Council adopts $150,000 business improvement grant program to support downtown storefronts

The McHenry City Council voted to adopt a $150,000 business improvement grant program aimed at helping downtown businesses with façade and build-out costs. The program was approved on a roll-call vote with six yes votes and one no.

Small-business owners and the McHenry Chamber urged the council to retain and strengthen the program. Cathy Levitino, owner of Rita’s Italian Ice, credited past grants with speeding permitting and exterior improvements at her shop. “Had it not been for that, you guys would still be looking at my ugly driveway,” Levitino said, describing quicker turnaround on permits and the visual improvements downtown. Molly Astap, president of the McHenry Chamber, said updated incentives can help retain businesses graduating from the city’s retail incubator and attract new entrepreneurs.

Some council members expressed reservations about program design. Alderman Glab said he opposed listing specific addresses in the program document and recommended a competitive application window so projects could be evaluated together instead of first-come, first-served. “I would like to see that this money goes to what’s best for the city as a whole,” Glab said. Alderman Bassi asked that the program be put on pause for a year to reevaluate, noting the program’s $150,000 cost equals about 15% of the projected grocery tax revenue discussed earlier.

Program supporters pointed to prior façade grants that council members said produced visible downtown improvements and leveraged private investment. Staff and council noted the program does not affect the city’s existing small-business loan fund.

The council adopted the program and directed staff to implement it; staff will manage details of application periods and eligibility and return to council with program implementation details as needed.