Enterprise zone expansion for Prairie Ace subdivision advances to full board after 6–2 vote

The Effingham County Tax and Finance Committee voted to send a proposed expansion of the county enterprise zone to the full board for approval after a 6–2 roll-call vote, advancing an application developers say could enable as many as 41 new homes.

Sasha Altoff, speaking for the Effingham County Enterprise Zone Board, told the committee the proposal would add 50.3 acres in the Prairie Ace subdivision plus a 1.44-acre connector to make the parcel contiguous with the existing zone. She said the addition would raise the zone to about 8.96 square miles of the 14-square-mile maximum allowed and that the developers expect to submit an annexation application to the Illinois Department of Economic Opportunity by the end of the month.

"This proposed residential development on these properties could result in up to 41 more homes being built in our area," Altoff said, noting the annexation must still clear city and village approvals before state review.

Developer Keith Hartman, who identified himself as a realtor with RE/MAX and a Prairie Ace resident, said many lots are priced between $30,000 and $40,000 and that the expansion would keep housing costs lower by applying state incentives. "We're trying to get some more houses out there to help the housing shortage in our county," Hartman said.

Supporters argued incentives will speed construction and free up existing housing stock. "If our subdivision does not get into this, people will go to those subdivisions, and our subdivision will be stale," Hartman said.

Opponents questioned whether the site fits the enterprise-zone intent of targeting economically depressed areas and warned of uneven tax burdens for neighbors. One member noted that owners of recently built high-value homes could receive temporary tax abatements while neighbors continue to pay taxes, shifting costs to other taxpayers and potentially raising local tax rates over time.

"The intent of the enterprise zone program is to stimulate economic growth and neighborhood revitalization in economically depressed areas," a committee member said. "What you're talking about doesn't meet that requirement," the member added, arguing the proposal appeared to favor a higher-end subdivision.

Board member Josh (as recorded in the meeting) said the state will ultimately determine whether the area qualifies as "economically depressed," and he argued the committee should use the tools available to encourage residential development.

After extended discussion, Josh moved to forward the application to the full county board; the motion was seconded and carried in a roll-call vote recorded as 6 yes, 2 no.

What happens next

Because the annexation and enterprise-zone expansion require approvals from the city, village and county and then review by the Illinois Department of Economic Opportunity, the matter will appear on an upcoming full county board agenda for final action and possible submission to the state.

If approved and later constructed, new residential projects in the expanded area would be eligible for the state's enterprise-zone incentives described during the meeting, including property-tax abatement on new construction and sales-tax relief on building materials for a limited period.