Annabelle plans to build a 50,000 sq ft facility to grow hydroponic beets and tomatoes.
Annabelle researches the Lee-Ogle Enterprise Zone region and finds a suitable site for her facility. This lot is located in one of its cities or villages, and is served by municipal and regional utilities.
She contacts the zone administrator and verifies the site is in the Lee-Ogle Enterprise Zone. The site is not in a municipal TIF redevelopment area so it would be qualified for real estate tax abatement on improvements. She finds that the zone incentives allow her investment to take an accelerated schedule, years ahead of what she previously thought possible.
The real estate improvements necessary to build out this facility total $10 million dollars. Additional non-real estate furnishings, technology, etc. total $1,000,000. Estimated use of natural gas per year is $50,000.
A one-time fee of ½ of 1% of the estimated building materials cost (a typical project is about 50% labor and 50% building materials) is paid to the enterprise zone, which would be $2,500,000 times .5% or $25,000.
Savings accruing from a Lee-Ogle Enterprise Zone project are as follows:
In summary, the Annabelle Hydroponic Project, when undertaken in the Lee-Ogle Enterprise Zone after applying and paying a $25,000 fee to the enterprise zone, would benefit from $990,000 in local property tax abatement, $400,000 in savings from the Building Materials Sales Tax Exemption, $55,000 in Illinois income tax credits, and an on-going $2,500 per year savings on natural gas purchases.