Kane County may create own stimulus package from gambling revenue

Vacant storefronts and shuttered industrial buildings are driving a push by Kane County staff to divert money to developers that normally goes toward farmland preservation.

County staffers delivered a picture of the local economy so grim that even Mike Kenyon is backing the plan. Kenyon is a farmer by trade and arguably the leading fan of the county's farmland preservation program.

Compared to keeping some of the county's rural tradition alive, the county staff presented this reality:

• More than 10 percent of Kane County residents are unemployed, more than double the amount at the same time a year ago.

• Nearly 130 commercial and industrial building spaces in Geneva are vacant.

• About 400 commercial buildings in St. Charles are empty.

• More than one-fourth of all commercial buildings in Algonquin lack tenants.

Coming to the rescue would be $1 million of casino revenue the county receives. County staffers want to use that money to fund incentives that would lure the few development projects out there that are still ready to go.

The $1 million is only a fraction of the total amount of gambling revenue that fills the county's coffers. Last year the county received about $8 million.

Typically, the money is distributed among various areas of need. This year, the county has already committed $3.6 million of the total to fund ongoing in-house programs, such as the Child Advocacy Center. It has also committed nearly $1 million to local agencies, the largest chunk being $200,000 to help fund food pantries.

Last year, the final distribution included about $2 million for farmland preservation. That amount will likely shrink this year.

"Nobody is going to lose it," said Kathy Hurlbut, chairman of the county board's Development Committee. "It hasn't been allotted to anyone yet. There will be funding for farmland preservation. There may not be as much funding as in the past."

Hurlbut's comments followed an inquiry by Kenyon about who will lose out on casino funds if the $1 million is used for a county stimulus package. Given the dire economic picture, Kenyon was satisfied just knowing farmland preservation wouldn't be abandoned entirely.

The stimulus program would make the $1 million available for a period of 18 months. Developers could receive the money if their project:

• Promotes job creation and retention (particularly of white collar jobs, such as engineers and architects;)

• Works well with existing businesses;

• Promotes foot traffic in vital downtown areas;

• Incorporates environmentally-friendly construction;

• And ultimately increases local sales and property tax revenue.

The $1 million would subsidize the impact fees developers pay upfront to compensate for the increased burdens their projects inflict on local roads and stormwater drainage or the costs of putting in new public infrastructure, such as roads. All those are costs that cut into the profits developers receive.

The idea was spawned by the county's economic development department and the county's all-volunteer Economic Development Advisory Board. The idea now moves to the county board's Executive Committee for discussion.