Elgin OKs breaks for Siemens plant expansion

Elgin leaders this week gave the thumbs-up to waiving $53,720 in development impact fees so the Siemens plant at 950 Tollgate Road can expand by 28,000 square feet.

The Germany company plans to spend $5 million as part of a two-phase expansion of its mechanical drives plant.

The company moved its wind turbine operations from the Tollgate Road facility in August 2009 to a new, 170,000-square-foot plant near Big Timber and Randall roads.

Now the company wants to expand its operations at its old plant and hire 25 to 30 new people.

Mayor Ed Schock said the expansion will result in more property tax revenues every year from now on and employ more people, who hopefully spend their money in Elgin.

"This has many, many benefits to the city and really no negatives," Schock said.

Councilman Richard Dunne also noted that the city staff had basically already reviewed the expansion as part of their review of the $20 million wind turbine plant, which opened last August.

"In this time and market, waiving these costs and the benefit to the city is definitely worth it," he said.

Councilman John Prigge voted with all the other council members in favor of the plan, but said he did have some reservations about a stipulation that Siemens give preference to hiring Elgin workers.

"I'm concerned it's going to be used as an incentive without a clear cut definition," he said.

City officials estimated the expansion will produce $126,000 more in property taxes. If the expansion isn't done by July 2011, Siemens is required to refund the $53,720.