The news that DeVry Inc. will relocate its corporate home to Downers Grove would have been good news any time. With the dismal state of the economy, it represents a major accomplishment.
The deal, which was more than a year in the making, will take the Highland Landmark V building at Highland Avenue and 31st Street from empty to more than half full. It will bring 400 new jobs to Downers Grove, resulting in an estimated $30,000 per year in additional revenue to the village. It will also lead to improvements in both infrastructure and public transportation.
Spearheaded by the Downers Grove Economic Development Corp. with the help and cooperation of a roster of local, county and state officials, the deal highlights the costs and opportunities of attracting business in the competitive suburban environment.
Chief among them is the incentives the village used to lure DeVry to its new address. In December, the village council approved an economic development deal that will rebate half of the educational company’s electric, telecommunications and sales taxes for the 15-year term of its lease. The village will also rebate 75 percent of the permit and plan review fees associated with the initial buildout of the space.
The agreement marks the first time the village as rebated utility and telecom taxes and permit fees for a for-profit entity, although it routinely waives permit fees for non-profits, as well as sales taxes for businesses it wishes to attract.
There is no set policy for making the choices, which allowed the EDC and the village to evaluate every economic tool at their disposal. “Any tax is an economic development tool,” said EDC President Greg Bedalov. “This is a way to think outside the box.”
When all is tallied, the rebates will return about $450,000 to DeVry over the course of its lease, while bringing in at least as much in new revenue, according to EDC projections. The building’s EAV is just one factor: Highland Landmark owner Opus North will pay more in property taxes for a leased building than an empty one.
Fact is, any major business is going to demand incentives for moving to this or some other town, especially in this environment. “It’s the same thing we’ve seen with the auto industry and major electronics stores,” Bedalov said. “Unless you incenticize them, they’re not coming.”
Public officials clearly consider incentives a small price to pay to snag a major corporate citizen, which explains why the EDC, Mayor Ron Sandack, Village Manager Dave Fieldman, DuPage County Board Chairman Robert Schillerstrom, county board members Brien Sheahan and Jeff Redick, various state officials and Congressman Pete Roskam all pulled together to make it happen.
“It was a complete joint effort,” Bedalov said.
As for infrastructure and other improvements that will result from the deal, “it has turned into a really, really big project,” Bedalov said.
The county has agreed to add a second right-hand turn lane on 31 Street at Highland, allowing a freer flow of traffic out of the Highland Landmark complex. The village will participate by moving fire hydrants and street lights in the area.
“We hope for a nice, free-flowing 31st and Highland” by 2010, Bedalov said.
He also has been working with the Pace Suburban Bus Service to adjust its routes in order to provide buses from the Main Street train station to the Highland Landmark complex for commuters arriving on the 7:24 a.m., 7:45 a.m. and 8:10 a.m. trains.
The EDC, in conjunction with Pace, surveyed tenants of Highland Landmark and found that 87 employees said they would most definitely or likely use Pace’s Route 834 bus from the Metra if it was reliable, Bedalov said.
Other transportation options are also being discussed, including a Pace van pool for commuters who live and work in the same place and a Metra feeder van pool, which would allow commuters to train into town and pick up a van near the train station to drive to work.
“We’re also working with the village to see if there is reverse-commute potential for the shuttle,” said Bedalov, who acknowledged that public transportation is “the black hole of economic development” given the many challenges in convincing suburbanites to forego their cars.
“Every time you think you’ve got it figured out there’s a twist that changes the game,” but with a number of good options to work with, “we may be able to skin that cat,” he said.
“It’s my personal goal to have 100 cars off the road by this time next year.”
“Think outside the box” is an actionable marketing-speak offense.
/humor
Skin a Cat………….I love cats. Shame on Greg and Ej for posting such a cruel comment