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Redevelopment commission backs up to $300,000 in support for downtown Diesel's renovation; council agrees to pursue TIF
Summary
Commissioners and councilors agreed to pursue TIF-based support and a town reimbursement structure of up to $300,000 to renovate the vacant downtown Diesel's building; staff will draft loan/grant documents and negotiate protections tied to performance.
Danville redevelopment commissioners and town councilors voted to move forward this week with a structure to support renovation of the long-vacant Diesel's building on Main Street, approving the process to place TIF resources behind a potential $300,000 assistance package.
Background and ask: The new owner of the historic downtown building requested up to $300,000 in public support to renovate the structure and re-open it as a higher-end restaurant. Consultants presented preliminary finance estimates showing the renovated property could produce approximately $22,000 in incremental TIF revenue annually and roughly $555,000 of incremental TIF value over a 25-year horizon if the project meets valuation assumptions.
Structure and safeguards: Legal counsel and finance staff described several options — direct economic development loan from town funds with conditions for forgiveness, an EDIT reimbursement model routed through the council with RDC reimbursement, or traditional TIF-backed mechanisms. Counsel recommended loan terms that include developer guarantees and performance-based forgiveness to protect public funds.
Formal action: The RDC moved to enter an agreement to reimburse the town up to $300,000 for the Diesel's renovation and directed staff to draft the necessary paperwork, guarantees and timetable for public approvals. The motion was seconded and recorded as carrying by voice vote (3-0).
Why it matters: Commissioners said renovating the downtown landmark would bring an estimated 50 jobs, add evening and restaurant traffic to the courthouse square, and could catalyze additional reinvestment in adjacent parcels that are currently underused. The decision commits the town and RDC to negotiate terms, but all final agreements will return for public council approval.
What’s next: Staff will draft loan or reimbursement documents, propose conditions for forgiveness and developer guarantees, verify fund availability (EDIT/TIF), and return to the council and RDC with ordinance/resolution language and a proposed schedule for approvals.
