The Illinois Team
(cover)
DCCA: Job Training, Business Assistance
Technology, Research Boosted Through VentureTech
High Tech Goes To Work
Development Continues In Collar Counties
Quad Cities:
Rolling On the River

New Business
In the South

Illinois' Growing
Plastics Industry

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The Illinois Team: Stronger Than Ever Armed with a plethora of new business-assistance programs and a rejuvenated investment climate, Illinois' team of economic development professionals and corporate leaders -- and the state's business case -- is stronger than ever.


It's not just the good geography or its unparalleled transportation access. Illinois has both, and admittedly, they're strong points for businesses that want to locate in the state.

Chicago has long been the nation's rail center, with major rail routes from all directions converging on the Windy City. O'Hare International Airport provides access from the air for both tranport and travelers. The state's location on Lake Michigan, as well as its 1,100 miles (1,760 km.) of navigable waterways, make smooth sailing for water traffic from the St. Lawrence Seaway to the Mississippi River. And Illinois' web of interstates -- more than 2,000 miles (3,200 km.) of interstate highway crisscross the state -- provide easy access for truck traffic. Add to that the state's heartland location -- Illinois boasts that more than a quarter of the U.S. gross national product is produced within 300 miles (480 km.) of the state -- and you've got an appealing destination for business development.

But Illinois' economic developers know that "location, location, location" needs a sturdy underpinning, and now they're combining Illinois' traditional strengths with an emphasis on up-to-date technology, skills and strategies to make the state a 21st-century magnet for newcomers and current companies alike.

Their efforts are beginning to pay off. The state was a consistent presence in Site Selection's 1999 rankings for corporate facility location: No. 6 for new and expanded facilities (with 872 facilities), and No. 4 for new manufacturing plants (168).

The Land of Lincoln did well in the 1997-99 tallies as well; No. 2 in capital investment per one million population; No. 6 for new manufacturing plants; and No. 7 for new or expanded facilities. And the Chicago area ranked No. 2 in the top 10 metro areas for both new and expanded facilities and for new manufacturing plants.

But economic planners and developers around the state aren't resting on the numbers. In the last year, both state and local agencies have made a concerted push, both individually and cooperatively, to attract and retain business in Illinois.

Perhaps the two most dramatic moves the state has taken to ensure business expansion were put forth last year by Gov. George Ryan. Illinois FIRST (Fund for Infrastructure, Roads, Schools and Transit) is a massive US$12 billion, five-year public works initiative aimed at beefing up the state's infrastructure and improving its transportation strengths. Illinois roads, bridges, railroads and airports will receive nearly $4 billion for improvements; mass transit projects will receive another $4 billion, and school improvement will receive more than $2 billion.

While the indirect benefits of such improvements are advantageous to businesses, FIRST funds are also having a more direct on some companies' expansion plans. ITW Minigrip Zip-Pak, for example, a plastics packaging company, was persuaded to build a new manufacturing plant in Ottawa after the town received $50,000 in FIRST funds for rail spur construction at the site. The company will also receive job training assistance and infrastructure funds for the plant, which will be completely operational by next year and is expected to create 73 new jobs.

The state also moved to boost Illinois' competitive edge by initiating the EDGE program. EDGE -- Economic Development Through a Growing Economy -- is managed by the Illinois Dept. for Commerce and Community Affairs (DCCA) and gives tax credits for job creation in the state. Businesses creating new jobs can claim a state income tax credit equal to a portion of the incremental income tax generated from the new positions. Firms have to create at least 25 jobs and invest at least $5 million in Illinois to be eligible for the credit. The credits are meant to benefit companies demonstrating that the costs of doing business in the state are higher than they would be in other states. By the last quarter of 1999, there had been "tremendous demand," for the program, says Mary Burkholder, DCCA's deputy director for business development; as of February, 74 applications had been received.

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