Monsanto seeks tax breaks through enterprise zone
By ELENA GRIMM – egrimm@daily-chronicle.com
SYCAMORE – An enterprise zone may be coming to DeKalb County to attract business.
Representatives of Monsanto Corp. and of the state’s commerce department met with the economic development committee of the DeKalb County Board on Wednesday to discuss their plans to expand an enterprise zone from Mendota into DeKalb County and Waterman.
The enterprise zone program, under the Illinois Department of Commerce and Economic Opportunity, is designed to stimulate economic growth through state and local tax incentives, according to the DCEO Web site.
The proposed Mendota-Waterman zone would link by way of a three-foot strip on public roadways between the two locations.
Steve McClure explained that Monsanto wants their Waterman facility to be included in the Mendota enterprise zone because one of the benefits is an exemption from the state natural gas tax.
Monsanto uses natural gas for drying corn, and would save thousands of dollars a year if it didn’t pay the gas tax, he said.
The committee did not take any action Wednesday, but fired off questions on what an enterprise zone is and how it operates, since it would be the first one in DeKalb County.
There are currently 94 legislatively-created zones, with no new zones available.
“I’m totally against this,” Julia Fauci, D-DeKalb, said. “Monsanto moved to Waterman for a tax break. I’m not for helping a company that has abandoned the county.”
Pat Vary, D-DeKalb, was concerned over property tax abatements that the county would have to agree with if approved.
Each unit of government that touches the soil of the zone would have to agree to giving full exemption of property taxes to the company for five years, then a 50 percent abatement for five years.
The company has no plans to expand to new facilities to reap property tax breaks, said Monsanto spokeswoman Martha Smith. She said the sole reason for the enterprise zone is to avoid the natural gas tax.
Riley Oncken, R-Sycamore, said he would be on board with an expansion anyway.
“I think Monsanto is important to this community. If they do want to expand, they’ll be creating more jobs for the future,” he said.
The village of Waterman has been “very receptive” to the idea, McClure said.
Also on Wednesday, the committee chairwoman announced she has received word that DeKalb County got a $24,000 grant from the Illinois Department of Commerce and Economic Opportunity.
The purpose of the grant is to research job creation and labor market trends in the county, chairwoman Eileen Dubin, D-DeKalb, said, and to create strategies to attract industries offering high-skilled and high-waged jobs.
“I don’t think it could come at any better time, frankly,” she said.
The DeKalb County Board Economic Development Committee will work in conjunction with the DeKalb County Economic Development Corp. and the Northern Illinois University Center for Governmental Studies.
The group’s work is slated to begin early this summer and targeted for completion by year end.
