Lombard to tweak business grant

In five years, Lombard has approved 11 applications for its downtown retail business grant.

But members of the economic and community development committee want more businesses to pursue upgrades and seek grant funding.

The committee decided Wednesday to seek property owner input about how to make the downtown retail business grant more effective and more widely used.

“More businesses have opened downtown without this (grant) than with this, so it isn't something that's part of the process,” said committee member Jon Grant. “Part of our problem is this isn't something that's used very much.”

The committee will send written notices to downtown property owners inviting them to the economic and community development committee's next meeting Jan. 5.

“The owners of property as well as potential businesses really need to be aware that there are some changes being proposed to these programs,” said Karen Stonehouse, director of the downtown Lombard organization Lombard Town Centre. “If the changes don't work well for property owners, we're going to be looking at a situation where grant funds aren't as effective as they could be and the grant program isn't as desirable as it could be.”

The downtown business retail grant offers a 50 percent match of up to $20,000 for property or business owners that are spending on capital improvements like a new plumbing system or soft costs like design services, said Chris Stilling, assistant director of community development.

Properties must be within two tax increment financing districts, mainly along Main Street and St. Charles Road, to be eligible. The village gives the entire grant up front, and has approved spending $155,000 since the program began, Stilling said.

“What this grant to me is a reason to pick Lombard over something else,” Grant said. “It isn't that last push to get the doors open.”

One proposed change would give grant recipients only half of the funding up front and the rest over five years as long as the business remains open. But some committee members worry that another proposed change adding a lien to properties that receive the grant may deter businesses from seeking funds.

“I think the lien is going to be a big problem. I think it's one of those words that strikes fear in people's hearts,” Stonehouse said.

The committee kept the lien included as a proposed change to protect the village's investment in each property.

“It will also categorize some buildings down there that are willing to work with the village and ones that are not,” committee member David Irion said. “I like that. It creates a partnership.”

Committee member Brenda Gannon said she believes the proposed changes will protect the village's investment and make the downtown retail business grant more popular.

“I'll be anxious to hear from (property owners) to make sure we struck the right balance,” Gannon said.