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Council hears Route 31 business relief fund proposal; staff to return with application and rubric
Summary
Economic development staff proposed a reimbursement grant program to help small businesses affected by Route 31 construction; council voiced support and concerns and asked staff to return with application materials, eligibility criteria and an agreement with the McHenry County Community Foundation.
City economic development staff presented a proposed Route 31 business relief fund designed to reimburse small businesses that incur revenue losses from the Route 31 construction project.
Doug Martin told the council the program was modeled on a Woodstock initiative and would be structured as a reimbursement-only grant. He said the city could seed the program from the municipal revolving loan fund (he cited roughly $256,000 in the fund) and proposed grants up to $10,000 per business. Martin said the draft criteria he prepared included a 120-day measurement window and a threshold of up to 30% revenue loss, but he and multiple stakeholders recommended shortening the eligibility window and lowering the loss threshold; Martin said staff would consider moving toward a 30-day window and a 20% loss threshold to speed aid and better target businesses on the brink of failing.
Martin described partnering with the McHenry County Community Foundation to hold and help administer funds, noting the foundation would convene a review committee and could accept anonymous donations to the fund. He said the foundation's fee was proposed at $1,000 or 1% of funds dispersed, whichever is greater, and that staff would draft an agreement for council review.
Council members asked questions about whether the grants would be one-time payments, whether recipients would be disqualified if they had previously received other city incentives or TIF assistance, and how staff would verify that applicants were directly impacted by Route 31 construction. Alderwoman Bainy and others urged quick delivery of funds once applications are approved so businesses receive timely relief; Alderman Cook and others sought clarity on fee and oversight structures. Several members emphasized reserving funds for businesses demonstrably affected by current construction rather than future phases.
No vote was taken; Martin said he would return with formal application materials, scoring criteria and an agreement with the McHenry County Community Foundation for full council consideration.
