New Highland Park grant program supports local restaurants, but council splits on details

Two weeks after the Highland Park City Council unanimously approved a grant program intended to help restaurants and other food-service businesses, councilmembers OK’d two amendments to that program.

Unlike the vote to approve the program, however, the vote to add the amendments was not unanimous.

The Food & Beverage Establishment Interior Improvement Grant Program was approved at the council’s Aug. 26 regular meeting. Developed from restaurant owner feedback and councilmember request, the program is meant to help business owners with build-out costs — including paint, furniture, woodwork and kitchen infrastructure — for new restaurants or those that want to improve their buildings.

A total of $500,000 has been allocated in the fiscal year 2024 budget for the program, and funds are available on a first-come, first-serve basis.

At the board’s next regular meeting on Monday, Sept. 9, two amendments to that program were put forward. The first one expanded the ways in which funds can be used toward marketing, including for professional pictures and graphic design services; though the money can’t be used for advertising.

It was the second amendment that caused disagreement among the council.

The amendment allows property owners to opt out of contributing financially to any improvements to the business.

“Staff believe that this measure continues to encourage property owners to contribute to these improvement projects without unduly penalizing business owners who are willing to invest in their business but whose property owners will not match their contribution,” according to a memo in the board packet.

Councilmember Annette Lidawer opposed the amendment, saying it went against precedent and the City’s established procedures.

“It’s been the policy of the council — and we went over it several times before we looked at the incentives — to say that, unless we have buy-in from the property owners, we are not going to be improving the property owners’ buildings,” she said.

Lidawer added that she believes the requirement that property owners contribute 50 percent of the cost remain in place.

Her comments were echoed by Councilmember Kim Stone.

“The City’s incentive program for businesses currently requires financial participation by the property owner,” she said. “And if we’re using public funds to improve a privately owned property, I believe the property owner should contribute.”

While two spoke out against the amendment, the three other present councilmembers voiced support for allowing property owners the option on whether to contribute.

Councilmember Andrés Tapia said businesses “have asked for it. They have been eager for the incentive.”

“(Businesses) would ideally like the property owners to contribute. The property owners have the option to contribute,” he said. “I would like the property owners to contribute.”

But he said so many businesses have indicated that they plan on utilizing the incentive program that he doesn’t want to do anything to hold it up.

“I think it would just stop in the tracks some of the business growth that some of the businesses are counting on doing because of the incentive plan that they have been in support of,” Tapia said.

Councilmember Yumi Ross said that she supported the amendment, but understood the concern.

“It can come off as (the property owners) are getting a gift, getting it for free,” she said. “But I understand the concerns of the businesses.”

Mayor Nancy Rotering suggested the council table the vote and revisit after discussing the amendments at a future Committee of the Whole meeting, but councilmembers said they would rather execute a final vote.

The amendments passed with a 4-2 vote. Councilmember Anthony Blumberg was absent, and Rotering was in favor.

Rotering said that if a property owner does not want to participate in the grant program, they will need to submit a letter stating “that they are refusing to participate and refusing to help the business which is a current lessee within their property.” 

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