Elgin mayor sees brighter days ahead for city

Calling himself “an optimist at heart,” Elgin Mayor Ed Schock told local business leaders Tuesday he's never been more optimistic about the city's future.

At the State of the City address at Elgin Community College hosted by the Elgin Area Chamber, the three-term incumbent mayor said he's confident the economy will recover, and Elgin will be well-suited thanks to economic development activity already taking place.

“I think if there's any community in the Chicago area that's positioned to take advantage of the improved economy, it's Elgin,” Schock said.

His address comes as the next election season is kicking off. Schock will face Councilman Dave Kaptain in the contest for mayor.

Schock said four businesses are “seriously considering” locating to Elgin, including some foreign-based companies.

Officials from a Scottish windmill company have already visited, with plans to come back this month, in addition to a Swiss machine tool company, according to Leo Nelson, president of the Elgin Area Chamber.

Current businesses in Elgin are expanding, Schock said, such as Siemens, Suzlon and American NTN Bearing. He pointed to the city's proximity to O'Hare International Airport, an “economic engine in a global economy,” and noted he was the first mayor in the suburbs to support airport expansion efforts.

One way the city has tried to lure businesses is through economic incentive agreements. Just last week, the city council approved incentives for Guvaudan, a Swiss flavor and fragrance company.

Schock said the new Walmart store being built at Randall and Bowes roads, along with an expected Sam's Club, will generate $40 million in new sales and property tax revenue in the next 20 years.

In the downtown area, Schock said many businesses and restaurants are staying put, and revenue from a tax increment financing district is exceeding projections.

Work will begin late next spring or early next summer on the Artspace development, a $14.5 million project that will rehab an old ECC building and build an addition, creating a living and working space for artists.

The nonprofit will pay $300,000 to $400,000 a year in property taxes, which will go into the downtown TIF, Schock said.

He called the riverfront the “catalyst” for downtown redevelopment, with construction on a new parking facility expected to begin this spring.

Schock provided a more sober assessment of housing in Elgin, which has suffered from the foreclosure crisis. There were 130 housing starts in 2010, nowhere near the 1,500 a few years before, he said.

Schock said 17 to 19 percent of jobs in Elgin are construction related. As an example, he said his neighbor, a carpenter, hasn't worked in two years.

“We have to get housing going again if we're going to really return to a robust employment,” he said.

The city has bought 12 foreclosed houses to date in an effort to rehab and resell them, he said.

While Schock overall positioned himself as an optimist, his mayoral opponent has taken a decidedly different tone.

“I won't paint that rosy a picture,” Kaptain said. “It's not over yet and I can't say we've turned a corner. I think we're bouncing around the bottom.”

Kaptain referenced economists' estimates that unemployment nationally would remain flat and Elgin wouldn't be immune to those trends.

He said the city needs to address its high unemployment rate and number of people in poverty.

There's an opportunity to create “green” jobs, Kaptain said, such as work on installing hydropower at the Kimball Street dam, a proposal he has introduced.

Other issues Schock addressed:

Ÿ Crime: He said Elgin ranks second lowest in crime of Illinois' 12 largest cities. There's been a 50 percent drop in crime in the last 12 years, he said.

Ÿ Infrastructure: Nearly one-third of the city's streets are being rebuilt, reconstructed or repaved in three years, he said. The city is also continuing sewer separations in older neighborhoods, though Schock said he'd like the federal government to help out with the $100 million cost.

Ÿ Gambling: In response to an audience question, Schock reaffirmed previous positions on proposed gambling expansion being debated in Springfield. He said he wouldn't be opposed to new casinos in Chicago, Waukegan or the south suburbs, but installing slots at Arlington Park “would be very detrimental” to the Grand Victoria Casino, a major revenue source for the city.