Elgin considers launching new business license plan

Elgin business and city leaders this month could consider a plan to create a business license program for 2010.

Supporters say it will aid new and existing businesses, create a business database, bolster economic development, encourage new job skills and even generate $540,000 more a year for the city, which needs to fill a multimillion-dollar budget gap.

"That's the bottom line, bringing in jobs. I see this more as an investment than a fee program," said Leo Nelson, president of the Elgin Area Chamber of Commerce. "We've talked about a business license fee before, but it never went anywhere."

Nelson said the chambers's executive committee has discussed the plan and could bring it to the chamber's board at its next meeting on Nov. 19.

The license proposal is included in the 2010 budget draft that Elgin City Council members will dig into at 5 p.m. Wednesday, Nov. 4, at city hall, 150 Dexter Court.

The council has until mid-December to pass the budget and would have to approve a measure to enact the business license program.

Mayor Ed Schock said the data would be used to create a database of every business in town that could be shared with new businesses looking to set up shop or existing ones looking to expand.

As proposed, for businesses less than 2,500 square feet, the yearly fee would be $35. For businesses between 2,500 to 9,999 square feet, the fee is $150.

The fee doubles to $300 for businesses 10,000 square feet to 39,999 square feet and is $600 for places more than 40,000 square feet.

Schock said the fees would help fund a work force development program to train Elgin area residents for jobs right here.

"It would be a positive for a couple of reasons," he said.

Nelson said many new business owners coming to Elgin are "surprised" the city does not require a business license. A database can help define what businesses the city has but also how many employees work within a certain area.

"We're trying to continue the current (economic development) program at its current level and kick it up a notch," Nelson said.