TO: Mayor and City Council
FROM: Dustin Anderson, Community Development Director
SUBJECT:
title
Resolution to Authorize a TIF Incentive Agreement with Matise Events LLC at 113 N. Ottawa
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BACKGROUND:
Staff received an application for Tax Increment Financing (TIF) assistance from Matise Events LLC, for the rehabilitation of the commercial building located at 113 N. Ottawa Street, Joliet, Illinois 60432, within the Downtown Joliet TIF District (TIF #2). The property is identified as PIN 30-07-09-438-004-0000. The structure contains approximately 14,000 square feet and has remained vacant since 1991. The applicant has invested $2.5 million into the project to date, out of a total construction budget of $3.3 million.
The applicant acquired the building in 2023 with the intent to redevelop the property into an event venue for weddings, live music, and related gatherings. At the time of acquisition, the anticipated opening date was 2024. However, due to the evolving nature of the economy, labor shortages, and the rising cost of goods and services, the project has been delayed, but it is now nearing completion.
An additional cause of delay is the installation of the required sprinkler and fire suppression system. This system is necessary for the applicant to obtain a Certificate of Occupancy. The original cost estimate for the sprinkler and fire suppression system was $57,500; however, the added square footage to the building increased the price to $137,000, leaving a budget gap of $79,500. To close this gap, the applicant is requesting a TIF incentive agreement for $79,500. Staff have reviewed the request and determined that the proposed improvements are eligible under the Downtown Joliet TIF District redevelopment plan. The project would convert a long-vacant building into active commercial use, support reinvestment in the downtown area, and contribute to long-term economic activity. Completion of the fire suppression system is essential for occupancy and project viability. Thus, staff propose a TIF agreement in the form of a five-year forgivable loan.
The proposed forgivable loan would be structured as follows:
• Forgiveness of 20 percent per year over five years.
• Full forgiveness contingent upon continued operation and compliance with the redevelopment agreement at the end of the five years.
• Repayment of any unforgiven balance if the applicant ceases operations or vacates the property before the end of the five-year term.
On May 4, 2026 the Land Use & Economic Development Committee will discuss this request.
CONCLUSION:
This redevelopment is consistent with the goals of the Downtown Joliet TIF District, which encourages reinvestment, activation of long-time vacant properties, and increased economic activity within the downtown area. The proposed five-year forgivable loan for $79,500 would close the remaining funding gap, allow completion of the required fire suppression system, and facilitate the opening of the venue, which would bring pedestrian traffic to the area, and generate property and sales tax revenue to the City of Joliet.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that City Council approve a Resolution to Authorize a TIF Incentive Agreement in an amount not to exceed $79,500 for the installation of a fire suppression system with Matise Events LLC at 113 N. Ottawa.
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