===== PDF PAGE 4 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO ECONOMIC DEVELOPMENT COMMISSION AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: 5 Downtown Investment Program COMMISSION AGENDA DATE: 10/22/2024 STAFF REVIEW: Kelley Chrisse, AICP, CEcD SIGNATURE ITEM SUMMARY: Private property investment improves the overall aesthetic, quality, and vitality of the downtown and the City as a whole. Renewed investment in the downtown increases the opportunity for redevelopment, whereas a lack of private investment can effectively hinder (re)development efforts. Unfortunately, there has been a lack of investment and in some cases general maintenance on private structures in the downtown. Additionally, there are still a number of commercial vacancies in the downtown resulting in less activity in the area. Despite the existing Façade Improvement and Retail & Restaurant Grant Programs having been around for many years, they are underutilized. Based on conversations with property and business owners, reasons they have not used the grant programs include lack of funding availability, amount of time required to obtain grant approval, “difficult” approval processes, need for three estimates, and lack of interest by multiple contractors for small projects. The proposed Downtown Investment Program combines the Façade Improvement and a portion of the Retail & Restaurant Grant programs related to physical property improvements to streamline the application process, provide flexibility in funding, and incentivize certain improvements/projects. As a way to overcome barriers to participation, the Downtown Investment Program includes: • Increasing the maximum funding amount for projects to encourage greater private investment; • Allowing projects to include interior and/or exterior improvements with consistent requirements under a single program; • Categorizing improvements with corresponding reimbursement amounts based on the expected long-term impact; • Encouraging larger, more comprehensive projects but allowing funding for smaller, property maintenance projects at a lower amount; • Providing additional funding for historically significant properties that are making major and/or minor improvements; and • Granting authority to the City Administrator, or designee, to approve maintenance items and streetscape improvements to reduce the approval timeline for smaller projects. In an effort to streamline the submittal process, Staff will combine the Downtown Investment Program and Certificate of Appropriateness (COA) applications, which will be available digitally. The responses provided on the application will determine what other questions need to be answered. This approach is intended to minimize unnecessary questions and avoid duplication between different application processes. ===== PDF PAGE 5 ===== [Extraction: embedded PDF text] To generate interest in these types of projects by the local businesses, Staff will be reaching out to contractors located within West Chicago and others that have done work on properties in the downtown. The contractors will be provided with an overview of the program and grant process, upon which interested contractors will be added to a participating contractor list that will be made available to potential applicants. This effort is intended to create a network of contractors and assist applicants in their efforts to obtain estimates, but the selection of a contractor would remain the applicant’s responsibility. The proposed Downtown Investment Program has been revised per discussion at the July 23, 2024 EDC meeting and is attached for review and recommendation. As the Façade Improvement Grant Program is codified, the authorizing ordinance would need to be repealed and the chapter deleted in its entirety. A motion is requested to recommend the repeal of the existing program. ACTIONS PROPOSED: 1. Recommend approval to repeal Ordinance No. 4301 and delete Chapter 4, Article VI. Façade Program in its entirety. 2. Recommend approval of the proposed Downtown Investment Program. 3. Recommend a budget request for FY 2025 in the amount of $125,000.00 from the Downtown TIF #2 Fund, supplemented with funds from the General Fund until such time as the TIF Fund has sufficient revenues to cover the approved budget for the Downtown Investment Program. Attachment: Downtown Investment Program Proposal ===== PDF PAGE 6 ===== [Extraction: embedded PDF text] City of West Chicago DOWNTOWN INVESTMENT PROGRAM I. PROGRAM PURPOSE The Downtown Investment Program (“Program”) provides grant funding to promote revitalization and activation of downtown West Chicago that will spur future private development in the area. Reimbursement grants are provided to achieve the following: 1. Improve the overall image and increase property values within the downtown to strengthen the economy and quality of life in the City; 2. Remove and alleviate adverse conditions by encouraging private investment in the rehabilitation and maintenance of properties within the Downtown Tax Increment Financing (TIF) District No. 2; 3. Assist property and business owners with restoring, renovating, and modernizing existing structures, especially historically significant buildings, in the downtown to increase the marketability of commercial spaces and promote occupancy; and 4. Further the objectives of the Downtown TIF II Redevelopment Plan including but not limited to reducing or eliminating the recurrence of blighted conditions. II. GRANT ELIGIBLITY 1. Properties. For purposes of this Program, the term property refers to real estate as identified by a parcel identification number (PIN). Commercial and mixed-use properties located within Downtown TIF District No. 2 improved with existing buildings are eligible for participation in this Program. Properties and spaces used only for residential purposes (e.g. apartments) are not eligible for grant funding. 2. Applicants. A. Property and business owners of property specified in Sec. II.1 are eligible to apply for funding under this Program. B. A lessee of an eligible property must have a remaining lease term of not less than five (5) years to apply for funding. C. Any Applicant who is delinquent in the payment of any tax, fine, fee, or special Downtown Investment Program | Page 1 of 5 ===== PDF PAGE 7 ===== [Extraction: embedded PDF text] assessment owed to the City, County, or State as documented by the City or County is ineligible until the outstanding tax, fine, fee or special assessment is paid. III. FUNDING QUALIFICATIONS 1. Eligible Expenses. The Program provides reimbursement for eligible interior & exterior improvements (“Project”) as categorized by the expected impact on property value and ability to extend the longevity of the property. A detailed list of eligible improvements and reimbursement maximums are listed in the Funding Categories (attached). The types of projects and expenses generally eligible for grant funding include: A. Major Improvements – represent a significant project (typically consisting of multiple elements) and investment resulting in a change to the structure that substantially changes the visual appearance, increases the value, and/or marketability of the property; B. Minor Improvements – consist of fewer improvements that generally lead to an incremental increase in value and/or marketability of the property while also improving the building’s aesthetic and functional use of the property; C. Maintenance Items – include any modifications that bring the building into code compliance and prevent deterioration of the property; D. Streetscape Improvements – consist of elements that require a smaller investment and are considered less permanent but make a noticeable improvement to the curb appeal of the property; and E. Design fees related to the eligible improvements. 2. Ineligible Expenses. Ineligible expenses include, but are not limited to: A. Improvements in progress or completed prior to approval and execution of a Grant Agreement, which establishes the approved scope of work and reimbursement amount, by and between the City and the Applicant; B. Improvements that do not comply with the approved Certificate of Appropriateness (COA), building permit(s), and/or zoning regulations; C. Improvements that increase non-conforming conditions; D. Labor associated with work performed by an Applicant and/or the Property Owner are not eligible to be monetized and reimbursed; E. Work required to address code violations identified on a Notice To Appear (NTA); and F. Improvements not specifically listed as eligible, including but not limited to: 1) New or replacement wall signs; 2) Non-permanent interior improvements, including but not limited to interior design elements, interior finishes, (e.g. paint, tile, flooring, lighting and plumbing fixtures, etc.), moveable business furniture/equipment, and interior signage; 3) Interior improvements in a space used for residential purposes, unless required to preserve the integrity of the building infrastructure in a mixed-use structure; and 4) Media marketing and advertising (see Retail & Restaurant Grant Program). 3. Funding Maximums. A. Funding awards are determined by the lowest of the three (3) estimates submitted for the Project scope in accordance with the maximum reimbursement listed by Funding Category (see attached). B. The maximum funding to be awarded for improvements to a single eligible property over the life of the Program is $100,000. 4. Building Permit Fee Reduction. Building permit fees, with the exception of third-party review and inspection fees, for approved Projects will be reduced by fifty percent (50%). The building permit fee reduction is over and above the grant award and is discounted upon permit issuance. Downtown Investment Program | Page 2 of 5 ===== PDF PAGE 8 ===== [Extraction: embedded PDF text] IV. DESIGN GUIDELINES All proposed exterior improvements within the Turner Junction Historic District shall be compatible with the downtown area; specifically, these improvements should: 1. Focus on restorative construction; 2. Be compatible with the original building material and style; 3. Be compatible with predominant color schemes and window configurations; and 4. Be compatible with the general architectural theme of the historic district. V. APPLICATION REVIEW PROCESS 1. Pre-Application Meeting. Interested parties should schedule a pre-application meeting with staff at (630) 818-3331 or kchrisse@westchicago.org. The purpose of the meeting is to discuss the Program details, proposed improvements, and Project eligibility. 2. Request for Funding. The Applicant shall submit a formal application for funding, which must be accompanied by the following items: A. Proof of property ownership; B. A copy of the signed sales contract, current lease, and/or written consent from the property owner, as applicable; C. Proof of paid property taxes; D. Photos of the subject property to be improved; E. Narrative that incorporates: 1) Detailed description of the proposed scope of work; 2) Description of the use of the property and/or business; and 3) Identification of the merits of the project (i.e. how the Project achieves the Program Purpose in Sec. I). F. Plans, drawings and/or visual depictions of the proposed improvements; G. Material and color sample(s) of exterior improvements, if requested; H. Three (3) detailed, written estimates for the Project scope of work (alternatively, requests for material and equipment funding shall provide itemized quotes with applicable cut sheets); and I. Construction schedule for the Project with specific milestones identified for Projects not expected to be completed in twelve (12) months or for partial reimbursement requests. 3. Accompanying Applications. A. If the property is within the Turner Junction Historic District and the Project includes exterior improvements, the applicant shall concurrently file an application for a Certificate of Appropriateness (COA) with the Historical Preservation Commission (HPC). COA approval, if required, is a precondition to the City's consideration of the grant application. The HPC meets on the fourth Tuesday of each month, which could impact the timing of grant application processing. B. A building permit application, if required, is recommended to be submitted simultaneously to ensure that all code requirements are included in the Project scope, the estimates of which determines the grant award. When required by the Project scope of work, architectural drawings must be prepared by a designer (e.g. architect, structural engineer, etc.) licensed in Illinois. 4. Review and Approval. A. Any outstanding items required to complete the review and process the funding request will be coordinated with the Applicant. A complete application will be Downtown Investment Program | Page 3 of 5 ===== PDF PAGE 9 ===== [Extraction: embedded PDF text] reviewed for eligibility and compliance with the terms of this Program. B. The determination of Program eligibility (property, applicant, and scope of work) is at the discretion of the City. The City retains the right to approve an entire request, to approve portions of a request, suggest and/or ask for changes/additions to a request before approving, or to deny any request or a portion thereof. C. Upon issuance of a COA, the funding request will be processed for approval as follows: 1) An application for Major and/or Minor Improvements will be forwarded to the City Council, together with a recommendation, at the next available meeting (first and third Mondays of each month). The City Council shall determine whether, and the extent to which, the City will provide grant funding for the proposed project, subject to funding availability. If approved, the Mayor will execute the Grant Agreement on behalf of the City. 2) An application for Maintenance Items and Streetscape Improvements will be forwarded to the City Administrator, or designee, with a recommendation. The City Administrator, or designee, will determine if the Project meets the terms of the Program and, if so, authorize and execute the Grant Agreement with awards up to $5,000, subject to funding availability. D. The Applicant must execute the Grant Agreement before any portion of the Project may commence. VI. PROJECT COMMENCEMENT AND CONSTRUCTION 1. Building Permit. In addition to a fully executed Grant Agreement, a building permit may be required depending on the scope of work for the Project. If required, work on the Project subject to a permit shall not commence until the building permit has also been issued. 2. Work in ROW. Improvements located in the right-of-way (ROW) may require Public Works approval via ROW permit or a license agreement. 3. Contractor Registration. The Applicant may use any contractor they wish but Projects requiring a building permit must be performed by registered contractor(s). Contractors subject to Contractor Registration requirements include general contractors as well as all sub-contractors. 4. Compliance Required. Strict compliance with the Grant Agreement, COA, and building permit is required throughout and upon completion of the Project. 5. Project Timeline. The Project must be started within ninety (90) days of grant approval and completed within twelve (12) months of the building permit issuance or grant approval, if no permit is required. An alternate timeline may be approved as part of the Grant Agreement, if requested in the proposed Construction Schedule. An extension may be granted by the City Council via an amendment to the Grant Agreement if requested in writing prior to the expiration of the building permit or within twelve months of the execution of the Grant Agreement, as applicable. VII. REIMBURSEMENT PROCESS 1. Reimbursement Amount. The Applicant shall be responsible for paying all expenses incurred for the Project and will only be reimbursed based on the actual amount paid in accordance with the Grant Agreement. 2. Partial Reimbursement. Reimbursements during the Project construction may be Downtown Investment Program | Page 4 of 5 ===== PDF PAGE 10 ===== [Extraction: embedded PDF text] requested by the Applicant only if authorized in the Grant Agreement and in accordance with specified milestones and funding amounts. A. The Applicant may request partial reimbursement by submitting the following: 1) Verification that a specific milestone has been met; 2) Invoices for materials and equipment (when work is completed by the Applicant); 3) Partially paid invoice from contractor(s); 4) Proof of partial payment (e.g. copies of canceled checks and/or credit card receipts); 5) Partial waiver(s) of lien from each contractor; and 6) IRS Form W-9. B. Upon receipt of all required documentation and verification of compliance with the terms of the Grant Agreement, the reimbursement request will be presented to the City Council for authorization at the next available meeting. 3. Full or Final Reimbursement. A. The Applicant must pass all inspections to close out the building permit, as applicable. A Certificate of Occupancy is not required to close out the building permit but could be used to demonstrate Project completion. B. To request reimbursement, the Applicant shall submit the following documents, as applicable, within sixty (60) days of Project close-out: 1) Verification of project close-out, if a building permit was required; 2) Invoices for materials and equipment (when work is completed by the Applicant); 3) Paid invoice from contractor(s); 4) Proof of payment (e.g. copies of canceled checks and/or credit card receipts); 5) Final waiver(s) of lien from each contractor; and 6) IRS Form W-9, if not already provided. C. Upon receipt of all required documentation and verification of compliance with the terms of the Grant Agreement, the reimbursement request will be presented for City Council authorization at the next available meeting. VIII. MAINTENANCE 1. With the exception of Streetscape Improvements, the improvements made as part of the Project must be maintained for a period of five (5) years upon completion of the Project. 2. Upon entering into the Grant Agreement, the Applicant is not eligible to apply for a subsequent grant on the subject property for two (2) years from the date of approval unless the Project was not completed. Downtown Investment Program | Page 5 of 5 ===== PDF PAGE 11 ===== [Extraction: embedded PDF text] Downtown Investment Program - Funding Categories Major Improvements Minor Improvements Maintenance Items Streetscape Improvements Roofing repair or replacement that is part of the Significant façade renovation/enhancements, including Repair or replacement of retaining walls on Turner Court New or replacement signs (only includes under canopy, historical façade within the Turner Junction Historic façade replacements window and projecting) District Façade cleaning and sealing Restoration of original architectural features Installation of new accessible entrance Restoration of brick New or replacement awnings Eligible Exterior Tuckpointing Repair of window frames, sills, and glazing New or replacement exterior doors and windows New permanent under canopy/awning lighting Improvement Expenses Exterior painting Gutter replacement Replacement or repair of exterior building materials or Screening of unsightly utilities, including trash Repair of pitched roof and chimney or flue when it improves the Incorporating permanent seating adjacent to the eligible decorative elements enclosures overall appearance of the building property Adding permanent landscaped planters Installation or replacement of stairs, porch and handrails Adding or replacing exterior lighting Repair or replacement of roofs not visible from the public way Creating and installing exterior art (not signage) New installation and replacement of commercial kitchen Interior life safety improvements (e.g. fire walls, fixtures (plumbing, hood and duct system, grease trap, sprinklers, egress, fire alarm, exit signs, automatic lights, Repair work to floors, walls, and ceilings etc.) and associated utility work etc.) Utility service line and equipment replacement, Building systems replacement or upgrades (e.g. Eligible Interior including electric, gas, water, and sanitary plumbing, electric, HVAC, etc.) and associated fixtures Improvement Expenses Interior structural repairs & upgrades (e.g. load bearing Installation of an elevator, chair lift, or ramp to access walls, roof beams, floor joists, ceiling repairs, etc.) another commercial space Retrofit of existing restrooms to meet accessibility Installation of new restrooms standards Other Eligible Expenses Design fees related to the eligible improvements, as applicable 50% Reimbursement, up to $75,000 (up to $100,000 for 35% Reimbursement, up to $30,000 (up to $50,000 for 25% Reimbursement (or 65% of the material and equipment 50% Reimbursement (or 65% of the material and Maximum buildings designated as landmarks or contributing to the buildings designated as landmarks or contributing to the expenses if applicant does work themselves, as applicable), up equipment expenses if applicant does the work Reimbursement Turner Junction Historic District) Turner Junction Historic District) to $5,000 themselves, as applicable), up to $3,000