Determine Your Needs
Most businesses choose a location that provides exposure to customers. Additionally, there are less obvious factors and needs to consider, for example:

•  Brand Image – Is the location consistent with the image you want to maintain?
• Competition – Are the businesses around you complementary or competing? (Note: competition is good).
• Local Labor Market – Does the area have potential employees? What will their commute be like?
• Plan for Future Growth – If you anticipate further growth, look for a building that has extra space should you need it.
• Proximity to Suppliers – They need to be able to find you easily as well.
• Zoning Regulations – These determine whether you can conduct your type of business in certain properties or
  locations.

Evaluate Your Finances

Besides determining what you can afford, you will need to be aware of other financial considerations:

• Hidden Costs – Very few spaces are business ready. Include costs like renovation, decorating, IT system upgrades and so on. If façade or safety improvements need to be made, the City of Monticello has grant programs that can help!
• Taxes – What are the income and sales tax rates for your state? Tenants typically do not pay property taxes, but it isn’t uncommon for a landlord to include that in a lease.
• Government Economic Incentives – Your business location can determine whether you qualify for government economic business programs, such as TIF incentives and grant opportunities. Check with the Community Development Director for grant opportunities and local incentives.

Understanding laws and regulations imposed on businesses in a particular location is essential. As you look to grow your business, it can be advantageous to work with a small business specialist or counselor. Check what programs and support your state government and local community offer to small businesses. Many states offer online tools to help small business owners start up and succeed.

The Bottom Line
Do your research. Talk to other business owners and potential co-tenants. Consult the small business community and utilize the available resources- they are there to help you in your efforts!

Before you sign a lease or purchase a property, see the Greater Freeport Partnership first!

Building or Remodeling with Financial Incentives

Northwest Illinois Enterprise Zone

Areas of Freeport, Stephenson and Jo Daviess Counties are within the Northwest Illinois Enterprise Zone. This is an incentive program that encourages investment in disinvested areas. Our office can tell you if your property falls within the zone. We also administer the zone and can assist you with the process and answer more specific questions. There are multiple benefits of the enterprise zone. Below are the two that are most frequently utilized:

• Building Materials Sales Tax Abatement: A point-of-sale tax exemption is available on building materials incorporated into real estate in the Northwest Illinois Enterprise Zone. To receive this State and local sales tax exemption, building materials must be used for remodeling, rehabilitation or permanent new construction requiring a building permit. A Sales Tax Exemption Form and building permit issued by the City of Freeport, Stephenson County or applicable unit of local government must be submitted to the Enterprise Zone Administrator prior to the start of the project. The Enterprise Zone Administrator then issues a Certificate of Eligibility for Sales Tax Exemption. There is an application fee which is equivalent to 0.5% of the estimated cost of building materials, not to exceed $50,000.
• Property Tax Incentives: A company in an enterprise zone that experiences an increase in property taxes due to new improvements or renovations shall have the incremental increase in Equalized Assessed Value abated. This is useful because every time a property is improved it is reassessed, and therefore the taxes increase. To be eligible for this incentive, an Enterprise Zone Application along with the building permit issued by the City of Freeport, Stephenson County or applicable unit of local government must be submitted to the Enterprise Zone Administrator prior to the start of the project. Additionally, the property tax abatement incentive is negated if the property also falls within a TIF district.
• Building Permit Fees: The City of Freeport waives its Building Permit Fee for Qualified Enterprise Zone Projects; although it does charge a Plan Review Fee. Stephenson County does not waive its building permit fees for Qualified Projects in unincorporated Stephenson County.

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) District: This is a redevelopment incentive tool that is useful if:

• The property you are purchasing is within a TIF District (the Partnership and City have maps), and You are willing to enter into a Redevelopment Agreement with the City. A redevelopment agreement can be structured in many ways but often it is an agreement that says the city will repay or reimburse the property owner a portion of their property tax bill or sales tax revenue for a period.
• Typically, this is ONLY useful for a property owner who is willing to invest money in developing or rehabilitating
  property.

Other Incentive Options

Depending on the property location, type, and your business industry, additional incentive programs are available. You can find more information about available programs by visiting the Partnership website listed below. However, please contact the Partnership before settling on a property! Having a financing, incentive structure and zoning review of a property can provide necessary insight to make decisions.

Local Regulations (Freeport & Stephenson County, IL)

Once you’ve found a location that suites your business, there are many additional steps to take to ensure that the location and building will be suitable for your use. Contacting some key regulatory offices can save you future headaches before you invest in or lease space.

Zoning Regulations

City of Freeport
The Community Development Department at the City of Freeport is responsible for the zoning code, building codes, and building permits for any property in the city limits.

City of Freeport Community Development
815-235-8202
314 S. Stephenson St., Freeport IL 61032

Stephenson County
The Stephenson County Department of Building and Zoning is responsible for regulating construction activities in the unincorporated areas of Stephenson County. If a resident wants to build outside any city, village or town in the county, this department should be contacted before the project begins to be certain all local regulations are met. This department regulates construction and use through zoning, flood hazard and subdivision regulations.

Stephenson County Zoning
815-599-0344
295 W. Lamm Rd.., Freeport IL 61032