Development Incentives & Assistance
The following are major business development incentives for the City of Pekin, which will require further discussion, analysis and negotiation with the City. To find out how to access these incentives, contact the City's economic development manager, Matt Fick, at firstname.lastname@example.org or 309-478-5355.
Notice of TIF/BDD Funding Opportunity
The City of Pekin is now accepting proposals to fund eligible projects located within the City’s existing Tax Increment Financing or Business Development Districts. The application period closes at 5:00 pm CST on April 29, 2022 with final awards anticipated to be announced at the May 23, 2022 City Council meeting.
This competitive application process requires applicants to provide a 50% match to any funds awarded through this program and the City anticipates awarding $250,000 in total funds to selected applicants with awards ranging from $10,000 to $40,000 per applicant.
Interested applicants should review the complete Notice of Funding Opportunity (NOFO) included with the application packet. Click here to view the application packet. To be considered for an award, applications must be fully completed and submitted by 5:00 pm CST on April 29, 2022 to the attention of Matt Fick, Economic Development Manager, 111 S. Capitol Street, Pekin, Illinois 61554 or emailed to email@example.com.
TAX INCREMENT FINANCE DISTRICTS
- Rehabilitating, reconstructing, remodeling of existing structures;
- Costs of construction of public infrastructure improvements;
- Architectural, engineering, legal, financial services; and
- Property assembly costs such as acquisition, demolition, clearing and grading.
The following is a link to a redevelopment plan outlining the goals of the City with this TIF: TIF District Redevelopment Plan
BUSINESS DEVELOPMENT DISTRICT
The City of Pekin has created a Business Development District (BDD) primarily located along major commercial corridors of the City. A BDD is a geographical area designated by the City to focus public and private investment in the community. The geographical area of the BDD includes Court Street, Derby Street, Broadway, North 8th, and the city's downtown area. The BDD in Pekin will help to tackle some of the city’s biggest challenges, including a lack of investment in infrastructure (streets, sidewalks, sewers) and development (new businesses and job creation). Reinvestments in these key focus areas will be possible due to funds generated through a 1% increase in sales tax for retail sales located in the BDD.
To lessen the BDD’s 1% sales tax impact on Pekin residents, the City Council also voted to lower the City’s portion of the property tax by over 10% in the 2020 levy, for taxes paid in 2021. These savings substantially reduce the impact of the BDD sales tax to near break-even levels in the first year and substantially lower it in the following years. The BDD also allow the City to shift more of the burden for infrastructure maintenance and repair to external users/shoppers of our city. Lastly, the BDD creates a dedicated funding stream for annual infrastructure improvements and business development that will help keep Pekin improving and growing.
The 1% BDD sales tax will go into effect on July 1, 2021. Sales tax revenues from the BDD will start to come to the City in September 2021. As funds accumulate with the City, businesses can apply to receive assistance for qualified projects that result in positive economic impact for the community (new or retained jobs, increased tax base, revitalization of historic or older buildings, etc.).