Catalyst Move Will Impact Local Economy

Financial incentives were the motivating factor for the move to Wisconsin by Catalyst Exhibits, according to comments made during a highly publicized March 17 press conference held by Wisconsin Gov. Scott Walker. 

The trade-show management company will receive a $500,000 loan from the state of Wisconsin and a $1.25 million low-interest loan was offered by the Kenosha Area Business Alliance for renovations at the new facility in Kenosha County. Catalyst plans to add 25 new jobs to the 88 employees who will keep their jobs in the new plant. 

And what did the state of Illinois offer Catalyst to stay?  Gov. Pat Quinn’s office hasn’t offered any specifics. 

Marcelyn Love, communications manager of the state’s Commerce and Economic Opportunity Department, said only that Quinn’s administration made every effort to keep Catalyst and the jobs of its employees here. 

“Ultimately, the company did not respond to the administration’s requests for a meeting,” she said, adding that officials will work closely with area representatives to provide assistance needed to workers impacted by the move. 

But Catalyst won’t take up the offer, as it announced employees will keep their jobs in the new Pleasant Prairie, Wis., location; commuting to their homes in Illinois if necessary. 

Perhaps the offer came too late, or perhaps Catalyst executives were tired of the apparent neglect of businesses by Illinois administrators, particularly after the Gov. Pat Quinn’s corporate and income tax rate increase went into effect this year. 

Catalyst President Tim Robbins said only that he wanted to be in a state that would value him during the press conference. Robbins did not immediately return phone calls for comment on the move.

Pam Cumpata, executive director of McHenry County Economic Development Corporation, said Catalyst is just one of many companies leaving the state of Illinois for greener pastures. In particular, Wisconsin, Indiana and New Jersey have been actively luring Illinois business to their states. 

“Heck, within a couple of days, or even hours of the tax increase going through, it was Walker, Daniels and Christie coming after Illinois at the same time,” she said. “And we’ve been watching the state of Texas court businesses from California and their governor travels all over. So who’s to say he wasn’t here?” 

Cumpata believes Illinois has plenty of assets to attract and keep businesses but said Illinois hasn’t made that a high priority. 

“You cannot rest on your laurels. You have to remain strong and you have to make sure that your customers (businesses) understand and feel wanted and valued,” she said. 

And although Catalyst employees may continue to live in the Crystal Lake area, the impact of the company’s departure will be felt nonetheless; not to mention the 25 new jobs area residents will lose out on. 

Some of the money that employees spent in Crystal Lake will now be spent in Pleasant Prairie, which will affect secondary employment like retailers, services and restaurants, she said. 

Cumpata’s concern is that while Illinois businesses may not be able to afford a move to another state when growing, as Catalyst did, they will expand outside of Illinois when they grow, such as Caterpillar, Inc., has done. 

Last year the company, headquartered in Peoria, announced plans to build two new plants outside of Illinois, meaning a loss of income and jobs for Illinois residents. 

The MCEDC moved quickly to find a replacement for the 100,000-square-foot building Catalyst leases at 215 Exchange Drive, which the company will vacate this summer, starting with a call to the Texas-based landlord, Cobalt Capital Partners. 

When Cobalt and Catalyst failed to agree on a new lease in Crystal Lake, Cobalt offered its 144,000-square-foot building in Pleasant Prairie. 

“We said, ‘OK, you took one out. Who are you going to bring in?’” Cumpata said.

Crystal Lake Economic and Development Assistant Director James Richter said he met with Catalyst executives in February after learning of the possibility of its leaving, as did the MCEDC. 

“By that time the deal in Wisconsin had already been finalized,” he said. “The City was disappointed that the state of Illinois couldn’t come to the table with any offer to retain them.” 

Richter said efforts to find a new tenant have attracted interest in the facility, but was not at liberty to divulge details at this time.