Machesney Park/Loves Park Enterprise Zone was created and passed by the State of Illinois to assist municipalities in the revitalization of distressed areas by offering financial and tax incentives to stimulate business growth and neighborhood improvement. The Machesney Park-Loves Park Enterprise Zone provides new and existing businesses within the zone with a variety of incentives to promote job creation and business development. Please CLICK HERE to view the MP/LP EZ website for more information on the zone, a map of the zone, and much more, or contact the Community Development Coordinator.
Tax Increment Financing (TIF) is an important economic development tool developed by state lawmakers that gave local governments more than 20 years ago the help to restore their most run-down areas or jump-start economically sluggish parts of town. With this tool, financially strapped local governments can make the improvements they need, like new roads or new sewers, and provide incentives to attract businesses or help existing businesses expand, without tapping into general funds or raising taxes.
Since the Federal and State governments have greatly reduced their support for economic development, Tax Increment Financing permits municipalities to accept some of this responsibility without raising local property taxes.
TIFs help local governments attract private development and new businesses. New businesses mean more jobs, more customers, and, in turn, more private investment. TIF designation also helps retain existing businesses that might otherwise find more attractive options elsewhere. The jobs and additional investment — private and public — mean more money for the community. TIF also helps to overcome the extraordinary costs that often prevent development and private investment from occurring on environmentally contaminated and other properties. As a result, the TIF area itself improves and property values go up.
Without TIF benefits, a deteriorating area will not improve. Businesses do not sink capital into decaying areas and most local governments cannot afford the needed costly improvements without raising taxes. But in a TIF district, dollars for improvements are generated by businesses — new and old — attracted by the TIF benefits. Specifically, money for infrastructure improvements and other incentives comes from the growth in property tax revenues — the tax increment.
TIF Districts – Machesney Park
The Revolving Fund Sub-Committee meets at the call of the Committee Adviser. This committee is responsible for providing advice and recommendations to the Village Board on matters relating to stimulating economic growth within the Village of Machesney Park through providing needed financial assistance to new start-up businesses, assisting new or existing businesses to create and retain jobs, providing businesses with the opportunity to expand, and to encourage and leverage financial assistance to businesses by area private financial institutions. The Committee is comprised of one (1) Trustee and three (3) Financial Institutions with advisement from the Village Attorney, Finance Manager, and Community Development Coordinator. To qualify for a loan from the Revolving Fund, the employing business must be located within the corporate limits of the Village.
The Village of Machesney Park in conjunction with a lending institution will assist in the financing of an eligible project. Village participation cannot exceed 50% of the total project cost, and is subject to the availability of funds. Terms of the loan are negotiated with flexible repayment to match the company’s cash flow.
Eligible Project Costs/Uses
Site development costs are as follows:
Construction of new facility and/or renovation of existing building or leasehold improvements.
Purchase of new or used machinery and equipment.
Working capital for new start of business or expansion of existing business.
Job Creation/Retention Criteria
A minimum of one full-time equivalent (1,950 hours annually) position must be created for every $15,000 loaned through the program and at least 51% on the positions retained or created must benefit persons of low to moderate income.
Loan decisions will be made individually by the participating bank and the Village of Machesney Park. For this purpose, the Village has set up a special loan review committee to review the applications for loans that are submitted. It is the responsibility of each business to secure bank financing to be used in association with Village loans. Loan requests will be judged on the basis of the loan support information submitted by the applicant.
The review process will take approximately six (6) weeks. Applications are reviewed on a ” first-come, first-served” basis by Village staff, the Revolving Fund Sub-Committee and the Village Board of Trustees. Those that meet the Village’s criteria and demonstrate the greatest potential for job creation/retention will be considered.
Click the link below to view or download the Revolving Fund Application form.For more information on the RLF, please contact:
Mr. James Richter II – Community Development Coordinator