Public Money, Private Properties, Familiar Faces—and Big Questions

April 21, 2026 | Freeport, IL

The Freeport Historic Preservation Committee will convene today at 4:00 p.m. to review nine applications submitted under the City’s 2026 Façade Improvement Program—an initiative funded through the Downtown Tax Increment Financing (TIF) District and designed to improve the appearance of downtown buildings.

On the surface, the program is positioned as a community investment: restore storefronts, preserve character, and strengthen the downtown corridor. But as the committee prepares to evaluate applicants, a closer look at how the program is funded—and who is applying—raises deeper questions about fairness, priorities, and accountability.

Understanding the Program

The City has allocated $30,000 for 2026, with individual awards capped at $15,000 per project. The program operates as a 50/50 matching grant, requiring property owners to invest their own funds upfront before receiving reimbursement after completion and inspection.

Eligible improvements include masonry restoration, window and door repair, architectural enhancements, painting, lighting, and other façade upgrades visible from the street. Interior renovations, roofing, and historically inappropriate additions are excluded.

The goal is clear: improve the look and feel of downtown. But the source of funding tells a more complicated story.

How TIF Funding Shifts the Burden

The Façade Improvement Program is funded entirely through Freeport’s Downtown TIF District.

Under a TIF structure, property tax revenue within the district is effectively “frozen” at a base level. As property values increase, the additional tax revenue—the “increment”—is diverted into a special fund controlled by the city rather than distributed to traditional taxing bodies.

In practical terms, that means:

• Local schools do not receive increased funding from rising property values within the district

• Other taxing bodies, including parks and the county, do not share in that growth

• The broader community must often absorb the gap through higher taxes or constrained services

TIF dollars are still taxpayer dollars. They are simply redirected—away from general public use and into targeted projects within a defined area.

Nine Applicants, Different Stakes

This year, nine properties have applied for funding:

• 232 E Stephenson St.

• 2 W Spring St.

• 106 W Exchange St.

• 13 E Stephenson St.

• 22 Exchange St.

• 2–6 E Stephenson St.

• 1 W Main St.

• 27 S State Ave

• 19–21 S Chicago Ave

Participation is strong. But the ownership behind these properties reveals key distinctions that could shape how the public views the outcome.

A Tax-Exempt Applicant Seeking Public Funds

One application stands apart:

106 W. Exchange Street — owned by the The Salvation Army

As a tax-exempt entity, this property does not contribute property tax revenue to the city, local schools, or the TIF fund itself. Yet it is now positioned to potentially receive funding generated from those very sources.

That raises a straightforward policy question:
Should entities that do not contribute to the tax base be eligible to receive TIF-funded incentives?

Out-of-Town Ownership, Local Investment

Three of the nine properties are owned by individuals or entities based outside Freeport:

• 2 W Spring St. — owned by a Rockford, Illinois resident

• 2–6 E Stephenson St. — owned by DelunaGroup LLC (St. Charles, Illinois)

• 19–21 S Chicago Ave — owned by Generations Boutique LLC (Scottsdale, Arizona)

While outside investment is not uncommon in commercial real estate, the use of locally derived public funds to improve properties owned by non-residents introduces another layer of debate—particularly when long-term financial returns may leave the community.

Multiple Applications from a Familiar Name

Former State Senator Brian Stewart has submitted two separate applications:

• 1 W Main St. (Deininger Floral Shop)

• 27 S State Ave (27 State Centre LLC)

With a maximum award of $15,000 per project and a total program budget of $30,000, it is possible for a single applicant to receive a substantial share—or even the entirety—of available funds if both projects are approved.

That reality places added importance on transparency in how awards are evaluated and distributed.

What Comes Next

The Historic Preservation Committee will review applications today, with recommendations expected to move to the City Council for final approval on May 4, 2026.

Approved projects must be completed by November 27, 2026, with funds reimbursed only after inspection and documentation requirements are satisfied.

The Question That Matters

Programs like the Façade Improvement Grant can play a role in revitalizing downtown spaces. Restored buildings can improve perception, support local business activity, and preserve architectural character.

But the structure of TIF funding ensures that these improvements are not without trade-offs.

At the end of the day, this is not just about bricks, paint, and storefronts.

It’s about who pays—and who benefits.

Because while Freeport residents continue to fund schools, roads, and essential services, the city is once again preparing to distribute public dollars—some to entities that do not pay into the system at all, and others who do not even reside in the community.

And as today’s review gets underway, one question will quietly hang over the process:

Was this money up for debate… or was it already spoken for?