Council authorizes Mchenry to apply for regional site-readiness grant amid annexation leverage concerns

The Mchenry City Council approved a resolution authorizing the city to apply for a regional site-readiness planning grant from the Illinois Department of Commerce and Economic Opportunity (NOFO ID 3429-3182) and to execute a development agreement with Parkway Bank Trust Company as trustee under trust number 10578.

Supporters said municipal endorsement can strengthen a grant application and reduce costs for private developers. Alderman Miller called the grant a “no-cost opportunity” to the city if the owner provides required matching funds and argued that having the city as an intermediary makes the application more competitive.

Opponents and cautious councilors, led by Alderman Glab and another alderman who raised annexation-history concerns, warned that filing the application before resolving a pre-annexation agreement could diminish the city’s negotiating leverage on a key right-of-way tied to a future Western Bypass. Alderman Glab urged staff to review the original annexation agreement and consider lock-in language to preserve future leverage before proceeding.

Staff and other councilors noted the grant deadline is imminent — roughly two weeks — and that private developers may apply directly, often at higher match rates. One staff speaker said the city’s application requirement is contingent on annexation language in the draft agreement but acknowledged that the condition may be “moot” because grant filing precedes formal annexation negotiations.

The resolution passed by roll call. Council directed staff to move forward with the application while acknowledging unresolved concerns about annexation terms and future roadway access.