TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
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Ordinance Authorizing a Business Continuity Grant Program in Conjunction with the City Center Partnership and Repealing Ordinance No. 18569
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BACKGROUND:
On November 7, 2023, the City Council approved Ordinance No. 18569, which established a Business Interruption Assistance (BIA) Program to address revenue losses experienced by small businesses in the downtown area due to construction-related disruptions. Administered by the City Center Partnership (CCP), the program was allocated $100,000, with $50,000 from the Special Service Area (SSA) fund and $50,000 from downtown area TIFs (City Center, Downtown, and Cass). The program was designed to cover up to three months of rent or provide up to $5,000 to offset future rent costs.
However, rent is not an eligible expense under the Illinois TIF Act, requiring the $50,000 originally allocated from TIF funds to be covered by the SSA fund. While the total program allocation remains $100,000, this adjustment ensures compliance with funding regulations.
Based on feedback from CCP constituents, amendments to the program guidelines are proposed to improve accessibility and effectiveness. The proposed changes include renaming the program to the Business Continuity Program, expanding eligibility to include property owners who operate businesses on their property, and allowing funds to cover either rent or property taxes. Additionally, the landlord match requirement has been removed, currency exchanges and pawnshops are included as eligible, and businesses are required to have been operational by January 1, 2024.
The funding structure remains unchanged, with a maximum of $5,000 available to each applicant.
CONCLUSION:
Because rent is not an eligible expense under the Illinois TIF Act, the $50,000 originally allocated from TIF funds must be sourced from the SSA levy. The total program allocation remains at $100,000. The proposed amendments are...
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