Washington Enterprise Zone Certified July 1, 1986

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WashingtonEnterprise ZoneCertified July 1, 1986

• Public Hearing
• Proposed Zone Extension,
• Amendments, and Expansion
• March 7, 2005

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What is the Enterprise Zone?

• A defined area encompassing 3 square miles
• Primarily commercial industrial properties
• Some residential properties
• Encourages employment, revitalization, and
  economic activity through building growth
  development
• Offers incentives for new construction and
  expansion within the Zone

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Enterprise Zone Map
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What incentives are offered?

• 100 waiver of increased property taxes
  (resulting from the project) for 5 years
• 100 waiver of sales tax on all building
  materials and equipment
• 100 waiver of utility connection fees
• 100 waiver of building permit fees
• Others tax credits, low-interest loans, etc.

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What projects are eligible?

• New construction or expansion of industrial,
  commercial, or multifamily residential
• Work requiring a building permit
• Remodeling and other non-structural improvements
  are not eligible
• Goal stimulate economic activity resulting in
  business and employment growth

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What has been accomplished?

• Substantial local activity since establishment of
  Washington Enterprise Zone in 1986
• 105 new businesses and business expansions
• 820 jobs created
• 1,272 jobs retained
• Over 59 million invested
• (Source Illinois Department of Commerce
  Economic Opportunity)

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What changes are proposed?

• Recommended by the Washington Economic
  Development Commission (EDC) / Zone Management
  Organization
• Change 1 Extend the Zone termination date
• Scheduled to expire June 30, 2006 (20 years)
• Propose 10-year extension to June 30, 2016
• Create jobs and grow the tax base
• Hundreds of acres still undeveloped
• Need to maintain competitiveness with
  neighboring communities with extended Zones

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What changes are proposed?

• Change 2 Limit and repeal local incentives
• Offer incentives to commercial/industrial only
• MF residential occurring with market no need to
  subsidize
• Restores new MF residential property taxes to
  schools
• Eliminate utility connection fee waivers
• Revenues needed to expand/upgrade treatment
  plants to support new growth and development
• Reduce building permit fee waiver to 50 percent
• Outsourcing large-scale building plan review and
  inspections fee revenues needed to offset cost

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What changes are proposed?

• Change 3 Add territory to the Zone
• Expand Zone boundaries to include the Washington
  Area Community Center site
• Significant economic investment
• Employment opportunities
• Make Zone incentives available, including
  property tax abatement and sales tax waiver for
  building materials equipment.
• Requires addition of other properties

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How will this affect projects?

• PROPOSAL
• Current Enterprise Zone projects will continue to
  receive todays incentives until the 2006
  original Zone termination date

• New Enterprise Zone projects that receive a
  building permit on or after April 1, 2005 will
  receive the new, revised incentives through the
  extended 2016 termination date

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Action items and next steps

• Gain support of local taxing authorities
• Hold public hearing to gather public comment
• Staff to draft amending ordinance
• Council to pass amending ordinance
• Staff to prepare and submit extension, amendment,
  and expansion applications to State of Illinois
  (DCEO)
• DCEO to review applications and approve or deny
  the proposed Zone revisions