Enterprise Zone Extension Passes Senate Unanimously

(Published 4/26/12)

Minutes ago, the Illinois Senate unanimously passed legislation (SB 3688) championed by the Illinois Manufacturers’ Association (IMA) and the Illinois Enterprise Zone Association (IEZA) that extends Illinois enterprise zones for an additional twenty-five years.  Co-sponsored by Senator Mike Frerichs (D-Champaign) and Sen. Pam Althoff (R-Crystal Lake), this critical legislation will maintain an economic development tool used to help attract and retain jobs across the state.  Without an extension, the ninety-seven enterprise zones will begin expiring in 2013 including zones in Decatur, Peoria, Rockford, Chicago, East St. Louis, Des Plaines River Valley and Canton/Fulton County.
 
The IMA with input from IEZA initiated this legislation and worked with supporters from both sides of the aisle in the Senate. President John Cullerton and Republican Leader Christine Radogno formed a special Enterprise Zone Committee that conducted four public hearings around the state to solicit testimony and support from hundreds of companies, economic development officials, labor unions, and elected leaders.
 
SB 3688 creates long term stability and predictability by extending zones for 25 years, creating ten new zones, enlarging the current geographic size, modernizing the tax structure, and requiring additional transparency and accountability by enterprise zone administrators.
 
Despite the overwhelming popularity and measured success of the enterprise zone program, it faces an uncertain future in the House of Representatives that has twice failed to act.  Everyone is encouraged to call your respective state representatives and ask them to support the enterprise zone legislation (SB 3688).

2012 Spring Conference Agenda & Brochure

(Revised agenda and brochure attached – as of 5/9/12)ieza-hilton

The IEZA has released the agenda for the 2012 Annual Spring Conference being held May 16-18, 2012 at the Hilton Garden Inn, 1301 Avenue of Mid-America, Effingham, IL 62401. Room rate is $89 plus tax.  You must indicate you are part of the IEZA Conference when calling for your reservation.  Please call 217.540.7777 for reservations.

The brochure has a registration form with costs.  Please note that there are RSVPs required for meal events. 

The following is the agenda for the conference. Changes will be posted at this site. At the bottom of this article is the PDF of this agenda that you can print out for your convenience.  All sessions are subject to change.

Wednesday, May 16, 2012

  • Noon to 5:00 p.m.:  IEZA Golf Outing
    Contact: Emily McConville (815) 539-7459
  • 6:00 p.m. to 9:00 p.m.: Welcome Reception
    (Open Bar and Heavy Hors D’oeuvres)

Thursday, May 17, 2012

  • 9:00 a.m. to 9:30 a.m.:  Welcome and Opening Remarks
    Craig Coil, IEZA President
    Honorable Merv Gillenwater, Mayor – City of Effingham
  • 9:30 a.m. to 10:30 a.m.: Spotlight on Effingham
    Learn about all of the Zone activity and development in Effingham, the “Crossroads of Opportunity”
    Todd Hull, Economic Development Director, Effingham Enterprise Zone Administrator
  • 10:30 a.m. to 10:45 a.m.:  BREAK
  • 10:45 a.m. to 12:00 p.m.: State to State Business Tax Comparisons
    John F. Gremer, Partner – State and Local Tax
    KPMG – Chicago
  • 12:00 p.m. to 1:30 p.m.:  LUNCH / BREAK
    Growing Illinois Marketing Initiative Overview
    Janet Mathis, Executive Director, Renew Moline
  • 1:30 p.m. to 2:45 p.m.: Boundary Amendment Case Study
    Archer Daniels Midland Rail Yard and Intermodal Facility
    Project Background and Overview, Benedetto (Ben) Guido, VIA RAIL Logistics, LLC
    Enterprise Zone Boundary Amendment Process
    Craig Coil, EDC of Decatur and Macon County
  • 2:45 p.m. to 3:00 p.m.:  BREAK
  • 3:00 p.m. to 4:15 p.m.:  Boundary Amendment Case Study, TCI Manufacturing and Equipment Sales, Inc.
    Hear how TCI worked with local officials on a boundary expansion to the Zone and incorporated new taxing districts into a new property tax abatement agreement. Mike Maynard, President, TCI Manufacturing
  • 4:15 p.m. to 5:00 p.m.:  Open Forum
    At the request of many members, this is an open topic session where program experts can answer general questions about zone operations and application processes.
  • 5:00 p.m. to ???:  Dinner (On Your Own)
    IEZA and the Effingham Convention and Visitors Bureau will provide suggestions at the conference.

Friday, May 18, 2012

  • 8:30 a.m. to 9:30 a.m.:  Breakfast Buffet
  • 9:00 a.m. to 9:45 a.m.: Legislative Update
    Update on the Enterprise Zone termination date extension legislation and related items of interest to all IEZA members
    Craig Coil, IEZA President
    John Thompson, Legislative Chairman
  • 9:45 a.m. to 10:45 a.m.:Open Discussion
    Learn about and discuss how zones across the state implement accountability and performance standards for Zone projects.
    • Topics will include:
      • Pre-Development Agreements
      • Clawback Agreements
      • Local Enterprise Zone Abatement Processes.
        John “Jamie” Boyd, Kankakee County States Attorney and IEZA Presenters
  • 10:45 a.m. to 11:00 a.m.:  BREAK
  • 11:00 a.m. to 12:00 p.m.Illinois’ Competitive Edge from a Site Selectors Perspective
    Matthew Adams, Real Estate & Location Strategy Practice, Deloitte Consulting, LLP, Chicago
  • 12:00 p.m. to 12:15 p.m.: IEZA Board/Business Meeting

pdf2012 Spring Conference Brochure (revised 5/9/12)686.69 KB

Bipartisan Statewide Hearings on Enterprise Zones Announced

February 27, 2012
SPRINGFIELD, IL – On Monday, State Senators Pamela Althoff (R – McHenry) and Michael Frerichs (D – Champaign) were named co‐chairs of a newly created bipartisan Senate Special Committee on Enterprise Zone Extensions that will travel the state to gather input on proposed legislation to modernize and extend the Enterprise Zone Program.

The Enterprise Zone Program, established in 1982, is one of the state’s most proven and successful economic development tools. Beginning next year, these zones will start to expire and businesses statewide will lose access to the various incentives they offer.

“I think we have a tremendous opportunity to fine tune this great economic development tool to make sure it remains useful and productive for years to come. As a former mayor, I am keenly aware of how vital enterprise zones can be in spurring economic development and creating jobs. At the same time, I am also sensitive to the need to balance tax incentives with worthwhile results. I look forward to hearing from others about their experiences and ultimately producing and passing a meaningful enterprise zone reform package,” said Senator Althoff, who before joining the Senate was the mayor of McHenry, IL.

Frerichs stressed that the goal is to make sure this effective economic development program remains successful.

“We know enterprise zones have been creating jobs across Illinois for 30 years,” said Senator Frerichs. “A program this proven and successful deserves this kind of comprehensive approach, rather than piecemeal renewals. I look forward to hearing from business and community officials throughout the state on how we can keep this great program going and improve it for the future.”

The committee’s first hearing will be held Thursday, March 15 at Southern Illinois University’s Dunn‐Richmond Economic Development Center in Carbondale. Three additional hearings are planned for Peoria, Rockford, and Chicago. Exact dates and times are yet to be determined.

The new Senate Special Committee was created Monday at the direction of Senate President John J. Cullerton. The six‐member committee will have three members from each party to be chosen by President Cullerton and Republican Leader Christine Radogno.

Enterprise zones seek to stimulate economic growth by creating specified geographic regions that offer businesses within that zone state and local tax incentives and regulatory relief. In
2011 alone, the program is credited with creating 8,980 jobs and nearly $2.5 billion in investments.

“Enterprise zones are a crucial economic development tool in Illinois that have a real record of success. Nearly $50 billion in capital investment and more than 900,000 jobs have been
created or retained since their inception,” said Greg Baise, president & CEO of the Illinois Manufacturers’ Association, the oldest and largest manufacturing trade association in the
country. “We applaud the bipartisan effort to provide long‐term stability and foresight to economic development in Illinois.”

The Illinois Manufacturers’ Association is working with lawmakers to produce a comprehensive modernization and extension package regarding enterprise zones. That legislation (SB 3688) includes the following reforms:

  • Renews current enterprise zones for an additional 25 years, subject to approval of state and local officials
  • Allows up to 10 additional zones to be created over the next 10 years
  • Streamlines the available tax incentives to remove those that are not producing results
  • Requires maps of enterprise zones to be posted online

“Illinois enterprise zones have proven themselves to be a vital business retention and attraction tool. They are utilized by employers of all sizes and have added a measure of predictability for Illinois job creators and economic development professionals as we all compete for jobs and investment”, said Craig Coil, President of the Illinois Enterprise Zone Association. “Long term extension of enterprise zones is critical to the success of our economic development efforts in Illinois and I’m pleased that the Senate is focusing its attention on this important issue.”

The goal of the hearings is to gather input from local business and community leaders and enterprise zone officials. Legislators aim to pass a comprehensive enterprise zone package this spring.

Bipartisan Statewide Hearings on Enterprise Zones Announced

February 27, 2012
SPRINGFIELD, IL – On Monday, State Senators Pamela Althoff (R – McHenry) and Michael Frerichs (D – Champaign) were named co‐chairs of a newly created bipartisan Senate Special Committee on Enterprise Zone Extensions that will travel the state to gather input on proposed legislation to modernize and extend the Enterprise Zone Program.

Read entire press release by clicking here.

Illinois Enterprise Zone Program Termination Date Extension Legislation

Notice to Members of IEZA

For the second year in a row IEZA legislation under consideration by the Illinois 96th and 97th General Assemblies has reached the end of the normal legislative cycle without final consideration by the Illinois House of Representatives.  Just as happened in 2010 (SB3659 – 20 year extension, became the Illiana Expressway Act) and has now happened in 2011, the IEZA sponsored bill (formerly SB1633) was shelled and became a measure to accomplish deferred borrowing for the State’s financial woes.  Bills both years passed unanimously from the Senate side over to the House where they failed to be released from committee.

This year, with assistance from various other supportive organizations, IEZA participated in special hearings of the House Revenue Committee and was unsuccessful in advancing the bill.  Several draft suggestions for language were considered and assurances we were assured that there would be no Prevailing Wage mandate language in a final bill.  The enterprise zone program was considered with potential TIF reforms by the committee and attempts to consider the programs apart from each other were unsuccessful.  Committee members opined that the programs were similar and that they should be considered together.  The last amendment IEZA was given to look at included language that would have made the Building Material Sales Tax Exemption function by way of a rebate program.  IEZA pointed out that this method would in fact mandate Prevailing Wage due to the direct exchange of funds with the State as mandated in PA 96-0058 (SB0223).

So, our bill this year was changed into something else, and this has caused some confusion about extension of the program.  Some around the state have reported that extension passed but that is not the case.  Only the bill number was the same at the end of the session and was ultimately a budget measure.  We continue to work on our IEZA message emphasizing the critical worth of the program and the urgency of getting it passed so incentives, which have in some cases already been reduced to virtually nothing, can be restored.

Special Hearings regarding consideration of business climate/taxation and incentives are being held by Representative Bradley and the House Revenue Committee with the first taking place in Chicago on July 19 in Chicago and two others to follow on August 2 in Rockford and August 23 in Springfield.  IEZA is continuing to provide input through this process.

Meanwhile, IEZA suggests to our membership continuous contact with your respective members of the General Assembly to urge them to advance IEZA’s proposed 20-year extension of the program for the betterment of Illinois and the economic health of our zone communities.

URGENT: IEZA supports SB-1633 & HB-1442

The Illinois Enterprise Zone Association (IEZA) supports passage of Senate Bill-1633 or House Bill-1442 which seek to extend the term of the Illinois Enterprise Zone Program for an additional twenty (20) years. The Illinois Enterprise Zone Program is a proven economic development partnership between the State of Illinois and local units of government and has a documented history of making the difference for projects seeking to locate in Illinois. The incentives allowed under the Enterprise Zone Program have enabled both existing companies and new ventures alike to make decisions regarding job creation, job retention and capital investment resulting in a stronger Illinois economy.

For complete article click here.

ILLINOIS ENTERPRISE ZONE ASSOCIATION SUPPORTS SB-1633 & HB-1442

9, April, 2011 – URGENT TO MEMBERS OF THE ILLINOIS GENERAL ASSEMBLY

(This document may be downloaded for printing at the bottom of this article.)

The Illinois Enterprise Zone Association (IEZA) supports passage of Senate Bill-1633 or House Bill-1442 which seek to extend the term of the Illinois Enterprise Zone Program for an additional twenty (20) years. The Illinois Enterprise Zone Program is a proven economic development partnership between the State of Illinois and local units of government and has a documented history of making the difference for projects seeking to locate in Illinois. The incentives allowed under the Enterprise Zone Program have enabled both existing companies and new ventures alike to make decisions regarding job creation, job retention and capital investment resulting in a stronger Illinois economy.

SB-1633 or HB-1442 would extend the Zone Program for twenty (20) years similar to a previous extension accomplished by the 91st General Assembly and signed by the Governor in 2000. As one of these bills leading proponents the IEZA Membership represents more than three-fourths (3/4ths) of the zone professionals in the State of Illinois including the overwhelming majority of the ninety-seven (97) zones themselves. The IEZA and its leadership believe the Illinois Enterprise Zone Program to be of particular importance in today’s highly competitive world of economic development. Recent negative impacts to Illinois resulting from a national and global economic crisis make it even more important to preserve and extend this program.

SB-1633 and HB-1442 are supported by IEZA. These bills, Sponsored by Senator Mike Frerichs (D) of Champaign and Representative Frank Mautino (D) of Spring Valley, contain language to extend the zone program in support of economic development in Illinois. IEZA appreciated the cooperation demonstrated to support this issue in the previous General Assembly and urges all legislators to support the bill. IEZA also values the efforts of our other sister organizations from across the State of Illinois including the Illinois Municipal League, Illinois Chamber, Illinois Manufacturer’s Association, Illinois Development Council and others who have worked to bring this extension legislation to the 97th General Assembly.

SB-1633 or HB-1442 preserve one of the few available Illinois’ incentive programs. Further, they do so using mechanisms that primarily result in a self-funding methodology that utilizes local property tax abatement with formulas voluntarily created and agreed to by local taxing districts; building material sales tax exemptions initiated jointly by the State of Illinois and the local jurisdictions; and various other investment and income tax credits to incent projects through business income tax credit allowances. All of these incentives are governed under a “but-for” imperative in the Enterprise Program which only grants incentives if a project is undertaken by an existing company for new investment in Illinois or for a new company coming to an Illinois enterprise zone. It is a quid pro quo that results in no incentive if there is no investment made or jobs created.

The past ten (10) years’ DCEO annual reports to the General Assembly on Enterprise Zone job retention, creation and investment total as follows:

Jobs Retained: 188,031
Jobs Created: 159,235
Total Investment: $ 29.423 billion

This successful record of the Illinois Enterprise Zone Program speaks for itself. Documented investments in buildings and capital equipment totaling nearly $30 billion have assured that nearly 350,000 Illinois citizens received or kept their jobs here in Illinois. These were only the direct jobs reported and do not include all of the beneficial spin off. The Illinois Enterprise Zone Program enabled those investments and helped to retain and create those jobs. By extending this valuable program SB-1633 or HB-1442 will strengthen Illinois, create investment, and retain and create jobs for Illinois citizens.

Unless the General Assembly acts to extend the Zone Program, enterprise zones will soon begin to expire all across Illinois. Numerous zones are now operating with diminished or no incentives due to their proximity to their expiration dates. The time is now to enact this extension legislation. The time is now to send a message that Illinois is interested in and wants to support economic development and business investment here in our great state.

Why Support SB-1633 or HB-1442?

  • Preserves enterprise zones as a premier economic development tool in Illinois’ tool box. Nothing else is out there to create the kind of incentives zones bring.
  • Illinois Enterprise Zones have a proven record of stimulating investment and job creation for both existing Illinois companies and for helping those companies from outside our state to decide to come to Illinois ($30 billion and 350,000 jobs).
  • Would result in increased investment and job retention and creation resulting in stabilized and increased state revenues (investment and job creation = State revenue).
  • Ask yourself “Is now the time to send this positive message?” We say yes!

We sincerely and respectfully ask you to support Senate Bill-1633 or House Bill-1442 and to enact the legislation in this spring session of the 97th General Assembly.

Illinois Enterprise Zone Association
200 East Knox Street
Morrison, Illinois 61270

John R. Thompson, President
(815) 284-3361
dchamber@essex1.com

Betty Steinert, Past President
(815) 772-5175
bsteinert@whiteside.org

 

Support SB-1633 or HB-1442 66.40 Kb

IEZA Supports HB-6900: Urgent

URGENT TO MEMBERS OF THE ILLINOIS GENERAL ASSEMBLY

The Illinois Enterprise Zone Association (IEZA) supports passage of House Bill-6900 which seeks to extend the term of the Illinois Enterprise Zone Program for an additional twenty (20) years. The Illinois Enterprise Zone Program is a proven economic development partnership between the State of Illinois and local units of government and has a documented history of making the difference for projects seeking to locate in Illinois. The incentives allowed under the Enterprise Zone Program have enabled both existing companies and new ventures alike to make decisions regarding job creation, job retention and capital investment resulting in a stronger Illinois economy.  View complete article by clicking here.

IEZA Supports HB-6900: Urgent

URGENT TO MEMBERS OF THE ILLINOIS GENERAL ASSEMBLY
(find pdf of this story at the bottom of this article)

The Illinois Enterprise Zone Association (IEZA) supports passage of House Bill-6900 which seeks to extend the term of the Illinois Enterprise Zone Program for an additional twenty (20) years. The Illinois Enterprise Zone Program is a proven economic development partnership between the State of Illinois and local units of government and has a documented history of making the difference for projects seeking to locate in Illinois. The incentives allowed under the Enterprise Zone Program have enabled both existing companies and new ventures alike to make decisions regarding job creation, job retention and capital investment resulting in a stronger Illinois economy.

HB-6900 would extend the Zone Program for twenty (20) years similar to a previous extension accomplished by the 91st General Assembly and signed by the Governor in 2000. As one of the bill’s leading proponents the IEZA Membership represents more than three-fourths (3/4ths) of the zone professionals in the State of Illinois including the overwhelming majority of the ninety-seven (97) zones themselves. The IEZA and its leadership believe the Illinois Enterprise Zone Program to be of particular importance in today’s highly competitive world of economic development. Recent negative impacts to Illinois resulting from a national and global economic crisis make it even more important to preserve and extend this program.

HB-6900 is supported by IEZA. This bill, Sponsored by Representative Robert Flider (D) of Decatur, is identical in language to last spring’s SB-3659 which was a good example of both sides of the aisle demonstrating support for economic development in Illinois. IEZA appreciates the cooperation demonstrated to support this issue in the General Assembly and urges all legislators to support the bill. IEZA also values the efforts of our other sister organizations from across the State of Illinois including the Illinois Municipal League, Illinois Chamber, Illinois Manufacturer’s Association, Illinois Development Council and others who have worked to bring this extension legislation to the 96th General Assembly.

HB-6900 preserves one of the few available Illinois’ incentive programs. Further, it does so using mechanisms that primarily result in a self-funding methodology that utilizes local property tax abatement with formulas voluntarily created and agreed to by local taxing districts; building material sales tax exemptions initiated jointly by the State of Illinois and the local jurisdictions; and various other investment and income tax credits to incent projects through business income tax credit allowances. All of these incentives are governed under a “but for” imperative in the Enterprise Program which only grants incentives if a project is undertaken by an existing company for new investment in Illinois or for a new company coming to an Illinois enterprise zone. It is a quid pro quo that results in no incentive if there is no investment made or jobs created.

The past ten (10) years’ DCEO annual reports to the General Assembly on Enterprise Zone job retention, creation and investment total as follows:

Jobs Retained: 188,031

Jobs Created: 159,235

Total Investment: $ 29.423 billion

This successful record of the Illinois Enterprise Zone Program speaks for itself. The past ten years of documented investments in buildings and capital equipment totaling nearly $30 billion have assured that nearly 350,000 Illinois citizens received or kept their jobs here in Illinois. These were only the direct jobs reported and do not include all of the untold spin off created by enterprise zone projects across the state. The Illinois Enterprise Zone Program enabled those investments and helped to retain and create those jobs. By extending this valuable program HB-6900 will strengthen Illinois, create investment, and retain and create jobs for Illinois citizens.

Unless the General Assembly acts to extend the Zone Program, enterprise zones will soon begin to expire all across Illinois. Several zones are already operating with “impaired” incentives due to their proximity to their expiration dates. The time is now to enact this extension legislation. The time is now to send a message that Illinois is interested in and wants to support economic development and business investment here in our great state.

Why Support HB-6900?

  • HB-6900 preserves enterprise zones as a premier economic development tool in Illinois’ tool box. Nothing else is out there to create the kind of incentives zones bring.
  • Illinois Enterprise Zones have a proven record of stimulating investment and job creation for both existing Illinois companies and for helping those companies from outside our state to decide to come to Illinois ($30 billion and 350,000 jobs).
  • HB-6900 would result in increased investment and job retention and creation resulting in stabilized and increased state revenues (investment and job creation = State revenue).
  • Ask yourself “Is now the time to send this positive message?” We say yes!

We sincerely and respectfully ask you to support House Bill-6900 without further amendment and to enact it this fall session of the 96th General Assembly.

Illinois Enterprise Zone Association
200 East Knox Street
Morrison, Illinois 61270

John R. Thompson, President
(815) 284-3361
dchamber@essex1.com

Betty Steinert, Past President
(815) 772-5175 
bsteinert@whiteside.org

IEZA Supports HB-6900 61.55 Kb

 

Goals & Objectives for 2010

During the IEZA’s 2010 Annual Board Retreat, the Board approved the following Goals & Objectives for 2011:

GOAL I: Continue to improve communications with all individuals, governments, organizations and businesses related to the Illinois Enterprise Zone Program.

  • Objective: Produce electronic IEZA Newsletters.
  • Send congratulatory letter to all new legislators and include information about IEZA.
  • Objective: Utilize outside resources to continue the education of Zone Administrators.
  • Objective: Maintain and update IEZA Web Site.
  • Objective: Maintain centralized comprehensive mail and email lists for membership information, conferences and newsletters. Integrate with online IEZA Web Site.

GOAL II: Continue to broaden awareness of the Illinois Enterprise Zone Program through cooperative efforts with other Economic Development and related organizations.

  • Objective: Maintain IEZA web links to web sites of IEZA members, DCEO, IDC, ITIA, IML, Illinois State APA and other Enterprise Zone application-related sites (examples: AG Review, Gas Use Tax Exemption, etc.).

GOAL III: Add “Members Only” value content to the IEZA website.

  • Objective: Add content for “Members Only” section of IEZA website to include: Conference Presentations and PowerPoints, Administrator’s Handbook CDRom, Survey results, Incentive Calculator and Economic Impact Calculator.

GOAL IV: Continue to increase membership of Zone Administrators and other categories.

  • Objective: Maintain contact with each zone administrator by mail and electronic means.
  • Objective: Conduct ongoing retention and recruitment efforts. 
  • Objective: Contact certified businesses and professional member candidates.

2011 Goals & Objectives 25.14 Kb