Western County Enterprise Zone gains traction in Harvard

Gregory Harutunian

Harvard, Woodstock, and Mc Henry County entered into an enterprise zone in Dec. 2014, and are seeing the benefits with eight applications from commercial entities.

An application sent to the Illinois Department of Commerce and Economic Opportunity at the end of December 2014, just prior to the deadline date, sought to create an enterprise zone for the cities of Harvard, Woodstock, and adjacent unincorporated areas of McHenry County.

The designated 7.72-square mile location has proven itself as a commercial advantage, more than two years later.

The Enterprise Zone Program was designed to jumpstart growth in economically depressed areas through assistance to businesses, by qualifying them for possible local and state tax incentives. The goal is to attract commercial and industrial entities to the designated sites to create jobs and a tax base.

There have been eight applications in 2016-17. Only one petition remains incomplete and awaiting more information to meet the ascribed criteria.

In Harvard, the former Motorola campus on N. Route 14, which initially opened in 1997 and consists of more than 300 acres, could see a limited usage by the Edwards Harvard Technologies U.S. LLC in the production of smartphones, and associated other attributes. Vacant since 2003, the site. Initially opened in 1997, the new venture could add nearly 200 temporary and permanent jobs to the local economy on a $32 million investment.

Activity is also being felt on the west end of the municipality in its industrial park along Route 173. Pedigree Ovens Inc., a producer and supplier of dog and cat foods, is constructing a new factory that is slated for completion later this year. The expansion is expected to add 100 permanent jobs to the community. The industrial park, and other sites along the corridor, are within the enterprise zone.

“We’re very excited that something is happening that will create jobs and also create a positive impact on the business climate,” said Harvard city Administrator David Nelson. “It’s an absolute fact that if we didn’t have the enterprise zone those jobs wouldn’t be created. The industrial park, along route 173, and the new Pedigree factory is a prime example.

“As for the Motorola site, that’s fourteen years that the facility has been shuttered, and now that they’re ramping up for even a limited opening, it can only be a positive.”

The zone also encompasses the main commercial corridors at the intersection of routes 47 and 14 in Woodstock, as well as nearby unimproved properties under county jurisdiction. The three governmental agencies partnered together to take a pro-active stance in addressing economic downturns suffered in recent years.

The Harvard Economic Development Corporation, a private group of volunteers, initiated the effort and were considering the application, and they learned that Woodstock was also mulling the option, and connected the network.

“The purpose of the enterprise zone is to revitalize the economic stability, and businesses get the benefits and advantages from being within the zone,” said Charles Eldrege, the zone’s Governing Board Administrator. “The Pedigree Ovens project, and the benefits from the enterprise zone, were important to the company remaining in the state of Illinois.

“They were set to leave, and the state of Wisconsin had made some very attractive offers to the company. It took cooperation between the state of Illinois, McHenry County, and the city of Harvard to retain them. Without it, they would have joined other companies and left the state.”

The state exclusively initiated the enterprise zone program in the late 1980s, with involvement by the Illinois Department of Revenue, to create a growth program for industry. Special taxing districts and different designations were offered to communities as an economic tool.

Potential inducements to businesses include reduced permit fees, rebates on tax liabilities for equipment purchases, real estate tax abatements for new plant construction or expansion, as well as tax incentives for relocation to the specified site. It includes relaxed regulations designed to promote commercial growth. In addition, special taxing districts and different designations were offered to communities as an economic tool.

Eldrege had said that McHenry County residents pay for approximately 80 percent of the tax base in collected funds, whereas Lake County residents pay almost 60 percent, due to a larger commercial base. The reasoning of attracting businesses to the zone areas can result in a lower tax burden.

He indicated that McHenry County ranks sixth in the nation relating to travel times and distances, and with businesses relocating to the area, quality jobs and employment move with them to improve the quality of life. “It’s looking at the larger picture, and further ahead.”