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CITY OF WEST CHICAGO
DEVELOPMENT COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER:
Downtown Retail & Restaurant Grant Program
Revisions FILE NUMBER:
Resolution No. 24-R-0085 COMMITTEE AGENDA DATE: November 11, 2024
COUNCIL AGENDA DATE:
STAFF REVIEW: Kelley Chrisse, AICP, CEcD SIGNATURE UMMA
APPROVED BY CITY ADMINISTRATOR: Michael
Guttman SIGNATURE
ITEM SUMMARY:
The Downtown Retail & Restaurant Business Grant Program was approved by the City Council in
2013 to strengthen retail business activity in the downtown. There has only been one grant awarded
in the program’s history. The business subject to the grant has not yet opened so there has not been
any reimbursement made for this program to date. Revisions are being proposed to attract interest
and support new and existing retailers and restaurants in the downtown.
With expenses related to the build-out of retail and restaurant spaces being moved to the Downtown
Investment Program, the Retail & Restaurant Grant Program can now prioritize tools that will support
business success. Key revisions to the Downtown Retail & Restaurant Grant Program include:
e Shift the improvements to build-out a retail or restaurant to the Downtown Investment Program
to create consistency of requirements and prioritize physical improvements;
Streamline the approval process by eliminating the Selection Committee, recognizing that Staff
lacks the technical capacity to determine the viability of a business plan;
Recognizing the value of having a business plan, retain the need to provide a business plan
as an application requirement and have the Applicant demonstrate how the Program funding
will support their plan; and
e Expand eligible expenses to include:
e Retail consulting services;
e Visual merchandising services;
Online sales platforms; and
e Website development.
e Allow existing retailers & restauranteurs to participate with a maximum grant award of $5,000.
The proposed revised Retail & Restaurant Grant Program has been unanimously recommended by
the Economic Development Commission (EDC) at their October 22, 2024 meeting. Additionally, the
EDC has recommended a budget for FY 2025 of $30,000 to be funded from the Downtown TIF #2
Fund, supplemented with funds from the General Fund until such time as the TIF Fund has sufficient
increment to cover the approved budget for the Downtown Investment Program. The requested pro-
gram funding has been included in the draft budget for consideration.

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ACTIONS PROPOSED:
Consideration of Resolution No. 24-R-0085 to approve revisions to the Retail & Restaurant Grant
Program.
COMMITTEE RECOMMENDATION:

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RESOLUTION NO. 24-R-0085
A RESOLUTION APPROVING REVISIONS TO THE CITY OF WEST CHICAGO
RETAIL & RESTAURANT GRANT PROGRAM
WHEREAS, the City of West Chicago (“City”) approved Resolution No. 13-R-0006 on
January 21, 2013 that established a Retail & Restaurant Business Grant Program (“Program”) to
provide financial assistance to strengthen retail business activity within the downtown; and
WHEREAS, the City designated the City of West Chicago Downtown Tax Increment
Financing District No. 2 Redevelopment Project Area (“RPA”) via Ordinance 22-O-0007 on
March 7, 2022; and
WHEREAS, the City established the Downtown Tax Increment Financing District No. 2
via Ordinance 22-O-0008 on March 7, 2022; and
WHEREAS, the City is authorized through the Downtown TIF No. 2 RPA to provide
financial assistance that results in increased property tax revenues, increased sales tax revenues,
job creation, and other benefits within the RPA; and
WHEREAS, the Mayor and City Council of the City have found that it is in the best
interests of the City to revise the Program to more effectively further the purposes of the RPA.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WEST CHICAGO, IN REGULAR SESSION ASSEMBLED AS FOLLOWS:
SECTION 1: Recitals. The recitals above shall be and are hereby incorporated in this
Section | as if restated herein.
SECTION 2: Approval. The revised Retail & Restaurant Grant Program is hereby
approved as outlined in Exhibit A (attached).
SECTION 3: Implementation. The City Administrator, or designee, is hereby authorized
and directed to take all necessary and appropriate action to implement the Program, including
creating application form(s) that will allow for City staff to review and determine if submission
and eligibility requirements are met.
SECTION 4: Effect. That this Resolution shall be in full force and effect on January 1,
2025.
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APPROVED this 18" day of November 2024.
AYES:
NAYES:
ABSTAIN:
ABSENT:
Mayor Ruben Pineda
ATTEST:
Valeria Perez, Executive Office Manager
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Exhibit A
City of West Chicago
DOWNTOWN RETAIL & RESTAURANT
GRANT PROGRAM
The Downtown Retail and Restaurant Grant Program (“Program”) provides grant funding to
strengthen retail business activity in the Downtown by attracting new retail and restaurant
businesses as well as assisting existing retailers and restaurants.
GRANT ELIGIBLITY
1. Location.
A. Businesses must be
locating within
Downtown TIF District a
No. 2 in order to apply
for this Program.
| =|= | |
le i es
if —_—_{+—
CITY OF WEST CHICAGO- A
DOWNTOWN TIF 2 ni
HI
pio 4
B. Existing businesses may
apply if they are located
within the district or are
located outside the
district with plans to
open an additional
location within the TIF
District.
C. All businesses applying
for a grant under the
Program must occupy a
first-floor space ona
“GENEVA ST__
7 eS;
public street to operate a retail or restaurant business. If leased, the eligible business
must have a remaining lease term of not less than three (3) years to apply for funding.
2. Operations.
A. To be eligible for this Program, a business must offer merchandise and/or food to the
public, the sale or providing of which is subject to sales tax (“Retail Sales”), and from
which the revenue derived constitutes the majority of the revenue of the business.
Professional and medical offices, salons and other service businesses are not eligible.
Businesses that include Retail and/or Food & Beverage Sales as a complementary
use to a primary use other than a Retail or Restaurant business may be considered
for a grant under the Program, at the City’s discretion, if the Retail or Restaurant use
is demonstrated to be a significant financial component of the overall business.
B. All businesses applying for this Program must submit an application, obtain approval,
and enter into a Grant Agreement prior to incurring expenses for which grant funding
is requested.
Retail & Restaurant Grant Program | Page 4 of 3

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lll. FUNDING QUALIFICATIONS
1. Eligible Expenses. The Program provides reimbursement for eligible expenses
(“Project”) provided by a legitimate third-party business, which includes:
A. Retail consulting services;
B. Visual merchandising services;
C. Online sales platforms;
D. Website development; and
E. Marketing and advertising.
2. Ineligible Expenses. Ineligible expenses include, but are not limited to:
A. Expenses incurred prior to approval and execution of a Grant Agreement, which
establishes the approved grant award, by and between the City and the Applicant;
B. Services performed by the Applicant are not eligible to be monetized and reimbursed;
C. Expenses not specifically listed as eligible, including but not limited to:
1) Physical improvements to the property (see Downtown Investment Program);
2) Rent;
3) Payroll; and
4) Inventory.
3. Grant Funding.
A. Grants will be awarded for reimbursement of up to 50% of the Project cost with:
1) A maximum of $10,000 for new eligible businesses or eligible business expansions.
2) A maximum of $5,000 for existing eligible businesses.
B. Only one grant will be awarded per business for each location and/or expansion
project.
IV. 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 business, Program details and eligibility.
2. Request for Funding. A formal application for funding is required, which must be
accompanied by the following items:
A. Business Plan;
B. Copy of the lease, as applicable, with a remaining term of at least three (3) years
on a first-floor commercial space on a public street in the Downtown TIF No. 2;
C. Narrative that describes:
1) The Project scope (intended use of the grant funding); and
2) How the business will contribute to or enhance the activity in the downtown,
which may include:
1. Anticipated sales tax revenue;
2. Expected job creation; and
3. Overall business activity that will contribute to the mix of businesses
in the downtown.
3. 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
reviewed for eligibility and compliance with the terms of this Program.
B. The determination of Program eligibility 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.
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C. The application 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. The City Council has the right to amend or waive program terms and
conditions to accommodate special circumstances. If approved, the Mayor will
execute the Grant Agreement on behalf of the City.
D. The Applicant must execute the Grant Agreement before any portion of the Project
may commence.
V. PROJECT CONDITIONS
1. Project Timeline. All new and expanding businesses approved for a grant must
obtain occupancy, register the business, open for business, and complete the Project
within six (6) months of grant approval by the City. Exceptions may be considered at
the time of approval if the Applicant is concurrently completing property improvements
that would delay the opening or other extenuating circumstances exist. Existing
businesses awarded a grant must complete the Project within six (6) months of grant
approval by the City.
2. Compliance Required. Strict compliance with the Grant Agreement is required
throughout and upon completion of the Project. Failure to abide by the terms of the
Grant Agreement will result in forfeiture of funding, at the discretion of the City.
Vil. REIMBURSEMENT PROCESS
1. Reimbursement Amount. The Applicant shall be responsible for paying all
expenses for the Project and will only be reimbursed based on the actual costs
incurred in accordance with the Grant Agreement.
2. Reimbursement Process.
A. To request reimbursement, the Applicant shall submit the following, as applicable,
within sixty (60) days of Project completion:
1) Proof of work performed;
2) Invoice itemizing service(s) provided;
3) Proof of payment (e.g. copies of canceled checks and/or credit card receipts);
4) Final waiver(s) of lien from each consultant/contractor, as applicable; and
5) 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 for
City Council authorization at the next available meeting.
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