City Creates Economic Recovery Plan

After a three year absence, the Highland Park City Council reached a consensus at Monday’s meeting to stimulate economic development in the city with a resumption of its as early as Jan 1. 

Enterprises with a volume of more than $1 million will be eligible to recoup part of capital improvements made to their businesses from additional sales taxes generated above the current year’s threshold. 

If a business makes capital improvements in the amount of $75,000 or more, it is eligible to keep 75 percent of the sales taxes it generates above what it produced for the previous 12 months. No agreement can last longer than 10 years. 

Of the 1,025 businesses operating in Highland Park, only 107 would be eligible with the requisite sales volume of $1 million per year according to . The city will recoup its cost of running the program by charging a $5,000 rebate application fee. 

, who along with worked with and Holleb to craft a plan to be as broad as realistically possible, touted the idea as a path out of the recession. 

“We have an opportunity here to do something the federal government is struggling with,” Kirsch said. “This is a recovery act. There is no doubt in my mind these are the steps that are incumbent upon us in municipal America to take in order to create an environment that will stimulate economic growth.” 

Kirsch continued to explain the program will not only foster business but preserve the city’s tax structure. It avoids the need to place any increased reliance on property taxes and improves Highland Park’s coffers when the agreement expires. 

“This provides the incentive for growth while still protecting our existing tax base,” Kirsch said. “It does so in a way that is exceedingly clear, exceedingly transparent. It’s not based on who you know. I don’t think we can wait.” 

Frank thinks the plan will challenge a perception that Highland Park is a difficult place to do business. He hopes it will bring new enterprises to town and motivate existing concerns to expand. 

“This is the best incentive for investment and growth because we’re sharing some of that growth with them,” Frank said. “We’re retaining some retailers and attracting some others. We should make a very public display of these policies when we approve them.” 

Frank implored his colleagues to act quickly. After discussions with the Chamber of Commerce, the Business and Economic Development Commission and the Downtown Business Alliance he said they were in support. 

“There are business that really have waited long enough to see if we’re going to incentivize them to stay here and I think we have to act before Dec. 1,” Frank said. 

Kirsch hopes to expand the program in the future to include businesses generating less than $1 million in volume to spur economic recovery even more. 

“This is not going to be a recovery based on big box retailers,” Kirsch said. “This is going to be someone who opens up on Central Avenue in a 4,000 square foot shop and does something unique. Their decision to open in Highland Park versus Winnetka or Lake Forest is going to be because of these incentives we have in place.” 

The matter will come before the Council for a vote next month with a target starting date of Jan. 1. 

Library improvement project gets funded

Earlier in the evening, the Council agreed to use to help fund a capital improvement project to the Highland Park Public Library. 

The project will primarily cure long overdue deferred maintenance according to Library Board member Chris Sheehan. The balance will be used to improve the main adult reference room.