City of Crystal Lake, IL New Retailer and Manufacturer Job Creation and Investment Programs; Existing Retailer Expansion and Relocation Program; Business Transition Grant Program

The program is open to any new sales-tax-revenue-generating business that will occupy vacant retail space or a building or that will construct a new building for its business.

Applicant must meet a minimum annual taxable sales threshold of $150,000.

Applicant's business must provide a stocked retail showroom for retail products.

Applicant must provide written proof of facade construction and/or FFE costs.

Applicant applying for funds for facade improvements must pay prevailing wages in connection with the construction of such improvements.

Applicant must file an application for grant funding prior to commencing improvements.

Grant recipient may apply after five years from the date of recipient's previous award through the Existing Retailer Improvement Program.

Applicant's business must be new to the Crystal Lake City limits; in-town relocations are ineligible.

(9)

Applicants are required to complete and submit an Illinois Department of Labor Authorization to Release Sales Tax Information Form to City staff as part of the required application documentation.

(10)

Award calculations may include both facade construction and FFE costs, up to the maximum award amount.

(11)

Eligible FFE includes, but is not limited to, shelving, racks, tables, chairs, furniture, point-of-sale systems, fixed computer equipment used in the business operation, office furniture, and appliances.

(12)

Facade improvements must comply with all applicable codes and ordinances.

(13)

Approved applicants shall be required to maintain their facade improvements or FFE for the duration of the grant agreement with the City of Crystal Lake, which shall be the lesser of five years or the time by which the grant award has been recovered by the City through sales taxes.

§ 228-24 New or Expanding Manufacturer Job Creation and Equipment Investment Program.

[Amended 8-15-2017 by Ord. No. 7391]

The City intends to encourage manufacturers to locate or expand their businesses in Crystal Lake. This program is designed to encourage new job creation and the related purchase of new equipment resulting from the owner occupying vacant manufacturing space in the City or expanding manufacturing operations through the construction of new buildings or expansion of existing buildings. Through this program, the City will award grants to new or expanding manufacturers for hiring new employees and for offsetting the purchase of furniture, fixtures and equipment (FFE) used in everyday operation. The City will provide manufacturing business owners with a grant of $1,000 for each new full-time employee (minimum 37.5 hours per week) hired upon commencement of operations or directly relating to the expansion of the manufacturing facilities. Not more than two persons holding any form of ownership interest in a new industrial business may be included as employees in any request for a grant award pursuant to this section. Additionally, the City will provide a 50% matching grant to business owners who purchase eligible FFE for their new manufacturing facility. New or expanding manufacturers occupying vacant manufacturing space are eligible for up to a $10,000 maximum grant award. Subject to the financial limitations as established by the City's appropriation ordinance, the City will match $0.50 per dollar on a business owner's investment in eligible FFE for the interior of a manufacturing facility. All awards are subject to financial limitations established by the City's appropriation ordinance from time to time.

Eligibility criteria.

The program is open to any new manufacturer that will occupy vacant manufacturing space or a building, or that will construct a new building for its business; or any expanding manufacturer that increases its space by a minimum of 20% and adds additional jobs or purchases new FFE.

Applicant's business must develop and manufacture finished hard or soft goods, provide technological products, equipment, or software.

Applicant must provide written proof of employee recruitment and of FFE costs.

Applicant must file an application for grant funding prior to commencing improvements.

Grant recipient may reapply after five years from the date of recipient's previous award.

Eligible FFE includes, but is not limited to, shelving, racks, fixed computer equipment used in the business operation, manufacturing/assembly equipment used in everyday operation of the business, and office furniture.

Award calculation may include both new employees and FFE costs, up to maximum award amount.

Approved applicants shall be required to maintain their employment levels and FFE for the duration of the grant agreement with the City of Crystal Lake, for a term of five years.

§ 228-25 Existing Retailer Job Creation and Investment Program.

[Amended 8-15-2017 by Ord. No. 7391]

The City intends to encourage and support facade improvements and further investment in the Crystal Lake business community by its current building and business owners. This program is designed to assist business owners in their efforts to expand and/or relocate within Crystal Lake. Through this program, the City will award grants to existing Crystal Lake retail businesses collecting retail sales taxes for expanding their existing retail storefronts into space that was vacant immediately prior to the expansion or for relocating within the City limits to a larger retail space. This grant program will provide financial assistance to such retailers for facade improvements and/or for offsetting the purchase of furniture, fixtures and equipment (FFE) used in the expansion or relocation. The City will match $0.50 per dollar on a business owner's investment in eligible facade improvements and/or FFE for the interior or exterior of a retail property. The building or business owner who has funded the investment in the furniture, fixtures, and equipment must first apply for and be approved in order to receive the grant from the City. All awards are subject to financial limitations established by the City's appropriation ordinance.

The total grant award available to an existing retailer pursuant to this section shall be limited based upon the retailer's previous annual taxable sales during the twelve-month period immediately preceding the date of application for the grant award. Existing retail businesses meeting the eligibility provisions of this section may be awarded grants in accordance with the following schedule. Existing restaurants and bars that will expand or add an outdoor seating area will only qualify for a maximum of a $5,000 matching grant award regardless of which annual taxable sales category they fit in, as long as the minimum threshold of $150,000 in annual taxable sales is met.

[Amended 5-4-2021 by Ord. No. 7709]

Annual Taxable Sales	$150K - $2.49K	$2.5M - $4.99M	$5M - $7.49M	$7.5M+
Maximum Grant Award	$5,000	$10,000	$15,000	$20,000
**Maximum grant award for new or expanding outdoor seating improvements is $5,000 (for any business over $150,000 in sales).

Eligibility criteria.

The program is open to any existing Crystal Lake sales-tax-revenue-generating business that will:

(a)

Expand its current location by at least 20% in gross floor area into space that was vacant immediately before the expansion and purchase new FFE or that completes construction of facade improvements (excludes businesses generating over $7,500,000 in annual taxable sales); or

(b)

Relocate to vacant space that is 20% larger than its current location, in a new building or into a different existing building not within the same shopping center and purchase new FFE or completes construction of facade improvements (excludes businesses generating over $7,500,000 in annual taxable sales); or

[Amended 5-4-2021 by Ord. No. 7709]

(c)

Bar or restaurant that is expanding an existing or establishing a new outdoor dining area.

[Added 5-4-2021 by Ord. No. 7709]

Applicants must meet a minimum annual taxable sales threshold of at least $150,000 in annual sales over the twelve-month period immediately preceding the date of application for the grant award.

Applicant's business must provide a stocked retail showroom for retail products.

Applicant must provide written proof of FFE costs.

Applicants applying for funds for facade improvements must pay prevailing wages.

The grant award amount cannot exceed 50% of the applicant's expenditures on eligible furniture, fixtures, and equipment.

Applicant must file an application for grant funding prior to commencing improvements.

Grant recipient may reapply after 10 years from the date of recipient's previous award.

(9)

Award calculation may include both facade construction and FFE costs, up to maximum award amount.

(10)

Eligible FFE includes, but is not limited to, shelving, racks, tables, chairs, point-of-sale systems, fixed computer equipment used in business operation, office furniture, and appliances. Eligible outdoor seating FFE includes outdoor tables and chairs, umbrellas, weather enclosures, heating appliances, and other types of appurtenances to help establish comfortable and attractive outdoor seating options for the City's restaurants and bars.

[Amended 5-4-2021 by Ord. No. 7709]

(11)

Facade improvements must comply with all applicable codes and ordinances.

(12)

Eligible facade improvements include, but are not limited to, exterior brick cleaning; exterior tuck pointing; exterior painting; wall facade construction, repair, and treatment; original exterior architectural features repair or replacement; interior/exterior demolition; and historic renovation to interior/exterior.

(13)

Approved applicants shall be required to maintain the FFE for the duration of the grant agreement as noted by the commencement date with the City of Crystal Lake, which shall be at least five years.

§ 228-26 Eligible furniture, fixtures and equipment expenses.

[Amended 8-15-2017 by Ord. No. 7391; 5-4-2021 by Ord. No. 7709]

Eligible investments for new and existing retailers include, but are not limited to: shelving, racks, tables, chairs, point-of-sale systems, fixed computer equipment used in business operation, office furniture, and appliances. Eligible investments for new and expanding outdoor seating includes outdoor tables and chairs, umbrellas, weather enclosures, heating appliances, and other types of appurtenances to help establish comfortable and attractive outdoor seating options for the City's restaurants and bars. Eligible facade improvements include, but are not limited to: exterior brick cleaning; exterior tuck pointing; exterior painting; wall facade construction, repair, and treatment; original exterior architectural features repair or replacement; interior/exterior demolition; and historic renovation to interior/exterior. Eligible investments for new manufacturers include, but are not limited to: shelving, racks, fixed computer equipment used in business operation, manufacturing/assembly equipment used in everyday operation of the business, and office furniture. Furniture, fixtures, and equipment not included within the eligibility list above are subject to approval by the City Council.

§ 228-27 Ineligible projects.

[Amended 8-15-2017 by Ord. No. 7391]

The Retailer Job Creation and Investment Program and the Existing Retailer Expansion and Relocation Program will not provide grant funds to businesses that do not collect sales taxes or that do not meet the minimum taxable sales threshold of $150,000 in taxable sales. Furniture, fixtures, and equipment shall not include working capital, debt refinancing, inventory acquisition, application fees, permit fees, legal fees, or signage. Facade improvements where prevailing wages have not been paid are also ineligible.

§ 228-28 Grant agreement.

For applications that receive City Council approval, applicant(s) must enter into a grant agreement with the City. The grant agreement will specify occupancy time frames, requirements for proof of employment, and early termination provisions.

§ 228-29 Administration.

Any eligible building or business owner who wishes to apply for an improvement grant can obtain an application from the City. All applications for matching grants will be accepted on a first-come-first-served basis and will be subject to the financial limitations established by the City's annual appropriation ordinance and from time to time. Only completed applications that include all required submittal documents and information will be accepted. The City's Community Development Department will review each application for accuracy and will determine if it meets the requirements for funding. If the application is determined to meet the requirements of the program, then the application will be sent to City Council for review.

[Amended 6-3-2014 by Ord. No. 7036]

Matching grant funds will be disseminated to grant recipient only after:

[Amended 8-15-2017 by Ord. No. 7391]

The recipient's business receives a final certificate of occupancy;

The recipient provides the City with proof of furniture, fixture, and equipment costs;

The recipient provides material costs and certified payroll reports, for any facade work; and

The City has been able to verify one full year of sales tax data.

If all available grant funds for a current funding cycle, as established by the City's annual appropriation ordinance or from time to time, have been fully distributed, then applicants may be placed on a waiting list to be considered for a grant when funds become appropriated and available.

§ 228-30 Required documentation.

Eligible applicants who apply for the New Retailer and Manufacturer Job Creation and Investment Programs and the Existing Retailer Job Creation and Investment Program will be required to provide documentation, drawings, specifications, and estimates for the acquisition of furniture, fixtures, and equipment. Applicants also will be required to provide a signed Illinois Department of Labor Authorization to Release Sales Tax Information form.

Applicants must provide material costs and certified payroll verifying prevailing wages were paid for any facade work reimbursement.

[Amended 8-15-2017 by Ord. No. 7391]

After the applicant's business has obtained a final certificate of occupancy, proof satisfactory to the City of purchase of, and payment for the furniture, fixtures, and equipment must be provided to the Community Development Department, including receipts, cancelled checks, or other certifiable proof.

[Amended 6-3-2014 by Ord. No. 7036]

§ 228-31 Review of proposals.

Every project will be evaluated for the value of the project improvements, the overall scope and extent of the proposed work, the potential economic impact of the project, and other relevant criteria. The staff review will consider the following aspects for its proposal review (analysis of the application):

Aesthetic improvement value and occupancy.

Improvement in overall site appearance.

Impact to area.

Scope of new investments proposed.

[Amended 8-15-2017 by Ord. No. 7391]

Value of fixtures, furniture, and equipment to be purchased.

Potential economic impact.

Use of the subject property as a result of the new business activity.

Ways it will contribute to the economic vitality of the community.

How the use is compatible with and/or complements mix of existing uses.

§ 228-32 Commercial Facade Improvement Grant Program.

[Added 2-21-2023 by Ord. No. 7904[1]]

In a continuing effort to support the development and reinvestment in the business community and our workforce, the City of Crystal Lake has created a Commercial Facade Improvement Grant Program for property owners in connection with new and existing retail businesses within the City's B-1, B-2 and B-4 Zoning Districts. This program is designed to encourage property reinvestment and facade improvement and assist property owners in doing so. Through this program, the City will award matching grants for facade improvements to owners of properties in connection with new and existing retail and restaurant businesses which are located upon such properties and which are collecting sales taxes. The City will award $0.50 for each dollar spent by such property owners who complete facade improvements. The total grant award for new facade improvements may not exceed $30,000 and shall be based upon the square footage of a retail and/or restaurant space located within the building which is owned by the applicant and for which facade improvements are proposed. All awards are subject to further limitations set forth in § 228-32B and such financial limitations as may be established by the City's appropriation ordinance.

Eligibility criteria.

Applicants are required to complete and submit an Illinois Department of Revenue Authorization to Release Sales Tax Information form to City staff as part of the required application documentation.

Award calculations may include facade construction up to the maximum award amount set forth in § 228-32A and as further limited by § 228-32B(13).

Facade improvements must comply with all applicable codes and ordinances.

Eligible facade improvements include, but are not limited to:

(a)

Exterior brick cleaning.

(b)

Exterior tuck pointing.

(c)

Exterior painting.

(d)

Wall facade construction, repair, and treatment.

(e)

Original exterior architectural features repair or replacement.

(f)

Exterior demolition.

(g)

Historic renovation to exterior, doors, electrical conduit/wiring and fixtures, masonry, structural elements, windows, and exterior paint.

(h)

Improvements to all elevations visible from a public way.

(i)

New window and frame for architectural improvement that is visible from the street and is appropriately scaled to the building.

(j)

New storefront construction appropriately scaled within an existing building.

(k)

New awnings (excluding bubble/round awnings) to buildings located in the Downtown or Virginia Street Corridor Districts that are part of a larger facade improvement project.

(l)

Street-level windows (glass) and doors are eligible only when part of an overall larger facade improvement project.

Improvements in the Downtown must be of an historic nature and matching the existing look and materials in the surrounding area. Please contact staff for additional questions and guidance regarding this requirement.

Any retail business which serves as the basis for the owner/applicant to qualify for the award of a grant must provide a stocked retail showroom for retail products sold by such retail business.

Any restaurant business which serves as the basis for the owner/applicant to qualify for the award of a grant must be a limited-service or full-service restaurant.

Applicants must provide written proof of facade construction costs.

(9)

Applicants must file and have City Council approval for grant funding prior to commencing improvements.

(10)

Grants shall only be awarded to property owners for the rehabilitation of commercial shopping centers or multistory mixed-use buildings containing first floor retail/commercial space (leasing or common areas within primarily residential buildings are expressly excluded).

(11)

Property owners may apply for one grant award for facade improvements per site over the life of the program, regardless of the number of additional facade improvement grant programs may be offered by the City.

(12)

Property owners shall have 12 months after the award to complete the project. Reimbursement is given after the building permit work is completed and the final inspection is completed and approved by the Building Department.

(13)

Maximum award amounts are based upon the size of the floor area of the retail and/or restaurant business upon which the application is based, within the building or shopping center, as follows:

Up to 10,000 square feet of floor area	$20,000 maximum grant
10,001 to 35,000 square feet of floor area	$25,000 maximum grant
35,001 square feet or more	$30,000 maximum grant

Ineligible projects. The Commercial Facade Improvement Grant Program will not provide grant funds for working capital, debt refinancing, inventory acquisition, application fees, furniture, fixtures, equipment ("FFE") permit fees, legal fees, or signage. Grant funding shall not be provided in connection: 1) applications based upon existing businesses which do not meet the minimum threshold of $100,000 in taxable sales in the twelve-month period prior to the date of application; or 2) applications based upon new businesses which do not submit projections, business plans or other documentation to establish, as determined by the City's Community Development Department, that such project is likely to generate taxable sales of at least $100,000 during the one-year period following the issuance of a certificate of occupancy for such new business.

Grant agreement. For applications that receive City Council approval, applicant(s) must enter into a grant agreement with the City. The grant agreement will specify grant parameters, requirements for proof of expenditure, and early termination provisions.

Administration.

Any eligible business owner who wishes to apply for a grant can obtain an application from the City. All applications for grants will be accepted on a first-come, first-served basis and will be subject to the financial limitations established by the City's annual appropriation ordinance as established from time to time. Only completed applications that include all required submittal documents and information will be accepted. The City's Community Development Department will review each application for accuracy and will determine if it meets the requirements for funding. If the application is determined to meet the requirements of the program, then the application will be reviewed and approved administratively.

If all available grant funds for a current funding cycle, as established by the City's annual appropriation ordinance or otherwise, from time to time, have been fully distributed, then applicants may be placed on a waiting list to be considered for a grant when funds become appropriated and available.

Required documentation.

Eligible applicants who apply for the Commercial Facade Improvement Grant Program will be required to provide documentation, drawings, specifications, and estimates for the facade improvements. Applicants also will be required to provide a signed Illinois Department of Labor Authorization to Release Sales Tax Information form.

Applicants must sign and submit an affidavit that the applicant has paid prevailing wages, as established in accordance with the Illinois Prevailing Wage Act, in connection with the construction/installation of the facade improvements.

After the retail and/or restaurant upon which the grant application is based has obtained final approval by the City for the facade improvements and, as applicable, a final certificate of occupancy, the applicant must submit documentation, satisfactory to the Community Development Department, which establishes the applicant's purchase of and payment for the facade improvements, including receipts, cancelled checks, or other documents which the City may require.