TIF/BDD Notice of Funding Opportunity
Department: Economic Development
Notice of Funding Opportunity: FY 2023-2024 Tax Increment Financing (TIF) and Business Development District (BDD) Grants.
Summary: The City of Pekin’s Economic Development department will be accepting proposals to fund eligible projects located within one of the City’s existing Tax Increment Financing Districts or its Business Development District within the City of Pekin. Applicants must own the property for which they are applying for funding or have the written consent of the property owner.
Dates: All proposals must be submitted between 5:00 pm CST on April 26, 2023 to the attention of Bruce Marston, Interim City Manager.
TIF eligible activities include:
- Costs of studies, surveys, development of plans and specifications, implementation and administration of the redevelopment plan. For example, professional service costs: architectural, engineering, legal, financial, planning; and administrative costs related to implementation of the redevelopment plan. (Private & Public)
- Cost of marketing sites. (Private & Public)
- Property assembly costs. For example, acquisition of land and other property, real or personal, or rights or interests therein; demolition of buildings; and site preparation. (Private & Public)
- Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private buildings. (Private & Public)
- Costs of construction of public works or improvements. For example, streets, sidewalks, water, sanitary and storm sewer, etc.; and new public buildings (with some limitations). (Private & Public)
- Costs of eliminating or removing contaminants and other impediments such as site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including parking lots and other concrete or asphalt barriers; and the clearing/grading of land. (Private & Public)
- Costs of job training and retraining projects. (Private & Public)
- Financing costs – up to 30% of interest expense. (Private & Public)
- Obligations secured by the special tax allocation fund... may be issued to provide for redevelopment costs. (Public)
- Approved Capital Costs of taxing districts. For example, all or a portion of a taxing district’s capital costs resulting from the redevelopment project necessarily incurred or to be incurred within a taxing district (including the municipality) in furtherance of the objectives of the redevelopment plan and project when approved by the municipality. (Public)
- Relocation costs. (Private & Public)
- Payment in lieu of taxes. (Public)
- Up to 50% of cost of construction of low income and very low-income new housing, owner occupied or rental. (Private)
*BDD eligible activities include all of the aforementioned items but also allows for new vertical construction.
Performance Details: This is a competitive grant application program and a minimum 50% match is required. Applications not providing at least a 50% match will not be considered and those providing more than a 50% match will score higher in that particular category. All projects funded by the City must be completed within one year of their grant approval date, although applicants may request a time extension under certain circumstance with City Council approval. Grant recipients must pay for eligible items up front before seeking reimbursement from the City.
Award Size: Funding commitments will be made between $10,000 and $30,000 per grant award until budgeted funds have been obligated.
Application Criteria: The criteria being used to determine which proposals are recommended for the award of grant funds include:
- Does the project address blighted conditions
- What percentage of the project is being funded by the City
- Does the project generate new sales tax for the City
- Does the project generate new jobs
- Does funding the project help create a new business
- Does funding the project bring benefits to local residents
- Does funding the project help draw people to town (i.e. promote tourism)
- Does the applicant have a proven track record in business or real estate development
While the City will utilize these criteria to determine the highest-ranking proposals, the City retains sole discretion in the selection and provisioning of grant awards.
Contact Information: For further information concerning this notice, please contact the City’s Interim City Manager, Bruce Marston, at email@example.com, or by calling (309) 478-5371.
Required Attachments: All applicants will be required to provide the following information:
- TIF Developer Application
- Project narrative including detailed project description, site plan, renderings (if available) and a breakdown of funding sources and uses
- Proof of financing for applicants’ portion of the project.
Application Milestones and Submittal Process:
- All applications must be received by 5:00 pm on April 26, 2023
- Applications will be scored and reviewed by the Economic Development Advisory Committee (EDAC) on May 1, 2023, and recommendations for awards forwarded to the Pekin City Council.
- It is anticipated that awards will be made by the Pekin City Council on May 22, 2023 at the regularly scheduled Council meeting.
- Applications can be downloaded here.
- GIS Map can be viewed here.
- Applications may be emailed to firstname.lastname@example.org, or mailed/dropped off to the attention of Bruce Marston at 111 S. Capitol Street, Pekin, IL 61554