CONGRATULATIONS SERGEANT DAN KREASSIG AND OFFICER JOHN ADAMS (CITY OF MCHENRY EVERYDAY HEROES)…HAPPY BIRTHDAY RIVERSIDE CHOCOLATE FACTORY…ECONOMIC DEVELOPMENT 101!!!!

Sgt. Dan Kreassig, Mayor Low and Officer John Adams

 

 

 

 

THE ABCs of ECONOMIC DEVELOPMENT

I am certainly oversimplifying when I state economic development is not rocket science and really quite simple:  keep the businesses you have and facilitate their growth/expansion and bring new businesses to your community and the rest boils down to mere details.  As Director of Economic Development for the City of McHenry my three primary responsibilities are:  business attraction; facilitating expansion of existing businesses as well as retaining those businesses which may not expand but need to remain viable. 

 

THE PARADOXICAL NATURE OF ECONOMIC DEVELOPMENT

The only constant about economic development is its dynamic and continually evolving nature.  Big box stores moved into towns threatening mom and pop stores impacting many cities’ downtowns however any successful and economically-sustainable community requires a vibrant downtown.  Traditional zoning or Euclidean Zoning, which separates land uses into districts:  residential, commercial, industrial, etc. promotes segregation of land uses however mixed land uses (commercial on the bottom and residential on-top) is highly desirable and promotes a 24/7 economy, particularly within downtown areas.  Amazon, after 20 years of exclusive on-line retailing, opened their first bricks and mortar store in Seattle, WA.  Highways facilitated the exodus from cities to suburbs and today people have a tremendous desire to move back downtown and walk to stores and remain less dependent on automobiles…thus examples illustrating the paradoxical nature of economic development.

 

THE DEVIL IS IN THE DETAILS

It is the details, which I had mentioned in the opening paragraph, which pose the greatest challenges associated with economic development, and the details are numerous, challenging and often difficult to deal with and in some cases out of everyone’s control to do anything about.  As I have stated in past posts economic development is a package deal.  Businesses are not buying a piece of land or a building they are buying into a community and all it has to offer.

 

 Following I’ve separated the details in two categories:  Assistance and Actions City of McHenry and/or Residents and Businesses can offer to Promote Economic Development and other items which cannot be easily influenced, changed and to a great extent we have no control over and in some cases neither do businesses.  In parentheses are actions and processes which can be taken but in many instances are already being done by the City of McHenry, residents, businesses, etc. to foster business attraction, retention and expansion.

 

Assistance and Actions City of McHenry and/or Residents and Businesses can offer to Promote Economic Development:

 

• Zoning, licensing (government(s) approval and entitlement process and providing quality customer service (City of McHenry streamlines, facilitates and provides an accurate and predicable approval process including realistic approval timelines and expectations from day one and assists/facilities with other agencies as needed)

 

• Competition amongst adjacent cities and states to lure businesses from one to another or attract a totally new company or industry (City of McHenry is proactive in seeking new businesses; has an active business retention program-which I will provide more detail about in a subsequent post and works cooperatively with all our power partners:  governmental; private sector; residents; businesses; stakeholder groups, etc.)
 

• Impact of on-line purchasing on bricks and mortar stores (Shop local; browse on-line and purchase in a store; order on-line and pickup in a store within the City of McHenry.  This contributes to our local economy, supports local businesses and keeps people, many who live in the City of McHenry, employed)
 

• Vibrant downtowns; quality of life factors (access to recreation, quality education, community events; etc.) (Shop local; support mom and pop stores; attend community events/festivals and recommend the same to out of town friends and/or family members.  As I previously stated a vibrant downtown is an integral component to the economic well-being/sustainability of any community. The City of McHenry; McHenry Area Chamber; Downtown Business Association; McHenry Riverwalk Foundation; businesses and others are extremely active in fostering downtown revitalization; planning and promoting downtown and other community events)
 

• Historic preservation; tourism; heritage and eco-tourism (The City of McHenry Landmark Commission, McHenry Riverwalk Foundation and newly formed Historic Petersen Farm Foundation are extremely active in promoting historic preservation (A Day at Petersen Farm); development and planning of the McHenry Riverwalk and future phases)
 

• Emergency Services; roadways, railway and air transportation services, water, sewer, natural gas, broadband/fiber (technology); electric; and other infrastructure/utility-related items (The City of McHenry has a CALEA Accredited Police Department; operates a regional dispatch center; provides consistent and reliable water; sewer; street and forestry services; works with and maintains great relationships with the McHenry Township Fire Protection District; McHenry County Emergency Management Agency as well as numerous other local other state and federal regulatory agencies and utility companies)

 

• Importing/Exporting products and logistical hurdles to ensure timely delivery of products; Workforce Development; Regional Economic Development Cooperation (City of McHenry has great partnerships with:  McHenry Workforce Network; Small Business Development Center; McHenry Area Chamber of Commerce; other taxing entities; McHenry County Economic Development Corporation to provide a cohesive and consistent process for regional economic development planning; workforce development; assistance for businesses.  The following link is the Comprehensive Economic Development Strategy recently completed and adopted by McHenry, Boone and Winnebago Counties:  (http://www.rmapil.org/assets/documents/2016_2020_ceds.pdf)

 

• Economic incentives (City of McHenry considers economic incentives on a case-by-case basis; has numerous economic development plan, programs and policies and only approves incentives if our community benefits and the agreement is fair to both parties.  No two agreements are the same because each addresses a specific need/fills a gap to provide enough of an incentive for a business to expand and/or stay in the City of McHenry or attract a new business to the City of McHenry)

 

City of McHenry and/or Residents and Businesses do not have a lot of control over and many cases businesses do not either:

 

• Micro and macro-economic and geopolitical climate
• Private real estate purchase contracts
• Margins, revenue, sales quotas, shareholder obligations…(open/close (x) number of stores in any given year)
• Land/building owners which believe their building or property is worth “slightly” more than what it’s being offered by the prospective purchaser
• Private land use covenants and restrictions/non-compete clauses in leases ((x company cannot locate within this shopping center if (y tenant) is already within the shopping center and is a direct competitor with (x company)) or Reciprocal Easement Agreements or Operating Easement Agreements (y tenant could locate within the shopping center however (x, y and/or z company(ies) need to approve of y tenant locating within the shopping center first)
• Fluctuation of construction costs (material and labor)
• Weather-related challenges
• Tax Rates
• Co-tenancy (tenants which only locate within centers when other tenants are already there or conversely tenants which will not locate within a center or geographic area where their competitors are located)
• “NIMBY” (“Not in my Backyard”) and “NOTE” (“Not over there either”)
• Market trade area
• Market saturation (cannibalization of existing stores)
• Contraction of various industries, mergers, acquisition and increased competition
• Outsourcing certain company functions; considering relocation out of the country due to more desirable workforce, cost benefits, etc.
• Site visibility and accessibility
• Traffic counts
• Socioeconomic and demographic characteristics of a particular area which a company may be considering to locate within

 

THE CITY OF MCHENRY IS EXTREMELY “DETAIL-ORIENTED”

The City of McHenry is committed to minimizing the risk and tremendous monetary outlay businesses are investing in our community and making it as easy as possible for businesses to locate within our City; remain in our City and expand in our City.  We are not perfect and are continually refining our processes but customer service and promoting, supporting and assisting businesses is our top priority.

 

As demonstrated in the lists above businesses have a lot of challenges, external factors and hurdles to overcome, many of which they have no control over.  If the City of McHenry, residents and businesses can assist in mitigating some of these risks it’s our obligation to do so in order to ensure the long -term economic viability of our community! 

 

I firmly believe; have stated in the past and will continue to advocate an essential component of any successful economic development program-is relationships!  A great deal of my time is spent fostering relationships and partnerships and continually seeking ways to enhance existing relationships and partnerships and foster new ones.  Why? 

 

The most frequently asked questions I am asked from real estate brokers; developers, retailers, manufacturers, service providers and other related professionals are:  Does the City of McHenry want businesses to locate in your community? (Answer:  ABSOLUTELY!!)  Is the City of McHenry’s zoning, building permit, licensing (entitlement process) cumbersome? (Answer:  NO AND WE’LL WALK YOU THROUGH, FACILITATE AND ASSIST YOU IN EVERY PHASE OF THE PROCESS IN A TIMELY MANNER!!!!). 

 

While these questions may sound somewhat rudimentary and rhetorical in nature they are valid and real concerns of all real estate brokers; developers, retailers, manufacturers, service providers and other related professionals.  Businesses want to take the path of least resistance, work with you to achieve a mutually-beneficial product and want to know upfront if they will be fighting an uphill battle.  They will take the path of least resistance and if need be move on to the next community. 

 

I am absolutely astounded how many times I’ve heard: “City X fought us every step of the way; made the approval process extremely challenging and difficult….”  The City of McHenry response is: “We will assist you in every aspect of the approval process and ensure there are no unnecessary delays, keep you informed throughout the entire process so there are no surprises and it is completed in a timely manner.  Thank you for choosing the City of McHenry to do business with; we greatly appreciate it!”

 

Predictability and a general assurance of how long approval/review processes will take and when businesses can expect to open, construct/expand are paramount and ubiquitous concerns of every business.  Time is money and as I had previously listed there many other details for businesses to be concerned about therefore governmental approvals and realistic approval timelines are simple items any city can deliver when a business is investing a great deal of time, effort and money in your community, whether it is to locate within your community, stay in the community and/or expand. 

 

 

EVERYONE IN THE CITY OF MCHENRY CAN ASSIST WITH ECONOMIC DEVLEOPMENT

I am often asked by residents, businesses, community stakeholders and partners, etc. how they can assist the City of McHenry in its economic development efforts.  I would offer the following suggestions, which is by no means an exhaustive list:

 

• I encourage you to call us out; question; seek assistance:  whether it is for workforce assistance; building permit information; traffic counts; zoning and planning information; how long our process takes and can a business reasonably anticipate a decision in (x) number of days and is our process “business-friendly.” 
 
• I have also stated in the past and will continue to advocate:  the City of McHenry believes we are “business-friendly” and do go the extra mile for businesses but unless real estate brokers; developers, retailers, manufacturers, service providers and other related professionals are saying the City of McHenry is “business-friendly” we still have room for improvement. 
 
• Do your part as discussed earlier in the post:  Assistance and Actions City of McHenry and/or Residents and Businesses can offer to Promote Economic Development.
 
• This is our community, we all have a vested interest in some way, shape or form and if we all do our part the City of McHenry will remain a vibrant, economically-sustainable community and under this scenario we all win!!!

 

THANK YOU TO ALL EXISTING BUSINESSES WHICH HAVE MADE A COMMITMENT TO LOCATE THEIR BUSINESS, EXPAND THEIR BUSINESS AND KEEP THEIR BUSINESS IN THE CITY OF MCHENRY AND WE CERTAINLY WELCOME OTHERS TO CONSIDER LOCATING IN OUR COMMUNITY!!!  EVERY ONE COUNTS!!!

 

 

CONTINUE THE DISCUSSION…EVERY ONE CONTRIBUTES!!!!!

 

Please help us keep our community vibrant and strong to the greatest extent practical for businesses, residents and visitors alike!  The City Council is continually evaluating ways to assist in promoting business, tourism, community events and service!  Economic development is an ongoing effort the City is committed to and is a community-wide effort.  At the end of the day the entire community and everyone who is a part of it benefits!

 

 

Douglas P. Martin

Director of Economic Development

City of McHenry

333 S Green Street

McHenry, IL 60050

815.363.2110 (d)

815.363.2173 (f)

815.790.4752 (c)

dmartin@ci.mchenry.il.us

www.ci.mchenry.il.us