Community Development Incentives
All of the incentives listed below each have their own requirements and stipulations. Not all incentives will be applicable to every project. In some cases, the approval of governmental bodies and public disclosure may be necessary to receive certain incentives. Given that several of these incentives are time-sensitive, we strongly encourage business owners and developers to contact the Planning Department as early as possible in the development process.
Enterprise Zone
The Illinois Enterprise Zone Act (20 ILCS 655) contains provisions for the Illinois Enterprise Zone program that is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO). The Galesburg Enterprise Zone has an emphasis on development and diversification of commercial, industrial, multi-family or upper story residential in the B3 zoning district . The Galesburg Enterprise Zone is a geographically defined area that covers approximately 3.4 square miles. The Economic Development Districts Map designates which properties are located within the Enterprise Zone.
Galesburg Enterprise Zone Requirements may Include:
Real Estate Tax Abatement- all local taxing bodies are currently participating to provide a 100% property tax abatement on any increase in the equalized assessed value resulting from a project. The abatement is for a 10-year period, or until the expiration of the enterprise zone, and is not to exceed $1 million abated per taxing body. Improvements can be in the form of new construction, substantial renovation or expansion of an existing building. The abatement is only given if the project creates jobs and does not reduce the prior assessed valuation.
State and Local Sales Tax Exemption- on building materials purchased within the State of Illinois and incorporated into real property located in the enterprise zone.
Construction Permit Fee Waiver- PERMITS ARE REQUIRED, but the fee is waived for building, demolition, electrical, sign, plumbing or heating permits (City Inspection Division); Water Service Tap Fees and Street & Terrace Opening Fees (City Public Works Dept); and Sanitary Sewer Tap Fees (Galesburg Sanitary Dist).
Tax Increment Financing (TIF)
The Tax Increment Allocation Redevelopment Act (65 ILCS 11-74.4-1) allows units of local governments the ability to designate geographic areas within their jurisdiction as TIF districts. TIF is designed to encourage new economic development and jobs through private investment in areas that have proven to be underdeveloped and would not have received such investment "but for" TIF assistance. If an owner or developer has a project in mind, but there is a gap in the financing to get the project done, TIF assistance may be an option. A Developers Agreement is required, which will need City Council approval.
TIF is not an increase in taxes. It is only a re-allocation of how they are used. Increases in property taxes experienced by property owners are due to reassessment and rate increases, not TIF. Interested applicants may find further details about the program in the TIF Redevelopment Assistance Handbook.
On October 2, 2000 the City adopted Ordinance 2000-1979 authorizing the establishment of a Registry and establishing registration rules for such Registry. All individuals and organizations whose Registration Application Form and supporting documentation comply with the registration rules and who submit such documentation to the City Clerk will be registered in the Registry within ten (10) business days of the Clerk’s receipt of all such documents. The application form and instructions are found in the Interested Parties Registration Form.
The Downtown Residential Fire Sprinkler Grant Program
The Downtown Residential Fire Sprinkler Grant Program is administered by the Community Development Department, with review authority provided by the Facade Advisory Committee ( FAC) and final approval through the Galesburg City Council.
The purpose of the program is to encourage an increase in residential units in a geographically defined area of the Downtown by offering a reimbursement for expenses related to the installation of fire sprinkler and/or fire alarm systems related to the redevelopment of spaces for residential units. It is believed this grant program will promote the safety, well-being, and retention of business operations by increasing residential occupants, and thereby enhance interest in visiting downtown. Interested applicants may find further details about the program in the Downtown Residential Fire Sprinkler Grant Program handbook.
Facade Grant Program
The Downtown Facade Redevelopment Grant Program is administered by the Community Development Department, with review authority provided by the Facade Advisory Committee (FAC) and final approval through the Galesburg City Council.
The City hopes to encourage private investment in commercial buildings in a geographically defined area of Downtown Galesburg through the façade program which offers financial incentives to businesses to improve the appearance, safety, structural integrity and quality of their storefronts and buildings as a whole. The Facade Grant Program Handbook gives further program details for interested applicants.
Historic Property Incentives
Historic Property Tax Assessment Freeze
Managed by the Illinois Historic Preservation Agency, this program can freeze the assessed value of historic owner-occupied, principal residences for a period of 8 years, followed by a four-year period during which the property’s assessed value steps up to an amount based upon its current market value. This results in 12 years of reduced property taxes. For further information on this program visit, https://www2.illinois.gov/dnrhistoric/Preserve/Pages/taxfreeze.aspx.
Federal Historic Preservation Tax Credit Program
Under the provisions of the Tax Reform Act of 1986, a 20% tax credit is available for the substantial rehabilitation of commercial, agricultural, industrial, or rental residential buildings that are income-producing properties and certified as historic. The credit may be subtracted directly from federal income taxes owed by the owner. The Illinois State Historic Preservation Office (IL SHPO), administers it for Illinois properties. For a detailed summary of this program visit, https://www2.illinois.gov/dnrhistoric/Preserve/Pages/taxcredits.aspx.
Illinois Historic Tax Credit Program
The Illinois Historic Preservation Tax Credit Program (IL-HTC) provides 25% state rehabilitation income tax credit for rehabilitating historic, income-producing properties. Eligible expenditures must be incurred between January 1, 2019 and December 31, 2028. Visit, https://www2.illinois.gov/dnrhistoric/Preserve/Pages/statecredit.aspx, for further information or to apply. The Illinois Historic Preservation Tax Credit Program is administered by the Illinois State Historic Preservation Office in the Illinois Department of Natural Resources.
Downtown Private Alley Improvement Grant Program
The Downtown Alley Improvement Grant Program is a collaborative effort between the City of Galesburg (City) and the Galesburg Downtown Council (GDC). The Program is administered by the City, with review authority provided by the Facade Advisory Committee (FAC) and final approval through the Galesburg City Council. The City accepts no ownership of the private alleys and shall not be responsible for future maintenance. The Downtown Alley Improvement Grant Program has been designed to encourage the improvement of private alleys to facilitate deliveries, solid waste, and recycling collection, improve alley drainage, cleanliness, and attractiveness and assist pedestrian use to further support the growth and development of downtown Galesburg. The Downtown Private Alley Grant Handbook gives applicants a detailed overview of the program.