Elgin poised to renew contract with chamber
The Elgin Area Chamber of Commerce will continue to provide economic development services to the city of Elgin for $275,000 a year, pending final approval by the city council.
The council's committee of the whole voted 8-1 Wednesday to renew a three-year agreement with the chamber, which in turn funnels the money to its in-house Elgin Development Group.
“There are deliverables, and they have to come through,” council member Terry Gavin said. “And I would say they have more than come through with flying colors for the last four years-plus.”
Elgin Development Group's focus includes business retention and expansion, business recruitment, and workforce development. The agreement requires the chamber to provide monthly financial reports and copies of its annual auditor's opinion.
Several new provisions are in the pending agreement, Elgin Development Group Director Tony Lucenko said. Those include conducting at least 30 — up from 15 — business retention calls per year, holding a business drop-in event at a commercial/business park, promoting and participating in Elgin Community College's manufacturing job career fair, and developing an “advanced manufacturing pathways program” with business and career services partners.
The lone dissenter was council member John Prigge, who advocates hiring in-house economic development staff instead of contracting with the group. “We need to shop down a different aisle. Our scenario would be more transparent.”
Council member Tish Powell said she too used to want that but changed her mind. “Over the years I have seen the work you and your whole group has done, and the partnerships you've been able to leverage,” she said. “I'm actually really impressed.”
The city employed economic development staff years ago, but those costs — including pension and health insurance — totaled about $500,000, Gavin said. The chamber also gets rent-free use of its offices at 31 S. Grove Ave., owned by the city. Former city manager Sean Stegall had estimated that rent value at $135,000 per year, Prigge said.
Chamber President Carol Gieske cited several accomplishments by the group, such as encouraging Plastic Power Drive Product's relocation from Elk Grove Village to Elgin, helping Blain's Farm & Fleet hire local staff and hold the grand opening for the Randall Road location, helping Compass Automation find a new location in Elgin, and working with American NTN Bearing to stay in town rather than move to Elk Grove Village.
“What businesses have come into Elgin strictly because your initiatives in the last three years?” Prigge asked. A new Motorola training facility and the car dealership Brilliance Subaru are two examples, officials said.
Prigge asked about Elgin Beverage Co., which is planning to move to Bartlett next year. “We have successes, and we have failures too. But we did have 2,200 net jobs (gained) in the community this year,” Lucenko replied, citing state data.
The city's payment to the chamber funds only Elgin Development Group, not chamber expenses, Gieske said. Tax records for 2015 show the chamber reported nearly $594,000 in revenues, including $276,500 from economic development, $203,500 from membership dues and $48,200 from fundraising.