May 16, 2024
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Joliet plans rent help for downtown businesses

Up to $100,000 would come out of special service tax and TIF district

By Bob Okon
Construction workers put up safety fencing along North Chicago Street in Downtown Joliet on Thursday, Aug. 24, 2023.

Construction workers put up safety fencing along North Chicago Street in downtown in August. (Gary Middendorf – gmiddendorf@shawmedia/Gary Middendorf)

The city plans rental assistance to offset the impact of road construction and other public improvements on business in downtown Joliet.

The plan is coming forward with work waiting to begin on a city square and redevelopment of Chicago Street while the city already has dug up sections of Joliet and Ottawa streets for water main projects.

“What it spells out is a lot of disruption for our local businesses,” Cesar Suarez, economic development director for the city, told the Joliet City Council Economic Development Committee on Monday. “This is taking place, and it’s going to take place for the next two years.”

The proposed program would provide up to $5,000 in rental assistance over the course of three months for businesses that can show lost revenue due to city construction downtown.

Landlords would be required to match the money provided by the city with rent forgiveness for businesses to participate.

Funding for the program would total $100,000 and come from a special service tax levied on downtown property owners and a downtown Tax Increment Financing District.

Joliet Economic Development Director Cesar Suarez attends the ribbon cutting ceremony for the new Harbor Freight distribution facility in Joliet. Harbor Freight opened a new 1.6 million square-foot distribution center in Joliet that is expected to bring 800 new jobs to the area. Thursday, June 9, 2022 in Joliet.

Joliet Economic Development Director Cesar Suarez (Gary Middendorf - gmiddendorf@shawnedia.com/Gary Middendorf)

The Economic Development Committee voted 3-0 on Monday to recommend the program to the full council for approval.

Committee Chairman Larry Hug noted that money for the program is not coming out of general tax revenue and suggested that more money be set aside because of the potential impact of the public projects.

“This is going to be some pretty devastating construction downtown,” Hug said.

The program has the support of the Joliet City Center Partnership, which promotes the downtown area.

The CCP board recently approved the program, and the organization is just beginning to notify downtown landlords of the plan, Executive Director Priscilla Cordero said.

“We have a couple of businesses that are ready to apply now,” she said.

The Van Buren Plaza fountain, now in the middle of a construction zone, has been shut off for good as Joliet prepares to build a new city square. Aug. 8, 2023.

A downtown construction project during the summer tore up the Van Buren Plaza outside the front doors of business storefronts. (Bob Okon)

Cordero noted that the major construction projects are coming at a time that a number of new businesses have opened downtown.

“I worry about the businesses that were recently recruited to come downtown and now are struggling because of construction,” she said.

Businesses would need to show a 15% reduction in revenue to qualify for the program.

While an individual business would qualify for a maximum of $5,000, the same business could apply multiple times if it is affected by multiple construction projects, Suarez said.

The rental assistance would go to the landlord, who would be required to offset rent in an equal amount to participate.

“If the landlord does not put anything in, the business will not get anything,” Suarez said.