Title/Name/Summary
Appearance Improvement Grant (AIG) - Adjustment to Maximum Grant Amount
History
QUICKFACTS
Project
Appearance Improvement Grant (AIG) - Adjustment to Maximum Grant Amount
2018-0173
Petitioner
Development Services Department
Village of Orland Park
Purpose
The purpose of this adjustment to the AIG program is to increase the maximum grant amount available to assist property owners and tenants of commercial and landmark buildings to improve the exterior appearance of their storefronts and structures.
OVERVIEW AND BACKGROUND
In 1998, the Village Board approved the first non-residential façade improvement program known as the Old Orland Façade Improvement Program. The Old Orland Façade Improvement Program was primarily intended to address the appearance of historic non-residential buildings in Old Orland along 143rd Street. This was done in anticipation of an eventual 143rd Street widening, a new planned downtown area and a new Metra Commuter station (today’s 143rd Street Station). By 2006, the Old Orland Façade Improvement Program had expanded its scope to include all contributing structures in the Old Orland Historic District.
In 2009, the program was revised to include additional buildings along 143rd Street between West Avenue and La Grange Road in order to address all of the commercial buildings (historic and non-historic alike) across from the downtown area. The program was renamed as the Commercial Façade Improvement Program and included additional eligible improvements and an explanation of the process. The Commercial Façade Improvement Program remained unfunded, however, between 2010 and the end of 2012.
In late 2012, the Village Board renewed the Façade Improvement Program and allocated $50,000 to it for FY2013. The Board also directed the program to be available Village-wide rather than be limited to 143rd Street. For the first time a façade improvement program became available to all commercial properties in the Village. In 2014, the program was amended to include waiving building permit fees for projects that are awarded the grant.
Since 2013, the program has allocated over $157,000 for ten (10) projects which collectively amounted to a total project cost of over $814,000. The program provided one (1) grant in 2013, zero (0) grants in 2014, one (1) grant in 2015, four (4) grants in 2016, and four (4) grants in 2017. The average AIG award per project is $15,782.32 and the average total project cost is $81.459.40. On average, AIG funds awarded for the project cover 37.14% of the total project cost.
PROPOSED ADJUSTMENT
Staff proposes adjusting the maximum grant amount from $20,000 to $50,000 per project to support more substantial improvement projects on commercial and landmark properties. While the current grant structure has allowed several projects to obtain 50% funding (meaning the project was $40,000 or less in total cost), there were three (3) substantial projects that the AIG funded between 8.4% and 29% of the total project cost due to the maximum grant amount of $20,000. These more substantial projects ranged in total cost from $68,000 to $350,000.
If the maximum grant amount is increased to $50,000 then more substantial improvement projects may be generated and the Village may essentially “get more bang for our buck” since larger projects typically have a greater impact on a property overall. Additionally, Staff received feedback in the past indicating that $20,000 was often not enticing enough to spur significant improvements to properties when the total project cost exceeded $40,000.
As proposed, the AIG program will retain the 50% matching funds policy in addition to setting the maximum grant to $50,000, which means the Village could see more substantial projects with project costs over $100,000. The program packet will include the following language: “The AIG program will match 50% of the cost of the eligible expenses up to a maximum of $50,000 per project unless otherwise approved by the Board of Trustees.”
FINANCIAL IMPACT
The current balance (Account Number 010-0000-484930) available for Appearance Improvement Grants (AIG) is $377,549.87.
DEVELOPMENT SERVICES, PLANNING and ENGINEERING COMMITTEE MOTION
On March 19, 2018, the Development Services Planning and Engineering Committee moved 3-0 to recommend to the Village Board of Trustees approval of an adjustment to the Appearance Improvement Grant (AIG) program to allow the maximum grant amount to be increased from $20,000 to $50,000 per project.
This case is now before the Village Board of Trustees for consideration.
Recommended Action/Motion
I move to approve an adjustment to the Appearance Improvement Grant (AIG) program to allow the maximum grant amount to be increased from $20,000 to $50,000 per project.