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A Resolution Authorizing the Village of Oak Park’s Renew the Avenue Commercial Interior Improvement Project (C-IIP) Grant Program and the Commercial Social Media Grant (C-SMG) Program Guidelines.
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Introduction
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The proposed Commercial Interior Improvement (C-IIP) grant program and the proposed Commercial Social Media Grant (C-SMG) program are designed to assist businesses located within the Hemingway Business District in alleviating the potential impact of the Village’s planned Renew the Avenue streetscape project occurring in the calendar year 2025. Both programs are to expire on December 31, 2025.
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Recommended Action
Staff recommends approval of this Resolution. In addition, the Hemingway District OP Board recommends adoption of this Resolution.
Prior Board Action
• December 3, 2024 - The financial support for these recommended programs was included in the approved FY25 budget that was adopted by the Board on December 3, 2024.
• October 29, 2024 - Previously, the plans for these business assistance programs for the Hemingway Business District were presented and discussed with the Village Board during the Board’s Finance Committee budget meeting on October 29, 2024.
Background
The proposed Commercial Interior Improvement (C-IIP) grant program and the proposed Commercial Social Media Grant (C-SMG) program are being proposed to assist property owners and commercial tenants in the Hemingway Business District in 2025, during the time that the Village is facilitating the Renew the Avenue streetscape improvement project. It is understood that both programs will expire on December 31, 2025. Proposed guidelines for these two grant programs are attached.
In summary, the C-IIP grant will mirror the long-established Commercial Façade Improvement Program (C-FIP) except that it will only allow improvement work that will occur inside on first floor spaces in the Hemingway District. Similar to the C-FIP, it will be a 50/50 reimbursement program, with applicants eligible to receive up-to $5,000.00 per licensed business. The minimum C-IIP improvement investment, by the property owner or commercial tenant, will be $1,000.00 (meaning $500.00 paid by grant applicant and $500.00 paid by the Village). Examples of interior improvements that the grant program will assist in supporting include, but are not limited to, the following: Interior fixed lighting improvements, flooring/carpeting improvements, electrical improvements, plumbing improvements, painting, and H-VAC improvements. The attached guidelines provide a full list of qualified improvements. Additional requests for unique interior improvements will be reviewed and considered by Village staff.
In summary, the proposed C-SMG grant will be a program to support businesses continued or new use of social media through the placement of advertisements and the boosting of social media posts to attract customers during the 2025 calendar year. This grant will also mirror the long-standing C-FIP program, except it will be available to every licensed business within the boundary of the Hemingway District, no matter what floor that business is located on. The grant will be a 50/50 reimbursement program, with applicants eligible to receive up-to $1,000.00 per licensed business. The minimum licensed business owner reimbursement request will be $200.00. In other words, a business that invests $400.00 in social media ads or boosting social media posts in 2025 can qualify to be reimbursed up-to $200. Further, a business that invests $2,000.00 in social media ads or on boosting social media posts in 2025 can qualify to be reimbursed the maximum, up-to $1,000.00.
Examples of social media expenses that the grant program will assist in supporting include the following: Placement of social media advertisements and boosting of social media posts. The minimum C-SMG Program reimbursement request to the Village shall be $200.00, meaning the total cost of services billed to the business was $400.00. As with previous business assistance grant programs, there will be an application made available to qualified businesses.
The boundaries of the Hemingway Business District have long been established. The district extends and is defined by Pleasant Street on the south, Euclid Avenue on the east, Ontario Street on the North and North Kenilworth to the west.
A presentation to the Finance Committee of the Village Board occurred on October 29, 2024 for consideration of this item in relation to the FY 25 budget. The memo presented that night is included as an attachment. This item is related to proposed Resolution 25-122 and Ordinance 25-104 to present a comprehensive business support program during the Renew the Avenue construction in 2025.
Timing Considerations
If approved, the new C-IIP and C-SMG guidelines would take effect immediately and both would run with the program to the end (December 31st) of 2025, when both grant programs will expire. It is understood by the Hemingway District OP Board that the programs will expire at the end of 2025.
Budget Impact
The approval of this Resolution will be supported by already budgeted revenue with the following account number: 1001.46262.101.585625. A total of $85,000.00 has been designated to support the C-IIP and $120,000.00 to support the C-SMG.
Staffing Impact
The Development Services (DS) Department will continue to facilitate these business assistance grant programs as it has facilitated thirty-six (36) C-FIP grants and 346 Covid-19 business assistance grants over the past few years. DS staff is well versed in working with our Oak Park businesses and with business assistance grants. The DS Department also intends to utilize on-line grant software capabilities to minimize staffing impact as much as possible.
DEI Impact
To qualify to receive these Village grant program funds, a business must be licensed in the Village of Oak Park and be physically located in the Hemingway Business district. The Development Services Department staff would intend to administer these new business assistance grant programs as we have done with the C-FIP and the Covid-19 business assistance grants. The only difference here is that these grants will only be available in 2025 and there will be a limited geographical area in which businesses will be allowed to apply for this assistance. Still further, the C-IIP will only be available to first-floor Hemingway businesses while the C-SMG will be available to every licensed business, no matter what floor, in the Hemingway District. The long-established boundary of the Hemingway Business District can be found at the end of the “Background” section, outlined earlier in this report.
Community Input
The Hemingway District OP Board has provided the attached letter, recommending approval of this Resolution. The Village’s Business Association Council (BAC) has also expressed support for the recommended programs to assist Hemingway District businesses during the 2025 construction season.
Staff Recommendation
Staff recommends approval of the C-IIP and C-SMG programs.
Advantages:
• These grant programs will provide additional assistance to Hemingway District businesses and property owners, many of which may experience a negative financial impact from the planned 2025 Renew the Avenue streetscape construction project.
• The Hemingway District’s public spaces, following this project, will look better than they ever have. These grant programs, especially the C-IIP, will assist business and property owners to ensure that the District’s interior spaces also potentially benefit from improvement to mirror the renewal that will be occurring on the streetscape outside their businesses/properties.
Disadvantages:
• The Village has never before provided this type of specific grant assistance program to businesses in a major streetscape construction zone and it may establish a precedent that the Village may not be able to continue in the future.
• Businesses in other business districts, not impacted by a streetscape project, may hear of these programs and wonder why the Village is not instituting these specific grant opportunities community-wide.
Alternatives
Alternative 1:
Do not approve the Resolution to establish the C-IIP and C-SMG programs.
Advantages:
• No additional work impact created for Development Services staff.
• The Village would save the budgeted $205,000.00 earmarked for these two grant programs and those resources could be used elsewhere on other Village priorities.
• Businesses in this one business district, the Hemingway Business District, would not be singled out to receive more Village financial support than other licensed businesses in other districts (Example: DTOP and Southtown) when past construction programs impacted those districts also.
Disadvantages:
• Not approving the Resolution would mean removing two of the programs designed to assist the Hemingway District businesses and property owners during the potentially impactful 2025 Renew the Avenue streetscape construction project.
• After collaboration efforts with the Hemingway District OP business district leadership to develop the programs in question, and obtaining their significant support, not approving the Resolution to establish these and other proposed grant programs could appear counter-productive to supporting the Village’s youngest, one-year old renewed business district organization.
• Not approving the Resolution would seem to run counter to the Village’s current concerted work to show that this is a new day regarding economic vitality in Oak Park. Not approving these two grant programs, in conjunction with the other two business assistance program being recommended (Example: C-FIP and The Avenue 90-Minute Free Parking Recommendations), will send a signal that programmatic changes in support of the new economic vitality reality may not be forthcoming.
Alternative 2:
Do not approve the Resolution including both the C-IIP (Interior Improvements) and C-SMG (Social Media) Programs and instead just move forward with approving the C-SMG Program.
Advantages:
• The Village would save the budgeted $85,000.00 earmarked for the C-IIP (Interior Improvements) grant program and those resources could be used elsewhere on other Village priorities.
• Businesses in this one business district, the Hemingway Business District, would be singled out to receive less financial support than originally recommended, less than if both programs were approved. Less financial support may be an advantage considering no licensed businesses in other districts (Example: DTOP and Southtown), where major construction streetscape programs impacted businesses, received these business assistance funds.
Disadvantages:
• Every major construction streetscape project has an impact on all businesses in the district that is experiencing the project. The disadvantage to not supporting organized efforts to relieve potential impact, like these grant programs, is that without added assistance and hope, some businesses may unfortunately close before the streetscape project is completed. These recommended programs are two efforts to assist in ensuring that businesses remain as vibrant as possible, and that the established business mix remains in place during construction in 2025. Grant programs send a sign that the Village understands impact and is trying to offer assistance.
• The Renew the Avenue Hemingway District C-IIP would serve as the testing ground for potential other streetscape improvement business assistance programs or for the potential expansion of a business grant for interior work spread across the entire Oak Park business community. Not approving the C-IIP would remove the potential for this type of assistance to be tested in regards to its potential greater use.
Anticipated Future Actions
If approved, the new C-IIP and C-SMG guidelines will be widely distributed to businesses within the boundaries of the Hemingway Business District. Development Services staff will work cooperatively with the Hemingway District OP Board to hold a public meeting or two at which all of the parameters of the programs will be discussed and questions answered. Additionally, a good amount of work will be done to promote the new guidelines through the professional public relations staff hired to assist with the Renew the Avenue project in the Hemingway District.
Further, the Development Services staff will provide regular updates to the Board, as we often do with current C-FIP projects and as was done during the time that Covid-19 Business Assistance Grants were available in Oak Park.
Prepared By: Cameron Davis, Assistant Director, Development Services
Reviewed By: Emily A. Egan, Development Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. The Proposed Resolution
2. The Hemingway District Support Letter
3. The C-IIP Grant Program and C-SMG Program Proposed Guidelines
4. Memo from the October 29, 2024 Finance Committee.