Elgin council to consider last cash incentive agreement
Elgin City Council members will consider the last economic incentive agreement of its kind during the committee of the whole meeting Wednesday.
A proposal to offer up to $40,000 in cash payouts to Mueller & Co. LLP for job relocation and creation was negotiated by the Elgin Area Chamber of Commerce before the council indicated its opposition to such incentives in April 2011.
The council decided at a retreat it would honor such agreements because they were informally offered in good faith.
Assistant City Manager Rick Kozal said other economic incentives are being negotiated, including one in the same Randall Road/Northwest Tollway quadrant, but cash is not part of the offer.
Mueller & Co., a certified public accounting and management consulting firm, is expanding its Elgin location — which already employs 52 people — by moving its 22 St. Charles positions to town.
The agreement offers $1,000 for each full-time position relocated from St. Charles with an extra $500 available if that full-time position is filled by an Elgin resident, provided that the salary is more than $40,000 before benefits.
New hires also are eligible for the incentives, but only up to a total cash payout from the city of $40,000.
Elgin Councilman John Prigge is the only member of the council who has spoken out against this agreement and ones like it in recent months.
“Out of all the agreements, this will probably be, pound for pound, the least beneficial incentive agreement that the city will participate in,” Prigge said. “They are making no commitment to do any new hiring at all.”
Prigge also said because Mueller & Co. is moving into an existing building at 1707 N. Randall Road, rather than building new like Bystronic Inc. on Airport Road, the extra tax revenue will be comparatively minimal.
Once it’s completed, the Mueller project is expected to generate $11.8 million in economic activity each year, according to an analysis by Incentis Group.
Along with the job grants, the city is also committing to fast-track the permitting process, waive building permit fees and give Mueller employees resident rates at The Centre. The total incentive package is worth $95,000.
Council members will give a preliminary vote Wednesday with final approval expected at the following council meeting.