January 17, 2001

Life of enterprise zones extended by 10 years

BY DAVE FOPAY  Staff Writer

CHARLESTON -Illinois has given new life to the economic development tool called enterprise zones, such as the one in Coles County .

Recently enacted legislation extended the maximum life of an enterprise zone from 20 years to 30. That means Coles County businesses that get new enterprise zone status would get the full 10 years of benefits that businesses already in the zone got. 

Jeanne Gustafson, executive director of Coles Together, the county's economic development organization that over-sees the enterprise zone, said
 the next step is to ask the county's taxing bodies to extend their property tax abatements. She said she hopes the taxing bodies recognize the enterprise zone's benefits.

"The program is very successful and important", Gustafson said.  "It's a very critical tool in economic development." 

The enterprise zone offers 10 years of property tax abatements on improvements and other benefits for non retail businesses that locate or expand within it. 

But as Coles County's enterprise zone was state certified in 1990, that means new enterprise zone projects now get only nine years of abatements. Without the extension, the period for abatements would diminish each year until the zone expired on Dec. 31,
200.

Gustafson said she wants to discuss the state legislation with'\ the enterprise zone board, the Coles Together board and local industry representatives before going to the taxing bodies. Units of local governments such as the County Board, city councils and school boards have to give their OKs to the abatements.

Gustafson also said the county needs to look at the territory the enterprise zone encompasses. There are some areas in enterprise zone that don't really need it, and some areas that are being developed but aren't in the zone should be added, she explained.

She added that Coles Together will work with the county's school districts on variables under the state's funding formula that could mean that the tax abatements won't automatically cost the district any money.

Used with permission from Mid-Illinois Newspapers
Publishers of the Mattoon Journal Gazette and the Charleston Times-Courier