Lombard may attach lien to business grant

In the midst of finalizing plans for downtown revitalization, Lombard officials Wednesday night decided to forward to the village board proposed changes to the downtown retail business grant.

The changes are meant to encourage more property owners along Main Street and St. Charles Road to take advantage of up to $20,000 in matching funds for property improvements. The funds can be used for capital costs, like an accessible bathroom, or soft costs, such as retail consulting.

Proposed changes also are designed to protect the village's investment in the event a business closes.

“If the money is going into permanent improvements that are not specific to the use, the risk of the tenant leaving is low because if the tenant does leave, those improvements are still there,” Karen Stonehouse, executive director of the downtown organization Lombard Town Centre, said.

If the village board approves the changes, the amount of the grant paid upfront will be halved from 100 percent to 50 percent.

Property owners who receive the grant also will have a forgivable lien placed on their property. If a tenant stays in the property for five years after the grant is issued, the lien will be removed.

But if the business fails or leaves the property, the property owner must pay the lien upon sale of the property, after 10 years or in 2023, when the downtown tax increment financing districts expire — whichever comes earliest.

“I don't think the lien is going to make it or break it,” committee member David Irion said.

Property owners who attended the meeting, however, said the lien causes them some concern.

“I'm not a cynic. I believe in the programs, I believe in the grants,” said Vernon Hammersmith, Jr., who owns a vacant building at 106 W. St. Charles Road. “I don't think a lien against the property is going to encourage me to go retail.”

Hammersmith said he may consider using the downtown retail business grant to make improvements to his building, including possibly a new heating, ventilation and air conditioning system. But, he added, hosting a retail business as a tenant is risky in the current economic conditions.

Property owner Kenneth Moy said the village should focus more on bringing foot traffic to downtown, instead of tweaking the retail grant.

“I don't think that your grant program will do a darn thing. It's not adequate,” Moy said.

Economic and community development committee chairman Bill Ware said the grant offers value to interested property owners by paying some money upfront and allowing permanent property improvements to be made.

The Lombard Village Board will discuss the downtown retail business grant at its meeting Jan. 20.