City offers grant to relocating corporation

By D. Richard Roth

The DeKalb City Council unanimously approved the authorization of a tax increment financing grant for the Cushioneer Corporation last week.

Linda Boyer, DeKalb director of economic development, said Cushioneer, In. decided in April of 1991 to relocate its St. Charles facility to DeKalb.

To help facilitate Cushioneer’s move to DeKalb, the city agreed to build a storm water retention pond on the new property at no cost to the company, she said.

Originally, the retention pond’s estimated cost was about $130,000 to $150,000.

“After numerous engineering studies of retention pond designs, the city discovered the cost would skyrocket to more than $350,000,” Boyer said.

The increased cost stemmed from bad soil conditions that could not have been detected in the inital engineering studies, Boyer said.

While DeKalb remains obligated to honor its commitment to Cushioneer, Inc., significant changes in the agreement took place last December.

“The Cushioneer Company changed its request to DeKalb from financing a storm water retention pond to building improvements and repairs,” she said.

A $100,000 request, financed by tax increment financint (TIF), was submitted to the DeKalb Office of Economic Development late last year, she said.

“The TIF grant will primarily be ddirected toward facility improvements, boiler system refurbishments and other repairs,” Boyer said.

Although the Cushioneer Corporation is concerned with the storm water retention pond, the facility repairs have to take a higher priority, she said.

With the council’s approval last week, the city of DeKalb has reduced its financial obligation to Cushioneer from $350,000 to $100,000.

Boyer said the next step is for Cushioneer to submit written contractor bids for the repairs or refurbishments prior to the commencement of any construction.

All improvements or repairs are required to be completed by June 30, 1993, she said.