A Business Development and Redevelopment District, often referred to as a Business Development District (BDD) is a special financing program created by a municipality to encourage the development of new businesses in targeted areas of the community.  This program enables municipalities to attract development on vacant properties and redevelop existing properties within a designated BDD Area.  New business development will increase local services and amenities, increase employment opportunities, and increase sales and property tax revenues to the municipality and other taxing bodies.

This economic development tool is very flexible and allows districts to impose and collect up to 1.0% additional retail sales tax and hotel tax to fund any project that benefits the district.  Business Development Districts allow municipalities to make and enter into all contracts necessary or incidental to the furtherance of a business district plan – including payments to private developers for eligible business district project costs.

The Illinois Department of Revenue addresses many of the common questions and procedures relating to the Business District Development and Redevelopment Act (65 ILCS 5/Art. 11 Div. 74.3 et. seq.) as part of its Local Governments' Guide to Tax Allocation.

City of Polo's Business Development District Information

The City of Polo established our BDD in 2024 with a 0.50% retail sales tax and hotel tax.

The City of Polo shall accept only one (1) application per Property within a fiscal year. Each property located in the BDD is eligible to receive a Grant once every year if awarded $0-$2,500 in any year of this Program, or once every two (2) years if awarded $2,501-$5,000 in any year of this Program.

Funding is available for:
To be used for non-architectural elements such as paint and awnings, or for activities which may be considered routine maintenance necessary to prevent further deterioration of original elements, such as tuck pointing, replacement of doors and/or windows, roof repairs, etc. Exterior improvements related to ADA compliance may be included. The Grant Program reimburses a maximum amount of 100% of the grantee's costs incurred, up to $5,000 in a fiscal year.

You can download the City of Polo BDD application here: BDD Application

If you have any questions regarding the BDD, please call City Hall (815)946-3514.