NIU, county studying how to attract high-tech, high-wage jobs

The need for jobs is evident, but the need for good jobs might be even more prudent.

Jobs should be thought of in terms of quality, not just quantity, in a "knowledge economy," said Bob Gleeson, who directs the Center for Governmental Studies at Northern Illinois University.

"Regardless of what sector you're in, more and more wealth is produced by people who are bringing more knowledge there," he said. "Where can we identify the sectors that have high-quality jobs?"

DeKalb County just received a sum of money to answer this question. Using a $24,000 grant from the Illinois Department of Commerce and Economic Opportunity, over the next four months, the Center for Governmental Studies will analyze trends in job creation and assess how economic development policies – such as tax breaks, tax increment financing districts and low-interest loans – have supported that process.

Staff will share their work along the way with a task force comprised of board members of both the DeKalb County Economic Development Corp. and the DeKalb County Economic Development Committee.

One of the primary tools to attract jobs has been property tax abatement, especially for industrial firms, Sycamore City Manager Bill Nicklas said. Other incentives are road and infrastructure improvements; discounted connection, permits and impact fees; and job training assistance.

About five years ago, local taxing bodies came together to form a set of cohesive goals and expectations for companies to follow. Essentially a financial assistance program, it's been termed anywhere from an economic development incentive to corporate welfare.

"Taxpayers – whether they're individuals or businesses – want to make sure the money they're paying is going to be used wisely and prudently," Nicklas said. "We want to make sure there is criteria to make communities reach their goals."

Firms applying for financial assistance must show how that investment will pay off – through additional property tax revenue; a diversity of jobs, products and services; or by improving the overall quality of life of the community.

When food additive producer Tate & Lyle wanted to place a production facility in Dixon and a corporate and research facility in West Chicago under one roof, Sycamore was one of many communities at the halfway point.

Though geographic location was the main consideration, the attractive tax breaks – and a workforce supported by a university – were the selling points of DeKalb County, said Tom George, president of the Sycamore company.

A three-year property tax abatement forgave 80 percent of taxes the first year, 70 percent the second year and 50 percent the third year.

A high-tech firm that recently received a similar three-year tax abatement soon will be breaking ground in Sycamore. Public assistance was a major factor in Smart Motion Robotics' decision to relocate, company vice president Mike Chuipek said.

"Dollars are very important to start a new project," Chuipek said. "It's important that the local government supports the initiative of business growth. [Tax incentives] are one way they can definitely show that support."

Local governments often set the tone for the surrounding business climate, Gleeson said, and this role will continue to grow. From the housing market to schools to the mere physical appearance of the community, all make a difference when a company chooses where to go, he said.

"Think of something local government doesn't touch," Gleeson said.

For Tate & Lyle, finding a spot in Sycamore Business Prairie Park might have been negligible when compared to a major tax savings, but it counted in the decision to move to DeKalb County.

"We needed an industrial park that wasn't scary and was accommodating and very beautiful," George said.