Elgin exploring new ways to lure business, industry

Elgin City Council members got a preview of the latest economic development proposals during their committee of the whole meeting Wednesday.

The presentations by representatives of the Elgin Area Chamber of Commerce and the consulting firm Incentis Group were inspired by a request for cost-benefit analyses of future incentive deals.

A proposal for Bystronic Inc., an international machine tool company, was negotiated under the previous council's preference for cash incentives and offers $46,000 payouts for hiring and about $54,000 in fee waivers.

Bystronic is already operating out of its new North American headquarters on Airport Road and expected to hire 25 people this first year and 40 by 2015.

James Gomochak, of Incentis Group, said the direct, indirect and induced economic impact of the employee compensation and business operations will reach $17 million each year from the Swiss company. That's in addition to taxes and fees Elgin and all the other taxing bodies receive, which made Councilman Richard Dunne suggest working with them to offer better incentives.

“If we're benefiting other taxing authorities maybe we ought to look at doing some mutual intergovernmental agreements so we're both putting some skin in the game,” Dunne said.

The second proposal is for fee waivers and fast-tracking for permitting of a new industrial building and its future tenants. Elgin is low on industrial space for prospective companies, according to the chamber.

The Elgin Development Group, run by representatives of the chamber, the Downtown Neighborhood Association and the city, has found a developer to build a 160,000-square-foot building to market to companies looking to locate in Elgin or expand.

Gomochak estimated the impact of the construction portion alone would generate 71 construction jobs and bring the city $14 million in direct, indirect and induced economic activity.

“The council's investment in the (Elgin Development Group) is paying great dividends to the community,” said John Hurlbut, chairman of the Chamber's board during the presentation Wednesday.

Council members will discuss and hold a preliminary vote on both proposals during the Dec. 21 committee of the whole meeting.