Chamber: Elgin’s economic development pact paying off

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Updated: January 9, 2012 10:14AM

ELGIN — Representatives of the Elgin Area Chamber of Commerce showed how just two of the projects underway through the chamber’s economic development agreement with the city have resulted in a big return on the city’s investment during a presentation at Wednesday’s city council committee of the whole session.

A two-year agreement between the city and the chamber in a partnership called the Economic Development Group is set to expire at the end of the year, and the council is set to review the arrangement in January. The city has been paying $400,000 each year for the work, and has budgeted $275,000 for economic development in 2012.

John Hurlbut, partner in the Elgin law firm of Hurlbut & Hurlbut and chairman of the board of the Elgin Area Chamber of Commerce, spoke about how the two efforts are growing the city’s tax base, creating new jobs and bringing millions of dollars into the community.

The first project Hurlbut discussed was Swiss firm Bystronic North America, a supplier of cutting systems, moving its North American headquarters from upstate New York to 300 Airport Road this year.

Hurlbut noted the project created 38 temporary jobs during construction phase of its 48,300-square-foot building. The company employs 89 workers. The additional revenue, including property taxes paid to the city, is more than $41,000 annually, according to Hurlbut’s figures.

Bystronic’s presence will generate about 1,000 hotel nights for their clients at local inns, Hurlbut said, and the economic impact in the Elgin area is estimated to be $17 million annually.

Hurlbut also discussed the planned construction of 160,000 square feet of industrial space on speculation, which Hurlbut said is rare in the current economy. Pancor Development hopes to begin work immediately on the two buildings, which would be in the Randall Point Business Park on Big Timber Road just west of Randall Road. At its Dec. 21 meeting, the city council is set to consider waiving 40 percent of its recapture, public safety and capital fees on the $9.6 million project.

Even with the waiver, according to Hurlbut, the project would result in 71 construction jobs, generate $112,500 in fees to the city at the start of the project, and lead to $61,000 in property taxes generated annually. The economic impact on the area would be more than $14 million.

Hurlbut’s figures come from studies put together by The Incentis Group of Chicago and presented Wednesday evening

Hurlbut reminded the council about other projects that have come about under the economic development agreement. Those include the expansion of Fabric Images, a fabricator and designer of printed fabric structures, that has retained 100 jobs and created 30 new jobs; Sears Holding Corp.’s Photo Studio, which supports its online and print advertising, opening on Bath Road in Elgin this year and employing 60; Delta Mobile, which helps companies design and manufacture wireless electronic devices, relocating to Elgin from Schaumburg, bringing 23 jobs; work with the state of Illinois’ European office, bringing Proven Energy, a Scotland-based small wind turbine manufacturer, to Elgin; continuing Wing Park Shopping Center rehabilitation; and the addition of a new west-side Walgreens.

Wednesday afternoon, chamber Vice President of Economic Development Michael O’Kelley said the EDG is constantly working on a list of projects, with eight or nine currently in the pipeline. Those include deals in the works with Precision Auto Parts and with a European firm looking to move its U.S. office from the East Coast to the Midwest. O’Kelley noted that the economy remains uneven, with growth in the industrial sector but retail performance still poor. Despite the times, EDG work has resulted in “a heck of a return for the city,” chamber President Leo Nelson said.