Oswego panel agrees to pursue RDA amendment for Freddie's and to replenish downtown grant fund

Kevin, a staff member, briefed the board on the downtown Economic Development Authority (EDA) incentive program and recommended options after the grant fund ran nearly dry.

The village historically budgeted about $40,000 annually for downtown improvement grants, Kevin said. In recent years the program broadened from facade-only grants to allow interior improvements that improve building quality and TIF district value. For 2024 the village budgeted $80,000 but Kevin said only about $1,400 remains in the fund after approvals earlier this year.

Why it matters: Board members said replenishing the fund will help the village recruit tenants for multiple vacant downtown spaces. They also agreed staff should amend a redevelopment agreement so a previously approved grant to Freddie's Off the Chain remains eligible despite the business missing an original opening deadline.

Freddie's Off the Chain: Kevin told trustees that Freddie's had been approved for a $20,000 grant in June 2021 but missed its opening deadline and is therefore technically out of compliance with its grant agreement. Freddie's owner, identified by Kevin as Mona, asked staff to revisit the agreement after she confirmed the business will open in April. Trustees said they supported amending the RDA so Freddie's can receive the originally approved $20,000; staff will return with the formal amendment.

Funding and policy options: Kevin outlined two board options for the near term: (1) continue to review applications case by case as they arrive, or (2) budget additional funds for the program. Potential funding sources discussed included applying any year-end budget surplus or, if necessary, drawing from excess general-fund balance. Board members discussed a range of replenishment amounts; trustees reached consensus to allocate roughly $100,000 to the downtown incentive program for the remainder of the year (80,000 budgeted earlier in the year plus 20,000 to address Freddie's request), subject to formal budget amendment and program rules.

Program design points raised by trustees included keeping the existing per-application cap at $40,000 unless the board later amends policy, favoring grants for projects that generate sales-tax revenue (for example, restaurants), and prioritizing funds for projects that demonstrably improve building facades or interior conversions that bring new tenants downtown. Kevin said the program can be flexible on structure (grants, low-interest loans, sales-tax sharing) depending on a project's needs.

Board direction and next steps: Trustees broadly supported:

- Amending the RDA so Freddie's Off the Chain can receive the previously approved $20,000 grant despite missing its 2021 opening deadline; staff will draft the amendment for board approval.

- A budget amendment or mid-year allocation to bring the downtown incentive fund to approximately $100,000 so Kevin can consider additional solicitations and applications this year. Kevin said funds would roll over under the village's current internal policy if not spent during the calendar year.

"I am in favor of amending the RDA with Freddie's off the chain so that she can get the $20,000," one trustee said, and other trustees expressed agreement. "If we allocate $120,000 this year and it isn't used in this calendar year, we should have a plan for whether that's going to go away or if it's going to roll over," another trustee said; staff confirmed the village has an internal rollover policy for unused funds.

Ending: Staff will return with a formal RDA amendment for Freddie's and with the necessary budget amendment language to add the agreed replenishment; trustees asked staff to continue recruiting potential tenants and to consider program guidelines that prioritize projects likely to increase downtown tax revenues.