2012-93 AMENDING THE DECATUR MACON COUNTY ENTERPRISE ZONE - TERMINATION DATE - TAX ABATEMENT

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Mayor Michael T. McElroy City Manager Ryan McCrady Members of the Decatur City Council December 10, 2012 Page two Proposed Intergovernmental Agreement The document attached for your concurrence extends the Intergovernmental Agreement subject to approval by both parties for the duration of the Enterprise Zone and reflects changes in language to comply with the terms and conditions of the newly enacted legislation now on record as Public Act 97- 0905. City of Decatur and Macon County legal staffs have reviewed the Agreement. Macon County EEHW Committee is expected to review the documents on December 10, 2012 and the full Macon County Board is expected to act on the same on December 17, 2012. Property Tax Abatement Resolution The attached Ordinance requests City of Decatur participation in the Decatur Macon County Enterprise Zone Property Tax Abatement Program through 2016 and beyond, depending on the outcome of the long term renewal application process with the State of Illinois. 1) The existing abatement program for Office, Distribution/Logistics and Manufacturing operations located in the Zone would remain the same. Projects creating and/or retaining at least 25 full- time jobs and making a capital investment of at least$150,000 would be eligible for five year graduated abatement with the consent of the Enterprise Zone Advisory Board. 2) At the request of the City of Decatur, we are proposing a new targeted abatement program for retail, restaurant, hotel/motel and commercial projects located on the Pershing Road corridor from Oakland Avenue on the west to 27th Street on the east and on the Eldorado corridor from Oakland Avenue on the west to 23rd Street on the east. The abatement would be for 3 years (100%, 75%, 50%). In order to qualify, a business would be required to make improvements to a property that increases the equalized assessed valuation by at least$25,000, as documented by the Supervisor of Assessment's office. Applications for abatement, compliance monitoring and clawback provisions and processes will remain the same as those currently in place. Zone Administration Agreement The attached Administration Agreement between the City of Decatur and the Economic Development Corporation remains virtually unchanged from the Agreement currently in place. Only technical changes have been made to the document to reflect changes in the name of the Enterprise Zone, changes in addresses and various other titles and notations realted to the new statewide Zone legislation. Thank you for your consideration of our requests and for your support of Decatur and Macon County job development and retention efforts. JCC/hs attachments