How do you reverse a two-decade trend of population decline and job losses? In 2006, the city of Centralia determined to do just that.

For years, the city, which had incorporated in 1859 as a railroad community in the heart of rural south-central Illinois, benefited from coal mining, oil exploration, and small manufacturing.

But globalization hit this small community hard, and many manufacturing jobs were outsourced to other areas. The loss of these businesses left many buildings vacant, creating blighted neighborhoods and reducing the city’s tax revenue.

In the face of many business closures, the city found itself scrambling to retain the businesses that still remained. While a variety of programs already existed for business retention and attraction, they were limited, so a new economic development tool was needed.

In the past, the city had not been able to meet the needs of existing or potential businesses because they did not meet certain criteria of existing incentive programs. The city council and city manager, working together, eliminated this problem when they created the Centralia Opportunity Fund.

The Fund promoted, complemented, and enhanced economic and business development opportunities throughout the city for industrial, commercial, and residential projects. It made funds available for:

• land acquisition
• building demolition
• construction and/or rehabilitation
• site preparation
• extension of utilities
• machinery and equipment
• inventory
• working capital

The Centralia Opportunity Fund has been successful in retaining, attracting, and revitalizing businesses in the city, and the city is now known for its business-friendly approach to economic development.