Elgin chamber touts successes ahead of new contract with city
Elgin City Council members Wednesday night gave their unanimous preliminary approval to a 15% total increase in the three-year contract with the Elgin Area Chamber of Commerce, which provides economic development services to the city.
The contract would be $300,000 this year, $309,000 next year and $318,270 in 2022. It was $275,000 from 2010 to 2019.
The chamber, headed by president Carol Gieske, provides economic development services through its Elgin Development Group, whose director is Tony Lucenko.
The contract requires the chamber to work on five key areas: business retention and expansion, business recruitment, workforce development, transportation and development, and the "Enhancing Elgin" initiative.
New elements include: the development of a video series; expanding business retention visits to include office and retail; marketing of 2 million square feet of speculative space; have a "Showcase Elgin" event; and have a small business competition with cash and consulting prizes.
Councilman Toby Shaw said he endorsed the increased contract, even though "it is a lot of money," because the chamber does crucial work, particularly in keeping existing businesses satisfied.
"If we were trying to bring this in house, we just wouldn't be as effective," he said.
Councilwoman Tish Powell praised the chamber's work during its 10-year partnership with the city, but also said she was "a little hesitant" to increase the contract amount. But, "I think you've come up with some interesting plans on some new things that you are trying to do," she said.
Lucenko said that in the last three years, the Elgin Development Group's work helped create and retain an estimated 6,825 jobs, $757 million in gross domestic product and $379 million in annual compensation. The estimate is "very conservative" and includes the work of countless others, not just the group, he said.
"We just wanted to show the public that your investment in us is paying back," Lucenko said.
Another group director Bob Malm, retired Aug. 30 at a $37,413 salary, and it's unclear if the chamber plans to replace him.
The group has always operated at a financial deficit, with salaries being the biggest expense, so Malm's retirement eased the loss, chamber officials said.
The group is currently working with 13 companies looking at 3 million square feet of space, he said.
Elgin's vacancy rate is 3.4% for industrial, 4% for retail and 6% overall, all below the national average, Lucenko said.
In 2018 the area posted a record net absorption of 1.7 million square feet of industrial space, and 2 million square feet of new industrial space is being built between 2019 and 2020, Lucenko said.
"We are going to do everything in our power to make this economic development program a continued success," Lucenko said.
The presentation included testimonials from business owners who have worked with the Elgin Development Group, including Ross Thomas, Culver's franchise owner; Mike Sullivan Jr., CEO and founder of Peak Construction Corporation; Mike Bilyk, president & CEO of American NTN Bearing Manufacturing Company; and Danny Malouf, human resources manager for Harding.
The chamber relies heavily on the work of volunteers: 105 professionals serve on committees and put in more than 1,000 volunteer hours, chamber officials said.
Powell suggested creating a strategic plan for economic development. Councilmembers John Steffen and Baldemar Lopez said they liked the idea.
"We need to target those who aren't benefiting economically" and the strategic plan can be a way to hone that effort, Steffen said.
Lopez praised Lucenko's work specifically, saying, "You're truly a resource for this community."
The city council is expected to approve the contract, retroactive to Jan. 1, at its next meeting Jan. 22.