Redevelopment Incentive Program Grant

The Redevelopment Incentive Program Grant is administered through the City of Danville as part of the City's broader Tax Increment Financing (TIF) strategy to stimulate economic growth and redevelopment within designated TIF districts. The program is intended to encourage reinvestment in underdeveloped, declining, or underutilized areas by using increases in property tax revenues generated through redevelopment activities to fund additional improvements and community revitalization efforts. Through this financing mechanism, the City seeks to create a sustainable cycle of economic development that supports infrastructure improvements, increases property values, creates employment opportunities, and enhances public amenities. The program specifically emphasizes reinvestment that benefits both private development and the surrounding community, particularly in areas experiencing economic stagnation or blight. The City's policy objectives for the program include removing blighting influences contributing to neighborhood decline, attracting new businesses, retaining existing businesses, increasing the local tax base, reducing unemployment, improving public infrastructure, enhancing visual attractiveness, and improving living conditions in redevelopment areas. The Redevelopment Incentive Program is available within the City's five active TIF Districts and is intended to support redevelopment projects that align with these economic development goals. The City positions the TIF program as a long-term redevelopment strategy intended to transform underutilized areas into vibrant commercial and mixed-use districts through strategic public-private investment partnerships. Eligible activities under the Redevelopment Incentive Program are limited to activities defined as "TIF eligible" under the Illinois Tax Increment Allocation Redevelopment Act. Eligible expenditures may include costs associated with studies, surveys, planning activities, property assembly, demolition, site preparation, rehabilitation or remodeling of existing buildings, public infrastructure improvements, relocation costs, financing costs, job training, and other redevelopment-related activities. However, for purposes of the Redevelopment Incentive Program grant itself, funding is specifically limited to costs associated with the rehabilitation, reconstruction, repair, or remodeling of existing private buildings and site preparation or improvement costs. The program expressly excludes the construction of new privately owned buildings, acquisition inventory, general operating expenses, and furniture, fixtures, and equipment. All funded improvements must be permanently affixed to the real estate and may include life safety upgrades, accessibility improvements, roof replacement, structural repairs, HVAC upgrades, plumbing or electrical improvements, facade restoration, parking lot paving, landscaping, lighting, fencing, elevators, and fire suppression systems. Applicants must have a documented ownership or financial interest in the subject property to apply. Eligible applicants include property owners of record, tenants, beneficial owners of trusts, or parties with accepted offers to purchase the property. Applications must be submitted and fully approved before any project work begins, as expenses incurred prior to approval are not eligible for reimbursement. In addition, applicants and property owners must be current on any debts owed to the City prior to submission. At least 50 percent of awarded grant funds must be directed toward exterior building improvements or site improvements. Funding awards are determined using project review criteria established by the City, and projects that meet a greater number of criteria may receive higher levels of assistance. Approved grants may range between 10 percent and 30 percent of eligible permanent improvement costs. The program operates on a reimbursement basis, meaning grant funds are disbursed only after eligible products or services have been delivered and supporting invoices and proof of payment have been submitted. The minimum award amount is $1,000, while the Department Director may approve grants up to $49,000. Grant awards exceeding $50,000 require approval by the Danville City Council. In addition, Redevelopment Incentive Program funding generally may not exceed $50,000 per property within any five-year period unless approved as part of a redevelopment agreement authorized by the City Council. Funding availability is contingent upon the balance of the City's TIF account and available appropriations. Prospective applicants are encouraged to first meet with staff from the Community Development Division to discuss project eligibility, review program guidelines, and obtain application materials. Completed applications and all required attachments must then be submitted through the City of Danville's CivicServe website. Applications undergo staff review and funding determination based on available funds and project evaluation criteria. Following approval, applicants may proceed with construction or rehabilitation activities. Upon completion of work, applicants must submit actual project cost information, proof of payment documentation, and job creation or retention information where applicable. The Downtown TIF Redevelopment Incentive Program specifically announced that applications for structural improvements will be accepted from May 1, 2026 through June 1, 2026.

Prioritize exterior and site improvements because at least 50% of awarded funds must support those activities. Ensure all work qualifies as permanent improvements affixed to the property and submit applications before any work begins because pre-approval is mandatory. Projects meeting more redevelopment review criteria may receive higher assistance levels.