I’ve talked about the misuse of Enterprise Zone status on several occasions here at the Chronicle (e.g., “A New Kind of Poverty,” “Discussing Incentives with Craig Hullinger“), so there’s no need to go into another lengthy explanation. Here’s a quick summary: the Enterprise Zone is supposed to be used in “depressed areas,” defined as areas “in which pervasive poverty, unemployment and economic distress exist” (20 ILCS 655/3(c)). But the City of Peoria completely disregards this qualification and uses the status indiscriminately throughout the city. See for yourself:
By taking this tool and using it in growth areas, greenfield sites, and other non-depressed areas, the City has not only eviscerated its effectiveness, it’s put depressed areas at an even further disadvantage.
It looks like that trend will continue at tonight’s City Council meeting, as the Council will probably approve extending Enterprise Zone status to the horribly depressed area of — yes, you guessed it — Brandywine Drive. Yes, when one thinks of pervasive poverty and economic distress in the City of Peoria, the first place that pops into my mind is “across the street from Northwoods Mall.”
I don’t want to minimize the challenges faced by all parts of town, but having just come off a huge recession, it’s not surprising to find vacancies throughout the city. We certainly want to do what we can to encourage reinvestment, but misusing incentive tools is poor public policy. It’s dishonest — the wording of the statute is unambiguous that this should only be used in areas of pervasive poverty. It’s unfair — it puts poverty-stricken areas at an even greater disadvantage.
The Journal Star ran an article on this agenda item, and the council members they interviewed (the usual suspects) were all in favor. They have regularly defended the misuse of EZ status by saying “everybody does it,” so those responses were expected. I was disappointed to see new council member Beth Akeson’s response, however:
“I kind of question the use of the enterprise zone in the city, but the city has already set a precedent,” at-large City Councilwoman Beth Akeson said. “Once you set precedent, and once you extend an enterprise zone to (particular) properties, you are hard pressed to do other things than continue on.”
What is she saying? That past misuse of economic development tools has somehow become binding precedent, obligating the council to future misuse? That someone could sue the City for not giving one property the same economic development incentives as another property? If that were true, then every hotel in Peoria should be suing the City for their own pot of gold based on the Wonderful Development incentive package.
The city is under no obligation to extend the enterprise zone to a single additional property. We need not continue every bad precedent set by past councils. We are not constrained to keep repeating past mistakes.
But we will. That’s what we do in Peoria.