DDA implements retail subsidy program

The City of Cheboygan Downtown Development Authority recently announced the creation of a retail subsidy program for new businesses. The intent of this program is to fill existing vacancies within the DDA District by providing incentives for new retail and restaurant businesses wishing to start up or relocate into the downtown area.

The purpose of this two-year program is to assist a new business by offering a reduced rent for the commercial property in the downtown area. This program is contingent on the landlord reducing the rent by 50%. The DDA would pick up the cost of 25% of the rent (up to $125 per month) and the new business owner would pay the remaining 25%. This agreement would be in place for the first year. During the second year of the agreement, the DDA and the landlord’s commitment will lower on a quarterly basis and the new business will be increasing their monthly rent. By the end of the two years, the new business will be paying the full rent. Offering a new business a reduced rent during their crucial first two years assists the business by giving them the freedom to focus on strengthening their business and not strap them down with a full rent payment.

For a new business to qualify for this program, they must provide a business plan for the DDA Economic Committee to review. Educating yourself about starting a new business is the key to successful business planning. Free and confidential business counseling is available from the Michigan Small Business & Technology Development Center (MI-sbTdc) certified business counselors. The Northern Lakes Economic Alliance offers informative and relevant business workshops targeted for small businesses. These workshops are coordinated in conjunction with local chambers of commerce. To schedule a business counseling appointment or to learn more about the business workshops, simply call the Cheboygan Area Chamber of Commerce – 627-7183.

The NLEA recently opened a Business Resource Center in the Cheboygan Public Libarary. The Business Resource Center offers a wide variety of print and electronic guides and reference materials covering many relevant business topics, as well as suggested federal, state and local websites to assist with business formation and business planning. The NLEA is able to offer this valuable resource as a result of a partnership effort with local libraries, chambers of commerce, Michigan Small Business & Technology Development Center (MI-sbTdc), and Northwest Michigan Works, among others.

There are benefits to both the landlord and the new business who wish to participate in the retail subsidy program. It benefits the landlord by filling a vacant storefront with a viable business. Perhaps after the two-year period, the new business will be ready to purchase the building from the landlord. The new business benefits from this program in that they will have a lower rent payment, but also that business will have a solid team of mentors from the DDA Economic Committee that will support and guide the new business.

For more information on this program, please contact the Downtown Enhancement Administrator’s office at City Hall – (231) 627-9931 or kguenther@cheboygan.org.

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