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McLean County OKs enterprise zone extension

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BLOOMINGTON - A proposal to extend the enterprise zone to include land for a planned downtown Normal Marriott Hotel passed the McLean County Board on Tuesday, but not unanimously.

Board member Dave Selzer questioned providing support for a private hotel developer when there were "a lot of individuals in the community who built hotels without this kind of help."

If the zone is extended to include part of downtown Normal, which officials are now calling uptown, developers of new projects could avoid paying state sales tax on construction materials. In the case of the Marriott Hotel, developer John Q. Hammons could save $1 million.

Selzer criticized using the enterprise zone to help the project meet budget. The hotel will cost more than $20 million over the original $30 million price tag.

He wasn't alone in his concerns.

"It's not costing us countywide, but it is costing the state of Illinois $1 million," said member Don Cavallini. "How can we rob Peter to pay Paul when Peter doesn't have any money? The state is behind in their bills. Won't this exacerbate their problems?"

Board member Paul Segobiano voiced concern that board members had little advance notice about the request.

"The administrators are well aware of the request far in advance of us," he said.

It's the second time in slightly over a year that McLean County has considered a request to extend the enterprise zone. In November 2005, Bloomington, Normal and McLean County agreed to extend the boundary to include the Horizon Wind Energy project in eastern McLean County.

The enterprise zone was created in December 1984 to accommodate what was then known as Diamond-Star, now Mitsubishi Motors North America, in west Normal. When the zone was expanded to include the wind farm, the duration of the zone also was extended until 2015.

State law allows only one enterprise zone per county and limits it to 13 square miles. The zone currently includes 12.8 square miles.

The Normal extension would add .0289 of a square mile and include property north of Beaufort Street and south of College Avenue from Fell Avenue on the west to nearly Linden Street on the east.

The extension then crosses to the south side of Beaufort, goes across Linden and includes the Pub II, the Express Mart at the corner of Linden and Mulberry streets, and the Ace Hardware store.

"I think the problem is we've got an enterprise ordinance from the state that doesn't' make any sense," said Selzer. "When is enough, enough?"

The request will go to the Bloomington City Council for approval on Jan. 22.

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