Linked Deposit Funds Help Little Ohio Bounce Back By JERRY COSENTINO, Illinois State Treasurer

Thanks to a little ingenuity and a lot of civic pride, things are changing for the little town of Ohio, Illinois (population 550). With the help of the Illinois State Treasurer's Linked Deposit Program, a once-gloomy future has turned into one bright with promise.

Less than a year ago, Ohio (located on Route 26 between Princeton and Dixon) was suffering from small-town syndrome. An aging population, substantial devaluation of area farmland and the resulting business stagnation were symptoms all too familiar in rural towns throughout Illinois. But Ohio refused to die. Community leaders decided to organize and emphasize Ohio's strengths.

A perceived liabilty — shrinking school enrollment — was turned into an asset. The school system's glittering record — no drop outs in 10 years, 90% of the students go on to college, and a small-but-mighty 1986 second-place statewide basketball team — resulted from class sizes small enough to provide students with individual attention. Town leaders made plans to help young families move to Ohio to share in its educational opportunities.

They founded the Ohio Growth Foundation, Inc. and raised private funds locally to entice new families to Ohio with financial incentives in the form of the payment of Real Estate taxes. Purchasers of existing homes were offered $3,000 and $5,000 was made available to families who built new homes. Instead of appealing to the State of Illinois for a bail-out, Ohio made its intentions clear by following through with its innovative programs.

In January, the Illinois State Treasurer's Office provided the Ohio Growth Foundation with the financial muscle to realize their plans. The Illinois State Treasurer's Linked Deposit Program, designed to help communities like Ohio help themselves, granted Ohio a Linked Deposit of one million dollars.

Ohio's first $100,000 was deposited at an agreed upon low-interest rate at the nearby Citizens First State Bank of Walnut, Illinois. The bank, in turn, loaned the money out at a low rate of interest to help the Ohio Growth Foundation finance local economic development projects and provide lower-rate mortgages for newcomers to Ohio.

Response to the program has been overwhelming. More than 600 people have asked about the home premiums. To date, 10 families have bought existing homes and a dozen more homes selling for around $75,000 each will soon be built. Although the Ohio Growth Foundation was not initially targeted at business, the resulting excitement and national media interest got the attention of several corporate leaders.

After visiting Ohio, three of those business leaders have decided to set up shop in town. The newly designated Ohio Technical Center will be located at the junction of Highways 26 and 92 on a 13 acre property which can expand in the future to more than 100 acres. It will be the home of Image Engineering, Inc., Omega Partners and Wave Sheild Tech. Together they are expected to provide up to 85 jobs by their second year in Ohio.

High-tech companies are moving to Ohio because they like the atmosphere and the willingness of the people to get things done. Ohio is truly an Illinois success story, and a good example of the strides possible when private initiative joins with creative programs like Linked Deposit.

The Illinois State Treasurer's Linked Deposit Program is a "win-win" situation for Illinois taxpayers. Helping communities improve their standard of living benefits all of us who make our homes and earn our wages in Illinois. To learn how Linked Deposit can help your community bounce back — or leap forward — call David Cleverdon in my Chicago office at 312/917-3571.

November 1989 / Illinois Municipal Review / Page 5