ALGONQUIN, IL-This quaint suburb along the Fox River northwest of Chicago will be able to offer commercial property owners in its Downtown business district low-interest loans to fix their building facades. However, some property owners fear the new Downtown business improvement district may be the precursor of eminent domain proceedings against some of them.

Sensitive to those concerns after hearing from property owners at two public hearings, the ordinance passed by trustees Tuesday night contained to reference to eminent domain. Village officials contend that while the new improvement district gives them no additional eminent domain powers, they already have some by virtue of state law.

The sole benefit of the improvement district, village officials say, is the ability to provide low-interest loans to commercial property owners, primarily along Main Street, the main north-south thoroughfare in the suburb. Community Development Director Jeffrey J. Mihelich tells GlobeSt.com the village is working with a handful of local banks on a program that would provide loans up to $50,000 at an interest rate “two to three points below prime.” The village would buy down the interest rate on the loans, which would be payable over five to 10 years, he adds.

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