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CITY OF WEST CHICAGO
DEVELOPMENT COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDAITEMNUMBER: __2:C. |
City of West Chicago
Draft Economic Development Plan
2020-2024
FILE NUMBER:
COMMITTEE AGENDA DATE: Sept. 14, 2020
Discussion Only
COUNCIL AGENDA DATE:
STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE
APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE
ITEM SUMMARY:
In the West Chicago Strategic Plan, the first Action Item in the Economic Development Section re-
quires “...drafting and adopting a formal 5-year economic development strategy...” The City’s Eco-
nomic Development Coordinator and Community Development Director teamed up to draft the at-
tached Draft Economic Development Plan, which is provided for future consideration, discussion,
change and eventual adoption.
As the Plan is data-heavy and moderately lengthy, Staff wishes to introduce the document to the
Committee at the August 10, 2020, meeting and begin detailed discussions next month. Depending
on the debate, finalizing the Plan could take one meeting or several.
Preparing the Draft Plan followed a traditional approach. However, it is important to note that it was
drafted prior to the COVID-19 pandemic. There are no recent models for the long-term impacts on
economic development of pandemics. Staff is monitoring the literature to see how this may evolve
but is confident the recommendations included in the document remain valid and rooted in existing
approved City plans.
ACTION PROPOSED:
Discuss the process for consideration of the Draft Plan.
COMMITTEE RECOMMENDATION:
Pe: Draft City of West Chicago Economic Development Plan 2020-2024

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City of West Chicago
Economic Development Plan 2020-2024
Draft - March 2020

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City of West Chicago | Economic Development Plan 2020-2024
| EXECUTIVE SUMMARY
A number of components go into making an economic development plan and it begins with an
assessment of current conditions. With little land remaining for residential development and
shifting demographics, population growth has slowed to a trickle. Still growth remains positive
and residents are younger in a state experiencing a contraction and an aging population.
Furthermore, the plan to bring new residences to the downtown could add a highly significant
1,000 new residents to the City. Many of these new residents are expected to be Millennials,
who place significant value on finding a diverse community—a plus for West Chicago.
In economic development, building on one's strengths is important and a key strength favoring
West Chicago is its manufacturing base. Manufacturing provides 25% of the jobs in West
Chicago compared with 11% in DuPage County. With its older population, the County sees
health care as a somewhat stronger trend, something West Chicago may benefit from as its
residents age as well. However, West Chicago's will continue its manufacturing dominance for
the foreseeable future and policies should be in place to support that.
Manufacturing jobs can offer a good wage, but the recent influx of transportation, logistics, and
warehousing jobs may suppress City-wide averages. Higher wage occupations typically require
stronger educational attainment. A challenge for West Chicago comes in education and
training, helping more young residents to obtain a high school diploma or college degree
coupled with an increased emphasis in the marketplace placed in on-the-job training. Higher
achievement will help stem the "brain drain" away from the community and help ready the City
for a long-range future reliant more on knowledge-based employment.
Retail is a challenge for many communities nationwide as online purchasing options increase.
Nevertheless, West Chicago has managed to maintain a modest increase in sales tax revenue in
the years since the Great Recession. Of course, year-to-year there has been volatility to these
sales tax figures. The relocation of an automobile dealership outside the City may explain some
of it. The recent addition of two large used car sales locations could help make up for that loss.
Retail leakage, where buyers go outside the City or online to make purchases, suggest
opportunities in the general merchandise, apparel and furniture businesses. However, these
products are available online or within an easy drive of the City. Also, much of the City's retail
building stock is dated and functionally obsolete. A better opportunity exists with destination-
oriented restaurants and food services, which should be actively sought for the community.

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City of West Chicago | Economic Development Plan 2020-2024
The link between housing and economic development is critical and a strength for West
Chicago. The inability to find employees in close proximity to a business can influence location
and expansion decisions. West Chicago has a range of housing opportunities, well-matched to
income levels. Lacking is the newer, highly amenitized rental opportunities, which the Central
Main Street Redevelopment Plan Update seeks to correct. Downtown apartments will also add
"rooftops" to boost activity with downtown business. In general, more housing is needed to
attract and support retail anywhere in the community.
Infrastructure is a key factor with economic development and another West Chicago advantage.
Historically a center of freight train activity, West Chicago has land remaining for new
businesses needing rail, as well as existing buildings with access to a spur. Also, the downtown
provides easy access to Metra's commuter rail network and Chicago. From the air,
DuPage Airport, Illinois' third busiest, is situated on the City's west side. On the ground, the City
has three urban highways serving its north, south and east sides and is a short distance from 1-
88. Finally, West Chicago utilities are well-equipped to handle most business needs.
A SWOT analysis shows many strengths for the City's economy, including its location, affordable
land and housing, nearby cultural amenities, robust manufacturing base, supportive local
government and modest cost of living. Weaknesses lie in the State's financial condition, some
out-of-date housing stock and retail buildings, a low density of housing insufficient to support
retail, and a lack of retail and restaurant options. Opportunities include the national re-shoring
trend, transitioning to a knowledge-based economy, tapping various training and grant
programs, improving the downtown, and the potential for in-place expansion. Finally, threats
are seen in national protectionist trade policies, low cost overseas labor, State finances and
business environment, and the outmigration of young residents to other areas, Some are within
the grasp of the City to address, while others are on a global, national or State level.
The plan contains a list of tasks to help address the major concerns or support the major
strengths in the community. Chief among these is the creation of an Economic Development
Task Force, made up of local business advisors, who can serve as a sounding board and provide
their insights into the community, offer transparency and creative thinking, and serve as
ambassadors for the tasks contained herein. Other tasks focus on embracing the manufacturing
sector and revitalization of the downtown. It is an aggressive list of activities, some of which will
require increased resources from the City in order to accomplish the goals.

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City of West Chicago | Economic Development Plan 2020-2024
| INTRODUCTION
Now is the time for the City of West Chicago. With a asst Bs
Elevate West Chicago's competitive
proud history and opportunities ahead, the Citymust | %ajmace eeu ve
enhance its economic base while navigating through
commercial centérs and major
F j . employment hubs within DuPage County
global economic shifts. The challenge will be to cui ine Sanirteh Chicago fantan o
maintain a healthy manufacturing setting while West Chicago Strategic Plan (2016)
transitioning, eventually, towards a knowledge-
based economy. Also, attracting retail in a world increasingly participating in online purchases
presents more challenges. Other factors, such as housing, education and infrastructure need to
be taken into consideration, as well.
The Economic Development Plan provides a roadmap for this journey for the next several
years. While able to stand on its own in many ways, it is also inextricably linked to other plans,
strategies and policies of the City.
This report contains an extensive evaluation of existing conditions and trends related to
economic development in West Chicago. Using this information and other anecdotal
information, a Strengths-Weaknesses-Opportunities-Threats (SWOT) review was prepared.
Based on this, action items were created which address the needs and support the strengths
found for West Chicago.

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City of West Chicago | Economic Development Plan 2020-2024
| EXISTING CONDITIONS
Demographics
The City of West Chicago's current population is about 27,045 residents. West Chicago has
experienced population growth at a rate roughly mirroring DuPage County, although the City
saw large in-migration between 1990 and 2000. Today, with available residential land largely
built-out, growth has slowed to an annual rate of 0.5%. This contrasts with the State of Illinois,
where a 0.7% population Joss was experienced.
The U.S. Census projects flat growth in West Chicago for the foreseeable future, although with
an eye towards “adding rooftops" a more sizable increase in population could be realized. The
Central Main Street Redevelopment Plan Update (2018) calls for adding residences adjacent to
the downtown, with the potential for 500 new dwelling units and 1,000 new residents in the
next five years. Annexation, coupled with development of some ofthe last tracts of available
open space, could also combine to contribute residents to the City. Adding population will help
support the many retail and restaurant businesses in the City, today and in the future.
Population Growth Rates
60%
50%
40%
30%
20%
10%
0%
-10%
1980 1990 2000 2018 2019 est.
== West Chicago <—=DuPage County Illinois
The City also benefits from its diversity. With over 50% of the City's residents identifying as
Hispanic/Latina, the City's multi-cultural character serves as a source of pride and
6

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City of West Chicago | Economic Development Plan 2020-2024
distinction. Importantly, this character can serve as a tool to attract development and new
residents, especially as younger Millennials place significant value on diversity when deciding
where to live. The City has taken a number of steps to promote community cohesion and
inclusion, such as sponsoring several festivals celebrating history and diversity.
Ethnicity
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
| > wi =
Hispanic or Latino Asian Black or African Americanindian Native Hawaiian
American
m™ West Chicago DuPage County = Illinois
When examining the age distribution of West Chicago residents, one key storyline emerges:
Much of the nation's population is aging-including that in Illinois and DuPage County-but
158 Age Groups
16%
14% ig
12%
10% j
8% } J
6% |
: bid
2%
0% a a L all | |
? s e xe xe se x? se a os a Se Cy
ge ee
" ° s " a 4 oe C s oe A\ a ss
ee ~* “9 oO “9 wo o o a “2 oe “P a
SS i a a, er 2 a eo
@ West Chicago m DuPage County Illinois oo
7

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City of West Chicago | Economic Development Plan 2020-2024
West Chicago remains relatively young. The percentage of children is higher in West Chicago,
while the proportion of seniors over 65 years of age is lower. Even adjacent communities' senior
populations are proportionately as much as twice that found in West Chicago. Cities with aging
populations see shifts in overall consumption habits, so it is important to match economic
development and future housing outcomes with the population. New Senior and "empty nester"
housing will help keep that age group in West Chicago.
Seniors (65+)
14% 14% ied
13%
12%
12%
1%
10% ‘i bid
u %
8%
%
6%
6%
4%
2%
0%
‘West Chicago. IL Batavia, IL Warrenvilie. IL Bartlett. IL Winfield, iL,
St Chares, IL Geneva, IL ‘Wayne, IL Carol Stream. IL Hanover Park. IL
Income and Education
Median Household Income (MHI) is lower in West Chicago than that found for DuPage County,
with 2018 figures coming in at $74,491 and $84,908, respectively. MHI in Illinois falls below
West Chicago. Per-capita income levels see an even greater gap, but this is due to differences in
average household size, which is 3.65 in West Chicago, contrasting with 2.68 in DuPage County.
Since 2013, increases in MHI have exceeded those for the State and DuPage County. Lower
incomes have a compounding effect on low retail spending in a community.
The difference in MHI may be due to education levels. There is a strong correlation between
wage levels and educational attainment. Residents in West Chicago with only a high school
diploma earn an average of $22,750 annually, compared with $51,902 for those with a
Bachelor's Degree or higher. In 2017, only 24% of the City's residents held a Bachelor's Degree
or higher; this compares with 48% in DuPage County. There is also a strong correlation between
educational attainment and unemployment, where those without a high school diploma
8

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City of West Chicago | Economic Development Plan 2020-2024
experience twice the rate of unemployment compared with those possessing a diploma. Those
with at least some college or more experience the lowest unemployment rates.
Income Levels
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
West Chicago DuPage County Illinois
™ Median Household Income _—_m™ Per Capita Income
Educational Attainment
Bachelors Degree or Higher Ss
Associates Degree
Some College
No High School Diploma ren —
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
illinois mDuPage County mm West Chicago
What about future demands? Estimates are that employment in West Chicago will contract
0.3% per year over the next ten years, but those requiring a post-graduate degree will increase
0.4% per year for the same period (JobsEQ, 2019). The forecast also mentions that on-the-job
training will see an annual growth rate of 0.2% during the next decade. Making the community
an exciting and attractive place to live, work and play will help attract more highly educated
9

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City of West Chicago | Economic Development Plan 2020-2024
residents and avoid "brain drain" by keeping highly educated residents in town. The aging housing
stock, a lack of retail options due in large part to low housing density, and a too quiet downtown
should be addressed to enhance the attractiveness of the City.
10

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City of West Chicago | Economic Development Plan 2020-2024
| THE EMPLOYMENT ENVIRONMENT
Manufacturing and Wages
West Chicago is an employment center. Businesses in West Chicago employ more than 16,000
workers. Just ten percent of those are residents who live and work here. Nearly 12,000
residents work outside of the community in Chicago, Aurora, Elgin, St. Charles, Carol Stream and
elsewhere. West Chicago's dominant industries are Manufacturing, Warehousing, Construction
and Waste Management (e.g., scavenger services).
A look at employment by industry type reinforces that the City benefits from a strong
manufacturing sector, which provides 25% of the jobs in West Chicago. By comparison, DuPage
County's largest employment sector is Health Care and Social Assistance, at 12%, followed by
manufacturing at 11%. The aging of the population creates a shift in demand for certain
services such as more health care (just three percent of West Chicago's employment). This is a
trend that, while possessing a younger population today, West Chicago should consider as new
housing opportunities arise and are sought.
Jobs by NAICS Industry Sector
Accommodation Other Services
and Food (excluding Public
Services, 4.7% Administration),
coe 1,1%
Health Care and
Social Assistance,,
3.5%
. /
Educational f
Services, 1.1% —-—— Construction,
Manufacturing,
25.5%
Professional,
Scientific, and
Technical Services,
10.1%
Transportation and
Warehousing, 2.6%
While trends suggest the need to be open to possible changes, the City's unique position as a
manufacturing hub is not waning and should be cultivated. Manufacturing can offer much
higher wages than many other employment clusters, such as warehousing, or retail and food
services. Itis worth noting that the recent development in the City of logistics and warehouse
facilities brings a lower wage job, so a renewed focus on true manufacturing is in order.
11

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Also important to know, by far the strongest industries (based on Location Quotient, which
compares the local concentration of an industry-type with the nation's concentration for the
same industry) within the manufacturing category in West Chicago are chemicals (LQ 9.80) and
electronics manufacturing (LQ 5.33). However, both of these industries are projecting declines in
employment over the next ten years. Sometimes this presents an opportunity to work towards
increasing the local consolidation, as these businesses leave other locations. West Chicago
could become the place where these businesses consolidate their divisions, thus retaining their
stature in the area. On the other hand, it may be a signal to work towards diversifying the City's
industries. Tasks relating to both approaches are included at the conclusion of this Plan.
Industry Clusters for City of West Chicago, IL as of 201804
$20
Machinery Mfg
Electc Fleetromes Mf Construction
57510 S43 9 (Q: 8s ro’ 16o
ia
Z Agricultural Pharrygeeutical
8 ta'i59 (Q Wee j
5 Wootitaner ‘
= La"aine tas |
y Chemical Food Mg
35 (Q: 9,80 La? Freight Tran,
Ey 10: 1.20
Media Retail Auto/@mio-related
= sco LQ 0.65 101.2610 4
” Profess nal Sve,
o Metal & Prltuet Mfg, LQ 140
5 LQ: 2.22
5 455
<
Education
550 1Q:0.63 Competitive Advantage Threshold
1.60 bao 170 1.00 0.40 0.60 ono Di) 0.00 0.70 0.40 0.60
Average Annual Employment Forecast Rate(%) 201 8Q4-2028Q4
Retail Sales and Sales Tax
According to data from ESRI's Business Analyst, West Chicago is a supplier to the area when it
comes to Specialty Food Stores (e.g., the Mexican grocers inthe City), Lawn and Garden
Supplies (e.g., Menards). Shoppers need to leave the City for General Merchandise, Apparel,
Furniture, Books and Office Supplies. Leakage/Surplus Analysis is a somewhat blunt instrument,
but overall trends may be derived from looking at its data. A more nuanced approach might
conclude that unmet local demand is being provided by online retailers and nearby department
stores.
12

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A small amount of "leakage" is seen in the restaurant industry and means itis a possible target
for economic development efforts, bringing in new restaurants that are destination-oriented
and "Internet proof’. Easy proximity to the large department stores is a more difficult
challenge to overcome.
2017 Leakage/Surplus Factor by Industry Group
Automobile Dealers
Other Motor Vehicle Dealers
Auto Parts, Accessories, and Tire Stores
Furniture Stores
Home Fumishings Stores
Electronics & Appliance Stores
Building Material and Supplies Dealers
Lawn and Garden Equipment and Supplies Stores
Grocery Stores
Specialty Food Stores
Beer, Wine, and Liquor Stores
Health & Personal Care Stores
Gasoline Stations
Clothing Stores
Shoe Stores
Jewelry, Luggage, and Leather Goods Stores
Book, Penodical, and Music Stores
Department Stores (Excluding Leased Depts.)
Other General Merchandise Stores
Florists
Office Supplies, Stationery, and Gift Stores
Used Merchandise Stores
Other Miscellaneous Store Retailers
Electronic Shopping and Mail-Order Houses
Vending Machine Operators
Direct Selling Establishments
Special Food Services
Drinking Places (Alcoholic Beverages)
Restaurants/Other Eating Places
-60 -40 -20 0 20 40 60 80 100
Leakage/Surplus Factor
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The location of retail near "rooftops" (the close proximity of a high density and numbers of
residents to retail opportunities) has been a challenge for the City. The City's residential density
is hampered by the amount of forest preserve, airport, Fermi Lab and golf course land within
and near its borders. The most successful retail area in West Chicago, near the intersection of
Neltnor Avenue and North Avenue, is across from one of the least successful—and the
proximity of "rooftops" is one of several factors that come into play. Other land in that vicinity
is zoned for retail, but the likelihood of it actually becoming retail is very low, according to the
West Chicago Route 59- North Avenue Market Study {2017). Housing and its impacts is
discussed in more detail later on in this Plan.
West Chicago Sales Tax
7,000,000
5 ee HVMR me MT
$6,000,000
Total
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Data from the Illinois Department of Revenue indicates a steady, modest increase in sales tax
revenue for the City in the years since the Great Recession (averaging three percent and
comparing favorably with inflation at 1.8%). A brief disruption in this trend was experienced in
2015-2017, the result of an automobile dealer leaving town. It can be reasonably anticipated
that this gap will be filled by revenues from the recent opening of two new dealerships
specializing in pre-owned vehicles.
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15%
Change in West Chicago Sale Tax Collections
10% Year-Over-Year (%)
5%
0%
-5%
e@mme Change in Sales Tax Revenue (%) -——=U.S. Inflation Rate
-10%
% © 4 %
Ns s “
” ” *”
9 ad Vv Ke) oe
a ‘Y Y ‘y y
v
Retail jobs tend to be on the lower end of the wage scale. Nevertheless, the availability of retail
is seen as critical to the character of any community, in addition to the ability to buy what you
want and when you want it.
Housing and the Economy
Housing and economic development are inextricably linked. Of course, construction-related
jobs are created when houses and apartment buildings are built, but housing's reach is even
greater. New housing helps to attract new residents and retain existing ones. These residents,
in turn, spend money locally on retail, services, food and entertainment. Also, the availability of
diverse, quality housing is essential to any community's ability to retain and attract businesses
and jobs.
West Chicago possesses a diverse housing stock that meets the needs of a range of individuals
and families. The City's median home value (MHV) of $253,000 aligns well with its median
household income. A significant portion {46%) of owner-occupied homes sees values between
$200,000 and $399,999-these homes are most attractive to middle-income families. A
sizeable number of less expensive starter homes are also available {39%). About 15% exceed
$400,000 in value.
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Owner Occupied Home Values
45.6%
One of every three residences in West Chicago is renter occupied. Much of this stock is older
and lacks the amenities and finish-levels frequently demanded by Millennials. Without "Class A"
rental stock, the City's ability to attract these individuals becomes markedly more difficult.
Evidence of this dearth of high-end apartments is apparent when comparing rents. The median
rent for an apartment in West Chicago is $1,066 per month; the rent for surrounding
communities is a full one-third higher at $1,413. Providing new, highly-amenitized apartments
is one of the goals coming out of the Central Main Street Redevelopment Plan Update,
Average Reni Rates
$2,000 43,08 et?
$1,500
$1,000
= ooo SO008
$-
S& s e ” ec & OM &
ral + we gt ri se &
S
16

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City of West Chicago | Economic Development Plan 2020-2024
mirrored in this Plan, which will have the added critical benefit of bringing more people and
spending to the downtown.
Vacant/Abandoned Housing Units
2.3%
2.5%
2.0%
1.5% 0%
05% ie a ‘| a>, ap
0.5% CB
0.0%
° & o < ae & 2 2
OP & & aw 2 * we e &
oe SF Ye ey \ ef om »
wr sl s
.o
Finally, consider the City's housing abandonment rate. With 2.1% of the City's homes vacant or
abandoned (this does not include homes while in-between tenants or buyers), the
abandonment rate is twice the average of the surrounding communities. This is when the City's
code enforcement officers become economic development advocates, by addressing the
potential for blight in the community.
Infrastructure and Jobs
The final piece needed for coordinating any city's needs for a strong economy and employment
base includes a discussion of infrastructure. Here, West Chicago benefits from three urban
highways-IL 59, IL 38 and IL 64-which provide excellent regional access to and from jobs in
West Chicago. I-88 is a short drive away. Importantly, Metra commuter rail includes a station in
downtown West Chicago, providing easy access to Chicago and places in between. In fact, the
amount of rail in the City is extensive and available for the movement of freight in many
manufacturing areas. Finally, DuPage Airport calls West Chicago home making freight and
private jet service available for those needing air transport.
West Chicago also has its own water supply and wastewater treatment plant. Itis a partial-
waiver community and subject to the DuPage County Stormwater Rules. Commonwealth
17

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Edison, a unit of Exelon Corporation, provides electricity and NICOR Gas, owned by Southern
Company, provides natural gas to the community. Fiber optic lines and cable services are also
available in the community.
Infrastructure is a real asset in West Chicago. The City's ability to adapt to the future as air
transport needs change, commuter patterns shift or driverless vehicles gain in acceptance is
critical.
18

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| OTHER PLANNING AND ECONOMIC DEVELOPMENT WORK
The City of West Chicago has long recognized the need to organize and focus its efforts to create
a unified vision for development and promote growth within the community. The Economic
Development Plan does not stand as the only tool available when considering the economic future
of the community. Previous planning efforts and studies have played a role and continue to do
so. These include:
e Central Main Street Redevelopment Plan Update
(2018)
e Route 59- North Avenue Market Study (2017)
e West Chicago Strategic Plan (2016)
« Comprehensive Plan (2006)
ON, ‘West er
e Various TIF reports
Special mention is made of two of the plans:
e Inthe Strategic Plan (2016}, significant effort was
made to develop Action Items for five business districts in the City. Many of these, but not
all, were carried over into this document as Tasks. Some were updated and others
were completed or not deemed to be within the five-year planning timeframe of this
Plan.
e Essential recruiting activities are underway in an effort to implement the Central Main
Street Redevelopment Plan Update (2018). The outcome will play a large role in
determining the next steps taken by the City.
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| SWOT ANALYSIS
A Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis can provide a quick way to
understand fully the necessarily complex set of topics that go into designing a list of future
tasks for an Economic Development Plan. The analysis can take into account the kinds of
information already reviewed in this Plan, coupled with external factors that are well-
documented outside of the Plan. The goal is the identify weakness and threats which need
to be addressed and the opportunities
and strengths available to assist or build Strengths
upon.
National/Global
Strengths
e U.S. remains a low-risk, high-
The City of West Chicago can boast transparency investment
many strengths: a healthy geminata
manufacturing sector, strong State/Region
employment base, affordability,
4 in ; e Moderate cost of living
and location within the region, to
e Number and quality of institutions of
name a few. higher education
e Technical training schools
Multiple rail lines, a Metra station ; ,
¢ Dining and shopping opportunities
downtown, the DuPage Airport, a
proactive City Council and the
e Cultural and recreational options
e Entrepreneurial programs
availability of local incentives help * High productivity of regional workforce
to distinguish the community from e Diversified regional economy
others in the area when making e Lagging median income levels
location decisions.
¢ Strong employment base
e Access foregion
e Mature and robust manufacturing base
e Strong transportation infrastructure
e Housing that is affordable
e Proactive City Council
¢ Quality parks system
e Relatively inexpensive land costs
e Some tax incentive programs
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Weaknesses
One of the more significant weaknesses for West Chicago is the deteriorating and obsolete
commercial property inventory. The lack of rental stock attractive to Millennials is another.
Finally, perception of the City is something the City has worked hard to overcome.
¥ Weaknesses
The City has little control over training
levels of employees, but the Economic National/Global
Development Coordinator can help link » ‘Teade Ware thisaténacononilé
businesses with community colleges for growth and stability
training opportunities.
hia State/Region
Lack of housing density is a consistent
e State financial condition
e State tax structure
theme affecting both housing choice and
retail success. ;
e Lack of cohesive workforce strategy
The State's poor fiscal health is also not
in the City's control, but for companies
e Lagging median income levels
e Aging housing stock; lack of quality rental
e “Leakage” of retail and restraint spending
e Need for additional training
e Outdated and poor quality retail space,
requiring expensive redevelopment, more than
simple rehabilitation
¢ Perception within the region
¢ Segments of man road corridors lack aesthetic
appeal
e Low density of households to support retail
with expanses of land dedicated to the Airport,
Forest Preserve lands, Fermi Lab and Reed -
Kepler Park
seeking a northeast Illinois location, West
Chicago has a lot to offer.
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Opportunities
Despite the existence of several significant
impediments to growth, West Chicago has
an abundance of opportunities within its
grasp. This list begins with the potential
for new high quality multi-family
residential development and commercial
revitalization in the downtown.
Related to this is the opportunity to
cultivate a vibrant arts scene in the central
business district, building upon existing
arts initiatives and organizations such as
Gallery 200, People Made Visible and the
City’s Cultural Arts Commission, among
others. A thriving arts scene could serve as
a powerful and attractive force for young
creative professionals from around the
region.
West Chicago has several large sites,
zoned and available for new
manufacturing, office or research-related
facilities. This is something unique to West
Chicago compared with cities located to
the east.
Finally, the underutilized commercial
space in West Chicago, especially near
Routes 59 and 64, possesses the potential
for revitalization.
22
Cily of West Chicago | Economic Development Plan 2020-2024
Opportunities
National/Global
e Reshoring trend
e Transition to the “Knowledge
Economy”
¢ Technological advancements
e Sustainable growth emphasis
State/Region
e EDGE tax credit program
e Worker retraining program
e New housing and commercial development
downtown
e Strong parks and recreation opportunities
e Develop housing stock to appeal to Millennials
e Commercial growth near Routes 59 & 64 and
industrial growth near Roosevelt and Fabyan
e Enhance City’s appearance along certain
corridors
e Continued downtown revitalization
e Reuse of the former General Mills campus
e Artist community in the downtown
e Business/restaurant/retail incubator spaces
e Attract suppliers and customers of existing
businesses, especially manufacturing firms

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Threats
Many of the threats are external to the
City of West Chicago but impact the City
nonetheless. The “Knowledge Economy”
and an aging population are two
examples.in the long term, the ability to
maintain a strong manufacturing sector
will likely depend on its ability to adapt to
many aspects ofthe Knowledge Economy.
Also, an aging population will eventually
catch up with West Chicago.
The "brain drain" can be staunched with
success managing the opportunities
discussed earlier. But with such heavy
reliance on manufacturing, it may be hard
to "turn the ship" towards a more
diversified selection of business sectors
which will provide the jobs attractive to
Millennials.
The biggest obstacles are the business
environment in Illinois, but as indicated
earlier, West Chicago can compete if a
northeast Illinois location is in the mix.
City of West Chicago | Economic Development Plan 2020-2024
Threats
National/Global
Trade wars
Protectionist trade policies
Low-wage labor overseas
U.S. debt levels
High health care costs
Transition to the “Knowledge Economy”
Climate change
Rapid changes in skillset needs
Political gridlock in Washington D.C.
Aging population
State/Region
Local
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State pension obligations
State budget deficit
Slow regulatory and permit approval process
in Illinois
Potential “brain drain” as young, talented
workers leave West Chicago for other
opportunities
Limited options for diversifying tax base
Continued underutilization of former General
Mills space

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City of West Chicago | Economic Development Plan 2020-2024
| TASKS
The outgrowth of the exercise above is to generate a clear list of items to be addressed through
task development. Some are derived directly from the West Chicago Strategic Plan. Others
come from this document. In any case, the following list provides an aggressive approach to
economic development in West Chicago for the next few years, broken into categories based
on priority and relative cost.
High Priority Low Cost Invest in and launch a robust, proactive
e Establish_an Economic Development Task kc Gere Ht: Prograln, ae uy
the City, that partners with the business
Force. The Task Force would be an advisory and real estate development community
body that contains not only representatives fo promote West Chicago as a place to
‘ ; ] tii f I
from the City of West Chicago staff and stints ie, sue oe
industrial Uses, and build an
elected officials, but also a purposeful mix of entrepreneurial spirit.
private sector actors, including developers,
:: Establish targeted investment
economic development strategies for
business owners, realtors, listing agents, each area of the City’s five business
districts, tailored to corridor and site-
specific conditions.
property managers, property owners,
banks, and others. These groups are
sometimes called the Mayor's Council of
EconomicAdvisors. As experts on the local - West Chicago Strategic Plan (2016)
economy, the group would meet regularly to
recommend priorities and advise on the course of action the City should take. This
action would expand on the City's commitment to support local business and economic
development in West Chicago. (Set up in Year One, then ongoing)
e Embrace manufacturing as the predominant sector within the City. As the leading business
and jobs sector in West Chicago, manufacturing has long been a strength here. This
recognizes and is supportive of there-shoring trend. Pursue a targeted, cluster-based
strategy. Furthermore, wages tend to be higher than for many employment clusters.
Opportunities may be available for suppliers and customers of existing manufacturing
firms and could be targeted. (Ongoing)
e Actively determine the locations for new housing and consider ways to attract appropriate
developers. Match potential residential developers with the properties identified for
future housing. Promote the locations online and with mailed brochures. (Years 1-3)
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City of West Chicago | Economic Development Plan 2020-2024
Support businesses in emerging employment sectors by partnering with local and regional
organizations, including the College of DuPage, Choose DuPage, Western DuPage
Chamber of Commerce, the DuPage County Hispanic Chamber of Commerce, and the
West Chicago Hispanic Business Coalition. {Years 1-5)
Find ways to link local businesses with available grants and other assistance. There are a
number of resources available for new and existing businesses outside of any City
programs. The Economic Development Coordinator should stay aware of these and help
make connections as appropriate. (Ongoing)
Work with code enforcement where appropriate. \tis important not to allow properties to
fall into disrepair to maintain a positive image for the City. The Economic Development
Coordinator should report troubled properties to Code Enforcement personnel where
needed and liaison, if appropriate, with problem businesses. (Ongoing)
High Priority | High Cost
Establish a formal Business Retention and Expansion (BRE) program. Recognize that most
growth by far occurs through the expansion of existing businesses and that a properly
implemented BRE program will maximize growth potential, work to remove or mitigate
local obstacles to growth and develop contingency plans should there be plant closings
or serious economic changes. A variety of surveys could help identify potential
candidates (or those “at risk" of closing). The City may also look towards creation of an
incentives program. Criteria would need to be developed for eligibility based perhaps on
the magnitude of the expansion or potential loss. A program like this requires adequate
funding but other aspects of development, such as reduced permit fees, could also be
helpful. (Routine efforts Years 1-2, Program in Years 3-5)
Actively recruit new retail and restaurant users to the community. This must occur with
the whole City in mind, but with special attention paid to the downtown. Consider
establishing business incubators within the City as a public-private partnership. Make full
use of an expanded Retail-Restaurant Grant and Facade Grant programs. (Years 1-5,
Incubator Year 5)
Formalize_and refine new business support programs by engaging with local and regional
organizations, such as the Small Business Development Center, to support
entrepreneurs. Provide site selection assistance. Help "walk" applicants through the
zoning and building approval processes. Make appropriate use of expanded Retail-
Restaurant Grant and Facade Grant programs. (Years 1-5)
Implement the Central Main Street Redevelopment Plan Update. Adopted in 2018, steps
have been taken to identify the primary and secondary developers with whom to
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City of West Chicago | Economic Development Plan 2020-2024
negotiate a redevelopment agreement as a first phase of plan implementation. Focus on
gaining mixed use /TOD development with Class A rental accommodations. Subsequent
development agreements should follow. (Years 1-5)
Advocate for ways to activate the downtown. As redevelopment occurs, including a new
City Hall, the inclusion of public space that can be used for various passive activities
(from an outdoor lunch with friends to an impromptu concert, etc.) will benefit the
downtown and put more pedestrians on the sidewalks. Also, create a series of "pop up"
events, allow food carts/trucks and event-related open streets. Work with downtown
businesses to gain their participation in festivals located in the downtown. (Years 1-5)
Create and adopt a formal Roosevelt Road Corridor Development Plan. Done in
cooperation with the City Planner, it should detail the community's vision for the area,
address public infrastructure needs, and provide subarea and site-specific detail on infill
redevelopment strategies. (Years 4-5)
Support cultivation of a vibrant arts scene in the downtown. A thriving arts scene would
serve as a powerful and attractive force for young creative professionals from around
the region. (Years 2-5)
Continue to use and expand development-related incentive packages. Property tax and
permit fee abatements have been routinely employed recently. Often these depend on
IGAs with other governmental bodies. Sales tax rebates, the creation of special service
areas and industrial revenue bonds are other tools available, as well. (As appropriate)
Tax Increment Financing. TIF is a traditional and excellent way to generate revenue to
support infrastructure installation and new development in targeted areas. Providing
competent management of the existing TIFs is essential. Working to re-TIF the downtown
will become critical to its eventual success and the implementation of the Central Main
Street Redevelopment Plan Update. (Continuous, Re-TIF Year One)
Low Priority! Low Cost
Find ways to link local colleges with the training needs of local businesses. The trend
towards on-the-job training can be supported often through programs created and
resourced by nearby community colleges. Surveys could help identify training needs. (As
needed)
Encourage development of health care and “Knowledge Economy” businesses. Active
recruitment is called for in the mid-term, but working to identify available locations is
warranted. This will take advantage of overarching trends in demographics and the
economy. (Ongoing)
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City of West Chicago | Economic Development Plan 2020-2024
e Business friendly codes. A systematic review of key zoning requirements, locally
amended building codes, internal policies and fees should be undertaken to identify
those that may be revised to make the community. (Ongoing)
Low Priority! High Cost
e Encourage small business incubator and accelerator space. In partnership with colleges
and universities located in the western suburbs, certain available manufacturing and
commercial space might be developed for this activity. Projects could be developed
with a mixture of public, private, nonprofit and college resources. (Years 3-5)
e Work with the new owner to develop a long-range plan for the former General Mills site
All options should be "on the table" as the future of this site is considered. Cooperation
with the new owner is essential. (Years 3-5)
e Broaden the facade improvement program to a Citv-wide effort. Significantly more
funding would be required, but key corridors outside of the existing downtown program
could be better defined, made more attractive and aided with this effort. (Years 4-5)
e Sub-Area and Corridor Plans. As these opportunities arise, make sure a sustainable
economic development perspective is heard so the City can retain its business-friendly
environment. The Roosevelt Road Corridor Plan, mentioned earlier, is one example of
these. (As needed)
e Support transportation modernization. The City's ability to adapt to the future as air
transport needs change, commuter patterns shift or driverless vehicles gain in
acceptance is critical. (As needed)
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