Downtown Relocation Grant Program

About the Grant Program

The purpose of the Relocation Program is to provide for retention of non-residential uses impacted by redevelopment agreements within the tax increment financing (TIF) District adopted by the Village Board and future redevelopment of the affected property. This is intended to complement and support the Village's plans to maintain a quality TIF District.

The redevelopment of particular parcels of land and the retention of commercial uses is crucial to maintaining an economically strong TIF District area; a commercial area where the image, appearance and environment encourage the attraction of shoppers.

The intention of this program is to provide financial resources to assist impacted business owners re-establish their business within the Village of Lombard and in an area which is appropriate to that use.

The application packet consists of a statement of the grant policy, instructions to applicants and a pre-application form. 

Grant Eligibility

1.  Relocation.  Eligible costs may include: rent differential for a like or similar location (square footage, quality, location, visibility) for either six months or the balance of the lease (whichever is greater), moving costs (truck rental or professional mover), initiation and hook up of new utility services, set up costs of equipment, required new equipment by a governmental body, interior remodeling of new location, exterior signs, stationery and business cards, and other moving incidentals.

2.  Amount.  Once approved, applicants for the Relocation Program are eligible to receive grants as follows:

For businesses utilizing under 1,000 sq. ft.
100 percent reimbursement for eligible expenses of the first $5,600. The Relocation Program provides for 60 percent reimbursement of eligible expenses between $5,600 and $11,200.

For businesses utilizing 1,000 sq. ft. or more
100 percent reimbursement for eligible expenses of the first $11,200. The Relocation Program provides for 60 percent reimbursement of eligible expenses between $11,200 to $16,800.

3.  Ownership.  Eligible applicants must be the owner of the commercial business located in a property in which a Village Redevelopment Agreement in the TIF has been executed. Notwithstanding the foregoing, no owner of a non-residential use located in a property in which a Village Redevelopment Agreement in the TIF has been executed shall be eligible for a Relocation Grant if that owner currently holds title to or is the holder of beneficial interest in a trust that holds title or is otherwise directly or indirectly interested in the ownership of the property that is subject of the Redevelopment Agreement, or was the titleholder or holder of a beneficial interest in a trust, that conveyed the property to its current titleholder.

4.  Fees.  Professional, engineering, architectural and permit fees may be included in the relocation costs.

5.  Conformance.  All improvements must conform to all building and zoning codes of the Village of Lombard and to criteria developed for this Program.

6.  Disclosure.  Program eligibility may be limited based upon the individual redevelopment agreement for the affected property. The redevelopment agreement terms and conditions shall supersede this program.

Participation in the Relocation Grant Program does not limit additional participation in other programs such as the Downtown Improvement and Facade Program or the Village of Lombard Low Interest Loan Program.

7.  Grant Amounts.  Grants under $10,000 may be approved by the Director of Community Development. Grants $10,000 and over require approval of the Lombard Board of Trustees.

Procedural Requirements

An applicant must first meet with the Director of Community Development for advice and technical assistance. A checklist is to be followed when applying for the Relocation Program. The applicant will submit a pre-application form accompanied by any remodeling, signage or facade plans, including sample materials, color samples and detailed cost estimates of the eligible expenses. All plans must follow appropriate design guidelines and code requirements. Improvements made prior to the approval of the application and execution of the agreement may be ineligible.

Please call (630) 620-5756 for further information, copies of any documents, or to set up an appointment.

Federal and Local Requirements

In order to qualify for the Relocation Program, the building must be in an area in which the Village Board of Trustees has entered into a redevelopment agreement within the tax increment financing district site. The business owner must complete the pre-application, and be prepared to comply with all federal and local regulations. The Village will review the plans if signage is included. The Department of Community Development will administer the Relocation Program.

Downtown Relocation Program Instructions To Applicants

This preliminary instruction form is to assist eligible applicants in preparing the necessary submittal for the Relocation Grant Program. After a preliminary meeting with representatives from the Community Development Department, eligibility for this program will be determined. The following steps need to be accomplished:

1. Presentation of the proposed relocation expenditures should be made to the Community Development Department representative.

2. Changes/improvements to the interior, facade or signage should be discussed in the pre-application meetings. Changes to the facade or signage will require review by the Community Development Department. Building permits may be required of certain types of improvements.

3. The owner and applicant shall submit the following documents to the Community Development Department:

    a. Pre-application form

    b. Preliminary plans and preliminary cost estimates.

    c. Color of materials and material samples, as applicable.

    d. Details of signage and awning design, as applicable.

    e. A copy of the lease agreement between the business and the redevelopment agreement must be submitted, as well as a lease for the new business location.

4. After review by the Community Development Department representative, a certificate of approval will be forwarded to the business owner.

5. Upon receipt of a certificate of approval outlining funding eligibility, the owner should proceed as follows:

    a. Final plans and final cost estimates to be submitted to the Community Development Department.

    b. Final plans to be submitted to the Building and Inspection Services Division for issuance of building permit, as applicable.

    c. Submittal of three estimates from contractors to perform the renovation work, as applicable.

6. Owner/applicant shall submit final cost estimates and the names of the contractors or vendors they wish to employ.

7. A final notice to proceed letter and draft agreement to be executed between the business owner and the Village of Lombard shall be forwarded to the business owner by representatives of the Department of Community Development.

8. After a building permit has been issued, as applicable, relocation expenses are then authorized and may commence.. All necessary building and other department inspections should be coordinated through the Department of Community Development.

9. The new business location will be inspected by the Community Development Department representative for conformance with the relocation plans submitted.

10. After sign-off by all departments, submittal of progress and payroll reports, and waiver of liens, the Community Development Department representative will process the necessary grant disbursement.

11. Program eligibility may be limited based upon the individual redevelopment agreement for the affected property. The redevelopment agreement terms and conditions shall supersede this program.

Participation in the Relocation Grant Program does not limit additional participation in other programs such as the Downtown Improvement and Facade Program or the Village of Lombard Low Interest Loan Program.

12. Grants under $10,000 may be approved by the Director of Community Development. Grants $10,000 and over require approval of the Lombard Board of Trustees.