Elgin set to consider increasing contract with chamber

The Elgin City Council will consider Wednesday increasing its yearly contract with the Elgin Area Chamber of Commerce, which provides economic development services to the city.

The contract, which expired Dec. 31, was $275,000 per year for the last decade. The new, three-year contract would be $300,000 in the first year, plus a 3% increase in the second and third years, or 15% altogether.

The chamber will give a presentation to the city council Wednesday about the results of its work and strategies, Chamber President Carol Gieske said.

The chamber provides services to the city through its Elgin Development Group division, which had two directors until Bob Malm retired Aug. 30. The other director is Tony Lucenko.

Malm's salary was $37,413, Gieske said. Malm was hired to conduct annual fundraising campaigns to supplement funding from the city and no determination has been made about hiring a replacement, she said.

When asked about the reason for the proposed contract increase for the chamber, Gieske and city spokeswoman Molly Gillespie didn't give a clear answer, only to say the increase is "modest" after a flat contract since 2010.

As for carrying out the city's contract for the last four months of 2019 with one less Elgin Development Group employee, Gillespie said, "The fee for the economic development services is not wholly derived from number of EDG staffers. The agreement generally requires EAC to provide economic development services using the talents of experienced and knowledgeable economic development specialists and an administrative support staff, including information technology."

Mayor David Kaptain and Councilman Terry Gavin said they believe the chamber is waiting for a new contract before deciding how to proceed with hiring to replace Malm.

Both said they support increasing the contract.

"Just because they had somebody retire, it doesn't mean it makes them not eligible for an increase. It allows them to plan for the future," Kaptain said.

"I don't think they get enough credit, actually," said Gavin, who serves on the workforce development committee for the Elgin Development Group. "Working with them for the last 5½, 6 years ... they've done a great job."

The city also has a $135,000 yearly contract for economic development with the Downtown Neighborhood Association of Elgin and a $250,000 yearly contract for marketing services with the Elgin Area Convention and Visitors Bureau.

The DNA and the chamber are housed in a city-owned building at 31 S. Grove Ave. and pay no rent. The visitors bureau, whose contract was increased last May, occupies its own space at 60 S. Grove Ave.

Pursing what could be a fourth contract with an outside entity related to marketing/economic development, the city issued a request for proposals for real estate marketing services for three-city owned parking lots downtown, with the goal of turning them into "residential-oriented, mixed-use development."

The lots are on the northwest corner of South Grove Avenue and Prairie Street, the southwest corner of South Grove Avenue and Chicago Street, and the southwest corner of North Grove Avenue and Kimball Street.

City officials declined to provide information about the bids submitted, citing an exemption under the Freedom of Information Act. The bids will be made public should the city council take action, city officials said.

"Several members of city council have expressed interest in hiring a firm that specializes in marketing these development opportunities beyond the immediate Chicagoland area," Gillespie said. The project is beyond the scope of the city's current contracts, she said.

Kaptain and Gavin said they endorse the move.