Hoffman Estates hopes to attract new business with Enterprise Zones

Hoffman Estates trustees are preparing to recommend two Enterprise Zones for state approval - the first a renewal and expansion of one that includes the Prairie Stone Business Park, and the other entirely new surrounding the soon-to-be-vacated AT&T campus.

Enterprise Zones are intended to attract prospective businesses by offering specific financial incentives.

If approved, Hoffman Estates would be able to offer businesses exemptions on the local share of sales tax for the purchase of building materials to be used for construction, as well as on the local share of utility taxes if certain criteria are met.

The state offers companies that locate in Enterprise Zones an investment tax credit against the state income tax, an interest income deduction on development financing, a dividend income deduction, an exemption on the state sales tax for the purchase of machinery, and a utility and telecommunications tax exemption.

"It's not necessarily going to be the one thing that attracts a company here," Hoffman Estates Economic Development Director Kevin Kramer said. "But if all things are equal or close to equal between site A and site B, an Enterprise Zone might tip the scale. Hopefully it will catch someone's eye with those extra incentives in place."

The Prairie Stone Business Park, which includes the Sears Centre Arena and Cabela's, has been an Enterprise Zone since 1990, and received an extension in 2004.

The latest extension would include not only the existing 800-acre business park but an additional 400 acres to the west and the 120-acre Sutton Crossing at the southeast corner of routes 59 and 72.

The second, entirely new Enterprise Zone will encompass the approximately 250-acre area at the northeast corner of the Barrington Road interchange of the Jane Addams Memorial Tollway, which includes the AT&T campus, the surrounding manufacturers in the Huntington 90 development and the commercial property on the east side of Barrington Road.

Hoffman Estates trustees are scheduled to vote on their recommendation to the state at their last village board meeting of the year, Monday, Dec. 21.

The Illinois Department of Commerce & Economic Opportunity will notify successful applicants on June 30, 2016 and formally approve them Sept. 30.

Approved Enterprise Zones would take effect Jan. 1, 2017 and last for 15 years. Extensions of another 10 years are then possible.