Economic Development

The Downtown Strategic Plan identifies the attraction of additional retail-type businesses such as certain destination retail stores, restaurants, and entertainment venues as vital to the success and vibrancy of downtown Urbana. Tax Increment Finance District Number 1 (TIF 1) and Tax Increment Finance District Number 2 (TIF 2) call for City assistance and incentive programs for small businesses within those districts. The purpose of the programs are to promote and to serve as a catalyst for private investment within areas that have seen a trend of disinvestment. To that end, the Business Startup Program has been designed to offer City assistance to help meet the needs of small retail start-up businesses.

In place of a loan interest subsidy and grant, the proprietor of a for profit retail store, restaurant, or entertainment venue and building owner may apply for a monthly rent subsidy and grant with the following provisions:

• The business must be locating in a building within the TIF 1 or TIF 2 boundary.

• The rent subsidy is up to 50% of the monthly rent amount, up to a maximum subsidy of $500 per month.

• The subsidy can be used for up to 12 consecutive months that the business is open and operating and is paid directly to the owner/landlord.

• The monthly rental amount in the lease agreement must be verified by City staff to be at or below market rate.

• The lease term must be for a period of at least 2 years.

• The applicant must present a business or financial plan evidencing the projected ability to pay monthly rental costs during and following the 12 month subsidy period. The business must be a start up or a relocation of an existing business from outside of TIF 1 or 2.

• In addition to the monthly rent subsidy, the applicant may apply for a $1,000 start-up grant to be paid to the business owner upon opening. This money may be used to offset costs related to relocation, advertising, and tenant improvements.

• Landlord must notify city of tenant business closing or non-payment of rent.

• Approval at discretion of City based on availability of funds and the ability to meet the goals and guidelines of the program.

• A business owner cannot receive more than 1 City rent subsidy/grant in a two year period.