HomeMy WebLinkAboutResolution #5540 - Incentive Scoring Matrix and Procedures RESOLUTION NO. 5540
A RESOLUTION APPROVING INCENTIVE SCORING MATRIX AND PROCEDURES
WHEREAS,the City of Canton,Fulton County, Illinois("City"), is a non-home rule unit
of government;
WHEREAS, the City has the authority to promote the health, safety, and welfare of the
City and its citizens and to encourage development,job creation, and/or the full utilization of real
estate; and
WHEREAS, pursuant to the Illinois Business District Development and Redevelopment
Act(65 ILCS 5/11-74.3-1 et seq.), as amended(the"BDD Act"), the City established the Canton
Business Development District No. 1 (the "Business District" or`BDD") on March 15, 2022, by
approving Ordinance No. 4281; and
WHEREAS, on September 30, 2022, the City approved the First Amendment to the
Business District by approving Ordinance No. 4307 and further ratified the First Amendment on
October 5, 2022,by approving Ordinance No. 4315; and
WHEREAS,pursuant to the BDD Act,the City has the authority to incur eligible business
district project costs and may enter into agreements with developers to reimburse them for their
eligible business district project costs; and
WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/
11-74.4-4 et. seq., as amended(the"TIF Act"),the City has the authority to provide incentives to
owners or prospective owners of real property to develop,redevelop,and rehabilitate such property
by reimbursing the owners for certain costs from resulting increases in real estate tax revenues;
and
WHEREAS,recognizing the need to foster the development,expansion and revitalization
of certain properties which are vacant, underutilized, or undeveloped, the City has adopted Tax
Increment Financing under the TIF Act, approved Redevelopment Plans, and designated
Redevelopment Areas (hereinafter referred to as the"TIF Districts");
WHEREAS,in order to assess potential projects within the BDD and/or TIF Districts and
for the purposes of awarding incentives to developers or property owners pursuant to the TIF Act,
the BDD Act, and/or other applicable law, the corporate authorities of the City of Canton have
determined that it is necessary and in the best interests of the City to develop processes and a
scoring matrix for assessing projects and potential incentives.
NOW,THEREFORE,BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF
CANTON,ILLINOIS,AS FOLLOWS:
1. The City of Canton hereby finds as fact the recitals set forth above and are incorporated
herein as though fully set forth.
2. That the Incentive Program Policy and Administrative Manual (the "Policy Manual"),
substantially attached hereto and incorporated herein by reference as"Exhibit A,"is hereby
APPROVED;
3. That Scoring Matrix, substantially as attached hereto and incorporated herein by reference
as "Exhibit B," is hereby APPROVED;
4. The Policy Manual, Scoring Matrix, and any other documents related to the assessment of
potential projects and incentives shall be subject to revision by the Mayor(or his designee)
upon consultation with the Chairperson of the Economic Development Committee;
5. The Budget Officer and Economic Development Administrator,or such other person as the
Mayor may designate, shall prepare all other necessary forms and documents for purposes
of incentive applications (e.g. application checklists, committee recommendation forms,
etc.), which may be revised by the Mayor from time-to-time;
6. Upon the revision of the Policy Manual (which must be approved by the Mayor), the City
Clerk shall cause same to published on the City's website;
7. That this Resolution shall be in full force and effect immediately upon its passage by the
City Council of the City of Canton, Illinois and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 3`d
day of March, 2026 upon a roll call vote as follows:
AYES: Alderpersons Chamberlin, Grimm,Nelson, Lovell, Hale, Pickel, Ketcham, Gossett
NAYS: None
ABSENT: None
APPROVED:
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Ken cDowell, M
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1Y1 drea J. Smith-Walters, City Clerk
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CITY OF CANTON
INCENTIVE PROGRAM POLICY & ADMINISTRATIVE MANUAL
Adopted: Effective Date:
SECTION 1 -PURPOSE AND AUTHORITY
The City of Canton Incentive Program is established to stimulate private capital investment,
increase local retail sales tax generation,create sustainable employment opportunities,
activate vacant properties,and strengthen priority commercial corridors.The City Council
retains full authority to approve,deny,amend,reduce,or modify any recommended award
amount.
SECTION 2 -APPLICATION PROCESS
Applications shall be accepted on a rolling basis. No funding cycle is guaranteed.Awards are
subject to available BDD funds at time of Council approval.
SECTION 3 - ELIGIBILITY REQUIREMENTS
Projects must: (1) Be located within the City and within a TIF and/or BDD boundary(as
applicable to the incentive(s) being sought); (2) Meet the$5,000 minimum investment; (3)
Be in good standing with the City; (4) Submit complete documentation; (5) Disclose all
other local incentives.
SECTION 4-SCORING AND TIER STRUCTURE
All eligible applications shall be evaluated using the adopted 100-point Scoring Matrix.Tier
classifications:Tier 1 (85-100) up to 30%;Tier 2 (65-84) up to 20%;Tier 3 (50-64) up to
15%; Below 50 not recommended.
SECTION 5 -COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
The Budget Officer and Economic Development Administrator appointed by the City shall
initially review all applications for incentives utilizing the Scoring Matrix,with a copy of any
application being provided to the Chairperson of the Community and Economic
Development Committee ("Committee").After the Administrator's review,he/she shall
submit a recommendation to the Committee and meet with the Committee to review the
application within thirty(30) days of the receipt of a complete application.
The Committee shall then validate scoring accuracy,confirm fiscal impact,and forward a
written recommendation to Council.The Committee does not have final approval authority,
and the City Council may approve,reject,and/or modify any award with or without any
recommendation by the Committee. If the Committee recommends approval,then the
Chairperson of the Committee shall coordinate with the Mayor so that a draft
redevelopment/incentive agreement may be provided to Council prior to their vote and
consideration.An initial meeting by the Council to consider the application shall occur at the
next practicable City Council, depending upon the drafting status of the
redevelopment/incentive agreement and/or other City business.
SECTION 6- COUNCIL APPROVAL
Council retains full override authority and may approve,deny, modify,or table any request.
No appeals process shall be provided.
SECTION 7 -INCENTIVE AGREEMENT
All approved projects must execute a City-approved Redevelopment or Incentive
Agreement prior to reimbursement or any other incentive(s)being awarded.
SECTION 8- REIMBURSEMENT
Reimbursement structure shall be determined by the executed agreement and may include
lump sum or milestone-based payments. Payment shall not exceed verified eligible costs.
SECTION 9-ADMINISTRATIVE TRACKING
The City shall maintain a Dashboard tracking investment,leverage ratio,incentive awarded,
and completion status.
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HOMETOWN CONSULTING
"A Community&Economic Development Consulting Group"
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City of Canton
Scoring Matrix
Purpose of the Scoring Matrix
This Scoring Matrix provides a consistent,transparent,and data-driven method for
evaluating economic development incentive applications.It ensures that incentives are
awarded based on measurable community benefit,alignment with strategic priorities,and
fiscal responsibility.The scoring system also helps the Council understand the rationale
behind funding recommendations and how each project compares to others.
Overview (100 Points)
Al—Sales Tax Impact(25 points)
2 points per$25,000 in verified gross annual sales.
New businesses scored at 80%to reflect projection uncertainty.
Bonuses: +2 points above$500,000 annual sales; +5 above$1,000,000.
A2—Job Creation (10 points)
1 point per full-time job;0.5 per part-time job.
Owner/operator counts as one full-time job.
+5 bonus points if more than 20 FTEs created.
131—Revitalization Impact(15 points)
Exterior improvements: up to 8 points;interior: up to 6 points.
+1 bonus point when both interior and exterior improvements are completed.
Emphasis on visible,lasting,and structurally meaningful improvements.
B2-Private Investment Leverage(10 points)
8:1 or higher leverage: 10 points.
6:1 to 7.9:1: 8 points.
4:1 to 5.9:1: 6 points; 3:1:4 points; 2:1: 2 points.
63-Documentation Quality(5 points)
1 point for required narrative and timeline.
Up to 4 additional points for optional documentation:
-floorplans,renderings,architectural drawings,multiple quotes/bids.
C1-Location Priority(12 points)
Downtown Core: 10-12 points.
Locust Street,East Linn, 5th Avenue: 6-9 points.
All other eligible locations: 0-5 points.
C2-Local Ownership(6 points)
Local (Canton/Fulton County): 6 points.
Illinois ownership: 3 points.
Out-of-state ownership: 1 point.
C3-Incentive Stacking (5 points)
Full 5 points if no other local tax-based incentives used.
3 points if project uses TIF or similar.
0-1 points if multiple local incentives are combined.
State and federal incentives do not affect scoring.
C4-Project Readiness (5 points)
Points awarded for clear estimates,timelines,and readiness to begin within 120 days.
Bonus Points (10 max)
Downtown dining/food&beverage: up to 5 points.
Vacant building activation (1+years):up to 5 points.
Tourism/entertainment/experience uses: up to 3 points.
Corridor-aligned businesses: up to 2 points.
High leverage (8:1+): +2 points.
Total points cannot exceed 10 or push total score above 100.
Tier Structure and Recommended Incentive Levels
Tier 1 (85-100 points): Up to 30%of eligible project costs.
Tier 2 (65-84 points): Up to 20%of eligible project costs.
Tier 3 (50-64 points): Up to 15%of eligible project costs.
Below 50 points: Not recommended for funding.
How the Scoring Matrix Supports Council Decision-Making
The scoring framework provides the Council with a consistent basis for evaluating incentive
applications. It ensures transparency,fairness,and alignment with community goals.Each
score is derived from objective metrics such as job creation,investment levels,location
impact,documentation quality,and strategic importance.
The Community and Economic Development Committee reviews each scored application to
validate accuracy,assess economic impact,and confirm tier placement before presenting a
recommendation to Council.