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OFFICE OF PLANNING & ECONOMIC DEVELOPMENT The Springfield Prospectus Site Selection FAQs
If you are
looking to locate or expand your business operations, or simply
looking for a great place to live and work, Springfield, Illinois,
should be your location of choice.
The following are answers to frequently asked questions
concerning Springfield’s critical location factors. How stable is the
Springfield economic base?
The
diversity of the Springfield economy, which is supported by
extremely stable service-sector employers and governmental
institutions, is an attractive feature of living and working in
the area. Sangamon
County and the six surrounding counties of Logan, Macoupin,
Christian, Menard, Montgomery and Morgan, serve as the area’s
central labor pool for local employers.
By industry
in 2001, the Springfield MSA showed 32% of workers in Services,
28% in Government, 17% in Retail Trade, 6% in FIRE, 4% in
Wholesale Trade, 4% in Transport-Communications-Public Utilities,
4% in Manufacturing, and 6% in Construction, Mining and Quarrying.
From 1994 to 2001, the largest percentage increases in
employment were in business services, health services, and other
service industries. Currently
in the Springfield area, there are 134 manufacturing firms
employing 4,300 workers.
In addition,
Springfield serves as a regional commercial retail hub, drawing
shoppers from throughout the surrounding area, and as well drawing
visitors from around the world as a national and international
tourism destination. What about
cost-of-living in Springfield?
The
Springfield area housing market is one of the most affordable
markets in the United States and boasts a lower than average cost
of living according to ACCRA.
Springfield’s
price-adjusted, real per capita personal income is the most
powerful in Illinois. In
a study conducted by Old Dominion University in 2000, the buying
power of Springfield residents was ranked as the strongest in
Illinois and 39th among 219 metro areas studied.
The study compared personal income with cost of living to
evaluate the buying power of residents. Will I find competitive
business costs in Springfield?
Business
costs in the Springfield area are among the lowest in the nation. According to a recent study by Standard and Poor’s
evaluating utility costs, real estate and salaries among
America’s 316 MSA’s, Springfield’s business costs were
ranked as the second lowest in the nation. How compatible is the
Springfield business climate?
Springfield
was ranked 12th among the top 25 cities in the nation
for doing business by Business
Development Outlook magazine.
Expansion Management
magazine recently rated Springfield as a Five Star location for
medium-sized business expansion and relocation. What is the availability
of skilled labor in the Springfield area?
The
Springfield-Sangamon County labor market is one of the largest in
central Illinois due to the propensity of its workforce to commute
long distances to work. The
Springfield-Sangamon County area has the highest commuting-in rate
of any central Illinois community, significantly broadening the
pool from which skilled labor is selected
The labor
pool in the Springfield area is extensive and includes unemployed,
under-employed, and re-entering retirees, representing a potential
available workforce of 228,057 individuals in the Springfield
area. A workforce
audit conducted by The Center for Governmental Studies at Northern
Illinois University found that there were 186,413 under-employed
workers who were interested in a different job or an additional
job. The workforce
audit also found 25,251 individuals who were not working but were
considering returning to the workforce.
The 16,393 retired workers re-entering the workforce are
younger than average and a significant number are under the age of
65. Of the 228,057
potential available workforce 31% have experience in
computers/electronics, 37.4% in health care or medical devices,
21.5% in manufacturing, and 20% in agriculture and agribusiness.
The Center
for Governmental Studies audit found that overall labor quality in
Springfield is considered among the best in the nation by local
employers. Employers
rated employees good or very good on job performance as it relates
to trainability, basic skills, productivity and attitudes.
Low rates of turnover and absenteeism also add up to a
productive, skilled workforce. How would you describe
the labor/management climate in the city?
The local
relationship between labor and management is considered to be good
due to the frequent and successful re-negotiations of labor
contracts and the unusually low incidence of work stoppages. Are construction
services available locally?
More than
160 general contracting firms are located in the Springfield area.
Dozens of specialized firms supplement these businesses allowing
Springfield to meet every construction need.
Thirty architectural and engineering firms are located in
the area and many of these firms have national and international
experience in major public and private construction projects. What major highway
access is available to Springfield businesses?
Springfield
is located at the intersection of Interstate Highways 55 and 72,
reaching a population of 57.5 million within 400 miles.
Springfield is at the very center of a broad marketplace
that encompasses the Midwest and much of the near south,
strategically located between Chicago (200 miles to the north),
St. Louis (90 miles to the south) and Indianapolis (250 miles to
the east).
Thirty-five
intrastate and 74 interstate trucking companies serve Springfield,
and the community currently supports 41 truck terminals. In addition, 25 specialized carriers operate to meet the
particular needs of local businesses.
Direct-line shipments are available to virtually all major
US markets. What airport service is
available in Springfield?
Springfield’s
Abraham Lincoln Capital Airport, the
region’s full service airfield, is among the finest in Illinois
and was voted as Illinois’ best airport in 2000.
Located just three miles northwest of downtown Springfield,
the facility is operated by the Springfield Airport Authority.
Passenger
air service to Springfield is provided by American and United
Express. Corporate aircraft refurbishing is
available via Garret Aviation, a Capital Airport tenant.
Complete charter, aircraft repair and maintenance, and fuel
services are available on-site.
Along with
the airport facility, the Springfield Airport Authority controls
2,000 acres of land on and surrounding the airport.
The Authority has indicated a strong willingness to
accommodate new industry by offering low lease costs for firms
locating distribution facilities at the airport. What is the availability
of rail?
Springfield
is well situated to provide rail access for both passengers and
freight.
For
passenger traffic, Springfield offers daily service to both
Chicago and St. Louis through Amtrak.
Numerous rail connections are available from these
locations. Passenger
rail service is expected to expand over the next few years with
the inclusion of Springfield as a stop on a new high-speed rail
line that will connect St. Louis and Chicago.
Five
railroads serve Springfield and Sangamon County.
These include the Norfolk Southern, the Canadian
National-Illinois Central, Gateway Western/Kansas City, the
Illinois Midland, and the Union Pacific.
These rail lines provide excellent direct shipment access
to major markets throughout the US and close proximity to rail
bulkheads in Chicago, East St. Louis, and Kansas City.
Springfield is within a one-day rail shipment time of St.
Louis, Indianapolis, Chicago and Kansas City. What mass transit and
bus service is available in Springfield?
Intra-city
bus service is provided by the Springfield
Mass Transit District (SMTD).
Nine regular bus routes operate Monday through Saturday
between 6:00 a.m. and 6:00 p.m.
The current system covers all sectors of the city, carrying
over 2 million passengers each year and providing more than
900,000 vehicle miles of service.
Bus fares are $.75.
A special
transit system is operated by the SMTD, offering door-to-door
service for the elderly and disabled within the urban area.
Long
distance inter-city bus service is provided by Crown Travels and
Greyhound. Daily
schedules permit regular travel to all parts of the US.
Regularly scheduled inter-city commuter routes serve an
area with a radius of approximately 55 miles of Springfield.
Sixteen firms offer charter bus service. Is there a reliable
source of electricity in Springfield?
City Water, Light and Power (CWLP), Springfield’s municipally owned and
operated utility, operates a fully integrated electric generation,
transmission and distribution system.
Energy is produced by five coal fired, steam generating
plants, two oil turbine plants, and one natural gas turbine plant.
The system is extremely reliable and offers significant
capacity for new loads. The peak generating capacity is 619
Megawatts, with 426 Megawatts being the highest summer peak
reached (7/23/01) and 278 Megawatts being the highest winter peak
(12/26/01).
The
coal-fired plants are scrubbed, meaning that low cost electricity
generated from nearby coal will be available into the foreseeable
future.
In terms of
reliability, during 1998, the last year for which comparative data
is available from the Illinois Municipal Electric Agency, CWLP’s
Customer Average Outage Duration Index was only 88 minutes
compared to a US average of 97 minutes and an average of 266
minutes for five other major Illinois utilities.
While other parts of the country have seen the outage
duration increase over the past few years, CWLP’s fell to only
66 minutes in 2000.
Moreover,
the likelihood of a CWLP customer experiencing outages or service
interruptions is extremely low.
The System Average Interruption Frequency Index for CWLP in
1998, again the last year for which comparative figures are
available, was only 0.696, while the US average was 1.460 and the
average of the five major Illinois utilities was 1.938.
Altogether,
CWLP’s 1998 Average Service Reliability Index was 99.99%,
meaning outages accounted for only 0.01% of the total
service-demand time required by CWLP customers during that entire
year.
Electricity
rates in Springfield are also among the lowest in Illinois and the
Midwest. The table
below provides some residential cost comparison with other area
utilities.
An Economic
Development Rider (EDR) is also available to any new or existing
permanent, general-service customer meeting certain demand
qualifications. Generally,
a new or existing customer can qualify for the EDR by increasing
electric demand over the customer’s base period demand.
This increase in electric demand must be the result of new
construction, capital expansion or annexation.
The base period demand for a new customer would be
calculated as zero. Industrial
and Non-Industrial (does not include retail) customers should
contact CWLP for additional information concerning this program. Who provides natural gas
service in Springfield?
All
commercial and residential customers in Springfield and much of
the balance of Sangamon County are provided natural gas service by
AMEREN/CILCO, an AES Company since 1999.
AES is the world’s largest global power company.
AMEREN/CILCO transports natural gas through Panhandle
Eastern Pipeline Co.
AMEREN/CILCO serves
198,000 customers with a delivery capacity from the pipeline
company of 285,600 cf, and from storage fields of 260,000 cf. The
peak 24-hour demand (1/15/72) was 443,167 cf. Average monthly
consumption in Springfield is 73.8 therms, and average monthly
cost is $43.80.
The company
will negotiate rates with industrial users’ with high natural
gas demand. Does Springfield have
adequate water capacity to meet our needs?
City Water, Light and Power
(CWLP), Springfield’s municipally owned and
operated utility, supplies the urban area and nine surrounding
communities and public water districts with water from Lake
Springfield, a 6.6 square mile (4,200 acre) man-made lake.
The lake has
storage capacity of approximately 17.5 billion gallons and is
supplied by a watershed of 265 square miles.
In times of low rainfall the lake level is augmented by
drawing water from the South Fork of the Sangamon River via
channel dam and pumping station.
The water
purification plant is a fully integrated operation designed to
process raw water for human consumption. The present processing
capacity of the purification plant is 42 MGD. The reliability of
the water purification plant is excellent, with no curtailment of
services during the last 65 years.
Storage in
the distribution system is provided by a one-million gallon
elevated tank located in the near-western part of the city, a
four-million gallon ground storage tank in the near-north part of
the city, and a five million gallon standpipe in the southwestern
part of Springfield. Six
million gallons of water remain in clear wells at the purification
plant for an average of nine hours before being distributed
through 590 miles of water mains to CWLP customers.
Eighty-five percent of the water is used before reaching
one of the storage tanks. Pressure
on the system averages 60 psi throughout.
The planning
and permitting process is well underway for a second lake as a
potential future supplemental source of raw water.
Water
charges are based on units of water used by customers, where 1
unit = 100 cubic feet = 748 gallons.
There are also certain minimum charges based on water meter
size. A three-block
rate structure remains the same for all customers; only the
customer charge varies depending on the size of the meter.
Springfield’s
water rates are among the lowest in Illinois.
Assuming an average usage of 8 units per month with a
5/8” meter, a Springfield resident would pay $10.81 per month.
In 1968, the
Springfield City Council established a fund for the purpose of
extending water mains to new industries.
A new or expanding industry may apply to the City to
request cost participation in any water main extension needed for
development. How is wastewater
disposal handled?
The Springfield
Sanitary District provides wastewater collection and treatment
for Springfield, five adjacent villages and other unincorporated
areas. The District
controls the connection to and use of sewers in all areas, though
the collection system within the City is maintained by
Springfield’s Office of
Public Works.
Combined
sewers serve the central city and the District intercepts and
treats the dry weather flow and the first flush of wet weather
flows from this area. All
of the areas developed after 1930 are served by separate sanitary
and storm sewers.
Prior to
connect to the District sewers, the District requires that
property be annexed to the District.
The land must be contiguous to present District boundaries.
The
District’s financial picture is excellent as witnessed by its
most recent bond issue ratings.
The outstanding general Obligation Bonds are being serviced
using current revenues. There
are no outstanding revenue bonds.
The District
recently enlarged collection and treatment capacity for the
system. No major
improvements are planned or will be necessary to meet state or
federal regulations. Presently two treatment plants serve the Springfield area:
the Sugar Creek facility (current flow 6MGD, current capacity
25MGD, excess capacity 19MGD), and the Spring Creek facility
(current flow 20MGD, current capacity 50MGD, excess capacity
30MGD.)
The existing
rates of the Springfield Sanitary District, among the lowest in
Illinois, impose user charges of 32 cents per 100 cubic feet of
wastewater, plus a flat $1.00/month service charge.
In addition, charges from $.04 to $.06 per pound of TSS
and/or BOD are assessed for discharge that exceeds 250 mg/1 of
either of these components. Can the City provide
fiber optics?
The
municipal utility, City
Water, Light and Power (CWLP) has installed over 100 miles of
fiber optic lines throughout the city.
This system is extremely fast, operating at speeds equal to
nearly 20,000 dial-up Internet connections.
Today CWLP can offer a wide range of fiber optic based
communication services with connection speeds of 10 Mbps, 100
Mbps, 1,000 Mbps, and various ATM connections. CWLP’s network
equipment is highly expandable, allowing for significant future
growth.
Due to the
already existing electric service responsibilities, CWLP is
staffed for a 24x7 trouble call system.
Trouble clerks have access to the appropriate communication
staff to resolve any network issues.
If a customer does experience a network problem, CWLP’s
communication staff will usually know about the problem before the
customer because all nodes of the network are monitored by HP
Openview and the system is configured to automatically page CWLP
engineers and technicians when a problem occurs.
The entire
network is built for redundancy with all core equipment and paths
redundant so that there are no single points of failure.
Also, since this network also serves CWLP, it receives
first priority attention.
This system
is currently used for municipal services, but if of benefit to a
client, the City is willing to discuss the parameters in which
this fiber optic capacity might be made available for business
expansion and development. How about education and
training opportunities?
The Greater
Springfield area offers a wide array of education and job training
resources. Seventy-one
public and 31 private schools prepare young people for further
study at the college or university level, vocational training
centers, or for direct entry into the workforce. Springfield area
public schools have earned “Blue Ribbon” designations from Expansion
Management magazine.
Total
enrollment for Sangamon County schools during the 2002-2003 school
year was 33,885, resulting in the employment of 2,468 educators.
The school
districts serving Springfield operate a substantial adult
education program, and the City is also served by the Capital Area
Career Center, a secondary-level vocational center operated by 14
public school districts, which offers introductory
vocational/technical programs along with customized shorter-term
sequences.
Of persons
25 years-of-age or older, Springfield-Sangamon County presents a
proportion of its population holding a high school diploma, which
is higher than the national average.
The local percentage of high school education attainment is
83%. Additionally,
more than one-fifth of the Sangamon County population holds a
bachelor’s degree from a four-year college or university.
Colleges and
universities within a 60-mile radius of Springfield include:
The
University of Illinois at Springfield (UIS) offers a number of
degree programs including business administration.
Its accounting program is regularly recognized based upon
the number of accounting majors passing the CPA exam.
The
University of Illinois at Urbana/Champaign (UIUC) is also within
commuting distance of Springfield. UIUC is regularly recognized as
having one of the best colleges of business administration in the
nation. In addition,
UIUC offers extensive educational programs in robotics and
information systems technology as the home of the National Super
Computing Center. What health care
institutions are in Springfield?
Springfield
is the premier health care and medical center for central
Illinois. Three major
hospitals, over 40 clinics, and a full complement of other medical
facilities and services are available to meet the region’s
medical needs.
St. John’s Hospital
is an affiliate of the Hospital Sisters Health System and, as a
regional healthcare referral center, provides tertiary care for
the entire central and southern Illinois area.
The hospital has over 700 beds, and in FY 1999 served over
20,500 inpatients and 100,000 outpatients.
With an employee compliment of 3,500 FTE’s, St. John’s
is the city’s second largest employer.
Its medical staff numbers more than 575 physicians,
podiatrists and dentists, and its physical plant covers 13 city
blocks.
Associated
with St. John’s is the Prairie
Heart Institute which houses all cardiac care services.
The Prairie Heart institute is the largest cardiovascular
center in Illinois and is nationally recognized for superior
quality, cost-effective health care.
Approximately 10,000 procedures are performed in the seven
cardiac catheritization laboratories each year.
This includes diagnostic catheritization and non-surgical
treatment procedures. The cardiovascular department offers a full
range of sophisticated diagnostic services for adult and pediatric
cardiology and vascular patients. More than 1,800 open-heart
surgery procedures are performed each year.
The Carol
Jo Vecchie Women’s and Children’s Center reflects St.
John’s ongoing commitment and responsiveness to families with
the convenient co-location of the Birth Center, Neonatal Intensive
Care Unit, St. John’s Children’s Hospital and women’s health
services all in one state-of-the-art facility.
Over 2,500 children are admitted to Children’s Hospital
each year and another 8,000 treated as outpatients in pediatric
rehabilitation.
The Level 1 Southern
Illinois Trauma Center is a partnership of Southern Illinois
University School of Medicine, Memorial Medical Center, and St.
John’s Hospital. The
two hospitals alternate responsibility for the adult Level 1
Trauma Center annually. Because
of St. John’s unique ability to care for critically ill
children, St. John’s is the receiving hospital for all pediatric
trauma involving children age 11 and under.
St. John’s
also serves as a teaching hospital for Southern Illinois
University School of Medicine.
The hospital also supports other areas of medical
education, including St. John’s College Department of Nursing. St. John’s also offers allied healthcare training programs
in medical technology, histotechnology, electroneurodiagnostic
technology, and respiratory therapy.
The hospital also sponsors a dietetic internship program.
Memorial Medical Center
is a 600 bed general acute care institution serving central and
southern Illinois. It
is also headquarters for a 900 bed multi-hospital system through
its management services division. In 1999, Memorial Health
System’s gross revenue was one-half billion dollars. Memorial has 400 physicians on its medical staff who provides a wide array of specialized services, including 24-hour medical service in the Emergency Department. Over 3,500 employees provide comprehensive care, including the work of 13 specialty units, which cover such areas as burn treatment, cardiac care, kidney transplantation and oncology.
Outpatient
services at Memorial are extensive and are offered by most
departments. Additionally,
memorial operates two free-standing outpatient facilities that
offer a comprehensive range of services in the
Baylis
Building and at the
Koke
Mill Medical Center.
Memorial
also provides the clinical setting for undergraduate, graduate and
post-graduate physician training in affiliation with the Southern
Illinois School of Medicine.
Additional
specialty medical care facilities in Springfield include the
Springfield Clinic and the
Cancer
Institute.
The newly
established Mid Illinois Medical District
has
been created to support advancement of the health sciences,
services and facilities of our thriving healthcare market.
The district serves as a focused and consistent developer
of medical facilities in a one-square-mile area of Springfield.
Property in the area is redevelopment to attract medical
businesses as well as research and development activities.
The district supports activities and projects related to
health sciences, health care facilities and services, medical
research facilities and services, emerging high technology
enterprises, along with businesses and other activities provided
for in the act.
Is Springfield a safe
city?
The fire
protection services provided by the Springfield Fire Department (SFD)
have earned a high fire rating for insurance purposes.
Springfield’s fire department is one of the very few to
be among the top departments in the country.
The
Springfield Police Department (SPD) is a very innovative and
effective force as demonstrated by its well respected
community-policing efforts. The
SPD has been accredited by the Commission
on Accreditation for Law Enforcement Agencies (CALEA).
The most
current figures available for Springfield as compiled by the
Illinois State Police, show that the crime index decreased by 5.9%
from the previous year. What is the quality of
life in Springfield?
The
Springfield metro area offers an attractive quality of life for
all who live here.
The climate
in Springfield is indicative of pleasant conditions with distinct
seasonal changes, but without extended periods of extreme heat or
cold. Springfield’s
location, midway between the Continental Divide and the Atlantic
Ocean, offers a typical continental climate.
Annual
snowfall averages just under 22 inches; however, the snow tends to
disappear within a few days.
Sunshine averages more than 70% during the summer months
and 45% during the winter months.
Air
pollution is not a problem in Springfield.
In fact, the area is free of major problems.
What recreational
resources are available? Springfield provides its residents with excellent neighborhood, community and regional recreational resources. There are 30 public parks which provide passive and active recreation areas, and Lake Springfield, located on the southern edge of the community, offers water-related recreation on its 4,235 acres of lake surface and 57 miles of shoreline. Boating and fishing are excellent on the lake and located around the lake are eight public parks. These lake-side parks offer picnic tables and shelters, playgrounds, softball diamonds, restrooms and lake access.
Among the
other interesting outdoor venues in the city are the
Adams Wildlife Sanctuary, Lincoln
Memorial Gardens, Washington
Park Botanical Gardens, and the Henson
Robinson Zoo. Nine golf courses are part of the Springfield landscape. Among these courses is The Rail Golf Club, home of the State Farm Rail Classic, an annual LPGA tour stop.
Popular
spectator sports including watching the University of Illinois at Springfield’s
Prairie
Stars collegiate sports teams, the
Springfield
Junior Blues Hockey Team, and special professional and college
sporting events held periodically at the Prairie Capital
Convention Center.
The
Springfield Park
District provides a year-round community recreational program. What cultural amenities
are available?
Springfield’s
cultural opportunities are many and varied.
Programs, events, exhibits, concerts, classes and
performances cross the arts spectrum.
Local arts groups and councils are very active in their
support for programs that meet the diverse tastes of
Springfield’s art, music and theatre patrons.
The Springfield
Art Association and the Michael
Victor II Art Library are located in Edwards Place on North
Fourth Street. The association conducts classes for children and adults, and
holds lectures, demonstrations and special art exhibits in the
gallery of this restored Victorian mansion.
The Prairie
Capital Convention Center and the Sangamon
Auditorium, which part of the Public Affairs Center on the
campus of the University of Illinois at Springfield, play host to
numerous nationally-known entertainers from Broadway plays, to
major symphony orchestras, to popular music groups and comedic
entertainment.
The Illinois
State Fair annually brings top nationally known entertainers to the
community and the fair itself is a major event drawing hundreds of
thousands of people each summer.
Other
special events held each year include the Old
Capitol Art Fair, the International
Carillon Festival, Washington Street Jazz
and Blues, the Sangamon
County Fair, the Ethnic
Festival, First Night Springfield, and numerous other citywide and neighborhood
festivities. The
Springfield
Municipal Band plays two nights a week during the summer at
Douglas Park and once during the season at parks having a
bandstand.
The Springfield
Muni Opera presents four Broadway musicals each year between
June and August at its 750 seat open-air theatre near Lake
Springfield. Each
performance is accompanied by a full orchestra.
The Springfield
Theater Center is a community theatre group that features
talented local performers. Musicals,
comedies and drama are offered from September through June.
The Center also offers drama classes and classes in back
stage techniques. The
community also supports a Ballet
Company and an outstanding Symphony
Orchestra.
The
Springfield arts scene also has available the new Hoogland Center for the Arts. This
80,000 square foot facility, located in downtown Springfield, offers arts
venues ranging from large to small theatres, as well as offices
for local arts groups.
Springfield is also served by a number of world
class museums headed by the $140 million
Abraham Lincoln Presidential library and Museum,
and includes the Oliver Parks Telephone Museum, the Illinois State Military Museum, the Illinois State Museum, the Daughters
of the Union Museum, the Veterans
of the Civil War Museum, and the Museum
of Funeral Customs. Other
attractions include the Illinois
Vietnam Veterans Memorial, the Korean
War Memorial,
and the World War II Memorial.
The
community enjoys outstanding library facilities.
Springfield’s public
Lincoln
Library serves residents from a three-story downtown
headquarters library and three neighborhood branch libraries. Also available on a limited basis are the resources of the
Illinois
State Library and the libraries at the University of Illinois
at Springfield, Lincoln Land Community College, and the Southern
Illinois University School of Medicine.
What historic sites can be found in the area?
Springfield’s
historic sites are the attraction for more than one million
visitors annually. The
national, state and local Abraham Lincoln sites are the most
popular attraction. Lincoln's
home, tomb and law office, along with the restored village of New
Salem, which is within a short drive of Springfield, are leading
attractions. The Abraham Lincoln Presidential Library and
Museum is a world class facility that informs all who visit
about the life of this great President and the historic period in
which he lived.
Other
historic sites in Springfield include: the Illinois State Museum,
the Old State Capitol, the current State Capitol and Capitol
Complex, the Governor’s Mansion, Frank Lloyd Wright’s
Dana-Thomas House, and the Thomas Rees Carillon. Competitive Incentives?
State and
local officials are prepared to negotiate a smooth transition into
the Springfield economy with consideration on making a local site
a compelling choice for any firm.
For example:
The City of
Springfield’s Office of Planning and Economic Development
routinely coordinates the administration of public debt financing
for expanding firms that qualify for private
activity bonds. Funds
may be used for a variety of purposes, usually associated with the
construction or expansion of manufacturing plant and equipment and
real estate. The city
currently has authority for in excess of $7 million in private
activity bonds.
The City of
Springfield has elected to use a portion of its federal Community
Development Block Grant (CDBG) funds to provide
loans
to businesses. These
loans are subject to all requirements of the US Department of
Housing and Urban Development.
There are a
total of 91 state designated enterprise
zones in Illinois. Springfield
was one of the first ten governmental areas to receive this
designation. Since
the inception of the Springfield Enterprise Zone program, the
original zone area has been expanded from 2,350 acres to 3,401
acres, or 5.32 square miles.
Businesses locating in Springfield’s enterprise zone for
property tax abatements and are exempt from sales tax on all
building materials purchased in Illinois for new construction or
building rehabilitation.
A building permit must be issued for the project and a
sales tax exemption form must be obtained from the Office of
Planning and Economic Development. Numerous forms of assistance
are also available from the State of Illinois for qualifying
projects. Office of Planning
& Economic Development
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