The future of Illinois’ business climate is one of the hottest topics in the governor’s race.
Democratic Governor Pat Quinn and Republican Bruce Rauner toss it around like a hot potato - claiming credit for themselves while lobbing blame at the other guy.
But that hot potato represents real people - and real businesses. Plenty of examples can be found in what once was the fastest-growing county in the whole country.
You don’t have to spend much time in Kendall County before you find places still haunted by the economic downturn.
PURCELL: It’s a developed subdivision with roads, but there’s just weeds growing everywhere. There’s no homes, there’s just a scattered one here, a second one there...
About 90 minutes southwest of Chicago, I’m driving around with Republican Kendall County Board member John Purcell. So far, we’ve seen a lot of beige, labyrinthine subdivisions that rise up out of the cornfields.
But then we come upon one that feels kinda spooky - with cul-de-sacs, lampposts, fire hydrants - but no houses.
PURCELL: This is the water service for a homestead. There’d be a home here, and this is where the water...
Between 2000 and 2010, Kendall County’s population more than doubled. That’s how it got that ‘fastest-growing county’ title. Plus - the number of employees and businesses grew at a faster pace than any other Illinois county...until the crash.
So we headed to Kendall to hear HOW THE STATE OF ILLINOIS IS VIEWED BY BUSINESS OWNERS DETERMINED TO GET BACK ON TRACK.
It turns out that Purcell - the county board member - is one of them. He owns a couple of hardware stores.
And he worries about the cash-strapped state government increasing HIS costs - raising taxes or the minimum wage.
But he also says Illinois has an image problem.
PURCELL: I believe the state, by not having their financial house in order, it affects some business. And does it affect mine directly? No, maybe not. But it affects a lot of the larger businesses’ investment decisions, which trickle down to some of the smaller business.
One of those smaller businesses is Mik’s Bake Shop in Oswego - home to delicious-smelling, freshly-fried apple cider donuts...
MIKOLAY: We can do cinnamon sugar, regular sugar or powdered sugar on these, we’ve got vanilla, chocolate, strawberry (fade under)...
Jack Mikolay opened his shop in Oswego in 20-12.
Before the crash, he was a home appraiser - so he was actually inside the housing bubble as it was blowing up.
MIKOLAY: Well, I saw it happening. I would get tons of loans, so you would see the loans come across. And you would see: no income, no job, they’re trying to get the full value of the house as a loan.
You know how this story ends.
After the bubble burst, Mikolay started selling donuts He says business took off strong - but after a brutal winter, things are rough. The best thing state government can do?
Get out of the way, Mikolay says.
He feels inundated by fees and regulations from all levels of government - from state to county to local.
MIKOLAY: Everybody wants their - their cut, their share. And, uh, so far there’s been nothing left for me. (laughs). You know, it’s been three years since I’ve had a paycheck.
What’s more, Mikolay sees some of his own customers leaving the state for better economic opportunities - which hurts HIS business - which now has Mikolay himself thinking about a move.
MIKOLAY: I never, ever thought I’d wanna leave the state. But as I get older and wiser, I look around and just say, there’s gotta be a better way. (laughs). ‘Cause this isn’t it.
Mikolay is NOT the only one who sees it like this. Illinois has consistently rated near the bottom of surveys about business-friendly states. Chief Executive magazine called us a - quote - “anti-growth hot mess.”
This image problem is a BIG one for the state, says Bob Rosenberg, who teaches entrepreneurship at the University of Chicago’s Booth School of Business.
ROSENBERG: We are thought of as a bad place for business. We’re thought of as a troubled state, a corrupt state. And we don’t make it easy for businesses to come here.
Rosenberg says the next governor needs to change the reality, in order to change that dogged perception.
ROSENBERG: When states around us are going after us and saying, Move your company to Indiana, Move your company to Michigan, Move your company to Iowa, you’ve certainly got a brand problem that needs to be addressed.
This isn’t just some ivory tower idea. Economic development professionals in counties like Kendall say it has consequences on the ground.
DUBAJIC: It’s gotta be marketed differently. It’s like, there’s gotta be a new campaign, you know, that Illinois is here to compete!
Lynn Dubajic heads up the Yorkville Economic Development Corporation.
She says Illinois state government needs an attitude change when it comes to helping businesses.
Dubajic points to this popular state tax credit, which she says companies can only get if they threaten to leave Illinois.
At first, I think she’s exaggerating - but then she pulls up the application on her computer.
KEEFE: Wait a minute. So, “eligibility” - In order to be eligible for this tax credit, it says - (murmuring) - “You have multi-state location options. At least one other state is being considered for - you have to threaten - you HAVE to threaten before you get the help.
DUBAJIC: Uh huh. Yeah.
A spokesman for the Illinois Department of Commerce and Economic Opportunity says requirements like this are commonplace in other states, too.
But Dubajic says it’s a problem when she’s trying to get businesses to expand or re-locate to Kendall County.
DUBAJIC: So you might find yourself talking to somebody else and looking at another state and say, Hey, what was I thinking?!? So, kinda be careful what you wish for on the state of Illinois’ part.
But Dubajic is optimistic.
She just helped the Wrigley Company expand a plant in Yorkville so they can start making Skittles candy there.
And she says state money was key to getting the company to expand in Kendall County - instead of somewhere else.
DUBAJIC: Sometimes you have to spend money to make money. And coming up with new programs to allow those of us that are in the trenches to be able to offer assistance, would be a very good start.
Kendall County business owners say one other helpful tactic - would be for the next governor to take some time to listen to their concerns.
