City Grants Aim to Revitalize Downtown

The City of Des Plaines is offering a new program that officials hope will lure businesses to relocate to vacant storefronts downtown.

Business owners who qualify for Downtown Business Assistance Program will receive a $5,000 grant toward "hard costs" of their venture – that is, physical improvements or updates to the building, said Jennifer Ganser, the city's economic development coordinator.

The program is only for new businesses moving to Tax Increment Financing (TIF)  District 1, which includes Metropolitan Square, Library Plaza and the area along Miner and Lee streets.

"Some of the vacant storefronts that people had been seeing sparked the need [for the program]," Ganser said. "We're hoping that maybe with the program, someone will look and say, 'Oh, I want to relocate in downtown Des Plaines,' and this will be an advantage for someone looking to open up a business."

Ganser said she has talked to a few property owners who were excited about the program's potential. A list of downtown sites that qualify--about 25 in all--can be found here.

The city is accepting applications now. After applying, business owners will have to appear before the Economic Development Commission, which meets monthly, Ganser said.

There are several guidelines in place to qualify for the assistance program: a business must generate sales taxes, which include food and beverage taxes; and an applicant sign a lease to stay in the storefront property for at least one year.

Businesses can be new to the area or can move downtown from other neighborhoods in Des Plaines, said Alderwoman Rosemary Argus (8th Ward).

The City Council unanimously approved the program at a meeting last week. It is an effort that Argus expects to help fill some vacancies downtown.

"I know that everybody is affected in this bad economy," said Argus, who is also chair of community development. "I don't know how many [new businesses] we can get, but I'd like to see the storefronts filled."

The council accepted a proposal that the program would start with $50,000 --$5,000 grants for 10 businesses--and a portion of the individual businesses' sales taxes would go back to TIF district until the $5,000 was returned to the fund.

The money diverted back to tax fund will replenish its $1.3 million reserve, Ganser explained.

"That's just so we don't deplete the TIF account," she said, "and also to keep the program revolving so as more people apply, there's money always there for another business."

Though the program is for new businesses, longtime owners can apply for the city's Downtown Façade Rehabilitation Program. It also supports physical improvements and has the same geographical boundaries in TIF District 1. However, participation is not limited to businesses that produce sales taxes.

For more information or to apply for either program, business owners can call Ganser at 847-827-4495 or e-mail her at jganser@desplaines.org.