Small business owners and commercial property owners in River Forest’s two tax increment financing (TIF) districts could see financial benefits from a small business grant program that was proposed by the Economic Development Commission (EDC) and introduced at the March 10 village board meeting.
Although no vote was taken, consensus among officials was to move forward with the program.
In a memo of the village board, Matt Walsh, village administrator, and Jessica Spencer, assistant village manager, said the EDC was driven by the goal of assisting businesses or property owners attract new customers or tenants. The proposed programs would be funded out of the appropriate funds in the TIF districts on North Avenue and Madison Street. EDC commissioners suggested $100,000 be earmarked for the program with $50,000 for each district, they said. However, each award would not exceed 50 percent of all eligible activities or $5,000, whichever is less. Funding would be subject to budget approval.
In her presentation to the board March 10, Spencer said applications will be cut off when requests reach $50,000 in each district. In response to questions from Trustee Katie Brennan, she said the amount made available would be evaluated annually and applications would be limited to one per year.
Spencer said EDC commissioners discussed penalties for businesses that close or relocate outside the village after work on a property is completed but did not make a recommendation. She said each of the communities with similar programs do things differently. One possibility would be to consider the grant to be a forgivable loan that would be retired annually over a period of time such as three years.
In response to questioning from Trustees Erika Bachner and Respicio Vazquez, Spencer clarified that the program would be geared toward façade improvements. Walsh added that improving facades would improve the two corridors.
The proposal stems from a suggestion Walsh made to the EDC in September. Following discussion of how these programs work in other communities, EDC commissioners created a framework that would likely succeed for businesses in River Forest and then provided an early draft to the Oak Park-River Forest Chamber of Commerce to consider with input from some River Forest businesses.
In December, commissioners invited members of the business community to review and provide feedback on the program. Darien Marion-Burton, chamber executive director, presented the draft plan to a handful of River Forest business owners and the feedback was complementary, Walsh and Spencer said in the memo. Overall, business owners were” pleasantly surprised” that the plan supported businesses in this fashion, including attention to accessibility and sustainability improvements for customers, they added.
Following guidelines recommended by staff members in October, commissioners determined that the goal of the program is to retain and enhance the historical features of buildings and to provide some financial assistance to small business owners to help offset improvement costs. They also agreed the grant would be applicable only to commercial property owners and small business owners located within the North Avenue TIF and Madison Street TIF Districts whose requests comply with the village’s codes for building, zoning and signs.
Commissioners created a review process and a list of eligible and ineligible improvements.
Under the review process, applicants would submit the application, including plans, cost estimates, descriptions of the improvements as well as photographs of the existing façade with their building permit. Staff members would review the application, which would be evaluated on project impact, alignment with the village’s goal for improving commercial districts, adherence to the program’s guidelines and available funding.
Priority would be given to projects that improve the overall aesthetic of the commercial district; enhance the accessibility of the project; or incorporate energy-efficient or sustainable design elements. The village administrator would be given the final approval authority.
Eligible improvements range from energy conservation upgrades and exterior accessibility enhancements for individuals with disabilities to new primary signage and installation of awnings or canopies. Other eligible improvements include restoration of historic exterior architectural elements and installation or improvement of front and rooftop patios or walkways.
Improvements that are not eligible include acquisition of land or buildings; new construction or development that is not directly tied to enhancing the primary façade(s); interior signage and lighting fixtures; and flat roofing installation or repair.
