Elgin group fights to repeal business license

A small but vocal political group, Elgin OCTAVE, formed shortly after the April election with its core mission aimed at fiscal responsibility. Over the past few months its members have used email, direct outreach and Elgin City Council meetings as platforms for their message, one piece of which is to advocate elimination of the Elgin business license. In December 2009, Elgin council members unanimously approved creating the business license, which costs between $35 and $595 a year, depending on the square footage of the business. Consequences for noncompliance include fines of $750 per day. City Manager Sean Stegall said business owners have been given time to purchase the licenses, but now, in order to maintain the integrity of the program and to honor those who have already paid, the city will begin to more strictly enforce compliance.Approximately 300 business owners who have yet to pay the license fee recently received letters outlining the requirements of the program. Revenues from the license fee go to the city#146;s general fund and are then used to help pay for the purchase of service agreements with the Downtown Neighborhood Association and the Elgin Area Chamber of Commerce. #147;The money that is derived from the business license is used for economic development,#148; City Manager Sean Stegall said. #147;It goes back to serve the business community.#148; Craig Mason, a founding member of Elgin OCTAVE, is a member of both the Downtown Neighborhood Association and chamber. He said he pays for that membership because he wants to, not because he is forced to. Mason, and the larger political group, oppose the business license on principle, but also dislike the cost. #147;There are so many requirements of taxing bodies all taking little amounts,#148; Mason said. #147;By themselves it#146;s not a lot, but when you take it all together it does add up.#148; As it is written now, downtown businesses are exempt until 2013 #8212; as a sort of peace offering for street construction. Nonprofits, churches and government entities do not have to pay. Elgin Management Analyst Aaron Cosentino said early research indicated Elgin was one of the few communities that didn#146;t have a business license in 2009. Elgin#146;s fee was to fall in between other license fees in surrounding communities: less than in Schaumburg and Arlington Heights, for example, but more than in Hoffman Estates. When council members approved the proposal, they expected to get about $535,000 per year, but have only collected about $250,000 per year, according to Cosentino. That is in part because not all businesses have purchased their licenses, but partially because of faulty original estimates, Cosentino said.Beyond providing revenue for economic development, though, some council members originally supported the business license proposal for the database it would give the city. Before the license required businesses to register, Elgin officials couldn#146;t say what types of businesses existed in the community.Councilman Richard Dunne specifically supported the ability to keep tabs on new businesses and make sure they complied with regulations for zoning and occupancy. #147;I believe the city should have an opportunity to review who is opening up a business in town,#148; Dunne said. During public comment sections of council meetings, Mason has opposed views like this, saying code enforcement, police and the courts already are in place to monitor illegal activity by businesses. Chuck Keysor, the other founding member of Elgin OCTAVE, said one of the main problems he sees is that few people seem to know about the business license. He spent last weekend telling Elgin artists at Art and Soul on the Fox/Passeggiatta they needed a business license #8212; which is true if they also make and sell items from a home-based business, Cosentino said. Keysor and Mason believe the more people who know about the business license, the more people will help fight against it. Mayor David Kaptain supported the business license as a councilman in 2009 and continues to do so as mayor. But he said it is time to revisit the discussion and talk about the logistics of enforcement as well as the details of the program.When the two-year mark comes around at the start of 2012, Kaptain said, it#146;s time to see if it has accomplished its original purpose.#147;If it doesn#146;t work, we#146;ll change it,#148; Kaptain said. #147;And there is nothing wrong with that.#148;But although Kaptain said the program is under review, he doesn#146;t foresee eliminating it altogether.