City Could Learn Wednesday Whether It Will Receive Enterprise Zone

The City of Effingham could learn Wednesday whether it will receive a new Enterprise Zone.

The state Enterprise Zone Board will meet and could announce the recipients. 12 applicants are in the running and up to six zones could be awarded, although the state board is not compelled to award any zones.

The city's current enterprise zone, officially the Effingham City-County Enterprise Zone, expires in 2018 if the new zone is not awarded. The current zone was awarded in 1988. The Zone allows tax breaks on new construction materials purchased for projects in the zone territory as well as tax deferments for projects within the zone.

City officials will be in Springfield for the Enterprise Zone Board meeting.

Meanwhile, the Council heard a report on a proposed South Banker Street Business District. If the district is formed, a 1% tax would be added to transactions made within the district, with the revenue used for improvements in the district.

Gene Norber of Economic Development Resources said their study showed that the property along South Banker Street from the Banker Street overpass to Hoffman Drive is a "blighted area". Norber said 10% of the area is undeveloped and antoher 19% consists of buildings that are empty or are generating no revenue.

(GENE NORBER WITH A MAP OF THE SOUTH BANKER STREET BUSINESS DISTRICT BEHIND HIM)

The South Banker Street Business District would be the latest in a series of the districts developed around town. It's thought the Business Districts will replace Tax Increment Financing districts that the State is ending. Norber said there is 130 acres of developable land in the district and 102 parcels of property.

The Council also discussed amending an intergovernmental agreement with the Effingham Unit 40 School District. The City would pay $100,000 to the school district in each of the next two years to reimburse the district's expenses associated with vocational education incurred in 2016 and in 2017. The agreement between the City and the school district began in the early days of the city's TIF districts.