DANVILLE — A new Tax Increment Financing Redevelopment Incentive Program (RIP) is being proposed by city officials to help existing businesses expand or assist new businesses in two of the city’s TIF districts.

Planning and Zoning Manager Chris Milliken said the grant program would provide financial assistance for permanent building and site improvements on properties located in the Midtown TIF district, bounded by Danville High School and Fairchild, Gilbert and Seminary streets, and the Western Gateway TIF district, bounded by North, Jackson, properties just south of Main Street and Logan Avenue.

Public Development Director John Heckler said the program will be similar to the city’s revolving loan fund program for small businesses fixing up their facades or for other renovations.

The matter may come before aldermen at Jan. 28’s public services committee meeting, after more details are ironed out with Mayor Scott Eisenhauer, Heckler said.

In the draft proposal, Heckler would be authorized to approve individual grants of up to $25,000. Individual grant amounts more than $25,000 would require city council approval.

RIP funding may not exceed $50,000 per property in any five-year period unless as part of a redevelopment agreement approved by the city council.

Grant funds are not given in advance and are subject to availability of funds in the city’s TIF account.

Under the program, at least 50 percent of the grant funds must be used on the exterior of a structure or on site improvements.

The grant amount approved would be 5-25 percent of the cost of all permanent improvements.

These improvements can include: life safety and accessibility code improvements; repair/replacement of roof, floors, structural or partitioned walls or windows; repair/replacement of electrical, plumbing, heating or cooling systems; installation of an elevator, sprinklers and fire or smoke alarm systems; façade restoration; and site improvements including parking lot paving, landscaping, lighting or fencing.

RIP grants may not fund the construction of a new, privately-owned building, the acquisition of inventory, general operating costs or furniture, fixtures and equipment.

Prospective applicants would meet with Heckler to discuss a potential project. An application would be reviewed and a determination made.

Heckler and Milliken said the program would help smaller and established businesses with smaller projects and to make general property improvements, such as exterior or sign improvements.

There is “a little of pot of money” already in the TIF account from these TIF districts due to Fairchild street’s Carle Clinic and Gilbert Street’s Marathon gas station and Mach 1 convenience store construction projects, Milliken said.

In a TIF district, property assessments are frozen and increases in assessed valuation that usually come with improvements in the defined area are used to help pay for redevelopment efforts.