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Council approves TIF assistance for FreeFlow Kitchen after debate over guarantees and mentorship
Summary
The council approved up to $82,510 in financial assistance for FreeFlow Kitchen for TIF‑eligible leasehold improvements, adding a condition that the business enroll in a mentorship program; an amendment to require personal liability failed.
The Evanston City Council approved financial assistance of up to $82,510 to FreeFlow Kitchen for TIF‑eligible leasehold improvements, including a partial forgivable amount and a loan component, after extended debate over whether recipients should sign personal guarantees.
Council member Burns moved approval of the assistance and Council member Harris seconded. Economic Development staff described the package as a mix of a forgivable grant aligned with a 25% public investment guideline and a loan at a favorable interest rate intended to support an M/WBE‑owned business in a TIF district. Paul Zalmazak told council the forgivable portion would “burn off” over time (for example, over a five‑year schedule) and described options staff uses in prior projects for recapture if conditions are not met.
Council member Davis introduced an amendment to make the loan personally liable and to remove the forgivable portion; that motion failed on a roll call. Council member Burns then successfully moved an amendment requiring the business to enroll in a city‑supported business mentorship program as a condition of receiving funds. After further motions and a failed attempt to table the item, council approved the assistance with the mentorship requirement.
Owners of the restaurant described the scope of required work and said much of the cost was to bring an existing kitchen hood and exhaust up to current code. Owner Nina Wade said touching the hood required additional work and explained why the expense was high: “86,000 is just a lot, to put in a building that we don't own.” Owners also described community benefits they plan — neighborhood hiring, arts on the walls and senior programming — and identified local chefs who have agreed to mentor the business.
Outcome: Council approved the assistance with the mentorship requirement. Staff and council members said they will continue to refine policy language on loan terms and recapture rules through committee work on future programs.
Why it matters: The award reflects an approach to use TIF funds and small business assistance to support neighborhood retail and minority‑ and women‑owned businesses; council debate highlighted tradeoffs between supporting startups and protecting public investment.
