Business Improvement Grant

The City of St. Charles is a motivated partner in helping to preserve our existing downtown building stock, fill vacancies, and attract new businesses to the area. To assist with these efforts, City Council has created the Business Improvement Grant (BIG). This program is designed to help both new businesses locating to St. Charles and existing businesses interested in expansion or relocation.

The program offers 50/50 matching awards for structural modifications, plumbing and electrical repairs, as well as life safety upgrades such as fire sprinklers and alarms. The leasable space must be located on the first floor/street level of commercial buildings located in the CBD-1 or CBD-2 zoning districts or along the Randall Road, Main Street, or Route 38 Corridor. The available award can be up to as much as $25,000, subject to City Council approval. The City strongly encourages potential applications to discuss their project with City staff before submitting an application.

BUSINESS IMPROVEMENT GRANT PROGRAM GUIDELINES

GENERAL GUIDELINES

All Business Improvement Grant awards will match applicant expenditures on a 50/50 basis for eligible improvements. There shall be a funding amount of $10,000 available for individual businesses. Multiple businesses located in multi‐tenant buildings shall all be eligible for individual awards.

All businesses must meet the following criteria:

1. The property must be located along the Main Street/Route 64 corridor, Lincoln Hwy/Route 38 corridor, Randall Road corridor, or zoned CBD‐1 or CBD‐2.

2. The business must be considered one of the following uses as defined in Section 17.030.020 of Title 17 the Zoning Ordinance:

  • Art Studio
  • Cultural Facility
  • Indoor Recreation & Amusement
  • Live Entertainment
  • Hotel/Motel
  • Outdoor Sales, Permanent
  • Personal Services
  • Coffee Shop or Tea Room
  • Restaurant
  • Retail Sales
  • Tavern/Bar
  • Theater

3. The leasable space must be located on the first floor/street level of the eligible building.

4. Primary point of sale for merchandise/services in the store must be the location of the physical business. 

 

ELIGIBILITY FOR ADDITIONAL FUNDING

Businesses are eligible for an additional $15,000 provided the property/business meets one of the following criteria (Total grant amount for any business shall not exceed $25,000):

  • The additional awards are used to update building code or fire code deficiencies required by change of use such as but not limited to: ADA accessibility improvements, fire sprinkler installation, fire alarms installation, repair, or updates, accessibility ramps/elevators.

  • The building or leasable space has been vacant for more than 6 months.
  • The proposed business is located in the Downtown Retail Overlay District.

  •  Large retail spaces that need to be demised to make leasing the space more feasible.

  • Extraordinary costs based on a unique physical condition or alterations of the building can be considered on a case by case basis.

 

APPROVAL OF A BUSINESS IMPROVEMENT GRANT AWARD PROCEDURE

The Community & Economic Development Department shall accept and process all applications for Business Improvement Grants.

  • All applicants must request a BASE (Building Assessment & Safety Evaluation) visit by the

    Building & Code Enforcement Division and Fire Department to determine any necessary code upgrades required due to change in use or life safety issues.

  • Awards of $10,000 or less are approved administratively by Director of Community &

    Economic Development Department or designee.

  • Awards in excess of $10,000 up to $25,000 are required to receive City Council approval.

 

ELIGIBLE IMPROVEMENTS

The following improvements shall be considered eligible to receive the Business Improvement Grant award:

  • Accessibility improvements for handicapped persons.
  • Creation of new exterior doors for access into new leasable commercial spaces.
  • Demising walls for the purposes of creating individual leasable commercial spaces.
  • Energy conservation improvements.
  • Electrical work, including service upgrades.
  • Fire alarm systems.
  • Fire sprinkler system installation or upgrade, including any needed water service improvements.
  • Heating, ventilation and air conditioning.
  • Lighting.
  • Plumbing.
  • Restoration of historic interior architectural features, including ceilings, light fixtures, floors and architectural detailing.
  • Structural additions for the purpose of expanding usable business space*
  • Utility service upgrades, including water and sewer.
  • Improvements not specifically listed as eligible, or ineligible are subject to review on a case by case basis.
  • Façade improvements‐ for businesses within the Façade Improvement Program
  • Area (only if the Façade Improvement Program has committed all budgeted funding for the current fiscal year).
  • Façade improvements‐ for eligible businesses outside Façade Improvement Program Area**

 

*No more than $10,000 of BIG funds may go towards structural additions in any given fiscal year.

** Façade improvements are limited to the following 1) Permanent exterior building upgrades or enhancements that will improve the character of a building 2) Improvement, replacement or installation of storefront systems, doors, windows and trim materials. Proposed façade improvements should, to the extent possible, follow the design guidelines and standards described in Section 17.06 of the Zoning Code

 

INELIGIBLE IMPROVEMENTS

The following items are NOT eligible for awards under the Business Improvement Grant:

  • Acquisition of land or buildings.
  • Product inventory.
  • Interior signage.
  • Lighting fixtures.
  • Hard surface materials for non‐retail exterior space (parking lots, sidewalks, etc.).
  • Display window enhancements (hanging grid system, lighting, display shelf, etc.).
  • Media marketing and advertising.
  • Ongoing business expenses such as rent, payroll, consulting work, moving expenses, etc.
  • Day‐to‐day operational costs (e.g. utilities, taxes, maintenance, refuse).
  • Exterminator services.
  • Landscaping
  • Paint, tile, or other design elements.
  • Furniture, cabinetry, carpets, office equipment, or similar interior finishes.
  • Building permit fees and related costs.
  • Sweat equity.
  • Signs

 

COMMENCEMENT OF WORK

Only after the Business Improvement Grant is approved by the City, can work commence. DO NOT START BEFORE ‐‐ YOU WILL NOT BE REIMBURSED FOR WORK DONE PRIOR TO CITY APPROVAL OF THE BUSINESS IMPROVEMENT GRANT AGREEMENT.

COMPLETION OF WORK

All improvements must be completed within 270 calendar days of Business Improvement Gran Agreement approval, unless otherwise authorized by City staff for a maximum of a one (270) day extension. If the work is not complete by the end of the extension the City’s remaining obligation to reimburse the owner or tenant for the project terminates.

 

REIMBURSEMENT PAYMENTS

Upon completion of the work, the owner or tenant must submit copies of all design invoices, contractor's statements, other invoices, proof of payment and notarized final lien waivers to the Director of Community & Economic Development, as evidence that the owner or tenant has paid the architect and contractor(s). You should use the attached forms for the contractor's statement and final lien waivers. Payment will be authorized upon completion of all work items as originally approved and receipt of all of the required documents.

The Applicant will only be reimbursed for the amount of the award once all approved work has

been completed and a Certificate of Occupancy is issued by the Building & Code Enforcement Division. The Director of Community & Economic Development may authorize reimbursement to be made in two payments, if all of the following conditions are present: 1) The first partial payment may be made upon completion of work representing at least forty percent (40%) of the amount specified in the Business Improvement Grant Agreement; 2) The architect's invoices, contractor's statements, invoices, notarized final lien waivers and proof of payment for the completed work have been submitted; 3) The remaining work is expected to be delayed for thirty days or more following completion of the initial work due to weather, availability of materials, or other circumstances beyond the control of the owner or tenant.

In the case that the award covers multiple leasable spaces in one building, partial award funding can be disbursed as each individual leasable space is issued a Certificate of Occupancy. The amount of the partial disbursement shall be based on the proportion of square footage.

All Improvements shall be installed in accordance with the approved plan. Minor revisions as may be approved by a representative of the City Staff due to field conditions not known at the time of design, and similar circumstances beyond the Applicant’s control. THIS IS A REIMBURSEMENT PROGRAM ‐‐ YOU MUST PAY YOUR ARCHITECT, CONTRACTORS AND SUPPLIERS BEFORE YOU RECEIVE PAYMENT FROM THE CITY.

Reimbursement awards are subject to Federal and State taxes, and are reported to the Internal Revenue Service on Form 1099. You are required to provide your taxpayer ID number or social security number as part of the Business Improvement Grant Agreement. Property owners and tenants should consult their tax advisor for tax liability information.

 

MAINTENANCE PERIOD

The property owner and tenant shall be responsible for maintaining the improvements without alteration for five (5) years. A restrictive covenant limiting alterations may be required by the City Council at the time of approval of the Business Improvement Grant Agreement. A waiver from this requirement may be awarded by the City Council following a recommendation the by Director of Community & Economic Development, upon submittal of evidence of hardship or unusual circumstances.

 

 

DOCUMENTS

Business Improvement Grant Guidelines(PDF, 454KB) (Downloadable)

Business Improvement Grant Application(PDF, 604KB)

ELIGIBLE AREA

The space must be located on the first floor/street level of commercial buildings located in the CBD-1 or CBD-2 zoning districts or along the Randall Road, Main Street, or Route 38 Corridor. Check the Interactive map below to see what properties are eligible or download the BIG Eligibility Area Map(PDF, 20MB).

STEP BY STEP PROCESS
1. APPLY FOR A BUSINESS IMPROVEMENT GRANT:

A. Review the Program Description (Attachment A) to determine if the improvements you are considering are eligible for a reimbursement award.

B. You will need to work with a design professional to prepare a construction plan showing the design of your improvements. The plans will be reviewed by the Community & Economic Development Department and Fire Department staff to ensure compliance with the requirements of the program and all applicable codes.

C. Call the Building & Code Enforcement Division at (630) 377-4406 to schedule a Building Assessment and Safety Evaluation (BASE) Review.

D. Submit this application with any required building permit applications and your plans with a $25 application fee to the Building & Code Enforcement Division, City of St. Charles, 2. East Main Street, St. Charles, IL 60174.

2. AWARD AGREEMENT:

A. Staff will draft the Business Improvement Grant Agreement. The applicant must review and sign this agreement prior to final action by staff or the City Council.

B. If the requested award amount is in excess of $10,000, the draft Agreement will be presented at a Planning & Development Committee meeting. We will notify you when your application will be reviewed by the Planning and Development Committee. You and/or your design professional should plan to attend this meeting.

C. The City Council will take final action on the Agreement. Normally, it is not necessary to attend this meeting.

3. INSTALLATION/CONSTRUCTION:

A. Construct the improvements per approved plans and call the Building & Code Enforcement Division to schedule required inspections.

B. Obtain a final JULIE location before commencing work.

C. Award recipients will hire their own contractors and pay for the work. Adequate soil preparation is required if the project involves any site work or grading.

D. Finish construction / installation.

E. When all work is completed, call the Building & Code Enforcement Division at (630) 377-4406 to schedule final inspection of any part of the project for which a permit was required.

4. REIMBURSEMENT:

A. Request reimbursement by submitting the following attached forms: Final Waiver of Lien, Contractor’s Affidavit, Contractor’s Sworn Statements to Owner (forms attached), IRS Form W-9, before and after photos, and proof of payment to contractors to the Economic Development Division.

B. Receive reimbursement check from City Finance Department.

5. ONGOING:

A. The Business Improvement Grant Agreement requires you to maintain the improvements for a five year period.

 

Primary Grant Contact:
Derek Conley
Economic Development Director
City of St. Charles
dconley@stcharlesil.gov
630.377.6924