===== PDF PAGE 13 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO DOWNTOWN REVITALIZATION COMMISSION AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: 6 Downtown Revitalization Priorities, Barriers, and Imple- COMMISSION AGENDA DATE: 06-22-26mentation Strategies STAFF REVIEW: Kelley Chrisse, AICP, CEcD, Business SIGNATURE __________________________ & Community Relations Director ITEM SUMMARY: The Downtown Revitalization Commission was established to support and promote the City's efforts to revitalize downtown West Chicago by bringing together elected officials, residents, business owners, nonprofit stakeholders, and City staff in a coordinated and collaborative manner. Among its responsibil- ities, the Commission is charged with evaluating ideas and recommendations from the City's Compre- hensive Plan and other planning documents, prioritizing revitalization strategies, reviewing zoning and land use regulations, and making recommendations that advance downtown revitalization goals. As the City advances several downtown initiatives, including the Downtown Modernization & Beautifi- cation Project and planning efforts for the West Washington Street site, the role of development incen- tives and other implementation tools in encouraging private investment and supporting downtown revi- talization has emerged as a topic of discussion. The purpose of this discussion is not to determine whether the City should offer incentives. The City already maintains several economic development tools and has historically utilized project-specific agreements when warranted. Rather, the purpose of this discussion is to identify whether there are downtown revitalization objectives that may benefit from additional economic development tools, fund- ing sources, zoning amendments, partnerships, or other implementation strategies. In fulfilling its responsibilities, the Commission may identify revitalization priorities that require imple- mentation tools beyond public investment alone. Such tools may include zoning amendments, public- private partnerships, economic development incentives, funding mechanisms, property disposition strategies, marketing initiatives, or other actions necessary to advance downtown revitalization goals. Existing Economic Development Tools The City currently utilizes a variety of economic development tools to encourage investment, support business growth, facilitate redevelopment, and advance community goals. While some incentives are available through established programs, others may be negotiated on a project-specific basis through development agreements. Historically, the City has evaluated larger redevelopment opportunities using a needs-based approach that considers project costs, redevelopment challenges, anticipated public benefits, economic impact, and consistency with City priorities. • Downtown Investment Program The Downtown Investment Program provides reimbursement grants for eligible commercial and mixed-use properties located within the Downtown TIF District. Eligible improvements include façade restoration, accessibility improvements, structural repairs, building system upgrades, ===== PDF PAGE 14 ===== [Extraction: embedded PDF text] historic preservation activities, and streetscape enhancements. The program is intended to en- courage reinvestment in existing buildings, preserve historic character, improve property condi- tions, and stimulate additional private investment within the downtown. • Downtown Retail & Restaurant Grant Program The Downtown Retail & Restaurant Grant Program provides reimbursement grants to attract and support retail and restaurant businesses within the Downtown TIF District. Eligible expenses in- clude retail consulting, visual merchandising, website development, online sales platforms, and marketing activities. The program is intended to strengthen downtown commercial activity by supporting businesses that enhance the retail, dining, and visitor experience. • Property Tax Abatements The City may consider temporary abatements of its portion of property taxes for developments that provide significant investment, redevelopment, job creation, or economic benefits. Property tax abatements may be used to improve project feasibility and encourage investments that may not otherwise occur while generating long-term benefits to the community. This tool is most ef- fective when combined with abatements from other taxing bodies. • Sales Tax Rebate Agreements The City may enter into agreements that rebate a portion of newly generated municipal sales tax revenues for a specified period of time. These agreements are typically tied to performance measures and development commitments and are intended to support business attraction, ex- pansion, and redevelopment projects that generate substantial economic activity and tax reve- nue. • Municipal Utility Tax Rebates The City may provide temporary rebates of municipal utility (e.g. electric and gas) taxes to qual- ifying businesses or redevelopment projects. These rebates are generally intended to reduce operating costs during the initial years of operation and improve the competitiveness or feasibility of a project. • Building Permit Fee Reductions or Waivers The City may waive certain locally controlled permit fees associated with development projects. Fees associated with third-party plan review and inspection services are generally not eligible for waiver because those costs are passed through to the City. Fee reductions may be used to lower upfront development costs and encourage reinvestment in existing properties. • Development Agreements The City may enter into project-specific development or redevelopment agreements that utilize one or more incentive mechanisms. Development agreements are typically tailored to the unique circumstances of a project and may address redevelopment challenges, public improvements, performance benchmarks, development timelines, and other public benefits. These agreements provide flexibility to address catalytic projects that may not fit within existing incentive programs. Collectively, these tools provide the City with flexibility to support a variety of redevelopment and busi- ness development objectives. The City is not limited to these programs and may enter into development or redevelopment agreements utilizing one or more incentive mechanisms when appropriate. Histori- cally, incentive requests have been evaluated on a case-by-case basis considering project need, public benefit, economic impact, redevelopment challenges, and consistency with City goals. As a result, the discussion should not focus solely on existing programs, but rather on whether available tools adequately support the downtown revitalization outcomes desired by the community. ===== PDF PAGE 15 ===== [Extraction: embedded PDF text] Revitalization Priorities and Barriers A key role of the Commission is to identify revitalization priorities and determine whether barriers exist that prevent desired outcomes from occurring. The Commission may wish to discuss: • Building Reinvestment and Property Redevelopment Potential priorities may include: • Preservation of historic buildings and architectural features • Rehabilitation of underutilized structures • Adaptive reuse of historic properties • Redevelopment of vacant properties • Activation of vacant storefronts • Improvements that strengthen downtown character and identity Potential barriers may include building conditions, rehabilitation costs, financing limitations, en- vironmental concerns, ownership challenges, redevelopment feasibility, and market conditions. • Housing and Mixed-Use Development Potential priorities may include: • Upper-story residential conversions • Mixed-use redevelopment projects • Additional residential density within the downtown • Workforce and market-rate housing opportunities Potential barriers may include construction costs, building configuration challenges, parking con- siderations, financing constraints, and regulatory requirements. • Downtown Activity and Destination Development Potential priorities may include: • Destination retail and restaurant uses • Entertainment and cultural venues • Outdoor dining opportunities • Public gathering spaces • Arts, culture, and placemaking initiatives Potential barriers may include startup costs, market demand, property constraints, and opera- tional challenges. • Land Use, Zoning, and Economic Productivity Potential priorities may include: • Increasing property utilization • Supporting higher-value land uses in strategic locations • Encouraging redevelopment of underperforming sites • Supporting mixed-use development • Facilitating adaptive reuse of existing buildings • Aligning zoning regulations with downtown revitalization goals Potential barriers may include existing land use patterns, ownership conditions, parking require- ments, use restrictions, redevelopment costs, site constraints, market demand, and other regu- latory limitations. • West Washington Street Site Consistent with the Commission's responsibility to oversee development of a concept plan for the West Washington Street site, the Commission may wish to consider how future uses and development opportunities at the site contribute to broader downtown revitalization goals and ===== PDF PAGE 16 ===== [Extraction: embedded PDF text] whether implementation of those opportunities may require future policy, zoning, partnership, funding, or economic development considerations. Funding Considerations Economic development tools may be supported through a variety of funding sources depending on the nature of the project and the public benefits being provided. Potential funding sources include: • Downtown TIF District revenues • Downtown Revitalization Fund revenues • Annual budget allocations • State and federal grants • Revenue-sharing agreements • Public-private partnerships • Other locally available economic development tools Certain revitalization priorities may not align with existing funding sources or program eligibility require- ments. As a result, additional funding mechanisms or alternative sources may need to be explored. Identification of a revitalization priority by the Commission should not be interpreted as a commitment to provide financial assistance but may serve as a basis for future evaluation by the Economic Devel- opment Commission, staff, and City Council. Relationship to the Economic Development Commission The Downtown Revitalization Commission and Economic Development Commission serve complemen- tary but distinct roles. The Downtown Revitalization Commission is responsible for identifying downtown revitalization priorities, evaluating implementation strategies, reviewing land use and zoning considera- tions, and identifying barriers to investment and activation. The Economic Development Commission is responsible for making recommendations regarding economic development policies, programs, and ac- tivities that foster business growth, support redevelopment, increase the tax base, and expand employ- ment opportunities throughout the City. Recommendations from the Downtown Revitalization Commission may help inform future evaluations by the Economic Development Commission regarding whether existing economic development tools adequately support downtown revitalization priorities. Where the Downtown Revitalization Commission identifies barriers, unmet needs, or implementation challenges, those issues may be referred to the Economic Development Commission for evaluation of existing programs, funding mechanisms, incen- tive tools, or other economic development strategies. Discussion Questions 1. What revitalization priorities should receive the highest priority over the next five to ten years? 2. What types of private investment should be encouraged within the downtown over the next five to ten years? 3. What barriers most limit achievement of those priorities? 4. Are there zoning, regulatory, or land use barriers that should be addressed to support downtown revitalization? 5. Are existing tools and funding sources sufficient to address identified barriers? 6. What issues should be referred to the Economic Development Commission or City Council for further evaluation? The City already possesses a diverse set of economic development tools and has historically utilized both established programs and project-specific development agreements to encourage private invest- ment. Through this discussion, the Commission can identify revitalization priorities, barriers, and ===== PDF PAGE 17 ===== [Extraction: embedded PDF text] implementation needs that may inform future to the City Council and referrals to the Economic Devel- opment Commission for further evaluation. REQUESTED ACTION: Discuss downtown revitalization priorities, barriers to investment, and potential implementation needs. Identify any topics that warrant further evaluation by the Economic Development Commission, City Council, or staff and provide direction regarding next steps.