Even though the Galesburg Regional
Economic Development Association
(GREDA) plays an important role in local economic
development, contrary to
what their board contends, they are not the only players in the game. The State
of Illinois provides the main impetus and resources for development.
I was one county board member who
suggested the county cut its contribution to GREDA this year because of budget
constraints. We had whittled the contribution from $30 to $15 thousand until
the board finance committee proposed to take the full amount from the landfill
account, which I supported as a temporary
solution. I know the county and city have responsibilities for economic
development, but taxpayers already contribute a great deal of money to state
programs providing funds for local development.
Now GREDA is asking for $25,000 from the
city of Galesburg, which also has major budget problems, for application costs
to include the Galesburg logistics park in a Peoria foreign trade zone. What hasnŐt been made clear is the
logistics park is owned by the city and the city has to apply for the FTZ. According to Greg Mangieri, president
of GREDA, the $25,000 is to be paid to the company operating the Peoria FTZ
because it is a complicated process.
GREDA has spent a good deal of time and
money communicating with delegations and representatives from the Peoples
Republic of China in order to find business for the logistics park located between
Galesburg and Knoxville on I-74. I have several issues with GREDA - being so
dependent on governmental bodies for financing and their dealings with China.
1.
The organization is a
public/private organization, so the public is not privy to all of its activity
and financial information.
2.
If businesses and
individuals in Knox County think the organization is important enough, they
will provide more financial support
3.
Even though we have an
excellent local company owned by a family from China, I disapprove of conducting
business with a brutal dictatorship that stomps on human rights.
4.
Most of the resources
for local economic development come from the State of Illinois and are
administered by the City of Galesburg or other entities besides GREDA.
Hawthorne Center on North Seminary Street
was developed only after the
former Research hospital was given to Galesburg by the
State of Illinois for a dollar, then the state gave Galesburg $3.5 million to
demolish buildings, upgrade the infrastructure and provide grants for
non-profit industries. The money was also used to improve the swimming pool and
gymnasium already there. It was then that GREDAŐs forerunner signed an
agreement with the city to market the property. It has been developed
successfully.
The
City of Galesburg actively utilizes the revolving loan fund called CDAP,
Community Development Assistance Program, which is funded by the state. As of
October of 2005, the city had given out 66 loans at 3 percent interest to local
businesses expanding or locating in the area. Roy Parkin, Galesburg Community
Development Director, is, without doubt, the most important individual in the
countyŐs economic development program.
He says these loans are paid back to the city, and if the company
leaves, the money provided by the state stays with the city. Between 1984 and
fall of 2005, a total of $5,992,341 was loaned and the program shows no loss.
The Illinois Finance Authority was created
by Governor Rod Blagojevich following the consolidation of seven existing state
authorities into the new organization. It is a self-funded body politic and
corporation and does not receive funding for operations from the state.
Strategy is guided by a non-paid board appointed by the governor. Its mission
is to foster economic development to public and private institutions that
create and retain jobs and improve the quality of life in Illinois by providing
access to capital. Galesburg Castings, Inc., for example, received $70,000 from
the cityŐs revolving fund, $60,000 from the Illinois Finance Authority, plus
loans from a local bank and the former owner of Galesburg Division of Iowa
Malleable Iron to resestablish their business.
In
1995, Maytag Refrigeration received a nearly $10 million dollar incentive
package to stay in Galesburg. The union members made sacrifices. The Galesburg
City Council placed a sales tax on city residents, contributing $2, 825,000.
Maytag had already been relieved of property taxes from 1988 through 1994 and a
million dollars was guaranteed in future property tax abatements because Maytag
was in an Enterprise Zone. The state of Illinois, through its department of
Commerce and Community Affairs (DCCA) pledged $5,890,000.
The Illinois Department of Commerce and
Economic Opportunity (formerly DCCA) is divided into ten regions so development
can be planned and administered locally. The local administrators for our
region are Tom Carper, former Mayor of Macomb and Sal Garza, with offices in
Galesburg. It provides 16 programs to aid in economic development, including an
Office of Trade and Investment. The DCEO is underwriting the building of the
new armory on Linwood Road, through the Capital Development Board. It is the
state that funds the local Entrepreneurship Center in Galesburg and the
Galesburg Transitional Center, which directs Workforce Investment Funds towards
retraining the countyŐs laid off workers.
The Illinois Department of Transportation (IDOT) will provide 100 percent funding
for a new intersection and road needed to the entrance of the logistics park
because it is on a state highway, and will provide 50 percent for the road
inside the park. The Environmental
Protection agency (IEPA) is contributing funding to begin a
comprehensive overhaul of GalesburgŐs failing infrastructure; including
upgrades to water, sewers, streets, electric systems and repairs to Galesburg
Sanitary District Equipment. The DCEO will assist Knoxville in upgrading their
treatment facility. The Galesburg Sanitary District expects a million dollars
from the state for upgrading the treatment plant, enlarging a force main on
Knox Street and replacing old pipes.
Carl Sandburg Community College has
utilized existing buildings downtown in its expansion. Among private local
institutions benefiting from state and local revolving funds are The Kensington
retirement community and the Orpheum Theater.
Private institutions and investors have
contributed mightily to Knox CountyŐs economic development, such as Knox
College, Seminary Street Commercial District, Seminary Estates and Galesburg
Antique Mall. For nine years private citizens worked for the establishment of a
National Railroad Hall of Fame, when reaching fruition, promises to initially
bring 100,000 visitors to the community.
Galesburg and Knox County must be a
healthy, active, diverse community for people to want to live and work here. We
arenŐt likely to get new manufacturing plants that employ 3,000 people. The
direction of our efforts has to change. But when the large picture of economic
development is viewed, the role of GREDA is not the major role. It is the State
of Illinois and the City of Galesburg and development efforts made by other
communities in the county.
GREDA is important in bringing together
various entities to promote business retention and expansion, but its role
should not be exaggerated. Clearly, taxpayers already contribute substantially
to local economic development
efforts and should not be asked to do more. For city and county
government to be fiscally sound and provide adequate services does the most
good for a community, guaranteeing a sound government base for economic and
social development.
Caroline Porter is as freelance writer from Galesburg
who can be reached at cporter@galesburg.net. Other columns are online at www.thezephyr.com.