Monday, September 08, 2008

McHenry County Entrepreneur Faces Union Picket in Rockton

A lot has happened since McHenry County Blog last looked at Jim Athens' relocation efforts for Chemtool.

The growing Crystal Lake lubricants company concluded that McHenry County was not the place to expand.

It gained zoning permission in Garden Prairie, but not without lots of opposition. My guess is that the prospect of much sales tax led local residents to incorporate the town.

Then, Athans showed an interest in Winnebago County near the Wisconsin state line. I didn't follow it closely, but a TIF district was requested (despite his having told me he wasn't looking for such a subsidy early on in his relocation search).

Chemtool won the sought after Tax Increment Financing district in Rockton. Again there was citizen controversy.

Now, the Rockford Register-Star's “contract staff writer” Thomas V. Bona reports pickets have been posted because not all of the construction work is being performed by union employees.

Athens points out that he has done business with the Chicago-area concrete firm for four decades and it was cheapest by $70,000. The project, located where the Beloit Corporation used to be, is tagged at $30 million.

“When I go out for quotes, I really don’t ask if they’re union or nonunion,” Athens is quoted.

Continuing:
“Athans threatened to stop the project and move his company’s new corporate headquarters to a vacant building near Hammond, Ind.

“'There’s so many buildings out there, I could move in there tomorrow,' he said. 'I had my heart and soul in this place. ... (But) I don’t have a tolerance for this kind of nonsense.'”
Accompanying the article is a photograph of “Trent Feurt, a Harvard resident and member of Operating Engineers Local 150.”

And, that's not the only controversy facing Athens.

The Rockford paper reports that he is being sued by Island Lake's Williamson Real Estate for a $390,000 commission on the $6.5 million property.

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Above you can see the current Chemtool facility in Crystal Lake, an anti-Chemtool sign on Route 20 in Garden Prairie and a relaxed Jim Athans driving the Crystal Lake Gala's 2007 4th of July Parade Marshal Bob Blazier.

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Saturday, August 18, 2007

As Predicted, Garden Prairie Looking at Incorporation

When Crystal Lake’s Chemtool decided to move its operation to Boone County’s Garden Prairie, McHenry County Blog took a look at how viable that Garden Prairie would be as a municipality.

The conclusion was that this area near the Boone-McHenry County line was more viable than its neighbor to the north, Capron

Now Rockford Register-Star reporter Kevin Haas writes area residents are planning to file for incorporation next month.

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The signs are from last spring. This Route 20 household was for the school tax hike and against Chemtool.

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Saturday, August 04, 2007

Chemtool Moving Ahead on Garden Prairie Facility

The Rockford Register-Star’s Kevin Haas continues to be the reporter to read if one wants to know what is happening to Crystal Lake’s Chemtool.

I had speculated that McHenry County still might pull off a retention of the Crystal Lake born and raised firm, but the Haas story yesterday seems to put that to rest.

“(Chemtool owner Jim Athans) plans to start construction late this year and continue into 2008,” (Growth Dimensions Executive Director Mark) Williams told him.

Apparently confirming the finality of the decision in the article were both McHenry County Board Chairman Ken Koehler and McHenry County Economic Development Corporation President Chris Manheim.

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Chemtool President Jim Athans drives Crystal Lake 4th of July Parade Grand Marshall Bob Blasier and his wife. Athans has performed the chore for decades.

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Tuesday, May 29, 2007

Rockford Paper Weighs in on Garden Prairie Incorporation Possibilities

Just thought you might be interested on Rockford Register-Star reporter Kevin Hass’ take Saturday on the possibility of making Boone County's Garden Prairie a village if Chemtool builds its facility there.

Haas covers past consideration and current desires.

Here is McHenry County Blog’s May 15th story.

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Thursday, May 24, 2007

Chemtool Update-Boone County Takes Down "Chemtool Coming" Press Release

On Tuesday, Bill left this comment on the May 17th McHenry County Blog story entitled
Is McHenry County Still in the Race for Chemtool?
Cal--Growth Dimension for Boone County indicates that Mr. Athans has decided on Garden Prairie. See website --http://www.growthdimensions.org/newsdetails.asp?newsID=13
On Wednesday evening Bill had this update:
Cal--Growth Dimension took the news release off the net. It looks like ChemTool is running for whichever district gives it the best deal.

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Thursday, May 17, 2007

Is McHenry County Still in the Race for Chemtool?

On March 31, 2007, McHenry County Blog has a story entitled,
Zoning Race for 500 Employee Chemtool Facility
In it, Chemtool Jim Athans said,
“We’re not looking for tax breaks, TIF districts, we just need zoning.”
He owns land in three potential locations:
I got the impression that wherever he gets zoning first will snag Chemtool.

But, maybe not.

When I called the Boone County Building Department to ask if an application had been filed for a building permit, the answer was,
“No, not yet. As far as I know, no, nothing has been submitted to us.”
The part of the proposed McHenry County property, which Athans owns, is zoning for manufacturing. Another parcel, which he has not yet purchased, but for which he has a willing seller, is not.

I haven’t followed the efforts of Marengo to lure Chemtool, but I sense that April’s election returns may have made the city more likely to provide the zoning that is needed.

Maybe the zoning race is not over.

Maybe Boone County is the hare and Marengo is the tortoise.

If so, what a coup for Marengo Mayor Don Lockhart!

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Tuesday, May 15, 2007

Will Chemtool Tempt Garden Prairie Residents to Form a Village?

When I was writing the story about Boone County’s snatching Chemtool from Crystal Lake for Garden Prairie, I noticed that there would be $400,000 worth of sales tax leaving McHenry County and going to Boone County.

Of that local share, county government gets an automatic one-fifth. That’s $80,000.

And in unincorporated areas, county government gets the entire amount raised by the 1.25% local sales tax. In Chemtool’s case, that’s estimated to be $400,000, a figure which I found in a Kevin Haas' article in the Rockford Register-Srar.

With that kind of revenue at stake, I would note that folks in Garden Prairie might decide to incorporate in order to utilize the money locally.

$320,000 in sales tax would go to any new village.

To put it in perspective, I called Capron to find out its budget.

It’s $1.2 million.

It gets about $30,000 a year in sales tax.

In 2,000, Capron had almost 1,000 people and 354 housing units.

Garden Prairie, on the other hand, has 112 residential parcels. (Not quite the same definition, but close.)

That’s about one-third the number in Capron.

(Bonus Township, which contains Garden Prairie, had 2,662 in the 2000 census.)

In addition to sales taxes, however, there are property taxes to consider.

Chemtool’s assessed valuation in McHenry County is $1.9 million.

Assessments are generally about 30% of market value, so one might assume that the current building and grounds are worth about $6 million.

Testimony in Boone County indicated Chemtool’s investment in Garden Prairie would be about $40 million.

Chrysler, by comparison, has a fair market value of about $60 million, with an assessed value of almost $21 million.

One cannot take Chemtool’s $40 million investment figure and multiply 30% times it to determine a future real estate assessment.

Northern Illinois University's Regional Development Institute Director Dr. John Lewis told me that about 80% of $40 million or $32 million could be used as the value.

30% of that would yield an assessment of $9.6 million.

Not an insignificant amount.

Almost half of Chrysler's assessment.

Add that to the current assessed valuation--$4.1 million--of something called the Garden Prairie Light District and you have a total of $13-14 million.

Capron, by comparison, has an assessed valuation of $15.9 million.

So Capron has an assessed valuation of about $45,000 per household, while Garden Prairie’s would probably be at least $116,000.

My conclusion:
It seems to me that Garden Prairie could be at least as viable village as Capron.
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The sign says, "NO Chemtool." Might attitudes change once local residents figure out that Chemtool might produce enough revenue to finance a village government?

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Monday, May 14, 2007

McHenry County Government To Lose $400,000

As McHenry County officials go over budget and not on time with its controversial Route 14 in the Crystal Lake watershed animal control facility, board members are sure to be concerned with the pending loss of $400,000 in sales tax revenues within a year or two.

Maybe folks will think, hey, that’s only one half of one percent of our general fund budget of $72 million.

But, $400,000 when one underestimates the cost of an animal control extreme makeover by $773,000 might come in handy.

In Kevin Haas’ Rockford Register-Star’s article on the relocation of Crystal Lake’s Chemtool
is tucked away a couple of tax loss facts.

Most important to the McHenry County Board ought to be the $400,000 is annual sales taxes Chemtool is estimated to generate.

Because Chemtool is located in the unincorporated part of McHenry County, ALL of the local share of Chemtool’s sales tax goes into McHenry County’s coffers.

Getting their hands on that kind of money was undoubtedly part of the reason that the Boone County Board approved Chemtool’s re-zoning request on Wednesday night by a 10-1 vote. Nine votes were required.

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Thursday, May 10, 2007

Chemtool to Boone County

It is truly tragic that a manufacturing firm begun in Crystal Lake and seeking to expand could not be accommodated in McHenry County.

Oh, it will be just across the Boone County line in Garden Prairie.

But, its tax money will go soon go to Boone County and the Belvidere School District.

Liz Wolgemuth of the Northwest Herald was the first I’ve seen to report the 10-1 vote in favor of the manufacturing, research, world headquarters and distribution facility.

Nine votes were required to achieve the three-fourths majority for the re-zoning. A super majority was needed because of objections from neighboring property owners.

President Jim Athans has made significant contributions to the Crystal Lake area and deserves our thanks.

I wonder if anyone will step forward to accept the responsibility for the failure of Chemtool to remain in McHenry County.

As I posted on the Northwest Herald’s comment section,
“What's the opposite of economic development?”
I am sure there is a story of why McHenry County lost this gem of a company, but I suspect Athans is too much of a gentlemen to tell it.

Here's the Rockford Register-Star's story by Kevin Haas.

75 were in the audience and the main concern was safety for the children attending the Kishwaukee Grade School across the street and of the watershed below.

Haas has this quote from board member Michele Courier:
In my opinion this petition for special use boils down to Chemtool’s record.
Other stories about the Chemtool:

Other stories about Chemtool:

Chemtool Seeking Manufacturing Zoning in Boone County

Zoning Race for 500 Employee Chemtool Facility

Will Crystal Lake's Loss Be Boone County’s Gain?

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Wednesday, May 09, 2007

Decision Day for Chemtool

The Crystal Lake-spawned lubricant manufacturing firm called Chemtool will see if Boone County wants to claim its planned 500-employee campus tonight when the Boone County Board votes on its zoning proposal.

The Rockford Register-Star continues to give this potential relocation from Crystal Lake the coverage it deserves.

Supporters of what will probably become an eastern anchor for Boone County need to muster a two-thirds majority for the zoning change because neighboring property owners have filed official objections.

If Boone County board members approve the proposal, it can boast a huge victory.

And McHenry County will have suffered a huge loss.

Chemtool President Jim Athans told the Rockford paper that construction could start in 30 days.

At least one opponent in Garden Prairie, just west of the Boone-McHenry County line, had a sign of opposition to Chemtool on Route 20 when we drove past before the April elections.

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Other stories about Chemtool:

Chemtool Seeking Manufacturing Zoning in Boone County

Zoning Race for 500 Employee Chemtool Facility

Will Crystal Lake's Loss Be Boone County’s Gain?

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Saturday, May 05, 2007

Will Crystal Lake's Loss Be Boone County’s Gain?

Crystal Lake’s Jim Athans started his company Chemtool in Crystal Lake, built a modern campus facility on Ridgefield Road and expanded it.

Now, business is growing so rapidly (revenue up 40% last year); he needs more space.

He looked west of Marengo and just across the Boone County line in Garden Prairie, plus Wisconsin.

It appears that the Boone County Board is closing in on a the biggest industrial development project since it landed Chrysler in the early 1960’s.

The Rockford Register-Star reported Friday that the company is nine votes away from approval at its new location.

But, those votes may not come easy. Nine votes represent a two-thirds’ majority of the Boone County Board. Five seem to be already committee, having voted for the project in the county board’s Planning, Zoning and Building Committee, where the vote was unanimous.

The extraordinary majority is required because of objections from neighboring property owners, one a you-pick berry business on U.S. 20.

Reporter Kevin Hass quotes Susie Silberhorn as follows:
It’s the perception. Who’s going to want to buy vegetables if there is a chemical plant next door?” Susie Silberhorn said.
The site is across from Kishwaukee Elementary School and near the Kishwaukee River.

School folks fear for the safety of their children with the trucks entering and leaving the site and local residents and the Soil and Water Conservation District are concerned about potential pollution of the aquifer.

As I wrote earlier, my father had similar concerns when Chemtool applied for its permit to build on the sensitive Crystal Lake watershed.

But, there have been no water pollution complaints about Chemtool since it moved to Ridgefield road.

I find it more than a little strange that local officials are not fighting to keep Chemtool in McHenry County.

The article says Freeport and St. Louis also would like to have Chemtool.

The Boone County Board will vote Wednesday.

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The picture is of Chemtool's headquarters and manufacturing plant on Ridgefield Road in Crystal Lake.

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Sunday, April 01, 2007

Zoning Race for 500 Employee Chemtool Facility

Yesterday, McHenry County Blog ran a story about Crystal Lake’s Chemtool trying to obtain zoning for a new manufacturing plant and headquarters in Garden Prairie.

It would be a mega-change for tiny, unincorporated Garden Prairie.

It could bring a property tax base that might allow the area to incorporate, if it wished to do so.

I talked to Jim Athans, who used to live in my neighborhood, about why he was moving out of McHenry County.

After all, he started his company on April 1, 1963.

It’s 45 years old today.

That’s a long time ago.

And it has continued growing.

“We need to build a new facility,” Athans told me.

“We’re not looking for tax breaks, TIF districts,” he said. “We just need zoning.”

He needs space for a new headquarters, a new manufacturing plant, a research facility, and a distribution center.

Athans plans a campus-like facility.

He owns land in three potential locations:
I got the impression that wherever he gets zoning first will snag Chemtool.

The part of the proposed McHenry County property which Athans owns is zoning for manufacturing. Another parcel, which he has not yet purchased, but for which he has a willing seller, is not.

While there have been no water pollution problems over the years—he has only solid waste—there have been frustrations with local governments. After winning 22 votes for the 1972 Ridgefield zoning, Crystal Lake took his company to court, eating up over a year.

A 1992 addition, with a construction manager sick, ended up with a county zoning citation for moving some black dirt to a low area. The suit still is not settled.

There was another addition in 1999.

Now, Chemtool is out of space.

I admit I was shocked when I learned that Chemtool might move from its hometown to Boone County.

What a coup it would be to have a facility with 500 employees anchoring Boone County's eastern border.

But, with local opposition, there still may be a chance to keep Chemtool in McHenry County.

There is obviously institutional antagonism among McHenry County’s zoning enforcers.

And, given the attitude of unhelpfulness of at least one of the persons involved—Sue Ehardt--I can certainly understand why Athans might be more than willing to move to another county.

But, I hope he doesn’t.

I hope the McHenry County Board can get its act together before the Boone County Board can act.

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Saturday, March 31, 2007

Chemtool Seeking Manufacturing Zoning in Boone County


Chemtool, which is now headquartered in Ridgfield, wants to expand in neighboring Boone County near another unincorporated town, Garden Prairie.

For those who have driven to Rockford on Route 20, it is right past the McHenry-Boone County line.

As we were driving through town last week, I noticed an anti-Chemtool yard sign.

This was in a front yard.

There were two more, Jim Athans told me, but they were on his property, so he took them down.

Those are usually signs of grass roots campaigns.

There was another such sign past the church on one of those interchangeable letter signs.

The Rockford Register-Star has been covering the issue.

Last Thursday, it reported that zoning for the 500-person plant and headquarters had been put off until April 24th.

So, what’s the problem?

Similar to the problem that Chemtool had when it applied to the McHenry County Board to build in Ridgefield, which is in the watershed of Crystal Lake.

According to the Boone County Soil and Water Conservation District,
The area has highly permeable soils and is considered high risk for contamination if a spill were to occur,
according to reporter Kevin Haas.

I remember my father’s having opposed the Ridgefield Chemtool zoning for reasons similar to those been by opponents in Boone County.

His side lost and Jim Athans’ Chemtool, which makes industrial lubricants, went on to become one of the most successful companies in McHenry County.

Adding to the concern in Bonus Township is the location of Kishwaukee Elementary School right across the road from the 160-acre Chemtool site.

According to a March 21st story,
Herb Walberg, Bonus Township Supervisor, said that many who were concerned with contamination were “chasing the ghost of innuendo.”
I checked with the Water Division of the Illinois Environmental Protection Agency and was told,
Chemtool has never received a violation notice,
by Sharon Dowson, Manager of the Records Unit.

There are links to more stories embedded in the Rockford Register-Star.

Tomorrow: The zoning race.

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