City Council approves $82K TIF loan for Free Flow Kitchen improvements

During the recent Evanston City Council meeting held on May 27, 2025, significant discussions centered around financial assistance for local businesses, particularly focusing on a proposal to provide up to $82,510 to Free Flow Kitchen for leasehold improvements. This initiative is part of the city's efforts to stimulate economic development in the area.

Council Member Burns introduced the motion for financial assistance, which was seconded by Council Member Harris. The proposal aims to support a minority and women-owned business located in Census Tract 8092, reflecting the council's commitment to fostering diversity and economic growth within the community. The interest rate for the loan was set at 3%, which is lower than the rates offered by the Small Business Administration, making it a favorable option for the business.

A key point of discussion was the structure of the financial assistance, particularly the forgivable portion of the loan. Council Member Burns explained that the city typically aligns its funding with a rule of thumb that grants should not exceed 25% of the total project cost. In this case, the total project cost was approximately $182,000, leading to a standard forgivable amount of around $45,000. However, the council is considering additional funding to meet the business's needs.

Council Member Davis proposed an amendment to make the loan personally liable and to eliminate the forgivable portion entirely. This suggestion was aimed at addressing potential conflicts of interest, given that a co-founder of Free Flow Kitchen is a member of the TIF advisory board. While some council members supported the idea of personal guarantees, there was resistance to removing the forgivable aspect of the loan, as it could deter future investments in similar projects.

The discussions highlighted the council's ongoing efforts to establish a new standard for TIF funding, emphasizing the importance of balancing public investment with accountability. The council aims to ensure that financial assistance aligns with broader economic development goals while maintaining transparency and integrity in its decision-making processes.

As the meeting concluded, the council acknowledged the need for further discussions on the proposed amendments and the overall structure of the financial assistance. The outcome of these deliberations will play a crucial role in shaping the future of local business support initiatives in Evanston.