Tax Increment Financing(TIF) Districts

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1 Page 1 Economic Incentives & Programs Tax Increment Financing(TIF) Districts Contact: Tax Increment Financing (or TIF) is a state enabled tool used by municipalities to reduce or eliminate blighting conditions, foster improvement, and enhance the tax base of every taxing district which extends into the area. Eligible project expenses generally include land acquisition, financing costs and site improvements (i.e. utility extensions). The Village of Rantoul currently has four (4) TIF Districts - see district map below. Each project will considered individually and the dollar amounts available for reimbursement will vary depending on several factors, including how much money has been collected in the TIF fund and other Village planning goals. For more detailed information and to discuss specific projects, please contact Village Economic Development. Rebecca Motley Economic Development & Public Outreach Econdev@myrantoul.com 217/ Page 1

2 Page 2 Enterprise Zone (Map below) On February 24, 1987, the State of Illinois approved the Village s application for enterprise zone designation. Enterprise Zones are meant to stimulate economic growth and neighborhood revitalization by providing public incentives for private investment. All applicants are reviewed based on several factors that are explained in the Enterprise Zone application. To determine whether your project is within an Enterprise Zone, please contact the Economic Development Office. Page 2

3 Page 3 Revolving Loan Fund & Micro Loan Fund (MLF) The Revolving Loan Committee administers funds jointly contributed by the village and the federal Economic Development Administration for businesses in the community that need money to create or retain jobs. Loans from the committee may not exceed $250,000. The loan amount is based on $10,000 per FTE job created. The purpose of the Micro-Loan Fund is to provide gap financing to new and existing businesses within Rantoul. The program provides loan funds for equipment, real estate acquisition and real estate improvement, with a minimum of $7,500 and a maximum of $50,000 for a single borrower. The interest rate will be fixed or variable adjusted annually, within a range from 2%-10%, depending on the WSJ Prime Rate. Repayment of principal and interest will be required over 5 to 7 years. Intent The Village of Rantoul is interested in providing funding to help start or retain businesses within Rantoul in order to encourage small business to create jobs and increase sales. Eligible Applicants Business Owners within the Village of Rantoul corporate limits. Applicant must be operating legally in accordance with all federal, state and local laws and regulations and current with all Village taxes, fees and licenses. Eligible Expenses Acquisition, construction, installation, renovation, repair or other improvement to real estate, buildings and accessory structures for commercial purposes Furniture and fixtures Machinery Equipment Working capital (RLF only) Inventory (RLF only)

4 Page 4 Downtown Storefront Facade Improvement Grant Program The purpose of the Façade Improvement Program is to encourage businesses and property owners within the Downtown TIF District to improve their storefronts, making these areas more attractive to shoppers and growing their vitality and economic performance. The program reimburses owners of commercial buildings and businesses up to 50% for façade improvements, for a maximum reimbursement of $10,000 for a single commercial building. Intent The Village of Rantoul is interested in providing funding to help building/business owners improve the overall physical appearance of the exterior of their buildings/businesses with a particular emphasis on the ground floor storefront. By improving individual storefronts, the program will help beautify and revitalize the entire Downtown commercial district, enhance the pedestrian-scale streetscape and ensure that exceptional design solutions are introduced within the districts while preserving the unique character and qualities of our buildings. Eligible Applicants Owners and tenants (with the owner s written consent) of street level commercial or retail property within the Downtown Tax Increment Finance District. Applicant must be operating legally in accordance with all federal, state and local laws and regulations and current with all Village taxes, fees and licenses. Eligible Expenses Restoration or replacement of storefront Exterior building lighting Restoration of architectural glass Reopening of bricked or boarded up windows including transoms Cast iron and tin restoration and repainting Installation of exterior entry equipment to meet American with Disabilities Act (ADA) Masonry/brick tuck-pointing Building cornices on primary façade facing a public street Paint removal and brick restoration (excludes new paint) Window replacement to traditional double hung windows or match to building s historical appearance (only eligible on primary facades facing a public street) Approved chemical paint removers Restoration or recreation of awning structures (minus advertising costs) Restoration or recreation of historic projecting or painted wall signage native to the building (including Theater marquees and painted historical advertisement) Ineligible Expenses Roof replacement Rear or secondary facades (that don t face public streets) Routine maintenance (pressure washing, etc.) Security roll-down grates or window bars Closing any existing opening Brick sandblasting Non-traditional building materials (i.e. EFIS- Exterior Insulation and Finish Systems) Page 4

5 Page 5 Foreign Trade Zone (FTZ) Rantoul s general purpose Foreign Trade Zone (FTZ), a subzone of the Peoria-based FTZ 114, offers the importation, manufacturing, assembling, or re-exportation of products with lowered duties. Duties on foreign goods intended for domestic consumption are levied only at the time the goods are removed from the zone and only on quantities actually removed. An operation based within this FTZ means assembly cost savings, cost avoidance, and more effective cash flow. The facilities available at the RNAC are perfect for any number of different uses and can be modified to fit additional needs. An FTZ is an area designated by the US Department of Commerce and the US Customs and Border Protection as a location where companies can use special procedures that help encourage US activity and value added - in competition with foreign alternatives - by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings. Rantoul s FTZ was established in 2009 and is located on the former Chanute Air Force Base. What the Rantoul FTZ Can Offer Your Business The benefits of locating a business within this FTZ include: Better Cash Flow - Duties are paid at the same time sale proceeds are available Cost Avoidance - Businesses do not have to pay duties on defective or broken items, waste or shrinkage Manufacturing Savings - Product made within an FTZ has advantage over foreign produced comparable products Logistical Advantage - Efficient customs procedures Fully Capable Airport - Located adjacent to a fully operational airport Staff standing ready to assist your organization explore the benefits and process of utilizing the Rantoul FTZ The subzone includes 395 acres bounded by Veterans Parkway, Century Boulevard, Chandler Road, and the Rantoul airport. Highway 57, which travels north-south from Chicago to Memphis, is only two miles from the airport and offers desirable access to the major shipping arteries of the US. Highway 74 provides east-west access to St Louis and Indianapolis and is conveniently only 12 miles to the south of the airport. Contact Information Sally Hanley Director of Business Assistance Greater Peoria EDC 100 SW Water Street Peoria, Illinois USA shanley@greaterpeoriaedc.org Page 5