Elgin council approves incentives for two businesses
Two economic incentive agreements breezed through the Elgin City Council this week in a rare show of unanimous support from council members.
Economic incentive agreements have been a contentious topic in the last year as council members debated cash payouts versus fee waivers to encourage business expansion or relocation. Councilman John Prigge has routinely been the lone “no” vote on the agreements. But two incentive plans up for preliminary approval during the committee of the whole meeting Wednesday earned even his support.
“This looks about as close to perfect as I can think of for incentives,” Prigge said of one to NTN Bearing Manufacturing Corp. of America to expand within the city limits.
The manufacturing company has already expanded several times in Elgin and plans to do so again, developing a commercial and industrial building of up to 100,000 square feet — a move that would create up to 240 new jobs.
The incentive agreement doesn't include any cash payouts and instead waives building permit fees that are expected to total $100,000. It also commits city staff members to fast track NTN's permitting process.
Mayor David Kaptain said the quicker turnaround with permitting was an important piece of the deal. “When they move forward they want to move,” Kaptain said.
Assistant City Manager Rick Kozal said the company is expected to begin work on the new facility at 1700 Holmes Road this summer.
The second agreement will allow for 50/50 tax sharing with BBK Motorsports, which plans to open a Honda dealership at its 222 Dundee Ave. location and move its Kawasaki products to 227 DuPage St.
The Kawasaki dealership is expected to bring in $80,000 in sales tax revenue next year. The city will rebate half of the extra tax revenue — up to $50,000 — until 2018 when the agreement expires.
“Fifty percent is better than now, when they don't have the Honda dealership,” said Councilman Richard Dunne.
Eleven jobs will be created at the Honda location.
Both agreements need final approval at the next city council meeting.