Business Incentives
The Village Board of Cary encourages economic development efforts in order to strengthen the Village’s tax base, create jobs, and stimulate and promote availability of new areas of commercial development while maintaining a high level of support to existing businesses.
The Village Board is committed to assisting the commercial and business community in order to encourage an ever growing and diversified development and commercial economic base in the community. To this end, the Village of Cary has adopted an Economic Development Incentive Policy which outlines the parameters for which the Village of Cary may consider certain incentives to provide financial assistance to businesses. Various incentives offered or provided in the past are outlined below.
Facade Improvement & Interior Buildout Grant Program
The purpose of the Facade Improvement and Interior Buildout Grant Program is to encourage business investment within the Village of Cary and promote the revitalization of commercial properties. The program is designed to promote the improvement of existing facades and commercial spaces to make properties more attractive and increase long-term property values. The Facade Improvement and Interior Buildout Grant Program provides financial assistance in the form of a matching grant up to $10,000 for retail and restaurant uses. Property owners/lessees must install at least $1,000 worth of eligible improvements to qualify for the program.
Additional information related to the grant program can be found in the attached application.
County, State, & Federal Incentives
Numerous other economic incentives are available through McHenry County, the State of Illinois, and the federal government. For more information on programs and to see if your business is eligible, visit the McHenry County Economic Development Corporation.
Fee Reduction
A reduction in certain Village fees may be considered for both commercial and residential projects, provided the project meets the goals and objectives of the Village’s Comprehensive Plan, Economic Development Plan, and any applicable Corridor/Sub-Area Plans adopted by the Village.
Individual Development Agreement
On occasion, projects may offer a public benefit but do not meet criteria for existing programs offered by the Village of Cary. If incentives or development assistance is desired, a representative of the business or developer must submit a letter of intent followed by a proposal to the Village. Village staff will review the proposal, determine feasibility of Village support for the project, and may present the information to the Village Board for further consideration.
Sales Tax Sharing
The Village of Cary may consider, on a case by case basis, reimbursement of the Village’s portion of the retail sales tax generated by a project. The amount of incentive may be contingent on the incremental sales tax generated by the benefitting party. Targeted uses include auto dealerships, grocery stores, restaurants, entertainment venues, and retail sales tax generating uses.
Tax Increment Financing (TIF)
The Village of Cary currently has one active Tax Increment Financing (TIF) District, the Central Cary TIF District (TIF #3). TIF Districts offer the opportunity for municipalities to attract private development and new businesses to areas that have not experienced the level of growth or development expected by the municipality. A benefiting property must be located in a designated TIF district in order to receive incentives.
Additional information on TIF in Cary can be found here.
Recent Project Examples
Thorntons
BSTP Midwest, LLC constructed a new Thornton Oil Gas Station at 134 Northwest Highway which opened to the public in November 2022. The developer invested approximately $6,000,000 related to the development of the property and off-site sanitary improvements. The Village and BSTP Midwest, LLC entered into a sales tax revenue sharing agreement to assist with the off-site improvements. Per the agreement, the Village will participate by rebating 40% of the sales taxes generated by the service station for a period of ten years up to a maximum of $130,000.
State Farm Insurance
The building was purchased in 2017 and renovated to accommodate the relocation of a local office for State Farm Insurance. Renovations to the building exceeded $100,000 with improvements to the exterior facade costing approximately $24,000. Improvements included the replacement of old exterior windows, installation of a new awning with historical lighting elements above, removal of a steel chimney, and exterior trim painting. The Village participated in the project through a matching facade improvement grant of $10,000.
