Good Numbers for Effingham County From Enterprise Zone Board

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Published on August 4 2017 2:44 pm
Last Updated on August 5 2017 7:51 am
Written by Greg Sapp

Effingham and Effingham County ranked second in the state as far as points generated in hopes of landing an Enterprise Zone this year.

The existing Effingham City/County Enterprise Zone expires in 2018. Rather than being able to seek a renewal of existing zones, the State changed the rules and everyone in the state interested in a zone must make application.

An Enterprise Zone allows an abatement of property taxes on new or expanded business developments as well as sales tax breaks for things like building materials. State law gives new zones a 15-year life, although holders of zones can request after 13 years a 10-year extension.

The current zone takes in the City Business Park, as well as Network Centre High Tech Park and the development property along South US 45 in the area of John Boos and Company's new plant, along with several smaller parcels.

Sasha Althoff, who serves as the City of Effingham's Economic Development Specialist, said Effingham finished second in total points behind Douglas County. 12 applications were received. The Jersey/Greene County intermodal zone was third, Chicago Zone #6 was fourth, and the Whiteside/Carroll County zone finished fifth. The rest of the list: Massac County sixth, Vandalia/Fayette County seventh, Kewanee eighth, Carmi/White County/Edwards County ninth, Quad Cities 10th, Zion 11th, and Shelby County 12th.

Earlier information from the State was that nine zones were to be granted this year. Althoff said officials found out at the State Enterprise Zone Board's meeting Wednesday in Springfield was that now only six zones are to be awarded this year, although under the latitude granted the State Board, they don't have to grant any new zones this year. Under the guidelines, no new zones are to be awarded in 2018, meaning an approval this year is strongly desired by local economic development officials to keep that tool an option.

It's also worth noting that point totals is not the only criterion in deciding whether an area should be awarded a zone.

Althoff said the State Board is to hear a report from the Department of Commerce and Economic Opportunity on September 6. Decisions on awarding zones this year are to be made by September 30.