Businesses locating to the zone boundaries could see reduced permit fees, rebates on sales tax and on tax liabilities for equipment purchases, real estate tax abatements for new plant construction or expansion.

The city of Marengo was given an introductory explanation on the merits of a state enterprise zone to assist in its business climate, which can also lead to joining the Harvard-Woodstock enterprise zone that was established early last year. The presentation came during the city council’s Jan. 16 meeting, although an actual proposal would be up to two years away.

“What they wanted was an explanation of how an enterprise zone works, the general information on how it works, whether to join an existing one or create a separate one,” said presenter Charlie Eldridge, a member of the McHenry County Regional Planning Commission, and administrator of the enterprise zone. “Council members were interested in the benefits.

“Although the State of Illinois requires an existing project in their jurisdiction to join an existing enterprise zone. They said that this was a preliminary, and in the exploratory stage. It might be 18 months to two years, before any consideration is given to the proposal.”

The Illinois Enterprise Zone Program was designed to jumpstart growth in economically depressed areas through expiation to businesses, qualifying them for possible local and state tax incentives, along with mitigated regulations. Businesses locating to the zone boundaries could see reduced permit fees, rebates on sales tax and on tax liabilities for equipment purchases, real estate tax abatements for new plant construction or expansion.

The cities of Woodstock and Harvard, along with McHenry County, actualized a partnership with a December 2014 application to the state with the intention of forming an enterprise zone. The goal was to attract commercial and industrial entities to the designated sites, while creating jobs and a tax base.

“Our mutual enterprise zone has been up and running for about a year, and there are several business opportunities within it,’ Harvard city manager David Nelson. “We’ve seen no documents for Marengo to be included, as yet. To do so, they need the approval from the state, the county, and the municipalities inside the zone … those are Woodstock, and [Harvard].”

Harvard’s target areas are the former Motorola site, and a western edge industrial park, and includes the main commercial corridors on routes 173 and 14. Woodstock’s zones are along the southwest section of Route 14, near its intersection with Route 47. The county sections encompass unincorporated areas on Route 120, heading northwest from that intersection. The total size of zone for all three jurisdictions is approximately 7.72 square miles.

Marengo lies southwest of the established zone, and may act as a catalyst for its rejuvenation. The city has suffered hardships with declining revenues, due to lacking new residential and commercial development, coupled with Gov. Bruce Rauner’s cut in income tax revenue-sharing to municipalities in 2015, computed on a per-capita basis. “The Jan. 16 meeting introduced the concept of an enterprise zone to the city, and the city council, to begin a conversation, and keep it on the radar for consideration in the future,” said Marengo city administrator Gary Boden.

“To their (Harvard and Woodstock) credit, they won approval from the state,” he said. “But it took a lot of time and money getting there. Before it became operation, they had to work a long time on the enterprise zone to get it established. For us, this is a first airing.”

The Illinois Enterprise Zone Act was placed on the books in 1982, and monitored through the state of Illinois Department of Commerce and Economic Opportunity. A sampling of the requirements: that the zone is a minimum of one-half square mile and not more than 12 square miles; and all, or part, of the local labor market area has had an annual average unemployment rate of at least 120 percent of the State’s annual average unemployment rate for the most recent calendar year.

It also says the designation will result in the development of substantial employment opportunities by creating or retaining a minimum aggregate of 1,000 full-time equivalent jobs, the local labor market area contains a presence of large employers that have downsized over the years, the labor market area has experienced plant closures in the five years prior to the date of application affecting more than 50 workers. Woodstock has suffered recent plant closings and the loss of jobs within the municipality, although the main downtown square is a hallmark of revitalization. The zone’s partnership came about in late 2014, when the Harvard Economic Development Corporation was considering filing an application and learned that Woodstock was also mulling the option.

“There are a limited number of enterprise zones that are awarded in the state,” said Eldridge. “And if Marengo should apply, they would have to plan for that.”