Des Plaines approves new rules for downtown business incentives
Downtown Des Plaines businesses will be able to apply for up to $40,000 in grants from the city for interior building renovations, and facade and awning improvements as part of incentives guidelines approved by the city council this week.
The incentives are intended to attract new businesses downtown and to help existing businesses there draw customers. The new guidelines set limits on how much money the city awards a business, how many times a business can apply for the same grant, and who is eligible to apply.
The incentives have been around for a few years without any written guidelines for how the programs should be administered. City officials determined earlier this year that there was a need to better define the rules and streamline the processes for applicants.
The new rules set a cap on how much money can be awarded to a business — up to $5,000 for awning improvements, up to $20,000 for facade rehabilitation, and up to $15,000 for interior renovations.
The programs are funded through revenues from the downtown tax increment financing (TIF) district No. 1 that is projected to have a surplus of $3.2 million in 2012.
The city has allocated $50,000 for the business incentive program and $100,000 for the facade rehabilitation program, which includes awnings, in the 2012 budget — the same amount budgeted this year. When the money runs out, applications will no longer be accepted.
By city ordinance, city staff can only approve requests up to $10,000. Any grant request above $10,000 must be vetted by the city’s Economic Development Commission and approved by city council.
“If somebody wanted a second bite at the apple they would have to come to council for that,” said Michael Bartholomew, community and economic development director.
Ward 4 Alderman Dick Sayad said he is uncomfortable giving city staff the authority to award higher grants, and that waiting a few weeks for council approval shouldn’t be a problem for businesses.
“I’m all for giving businesses money, but I think we have to go and look at what we’re doing here,” he said.
Sayad also suggested the city dangle a $100,000 incentive for businesses to locate downtown and see how many companies bite.
“If you want to attract them, you’ve got to attract them with a big enchilada ... $15,000 is not going to attract me,” he said.
To be eligible for the business incentive program, an applicant must be opening a new business or relocating an existing one to a vacant downtown storefront. Only businesses that generate retail sales tax or food and beverage taxes are eligible.
Three aldermen objected to that requirement. Previously, any downtown business owner could apply for a rebate.
“We should be trying to improve the appearance of (all) the downtown businesses,” 5th Ward Alderman James Brookman said. “People looking at downtown are not going to distinguish between someone who pays sales tax and someone who doesn’t.”