Strolling the streets of downtown Elmhurst Tuesday night, I noticed a couple of empty storefronts — both of which displayed signs offering $10,000 grants to qualified retail businesses interested in moving into town.
The idea was intriguing, particularly in light of Downers Grove’s recent discussion on the value of retail to the overall health of the downtown.
Curious about the impact of the Elmhurst grant program, I followed up with John D. Said, director of planning, zoning and economic development for the City of Elmhurst.
The retail grant program was created in 2002 to target specific retail activities for the downtown, he said. Like Downers Grove’s $100,000 Facade Improvement Program, the grant program is financed out of TIF funds.
The district already had a healthy number of restaurants and salons, so the goal was to enhance the local shopping experience and to “help support the community with retail sales tax.”
“It’s done extremely well,” Said said. Forty retail businesses have used the program since its inception, and many of them are locally owned. One of them, My Favorite Toy Store, used the program as an opportunity to add a second location to the one already existing in Downers Grove.
That’s the pitch his office brings to neighboring retailers — that they can use the grant money to expand into Elmhurst, Said said. “We don’t want to raid other communities.”
Among the businesses that have emerged are several boutiques. While they aren’t the national specialty retailers that some residents favored, the town has found that dealing with independents is more advantage than dealing with a corporate headquarters one or two states away.
And with Oak Brook Center less than five miles away, there are abundant reasons why downtown Elmhurst may never attract a major retail chain — a reality many in Downers Grove have also come to accept.
In another similarity with DG, Elmhurst has discussed an ordinance that would limit the downtown’s first-floor space to retail businesses, although none is currently on the books.
As for downtown vacancy rates, maybe the grant program has given Elmhurst a leg up. The city’s rate is only three to four percent–about a third of that of downtown Downers Grove.
Another program that should not be a core service of the village. We can’t afford the DARE program so why would we give money to business? We already do this in tax breaks to new business. I doesn’t seem to be working as it is. If they are not viable enough to support themselves they don’t deserve to be in business. Survival of the fittest.
Many thanks for reporting and discussing how TIF affects small towns and their business districts. The concept is often complex and difficult, yet so important to understand. Looking forward to more about our own TIF district and coming changes in the downtown landscape.
Elaine thanks very much for this accurate posting about the Elmhurst Downtown Retail Grant Program. The publicity is very much appreciated. I welcome any interested people to contact me if they have more questions, or to clear up misunderstandings.
All the best to you and the good folks in Downers Grove!
A terrific example of government and business working together within the community, love it.