CHICAGO – In an aggressive move to stimulate business growth and job creation in Pike County, Gov. Rod R. Blagojevich today announced the certification of the Western Illinois Economic Development Authority (WIEDA) Enterprise Zone, which will lend critical income and job creation tax credits to companies located within its borders. The newly created zone could attract Heartland Ethanol, LLC to the region, which is a proposed $200 million ethanol plant in Griggsville that would create an estimated 235 construction jobs and 40 permanent new jobs. This support comes as part of Opportunity Returns, the Governor’s comprehensive economic development strategy to continue creating better jobs and expanding the economy in Western Illinois and across the state. Leaders from WIEDA and Heartland Ethanol, as well as state, county, city and economic development officials, gathered at the Farm Bureau Building in Pittsfield to celebrate the announcement.
“The WIEDA Enterprise Zone in Pike County is a tremendous new asset for the region that will help to attract new companies, significant private investment and good new jobs. We’re especially excited to potentially welcome Heartland Ethanol to the state, which would build upon Illinois’ tremendous capacity for ethanol production. By continuing to support investments in ethanol and other biofuels, within ten years, we’ll be able to produce enough energy from our own natural resources to cut our dependence on foreign energy in half. By working together with WIEDA and companies like Heartland Ethanol, we’re encouraging more investment that hopefully will lead to more well-paying jobs across the region,” Gov. Blagojevich said.
WIEDA has the authority to establish enterprise zones in a thirteen county region of Western Illinois. Chief benefits of an enterprise zone include sales tax exemptions and tax credits for job creation. A 6.25 percent state sales tax exemption is permitted on building materials to be used in an enterprise zone, while the Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the zone for which a certified eligible worker is hired. The Enterprise Zone Investment Tax Credit is a state investment tax credit of .5 percent for investments in qualified property in a zone, which includes machinery, equipment and buildings. An additional local benefit of the enterprise zone is the property tax abatements from the taxing districts. There are 96 enterprise zones statewide
“We are thrilled to be celebrating the official designation of the WIEDA Enterprise Zone in Pike County that could lead to exciting new projects using the key advantages available through the zone,” said Hubert Staff, WIEDA Board Chair. “This is merely the beginning of what will be a multi-county territory designed to attract new and relocated business and industry in some of the more depressed areas of the Western Illinois region. My thanks to Gov. Blagojevich for his support that could bring good new jobs and investment to the region.”
Heartland Ethanol LLC, is a Knoxville-based company specializing in ethanol facilities production. The company might begin construction on the 113-million gallon ethanol facility in May 2007, which will employ roughly 235 union laborers, providing a huge economic benefit during the construction period. The plant could be fully operational by November 1, 2008 and would employ at least 40 people with an annual payroll of at least $1.6 million.
“Large equity investors looking to build ethanol plants have many choices throughout the Midwest, but the economic incentives that were presented to us by WIEDA through the enterprise zone are making Griggsville a very attractive option for us. Our thanks to all of the state, regional and local partners, and we look forward to working together to try and establish a world-class ethanol facility, right here in Pike County,” said Walker Filbert, Heartland Ethanol President.
“By working together on the local and state level, Gov. Blagojevich and I believe that we are setting the stage for even more good economic news throughout our region. WIEDA is an important economic development tool for the region and, through this new enterprise zone, we’re helping to prime the area for greater business investment, which will generate more jobs and economic growth,” said State Sen. John Sullivan (D-Rushville).
"The proposed Heartland Ethanol plant and enterprise zone designation in Pike County is terrific news and a good sign of things to come for the region. Our thanks to WIEDA, Gov. Blagojevich, Senator John Sullivan, and our local officials and economic development organizations for providing the resources needed to increase these employment opportunities in our community and put more people to work," Rich Jones, Business Representative IBEW 34 (Quincy) said.
As part of his ambitious Energy Independence Plan, Gov. Blagojevich proposes investing $100 million over the next five years to build up to 20 new ethanol plants across Illinois. The additional ethanol production would generate an estimated $1.7 billion in business investment. The Governor also proposes investing an additional $100 million over the next ten years to build four plants in downstate Illinois using new technology to create ethanol made from plant waste materials like corn husks and wood pulp – or “cellulosic ethanol.” This means boosting the state’s annual ethanol production by more than 200 percent and meeting 50 percent of gasoline needs by 2017. Gov. Blagojevich’s energy plan will help free consumers from the grip of foreign oil and gas interests by giving drivers and homeowners alternatives to the high cost of gasoline, stabilize energy prices, give Illinois farmers new markets for their crops and create an estimated 30,000 new jobs.
WIEDA is a powerful economic tool, which serves the following thirteen Western Illinois counties: Warren, Henderson, Hancock, McDonough, Fulton, Mason, Cass, Schuyler, Brown, Adams, Scott, Morgan and Pike. In addition to Enterprise Zone designation, WIEDA offers and administers numerous services and programs, including bond financing, lease-purchase financing, real estate development of properties for lease and technical assistance on economic development issues.
“Gov. Blagojevich understands that by partnering together with local leaders and businesses, we are creating an exciting new environment in which they can expand and aggressively pursue new levels of growth and prosperity. Through the creation of this new enterprise zone with WIEDA, we will have an even stronger economic development asset to help us do just that,” DCEO Director Jack Lavin said.
Since January 2004, Illinois has gained 173,600 jobs, which is best in the Midwest. Illinois led the nation in new job growth in January 2007 with 19,100 new jobs. In 2006, Illinois gained 71,000 new jobs, which is the best calendar year gain since 2000. The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics.