Frerichs' Enterprise Zone Extension Passes Senate

Legislation to extend and improve one of Illinois’ most successful economic development tools today passed the Senate with overwhelming support. State Senator Michael Frerichs’ (D – Champaign) Enterprise Zone Extension legislation, Senate Bill 3688, now moves to the Illinois House of Representatives.

Despite the overwhelming support expressed in the Senate and from business leaders statewide, this legislation faces future challenges. Senate Democrats remain committed to ensuring that Enterprise Zones remain a useful, successful economic development tool for Illinois businesses.

“You just cannot argue with the results of enterprise zones in keeping our economy going,” said Frerichs. “We conducted a thorough review of these zones and found impressive support around the state for keeping them in place and improving them. This legislation does just that, and we hope the House will agree.”

As chair of the special Senate Committee on Enterprise Zone Extensions, Frerichs held four hearings across the state to gather input and support for the legislation from business and community leaders. Hearings were held in Carbondale, Rockford, Chicago, and Peoria. Last week, the committee met at the Capitol in Springfield.

Mark Denzler, Vice President and Chief Operating Officer for the Illinois Manufacturers' Association says Enterprise Zones “are one thing that work well in the state of Illinois.” He notes that while the business community may not always be happy with what happens, this program “is one thing that works very well in Illinois and should be continued.”

Business leaders from across Illinois echoed this sentiment at each of the four hearings held statewide:

• "Over the last 5 years or so, from 2006 to 2010, Continental AG, our parent company in Germany, decided to invest in expansion projects in the US. The decision to invest in the Illinois plant versus Indiana and other states was largely dependent on the benefits we received both from the Enterprise Zone program and incentives from the State of Illinois and our local governments. So it is very important for the Mount Vernon plant to remain competitive, again, within the Continental group and within the tire industry. The Enterprise Zone program and its current benefits, the way they are, helps us to do that." - Barbara Hoppa, Continental Tire in Mount Vernon
  
• "Certainly it was one of the things that we looked at whenever we were going through making a determination of which plants we wanted to invest in and grow. So that was one of the—the Enterprise Zone that the Belvidere plant was located in—was one of the contributing factors to that continued investment, that $700 million investment." - Misti Rice, Chrysler
  
• "Over the last year, Caterpillar has certainly been critical of certain issues that we think that the State can improve upon. But today I’m here to talk to you about something that Illinois is doing right and ought to continue…Enterprise Zones are one tool that the State can use to set itself apart to make itself more attractive for investment. Caterpillar has facilities in Enterprise Zones in East Peoria, Morton, Decatur, Mapleton, and Joliet, and of course we have many suppliers that are located near us that also benefit from the zones. The zones in these communities are working, and making these communities more economically viable…The State of Illinois has a positive economic development tool available to it today. But its availability for next year is in question. We would encourage you to re-authorize these zones quickly and provide the state with a long-term renewal that creates a stable and predictable environment for businesses to plan." - Rob Carney, Caterpillar in Peoria