Presented by J. Craig Coil

1. J. Craig Coil
President - Illinois Enterprise Zone Association
CEO/President – EDC of Decatur & Macon County
IEZA Fall Conference
Springfield, Illinois
April 25, 2013

2.  NEW IDOR REPORTING PROCESSES
 DCEO MISSED THE APPLICATION
DEADLINE
 Friday’s Public Comment Period on JCAR Rules is
your chance to speak out.
 New proposed application timelines per JCAR
filing.
 New proposed rule on adding territory

3.  One of the major concerns with these proposed
rules is the proposed one-year delay in the
application deadline for enterprise zones to
December 31, 2014 (Section 520.230(b)). SB 3616
contained a strict negotiated timeline that required
applications to be available by April 1, 2013 with a
deadline of December 31, 2013. Changes to the
deadlines established in the original legislation
should be addressed through legislation.

4.  Another significant concern is the administrative
rule (Section 520.310 (1)) requiring any addition to
an enterprise zone to meet three of ten tests. This
was not the intent of the legislation that required
the entire enterprise zone (not a simple addition) to
meet three of ten criteria based on
unemployment, poverty, business
closings, vacancy, tax improvement
plans, infrastructure, property values, and
manufacturing skills. We adamantly oppose
requiring an additional parcel of land to meet three
requirements.

5.  The enterprise zone legislation created enterprise
zones for 25 years with a review at year 15.
Enterprise zones would be evaluated and
automatically receive the final 10 years of life if
they continued to meet the requirements set forth
in the Act. However, Section 520.315 (b)(4)
requires an enterprise zone to make application
for the final ten years that is not the intent or the
language of the law. This section should be
revised with Enterprise Zone Board reviewing
the current zone and granting the ten year
extension if their continue to meet the legal
requirements.

6.  MISCONCEPTION AMONG
COMMUNITIES
 This is not a renewal of your current Zone.
 This is a new Zone designation process.

7.  All zones expiring between 2013 and 2016
receive automatic extension until 2016.
 Impact on local abatement resolutions/ordinances.
 Incentives Eliminated
 $500 Job Tax Credit
 Dividend Income Deduction
 Interest Income Deduction for Financial Institutions

8.  MAPS
 Each Zone Administrator shall post a copy of
the boundaries of the Enterprise Zone on its
official Internet website and shall provide an
electronic copy to the Department. The
Department shall post each copy of the
boundaries of an Enterprise Zone that it
receives from a Zone Administrator on its
official Internet website.

9.  ADMINISTRATION FEES
 By April 1 of each year, each Zone
Administrator shall file a copy of its fee
schedule with the Department, and the
Department shall review and approve the fee
schedule. Zone Administrators shall charge no
more than 0.5% of the cost of building
materials of the project associated with the
specific Enterprise Zone, with a maximum fee
of no more than $50,000.

10.  Sales Tax Exemption Certification Process
Changes and Reporting Changes:
Administrators vs. IDOR
 Massive new reporting by
companies/contractors and administrators.
 Companies: Quantify benefits by MAY for the
preceding year.
 Administrators: Specific company/contractor
tracking info by MAY for the preceding year.

11.  Local administration fees capped at $50,000.
 New Renewal Process/Qualifying Criteria.
 No preference for existing zones.
 25 year extension from 2016 with review at 15
years.
 Rivers Edge Zones transitioned to new
competitive Enterprise Zones as they expire in
20-25 years, resulting in 5 new Zones.

12.  All or part of the local labor market area has
had an annual average unemployment rate of
at least 120% of the State's annual average
unemployment rate for the most recent
calendar year or the most recent fiscal year as
reported by the Department of Employment
Security.
 (50 points)

13.  Designation will result in the development of
substantial employment opportunities by
creating or retaining a minimum aggregate of
1,000 full-time equivalent jobs due to an
aggregate investment of $100,000,000 or
more, and will help alleviate the effects of
poverty and unemployment within the local
labor market area.
 (50 points)

14.  All or part of the local labor market area has a
poverty rate of at least 20% according to the
latest federal decennial census, 50% or more of
children in the local labor market area
participate in the federal free lunch program
according to reported statistics from the State
Board of Education, or 20% or more
households in the local labor market area
receive food stamps according to the latest
federal decennial census.
 (40 points)

15.  An abandoned coal mine or a brownfield (as
defined in Section 58.2 of the Environmental
Protection Act) is located in the proposed zone
area, or all or a portion of the proposed zone
was declared a federal disaster area in the 3
years preceding the date of application.
 (30 points)

16.  The local labor market area contains a presence
of large employers that have downsized over
the years, the labor market area has
experienced plant closures in the 5 years prior
to the date of application affecting more than
50 workers, or the local labor market area has
experienced State or federal facility closures in
the 5 years prior to the date of application
affecting more than 50 workers.
 (50 points)

17.  Based on data from Multiple Listing Service
information or other suitable sources, the local
labor market area contains a high floor vacancy
rate of industrial or commercial
properties, vacant or demolished commercial
and industrial structures are prevalent in the
local labor market area, or industrial structures
in the local labor market area are not used
because of age, deterioration, relocation of the
former occupants, or cessation of operation.
 (40 points)

18.  The applicant demonstrates a substantial plan
for using the designation to improve the state
and local government tax base.
 (30 points)
 Significant public infrastructure is present in
the local labor market area in addition to a plan
for infrastructure development and
improvement.
 (50 points)

19.  High schools or community colleges located
within the local labor market area are engaged
in ACT Work Keys, Manufacturing Skills
Standard Certification, or other industry-based
credentials that prepare students for careers.
 (40 points)

20.  The change in equalized assessed valuation of
industrial and/or commercial properties in the
5 years prior to the date of application is equal
to or less than 50% of the State average change
in equalized assessed valuation for industrial
and/or commercial properties, as
applicable, for the same period of time.
 (40 points)

21.  DCEO to make new application available by
3/31/2013.
 Applications due to DCEO by late 2013 or
early 2014 (subject to JCAR rulemaking). 69
existing zones impacted initially.
 DCEO forwards application
rankings/recommendations to EZone
Advisory Board.
 Directors of DCEO, Revenue and three Gov.
appointments. (Cook, Collar and Downstate)

22.  DCEO and Advisory Board Review and
awards in 2016 (estimated).
 Timeline allows for shutdown period for non-
renewed zones and startup and reconfiguration
for renewed and new Enterprise Zones for
2016.

23.  Communities seeking renewal or new designation
apply to DCEO by December of each year.
 DCEO Reviews sent to Advisory Board by
September of each year for applications received
through December of previous year.
 Advisory Board designation recommendations by
December.

24. J. Craig Coil
President – Illinois Enterprise Zone Assn.
CEO/President – EDC of Decatur & Macon County
101 South Main – Suite LL 5
Decatur, Illinois 62523
217-422-9520
ccoil@decaturedc.com
www.ieza.org