MCEDC administrator: state enterprise‑zone benefits can apply to multifamily projects

Mark Pecos, administrator for the MCEDC and the county enterprise zone, told the board July 29 that his legal review and peer‑zone research found the Illinois Enterprise Zone Act does not categorically bar multifamily or mixed‑use residential projects from state enterprise‑zone programs. "The enterprise zone act ... does not categorically exclude multifamily, residential, or mixed use developments," Pecos said. He emphasized that eligibility would depend on program‑specific rules and that an applicant would still need to pass the state application steps.

Pecos and other speakers clarified that municipal intergovernmental agreements (IGAs) for the McHenry County Enterprise Zone currently limit municipal‑level benefits to commercial and industrial development. Pecos said that does not prevent a multifamily project owned and operated by a business entity from seeking state‑level benefits such as building material exemption certificates or state tax credits. He cited a legal opinion from Jonathan Kamen of Zane Cohen, Wright & Saladin and guidance from the Illinois Department of Revenue as part of the basis for the interpretation. Board members discussed whether to memorialize the interpretation; several favored placing a formal action on a future agenda so the decision appears in the public record.

The board did not take formal action on eligibility at the special meeting. Pecos noted the state retains discretion during its review and that individual designated units of government may continue to choose whether to offer local incentives.