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Politics & Government

Incentives Increased to Attract New Businesses

Crystal Lake focuses on incentive programs to attract new businesses.

Crystal Lake has amped up incentives to attract new businesses to the city. The city’s retailer façade and commercial tenant improvement program was so appealing in attracting new businesses last year, more money is being funneled into it for fiscal year 2011/2012.  

Last year eight out of 13 new businesses were recipients of the award, including Aaron’s Sales and Leasing, Mobil Oil, Twisted Stem Floral and Batteries Plus.

The city approved the Planning and Economic Development Committee’s request for an additional $5,000 to the incentive program, bringing it to $80,000, as part of the city’s 2011/2012 budget on April 19. 

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The majority of the funds, $70,000, have been applied to further entice new businesses to make Crystal Lake their homes. 

These are matching grant programs that provide up to $10,000 to new retailers willing to put up the same amount to make improvements on a property it leases or redevelopment of an existing building and the same for manufacturers for equipment and new or existing building improvements.  The city’s general operating funds are used to support the program. 

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There are new requirements attached to the incentives. Retailers must provide a cash and carry retail service, meet the minimum of $150,000 in taxable retails sales, a commitment to stay open for a minimum of four years (up from three years) and have a retail showroom open to the public. 

Manufacturers continue to be offered the $2,000 award per new employee as part of the $10,000 award, but must also commit to stay open four years in the city, also up from three years previously. 

“We wanted to make sure the money we invest in the business community will eventually come back to the city,” said Economic Development Assistant Director James Richter. “Which is why we require the agreements to take place over four years.” 

Existing retailers are still invited to apply for the improvement grant, the maximum award is $2,500 but for the upcoming fiscal year there is only $10,000 available in funds from the city. New stipulations are attached to the request include meeting a minimum of $50,000 in taxable retail sales, commit to stay  open for four years, provide a cash and carry retail service and a retail showroom open to the public. 

Richter said this year more money was put into the new business aspect of the budget due to the low number of existing retailers that took advantage of the program last year. 

Manufacturers were included last year, he said, adding to the existing industrial revenue bond financing incentive. C Ideas Rapid Prototyping took advantage of the program when it relocated from Cary to Crystal Lake recently. 

“We wanted to be able to enhance to tools that we can use for recruiting job providers here. This gives them an edge,” Richter said. 

The program is one of several incentives the city offers to existing and new businesses. 

I Shop Crystal Lake promotes shopping and dining in the city while offering business support services; the targeted development zone fee reduction program offers permit fee reductions for qualifying businesses along Routes 14, 31 and 176; and the enhanced sales tax incentive program wherein the city rebates a portion of sales taxes for a limited period of time when making operational and property improvements. Richter said nine businesses took advantage of this program last year.

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