RECOMMENDATION XXV

The Berwyn Development Corporation recommends that the City of Berwyn evaluate a number of tools to address levels of vacancy.

• Sales Tax Sharing Agreement – For commercial properties that generate a significant amount of sales tax, the City could enter into a sharing agreement whereby a portion of sales tax collected would be rebated to the business.

• Cook County 7A/7B Property Tax Abatement – Commercial projects in areas determined to be “in need of commercial development,” that would not be economically feasible without the incentive, are eligible for this tax abatement. This “need” standard is open to interpretation, and can be established at the discretion of the municipality. The incentive can be granted for reutilization of vacant structures abandoned for at least twenty-four (24) months, or shorter if stipulated by the municipality. The incentive would reduce a property’s taxes to ten percent (10%) for the first ten years, fifteen percent (15%) for the eleventh year, and twenty percent (20%) for the twelfth year.

• TIF Programs – Pay As You Go, Finish Line Grant. These existing programs are only for eligible projects located in Berwyn’s TIF Districts. Finish Line Grant is a matching program, paying for 50% of rehabilitation costs on a property. Funding is based on annual avail-ability in each TIF. Pay As You Go is a program for larger redevelop-ment projects, and can rebate up to 25% of eligible project costs. The funds are reimbursed as they are earned through increased property taxes in the ensuing years.

• Forgivable Loan Program – The City of Berwyn could consider the creation of a forgivable loan program to complement the existing TIF programs. A forgivable loan would be issued like a typical BDC Commercial Loan, but with cancellation provisions if the user meets benchmarks. This program could be used to assist with startup costs associated with targeted business types (restaurants, as an example).

• Vacancy Registration Program - In 2022, the City of Berwyn charged the BDC with administration of the Vacancy Ordinance. As such, the BDC hired a part-time Vacancy Coordinator, who works closely with the City of Berwyn to inspect the exterior of properties and ensure that all owners of vacant commercial properties register their vacant properties. To receive a registration certificate, each property owner must pay a fee, obtain adequate insurance, and submit a plan for occupancy, sale and/or redevelopment. The data gathered by the Vacancy Coordinator will be used to inform and update the 2023 Vacancy Reports.

• Rezoning – Berwyn City Council could consider rezoning portions of our commercial corridors to provide alternative opportunities. Though not always the case, chronic vacancy could be an indication that our commercial properties are overbuilt, or market conditions have changed in comparison to our population.

These tools have the potential to assist the City of Berwyn to address challenged properties, chronic vacancy, and mitigate commercial va-cancies in the future.