2014-66 ESTABLISHING THE DECATUR MACON COUNTY ENTERPRISE ZONE

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r � Book: 4410 Page: 921 DEVELOPMENT SERVICES MEMORANDUM No. 14-33 December 1, 2014 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Billy Tyus, Assistant City Manager Wendy Morthland, Corporation Counsel SUBJECT: Ordinance Establishing the Decatur Macon County Enterprise Zone for the City of Decatur and resolution authorizing intergovernmental agreement between the City of Decatur,the County of Macon,the Village of Mt. Zion,the Village of Forsyth and the Village of Long Creek for the Decatur Macon County Enterprise Zone. RECOMMENDATION: City staff recommends approval of both items related to the re-establishment, operation and administration of the local enterprise zone BACKGROUND: The Decatur Macon County Enterprise Zone is an economic development tool that can provide incentives to spur local economic development. The current zone and its predecessor have been in existence since 1983 and have served as a critical tool in supporting local economic development activity. A total of 86 projects representing nearly $143 million in direct investment benefitted from the availability of enterprise zone benefits from 2005 through 2009. These projects ranged in size from a few thousand dollars to eight projects of$5 million or greater with the largest project during this period totaling more than $15 million. The investment supported the direct new employment of 891 positions and the retention of more than 2,500 other employees. Similar success has been realized over the last five years. An additional 81 projects representing nearly $264 million in direct investment received entemrise zone benefits from 2010 through 2014. These projects again ranged in size from a few thousand dollars to seven projects of$5 million or greater; the largest project during this period totaled more than $81 million. These projects supported new direct job creation of 730 positions and supported the retention of more than 9,000 other employees. The State of Illinois has amended the Illinois Enterprise Zone Act to clarify zone- related legislation and to require a new zone designation application process. This ordinance, if approved,would allow for the authorization for some and reauthorization for others of the zone in the area from January 12016 through December 31, 2031. The ordinance adds a local labor requirement to the zone and would allow the Villages of Long Creek, Forsyth and Mt. Zion to join Decatur and Macon County as participants, expanding the zone from 12 to 15 miles Also on the agenda is an item authorizing an intergovernmental agreement with Macon County and the villages of Mt. Zion, Forsyth and Long Creek for the operation of the zone.