Belvidere-Boone County Enterprise Zone Public Hearing: Expand Incentives for Property Tax Abatements
Reasons for expanding the Enterprise Zone (EZ) abatement program include the lack of modifications since 1984, increased project requests, connecting abatements with investments, rising development costs, and to enhance regional competitive advantage. Average project sizes show significant capital investments and job creations. Industry representation highlights sectors like manufacturing, electric vehicles, food processing, data centers, and energy. The Property Tax Abatement Schedules outline different levels of incentives based on investment and job creation criteria.
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BELVIDERE-BOONE COUNTY ENTERPRISE ZONE (EZ) Public Hearing: Expand Incentives for Property Tax Abatements MAY 18, 2023 MAY 18, 2023
REASONS FOR EXPANDING THE ENTERPRISE ZONE (EZ) ABATEMENT PROGRAM No modifications with abatements offered since 1984 An increase in project requests by companies offering greater investments Connecting abatements offered with levels of investments (i.e. jobs and resources) An increase in costs for development and disruptions in the supply chain To enhance the regions competitive advantage compared with regions inside and outside of Illinois
AVERAGE PROJECT SIZES BY REAL ESTATE REQUIREMENTS Average Project Opportunity Size (since 2022) Average project opportunities by size of investment and job creation Estimation Type Square Feet (Existing Building) Acreage (Greenfield / Brownfield) Capital Investment: Median: $22M Average: $473.9M Job Creation: Median: 100 Jobs Average: 553 Jobs 215,394 119 Low End Estimate 235,474 128 Midpoint Estimate (Intersect Illinois FY 2022 (07/2021)) 255,555 136 High End Estimate
INDUSTRY REPRESENTATION FOR PROJECTS 6% 6% Manufacturing 27% Electric Vehicles 6% Food Processing Chemical Manufacturing 8% Data Centers Agribusiness 10% Energy 21% (Intersect Illinois FY 2022 (07/2021))
Type High Impact Boone Base Boone Mid Boone High PROPERTY TAX ABATEMENT SCHEDULES *Red denotes proposed amendments Year 1 (in %) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 80 60 40 20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 90 80 60 50 25 25 25 25 25 85 85 85 85 85 50 50 50 50 50 0 0 0 0 0 0 0 0 0 0 Base Property Tax Abatement Schedule NO Requirements ----- Mid-Level Property Tax Abatement Schedule $250M Investment 150+ Jobs w/in 3 years of occupancy ----- High-Level Property Tax Abatement Schedule $800M Investment 400+ Jobs w/in 3 years of occupancy 0 0 0 0 0 0 0 0 0 0 Net % Abatement 20 year (LARGE PROJECTS) 10 25.25 33.75
MEETINGS HELD Belvidere-Boone County Enterprise Zone Advisory Committee Meetings March 17, 2023 April 13, 2023 Project Yukon Discussions Boone County City of Belvidere Belvidere Township Belvidere Township Park District Belvidere Community School District 100 Supplemental Discussions Village of Capron (President Bank) Village of Poplar Grove (President Sattler & Trustees)
ENTERPRISE ZONE AMENDMENT PROCESS 1. Public Hearing 2. Adoption of Ordinances, Amended Intergovernmental Agreement (IGA) Boone County City of Belvidere Village of Capron Village of Poplar Grove 3. Adoption of Resolutions Belvidere Community Unit School District 100 Belvidere Township Belvidere Township Park District 4. Final Amendment Application to Illinois Department of Commerce and Economic Opportunity (DCEO) 5. Approval from Illinois DCEO (within 90 days of application submission)
