AN OPTIMISTIC VIEW OF FUTURE GROWTH
POTENTIALS IN THE SMALL TOWNS OF ILLINOIS

By THOMAS J. MIKULECKY, Public Management Consultant, Peoria

Background

It was not long ago that I read an article which said that if small cities in the midwest, and Illinois in particular, did not perform a comprehensive program of growth strategies, including strong leadership, creative financing, interlocal and intergovernmental cooperation, most of these cities would continue the eroding of their tax base and eventually many would die off. The implication was that we were looking at some new farm ground from what was once developed towns, because those needed combinations of financing, leadership and cooperation would not be forthcoming in many of these communities.

I see a drastically different pattern taking place today. A growing momentum may just give us hope that there will be work and opportunity in many of our small cities. Lets discard that old fear of town death, and consider a new hope and image, as follows:

The New Economics of Small Cities

In my work I hear often from company representatives who are fleeing from taxation, blight, congestion, and crime. I also hear about those cases where young people left the small town and their parents' home for the big city, looking for more glamorous work and higher wages, only to have difficulty finding that city. Sure, there were plenty of people and lots of big buildings. But there was no central job core to which you could apply; instead they were faced with the confusion of urban sprawl, and after being referred around endlessly from suburban city to city, and having spent enormous amounts of time and money traversing a metropolitan area for work, they ended up being referred right back to where they started ... to that hometown business that was looking for young, energetic and dependable persons with whom to grow. This was where the growth was occurring.

The first point here is that the so-called central city will continue to "flatten out" and disperse itself over an ever larger part of the landscape, and to such an extent that it will contain a multitude of cores and subcores, partially integrated by communication and transportation systems that no longer require a centralized system. Some of these subcores are already including what once was the small city or town. The small city is being absorbed into the economic fabric of the metropolitan area, and even though it may be distant by many miles, that distance is no longer a factor. It certainly is not a factor to many commuters, who drive long distances for employment, and return the same distances for the benefits of a quieter countryside, lower tax rates, good education, a safer environment, and the nostalgia of a small town.

The second point is that small towns and cities are once again acquiring an attractiveness or charm, sometimes without having to do anything other than limited investments in maintenance and aesthetics. Their biggest charm is often their lower cost of living. That is attracting larger companies which once thought they had to be in the urban hub, for reasons of transportation and communications, only to find that they can do just as good a business, if not better, in a less conjested location. They also can keep their costs under better control and are better able to deal with environmental issues. Moreover, their employees are happier, because they can sometimes allow their kids to walk to a good school (or bike ride), and afterward, go fishing at a farm pond or play golf at an uncrowded golf course.

This relocation is happening as we speak. It is occurring so fast that many municipal officials are not reacting fast enough. Some even believe that it is not happening, while it is right next door. It is not occurring in the traditional way, however, because the previous patterns of growth are not being followed (I'll elaborate later). What do small town officials need to do to deal with growth, take advantage of it, steer it to where it can be best served, or just experience it?

A new municipal policy for 1997-1998

The new small town growth strategy focuses on our policy altitudes as individuals, and on how we offer ourselves to new business and industry.

First, there must be a willingness on the part of small town mayors, councilmen and aldermen to be

July 1996 / Illinois Municipal Review / Page 21

flexible to change. Previous ways of doing things, obsolete zoning ordinances, traditional methods of funding and working with business, the idea where the industrial park should be, and other ideas that may have been held for a number of years, must be reexamined and subject to possible change. Instead of assuming, we need to ask those who might be interested, if what we are presenting is what they are looking for or find attractive.

Second, businesses and industries are looking to reduce their tax dollars when they make a move. It is a time to bargain, to abate, and otherwise look to making that future cost as economical as possible. It is time that the legislature authorized the two-rate tax, permitting taxing jurisdictions to tax land at a higher rate than improvements to that land. That might let the new industry in town enter into a long term lease arrangement, and thereby free it from property taxes entirely, or at least reduce that growth deterrent.

Not all services and programs need to be offered by governmental agencies. The move to the small city •provides the company and the city with an opportunity to be creative and look for ways not to spend public dollars or become obligated to programs. Once again, consider different ways of eliminating company waste, treating wastewater, recycling materials, providing security, fire safety, transportation services and housing.

Fourth, developed areas, including central cores of cities, survive and thrive, only if they are people places. I am not just talking about parkways and trails. I am talking about attractions with entertainment, retailing, artistic production, and athletics. These places together provide a syncrgysm that is necessarily linked to a wide range of housing alternatives, that provides economic excitement. Small cities can be as exciting as Lincoln Park in Chicago, but in a less stressful and more laid back style. Here is where a. more human dimension can be played out, and where hometown athletics, little league, fishing tournaments, and other similar activities become a part of the small town attraction.

Traditionally, the small town received an economic "shot in the arm" when a major company would locate there. That is still happening. But what is also happening is that the people are coming to live, while they may continue to work elsewhere (at least temporarily). The entrepreneur is selecting the small town, because it is cheaper, more efficient, and less stressful. As that new business grows out of the garage or the home office, new jobs are being created and maybe an old storefront reoccupied, at least until a new or larger building is needed.

Sixth, I have heard from many business leaders who ridicule city councils for their lack of leadership or mature attitudes toward their public business. ("No way I'd locate in ... based on the way those people fight among themselves!) Mayors and city councils need to put aside the small stuff and perform in a business-like manner.

Seventh, do not be afraid to ask a professional for help. Most cities occasionally need to take a hard look at themselves. That is more likely to happen if there is a professional to provide an experienced, objective and non-political review of what is helping and harming the community's current approach to dealing with growth.

August 1996 Municipal Calendar this calendar is based upon the most current information.. court decisions and legislation of which the League has knowledge as of the date of this publication. It supercedes similar information contained in all other League Publication Between August 1, and September 15, nominations for the board of trustees of the Illinois Municipal Retirement Fund are to be made. (40 ILCS 5/7-175). Note: Cities and villages with a population over 5,000 are automatically subject to the Act. However, participation is not mandatory for any municipality that attains a population of over 5,000 after having provided social security coverage for its employees. Each participating municipality may nominate and vote for a member of the seven member board which manages the fund for the entire State. (40 ILCS 5/7-175). In counties other than Cook County, the municipal collector shall advertise delinquent special assessments, preparatory to sale at any time after August 15th. (65 ILCS 5/9-2-83, 9-2-84). On or before the first day of October, home rule municipalities must file with the Department of Revenue a certified copy of any ordinance or resolution imposing or discontinuing a retailer's occupation tax or effecting a change in the rate thereof. (65 ILCS 5/8-11-1).

Page 22 / Illinois Municipal Review / July 1996