Mr. McCormick asserts that the EDC pursues residential development.  In fact, the EDC's primary focus is commercial in nature. The EDC’s mission is and has always been to focus on the retention and growth of existing commercial businesses and to recruit new businesses in order to diversify the property tax base away from residential, to create new jobs and to promote capital investment. 

Having said that, we do support managed growth and the city’s Master Plan. The EDC cannot overlook the tremendous economic benefits that accrue to the city and county from residential development. Therefore, when WCID #2 and the Esperanza Development appeared on the horizon earlier this year, the EDC supported the master planned community concept and the City’s role in orchestrating and scrutinizing the development agreement because the city would have complete control over the residential development. That was better than the alternative of allowing the developer to move ahead under existing county development rules. The fact is that the EDC has not and does not pursue residential development.

Mr. McCormick claims that the EDC has acted detrimentally to the conservation of natural resources. On the contrary, the EDC does support conservation of limited resources as demonstrated by our being a strong supporter of rainwater harvest systems and by making clear that we will not recruit any new business that has a need for large amounts of water.

No official records support Mr. McCormick’s view that the EDC would not suggest and support properly structured incentives, including tax abatements, for economic development projects.  There was never any suggestion or public position taken that the EDC would not need them.  Incentives are an important part of the economic development toolbox.  In a competitive economic development market place, we must be open to the best methods and practices.

This does not mean that our elected officials should provide a blank check. Rather, it is a thoughtful and analytical process that examines the benefits to the community as a whole. We do not support the reduction or rollback of property taxes on existing businesses, improvements, personal property or land that are currently on the tax rolls. Tax abatement incentives must be used prudently and wisely only for new capital improvements and only in situations where we are competing with other municipalities or locations for the business expansion or relocation. And, if the incentives are put in place for new improvements, then we weren’t collecting any current taxes on them in the first place, so we are not sacrificing or losing anything!  What’s more, the EDC can only suggest incentive structures.  The city and county elected officials are charged with making decisions related to when and where to provide any such incentives. The EDC can only act in an advisory capacity.

The EDC board acts on behalf of its investors.  As investors, both the city and the county appoint two members each to the EDC board. So, each governmental entity does have a voice on the board and in policy-making decisions.  Their views are clearly heard in our board meetings.

Steve Mack
Chairman, Kendall County Economic Development Corporation