the city contribute about $1.1 million to extend a sewer line to the property at Kruger Road and Interstate 55.

The council also has asked the Logan County Board to purchase the property for about $800,000. Neither body has as yet made a definite financial commitment.

"The city won’t move until the county moves, and the county won’t move until the city moves," Davis said. "We’ve been talking about an industrial park for 20 years and still haven’t done anything." She suggested the EDC come and speak to both the county and city again.

"There are too many overlapping agencies — the EDC, Main Street Lincoln, the chamber, the Regional Planning Board. What direction do we want to take?" Fuhrer asked.

He also said he did not think the city should buy property on the west side, because that property was already owned by developers.

Alderman Pat Madigan asked if the city really wanted to hire another economic developer at this time.

"Maybe it’s time just to draw back in for a year. We are stretched thin. We should get a better idea of what’s going to happen."

Grant Eaton, sewer plant manager, said he would like any future economic development director to work more closely with the city’s engineers to be sure the sewer system could handle the proposed project.

A number of items were put on the agenda for the Aug. 5 regular meeting, including opening bids for work on the sewer plant upgrade and a discussion of "bird bangers," loud explosive devices used to frighten large flocks of birds away from residential areas.

[Joan Crabb]

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