AUTHORITY: Implementing Section 8a of the Illinois Promotion Act [20 ILCS 665/8a] and Section 8.25 of the State Finance Act [30 ILCS 105/8.25] and authorized by Section 9 of the Illinois Promotion Act [20 ILCS 665/9].

SOURCE: Filed December 30, 1977; codified at 6 Ill. Reg. 15011; emergency amendment at 14 Ill. Reg. 13298, effective August 6, 1990, for a maximum of 150 days; emergency expired January 3, 1991; amended at 15 Ill. Reg. 2673, effective February 1, 1991; amended at 15 Ill. Reg. 8848, effective June 10, 1991; emergency amendment at 17 Ill. Reg. 22096, effective December 13, 1993, for a maximum of 150 days; amended at 18 Ill. Reg. 5813, effective April 1, 1994; amended at 18 Ill. Reg. 8387, effective May 23, 1994; amended at 20 Ill. Reg. 5064, effective March 11, 1996; amended at 22 Ill. Reg. 10394, effective June 1, 1998; emergency amendment at 24 Ill. Reg. 6718, effective April 17, 2000, for a maximum of 150 days; emergency expired September 13, 2000; amended at 24 Ill. Reg. 15044, effective September 27, 2000; emergency amendment at 24 Ill. Reg. 18834, effective December 8, 2000, for a maximum of 150 days; emergency expired May 6, 2001; old Part repealed and new Part adopted at 25 Ill. Reg. 8993, effective July 1, 2001; amended at 32 Ill. Reg. 13443, effective July 29, 2008; amended at 35 Ill. Reg. 18608, effective October 28, 2011; amended at 40 Ill. Reg. 10844, effective July 29, 2016; emergency amendment at 46 Ill. Reg. 1895, effective January 14, 2022, for a maximum of 150 days; emergency rule expired June 12, 2022; amended at 46 Ill. Reg. 11991, effective July 1, 2022.

SUBPART A: GENERAL PROGRAM PROVISIONS

 

Section 510.10  Authority

 

The Illinois Department of Commerce and Economic Opportunity, having been created pursuant to Executive Order No. 3 (effective 1979), has been empowered to administer the Illinois Promotion Act [20 ILCS 665].

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.20  Definitions

 

The following definitions are applicable to this Part:

 

"Act":  means the Illinois Promotion Act [20 ILCS 665].

 

"Applicant":  means an organization, unit of local government or other eligible entity, as defined in Section 510.110, 510.210, 510.310 or 510.410, submitting a written request for Program funds appropriated under the Act.

 

"Application":  means a written request for grant funds containing the required information and attachments.

 

"Convention Center Authority": means an Authority, as defined by the Civic Center Code [70 ILCS 200/2-5], that operates a municipal convention center with contiguous exhibition space ranging between 30,000 and 125,000 square feet. [20 ILCS 665/3(h)]

 

"Department":  means the Department of Commerce and Economic Opportunity of the State of Illinois [20 ILCS 665/3(a)].

 

"Director":  means the Director of the Department of Commerce and Economic Opportunity.

 

"Economic Impact":  means the direct financial result of visitor spending at a tourism destination, attraction or event.

 

"Eligible Project":  means a project that is eligible for funding as defined in Sections 510.120, 510.220, and 510.320.

 

"Festival": means an organized series of public activities for a specific duration that may include, but are not limited to, cultural performances, exhibitions, fairs, or carnivals that may include music and the service of food and beverages.

 

"Fiscal Year":  means July 1 through June 30, the Fiscal Year of the State of Illinois.

 

"Grant Agreement":  means a written document executed between the Grantee and the Department setting forth the obligations of the Parties, describing the purpose of the grant, identifying the manner in which Grant Funds will be paid and expended, specifying the grant terms during which Grant Funds may be expended, and requiring unspent Grant Funds to be returned to the State.

 

"Grant Amount" or "Grant Funds":  means a monetary amount that the Department shall award to a Grantee for its expenditure on an Eligible Project.

 

"Grantee":  means an organization, unit of local government or other eligible entity, as defined in Section 510.110, 510.210 or 510.310, eligible to receive Program funds appropriated under the Act.

 

"Incentive": means:

 

an incentive provided by a municipal convention center or convention center authority for a convention, meeting, or trade show held at a municipal convention center that, but for the incentive, would not have occurred in the State or been retained in the State; or

 

an incentive provided by a unit of local government for a sporting event held at a municipal amateur sports facility that, but for the incentive, would not have occurred in the State or been retained in the State. [20 ILCS 665/3(i)]

 

"Ineligible Project":  means a project that is ineligible for funding as defined in Sections 510.120, 510.220 and 510.320.

 

"In Kind Contribution":  means noncash contributions necessary to complete the Project for which the cash value is easily documented (i.e., donated labor, equipment, supplies and materials), and that are eligible grant and match line-item expenditures identified in the budget of the Grant Agreement.

 

"Local Promotion Group":  means any non-profit corporation, organization, association, agency or committee thereof formed for the primary purpose of publicizing, promoting, advertising or otherwise encouraging the development of tourism in any Municipality, county or region of Illinois.  [20 ILCS 665/3(b)]

 

"Matching Funds":  means the portion of the Total Project Cost that is provided by the Grantee. Matching Funds shall not be funds from other Department funded grant programs or used to match any other grant, and are necessary and irrevocably obligated to the Project.

 

"Municipal Amateur Sports Facility": means a sports facility that:

 

is owned by a unit of local government;

 

has contiguous indoor sports competition space;

 

is designed to principally accommodate and host amateur competitions for youths, adults, or both; and

 

is not used for professional sporting events for which participants are compensated for their participation. [20 ILCS 665/3(f)]

 

"Municipal Convention Center": means a convention center or civic center owned by a unit of local government or operated by a convention center authority, or a municipal convention hall as defined in Section 11-65-1(1) of the Illinois Municipal Code [65 ILCS 5], with contiguous exhibition space ranging between 30,000 and 125,000 square feet. [20 ILCS 665/3(g)]

 

"Municipality":  means "Municipality" as defined in Section 1-1-2(1) of the Illinois Municipal Code.  [20 ILCS 665/3(d)]

 

"Office of Tourism":  means the division of the Department that has delegated authority to perform all administrative functions relating to the Act.

 

"Private Sector":  means any non-governmental entity.

 

"Program":  means the Tourism Marketing Partnership Program, Tourism Attraction Development Loan and Grant Program, or the Tourism Private Sector Grant Program described in this Part.

 

"Project":  means the activity or program of activities, described by the Applicant in the Application and approved by the Department, for which a grant is awarded.

 

"Promotional Activities" means:

 

preparing, planning and conducting campaigns of information, advertising and publicity through such media as newspapers, radio, television, magazines, trade journals, moving and still photography, posters, outdoor signboards and personal contact within and without the State of Illinois;

 

dissemination of information, advertising, publicity, photographs and other literature and material designed to carry out the purpose of the Act; and

 

participation in and attendance at meetings and conventions concerned primarily with tourism, including travel to and from those meetings. [20 ILCS 665/3(c)]

 

"Supporting Visitor Services":  means accommodations, restaurants, shopping, and recreational and cultural activities located within a reasonable distance from the location of the Tourism Attraction, Tourism Destination or Tourism Event being promoted. 

 

"Total Project Cost":  means all necessary and reasonable costs related to the completion of the Project as identified in the budget of the Grant Agreement.

 

"Tourism":  means travel 50 miles or more one-way, or an overnight trip outside of a person's normal routine.  [20 ILCS 665/3(e)]

 

"Tourism Attraction":  means fishing and hunting areas, State parks, historical/cultural sites, areas of historic or scenic interest, museums, recreation areas, botanical gardens, theme/amusement parks, interpretive programs and other facilities or businesses that attract or serve visitors that are open to the public for a minimum of 100 days per year (if the Tourism Attraction is entirely event driven, then it shall be open for a minimum of 200 hours per year), and are marketed and promoted to visitors from more than 50 miles away.

 

"Tourism Destination":  means a city, town or other area the economy of which is dependent on revenues accruing from tourism.

 

"Tourism Event":  means an event, such as a major convention, trade show, sporting activity or festival, with potential to attract visitors from outside a 50-mile radius and to produce significantly increased Economic Impact for the State of Illinois through overnight stays.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.30  Form of Application

 

a)         All communications relating to the Application procedures defined in Section 510.40 shall be sent to the Illinois Office of Tourism of the Illinois Department of Commerce and Economic Opportunity at the address identified in the Notice of Funding Opportunity.

 

b)         An Application shall be typed or computer generated using the current approved format provided by the Department.

 

c)         An Application shall include information and supporting documents that will enable the Department to evaluate the Application based on the criteria described in Sections 510.160, 510.260 and 510.360.

 

d)         Each Application, including supporting documents and attachments, shall be contained under a single cover.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.40  Application Procedures

 

a)         Upon request, the Department shall supply interested entities with Application guidelines and instructions that describe the Program rules, required information, and attachments.  Applications under these Programs will be accepted on an ongoing basis beginning May 1, with grants awarded July 1 through the end of each Fiscal Year, or until all appropriated funds have been awarded.  Applicants should submit their Application at least 60 days prior to the Project initiation date in order to be considered for funding.  However, depending on the purpose of the grant, the need for the grant, the Economic Impact to the State, and the timeliness of the event, it is within the Department's discretion to waive this 60 day period.

 

b)         An Application will be considered delivered and submitted on the date it is postmarked or hand delivered to the Office of Tourism at the Department's Springfield address: 620 East Adams, Springfield, IL 62701; or received electronically at the email address identified in the Notice of Funding Opportunity.

 

c)         Within 30 business days after the Department receives the Application, the program manager shall notify the Applicant whether, after a brief review, the Application and attachments, if any, are complete.  This notice is not in any way an acknowledgment by the Department as to the adequacy of the substance of the Application.  If the Application and attachments are incomplete, the Applicant shall be notified of the deficiencies.  The Applicant will then have 20 business days to cure any deficiencies.  In the event the Applicant fails to cure all deficiencies within the 20 business days, the Application shall be considered null and void and returned to the Applicant.

 

d)         Within 90 days from the date an Application is determined to be complete, the program manager shall notify the Applicant whether the Application has been approved or rejected.  If the Application has been rejected, the notification shall state the reasons for that determination.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.50  Grant Agreement

 

a)         When an Application has been approved for funding, the Grantee and the Department shall execute a Grant Agreement.  If the Project is initiated and costs are incurred before the Department approves the Application, the Department bears no responsibility for those costs in the event the Application is denied or the grant is funded at less than the amount requested.

 

b)         The Grant Agreement shall contain substantive provisions, including, but not limited to, the following:

 

1)         A recitation of legal authority pursuant to which the agreement is made;

 

2)         An identification of the Project scope and schedule, and the work or services to be performed or conducted by the Grantee;

 

3)         An identification of the Grant Amount;

 

4)         The conditions and manner in which the Department shall pay the Grant Amount subject at all times to annual appropriation by the Illinois General Assembly;

 

5)         The Grantee agrees to provide and pay the applicable Matching Funds of the Total Project Cost;

 

6)         The Grantee agrees not to assign or transfer any of the rights, duties or obligations of the Grantee without the written consent of the Department;

 

7)         The Grantee agrees not to amend the Project scope or budget without the Department's written consent.  Failure to do so will result in a cost disallowance.  The Project must be completed by the end date stated in the Grant Agreement unless a written modification request for an extension of time is submitted before the grant end date and approved by the Department;

 

8)         The Grantee agrees to expend the Grant Amount and any accrued interest only for the purposes of the Project as stated in the Grant Agreement and approved by the Department;

 

9)         The Grantee agrees not to enter into any written or oral agreement or understanding with any party that might be construed as an obligation of the State of Illinois or the Department for the payment of any funds under the Act; and

 

10)        The Grantee agrees to acknowledge the Department's participation in the Project by displaying the Department's current logo and/or providing a statement that identifies the Project as being developed and/or funded in cooperation with the Department/Office of Tourism.  Grantee's failure to utilize the Department logo correctly (e.g., size, placement, etc.) or statement may result in a 10% deduction of the Total Project Cost.

 

(Source:  Amended at 35 Ill. Reg. 18608, effective October 28, 2011)

 

Section 510.60  Computation of Time

 

Computation of any period of time prescribed by this Part shall begin with the first business day following the day on which the act, event or development initiating that period of time occurs, and shall run until the end of the last day or the next business day if the last day is a Saturday, Sunday or federal or State holiday.  Timeliness shall be deemed by the date of postmark, the date of hand delivery, or the date received electronically by the designated email address.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.70  Severability (Repealed)

 

(Source:  Repealed at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.80  Administrative Requirements for Grants

 

a)         Termination of Grant – Grants shall be terminated for the following reasons:

 

1)         Termination Due to Loss of Funding – In the absence of State funding for a Fiscal Year, all grants for that year will be terminated in full.  In the event of a partial loss of State funding, the Department will make proportionate cuts to all Grantees.  In the event the Department suffers such a loss of funding in full or part, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

 

2)         Termination for Cause

 

A)        If the Department determines that the Grantee has failed to comply with the terms and conditions of the grant or this Part, the Department may terminate the grant in whole, or in part, at any time before the date of completion.  Circumstances that will result in the termination of a grant include, but are not necessarily limited to, the following:  consistent failure to submit required reports; failure to maintain required records; evidence of fraud and abuse; and consistent failure to meet performance standards.  These circumstances are explained in the Grant Agreement.

 

B)        The Department shall notify the Grantee in writing, within 10 working days after the determination to terminate, of the reasons for the termination and the effective date of the termination.  Payments made to the Grantee or recoveries by the Department shall be made in accordance with legal rights and liabilities in the Grant Agreement and the Illinois Grant Funds Recovery Act [30 ILCS 705].

 

3)         Termination by Agreement – The Department and the Grantee shall terminate the grant in whole or in part when the Department and the Grantee agree that the continuation of the Program objectives would not produce beneficial results commensurate with the future expenditure of funds.  The Department and the Grantee shall agree upon termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated.  The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible.  The Department shall allow full credit to the Grantee for the Department's share of the noncancelable obligations, properly incurred by the Grantee prior to termination.

 

b)         Interest on Grant Funds – In accordance with Section 10 of the Illinois Grant Funds Recovery Act, all interest earned on Grant Funds held by the Grantee under the grant shall become part of the grant when earned.  Any interest earned under the grant, and not expended as grant principal during the term of the grant, shall be returned to the Department under the grant close-out process described in subsection (c).

 

c)         Grant Close-out – In accordance with Section 4 of the Illinois Grant Funds Recovery Act, any Grant Funds not expended or legally obligated, including any interest, remaining at the end of the grant period or at the expiration of the period of time Grant Funds were available for expenditure or obligation by the Grantee, shall be returned to the Department within 45 days after the end of the grant term. 

 

d)         Audits – A Grantee shall be responsible for securing an audit for any grant award exceeding $500,000.  Additionally, an audit may be required when certain risk conditions exist, including, but not limited to, a negative compliance history and disclosure of previous material audit findings.  The audit shall be performed by an independent certified public accountant, licensed by authority of the State of Illinois pursuant to the Illinois Public Accounting Act [225 ILCS 450]. The audit shall be conducted in accordance with generally accepted auditing standards contained in the publication entitled AICPA Professional Standards, American Institute of Certified Public Accountants, 1211 Avenue of the Americas, New York, New York 10036 (June 2015, no later editions are incorporated).

 

e)         Special Audits – The Department reserves the right to conduct special audits, including but not limited to an agency-wide audit, at any time during normal working hours, of the funds expended under Department grants.

 

f)         Monitoring and Evaluation – Grantee shall permit any agent authorized by the Department, the Office of Inspector General, the Auditor General of the State of Illinois, or any of their duly authorized representatives, upon presentation of credentials, in accordance with the constitutional limitation on administrative searches, to have full access to and the right to examine any documents, papers and records of the Grantee involving transactions related to a grant from the Department. Once the Department has concluded its monitoring activities, the Grantee will be notified of the Department's determination and findings, if any.  If a determination containing findings of noncompliance has been made by the Department, the Grantee will be allowed an opportunity to cure any and all noncompliance issues.  If any noncompliance issues cannot be resolved, the Department will issue a final determination requesting that the Grantee repay any funds that are determined by the Department to have been spent in violation of the Grant Agreement.  If the Grantee fails to comply with the Department's final determination, the Department shall issue a final notice to the Grantee providing it the opportunity to invoke its rights under the Illinois Grant Funds Recovery Act.

 

g)         Complaint Process – An administrative hearing is initiated by a party serving a Petition for Hearing on the Department, or by the Department serving a Notice of Charges on the Grantee.  In either case, the Department and the Grantee shall follow the Administrative Hearing Rules set forth in 56 Ill. Adm. Code 2605.

 

h)         Certifications – The Grantee shall certify that it has not been barred from contracting with a unit of State or local government as a result of a violation of Sections 33E-3 and 33E-4 of the Criminal Code [720 ILCS 5].

 

i)          Reports – Grantee shall submit, as required by the Department, reports on the financial status of the Project and reports on outcomes and results of the Project.

 

(Source:  Amended at 40 Ill. Reg. 10844, effective July 29, 2016)

SUBPART B: TOURISM MARKETING PARTNERSHIP PROGRAM

 

Section 510.110  Purpose

 

Section 5 of the Act authorizes the Department to make grants to counties, municipalities, not-for-profit organizations, and Local Promotion Groups located in the State of Illinois to assist in the promotion of Tourism Attractions, Tourism Destinations, and Tourism Events in Illinois.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.120  Eligible Uses of Grant Funds

 

a)         Eligible Promotional Projects and Activities – The Program shall provide matching grants to eligible Applicants to assist in promotional activities including, but not limited to, the following:

 

1)         Travel Related Promotional Materials:  Costs related to production, design and distribution of travel related brochures, visitor guides, direct mail literature or travel guides that are primarily used to promote areas outside of 50 miles from the Tourism Attractions, Tourism Destinations or Tourism Events in Illinois;

 

2)         Media:  Costs related to production, design and placement for print advertising, radio advertising, on line advertising, out of home advertising and television advertising directed toward areas outside of 50 miles from the Tourism Attraction, Tourism Destination or Tourism Event in Illinois;

 

3)         Billboards:  Costs related to design and production of billboard artwork and rental of billboard space directed toward areas outside of 30 miles from the Tourism Attraction, Tourism Destination or Tourism Event in Illinois, unless the billboard is placed on an intrastate;

 

4)         Web Sites:  Costs related to Web site development, including hosting fees, domain registration and related maintenance fees, search engine optimization and key word searches;

 

5)         Market Research:  Costs to conduct research to optimize the effectiveness of marketing the Tourism Attraction, Tourism Destination or Tourism Event in Illinois to areas outside of 50 miles;

 

6)         Travel/Trade Shows:  Costs related to travel/trade show booth space rental and related expenses, including travel show registration fees for domestic and international marketing, utilities, furniture rental, cleaning, etc.;

 

7)         Visitor Inquiries:  Costs related to telephone expenses for toll free telephone numbers for visitor inquiries;

 

8)         Mail Promotions:  Costs of the purchase and use of mailing lists for direct mail promotions, provided the promotional material is printed under this Program and provided the postage is billed at bulk rate;

 

9)         Promotional Publications:  Expenses for shipping and distribution of promotional publications printed under this Program to State funded Tourism information centers;

 

10)       Ad Campaigns:  Costs related to email newsletters and ad mail campaigns primarily directed towards visitors outside a 50 mile radius from the Tourism Attraction, Tourism Destination or Tourism Event in Illinois; and

 

11)       Maps:  Costs related to the design and production of maps illustrating the Tourism Attractions of an area being promoted.

 

b)         Ineligible Promotional Projects and Activities – Projects and activities ineligible for funding are those that do not contribute to increasing visitation and travel expenditures in the State, including, but not limited to:

 

1)         Administrative expenses (e.g., stationery, envelopes, basic telephone service charges except for toll free number phone expenses for visitor inquiries, rent, newsletters, supplies, personnel or equipment, and grant management fees);

 

2)         Normal postage, distribution and shipping expenses, except for those allowed in subsections (a)(8) and (a)(9);

 

3)         Association or organizational dues;

 

4)         Street banners, bumper stickers, placemats, or any type of specialty items;

 

5)         Any type of quick-print materials;

 

6)         Purchase or rental of projectors, television sets, or video recorders;

 

7)         Projects solely promoting for-profit entities;

 

8)         Event production expenses (e.g., audio equipment, awards, entertainment, fireworks, portable restrooms, hired labor, refreshments, etc.);

 

9)         Travel expenses (transportation, lodging, per diem); and

             

10)         Promotion of county fairs.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.130  Allocation of Appropriations

 

Annual appropriations made by the Illinois General Assembly to the Department for the purpose of making grants under Section 5 of the Act for promotional activities are allocated by the Department pursuant to Section 8(1) of the Act.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.140  Funding Limitation

 

The Total Project Cost must equal or exceed $20,000 in order to be considered for a grant award.

 

           

a)         Up to 50 percent of the Total Project Cost may be funded for Projects that generate significant visitation and overnight stays to the area.

 

b)         The maximum Grant Amount for any one Grantee in a Fiscal Year shall be $100,000, unless a Project is a cooperative marketing project initiated by the Department that includes multiple partners across multiple Local Tourism Convention Bureau jurisdictions.  Grantees are limited to one grant application per Fiscal Year.  However, if on February 1 of any given year, remaining Grant Funds are available, Grantees who have reached the maximum Grant Amount of $100,000 may submit an additional application for consideration.

 

c)         Grantees that charge "for-profit" participants for inclusion in promotional projects must also include the promotion of the entire destination in advertisements.  Charges for participation from any source cannot exceed the match requirement or it will lower the Department's grant award.

 

(Source:  Amended at 35 Ill. Reg. 18608, effective October 28, 2011)

 

Section 510.150  Matching Funds

 

As provided for in Section 510.140, the Grantee shall provide Matching Funds to the Total Project Cost that:

 

a)         Are identified in the budget of the Grant Agreement;

 

b)         In no case shall be less than 50 percent of the Total Project Cost;

 

c)         Are not funds from other Department funded grant programs or funds used to match any other grants; and

 

d)         Are necessary and irrevocably obligated to the Project.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.160  Evaluation and Selection Process

 

a)         The Department's internal review committee shall conduct an evaluation of each Application.  Each question will be scored using a rating system of 1-10 with 10 being the highest possible score per question, with a maximum possible score of 100.  The criteria used in determining whether an Application will be considered for a grant award include, but are not limited to, the following:

 

1)         To what extent does the Project promote a viable Tourism Attraction, Tourism Destination or Tourism Event located within 30 miles of an area with Supporting Visitor Services?

 

2)         To what extent is the Project part of the Applicant's overall marketing plan?

 

3)         To what extent does the Project include repeat marketing efforts and to what extent do the results from those efforts justify repeat funding?

 

4)         To what extent do the geographic advertising markets appear reasonable and based upon research?

 

5)         To what extent will a majority of the marketing be targeted to attract visitors from outside 50 miles?

 

6)         To what extent does the Project encompass multiple attractions, municipalities, or counties?

 

7)         To what extent does the Project demonstrate how it will increase visitation, length of stay and/or Tourism expenditures from outside 50 miles?

 

8)         To what extent does the Project include tracking and evaluation measures?

 

9)         To what extent will the Project have a significant impact on the area's overall tourism efforts?

 

10)        To what extent will the Project have a significant impact on the State's overall tourism efforts?

 

b)         The scores of the Department's internal review committee are averaged to obtain the Application's total score.  An Application must receive a minimum of 60 of 100 possible points to be considered eligible for funding.  The internal review committee shall forward all eligible Applications, together with its recommendations, to the Director for final determination.  During the final review process, the Director will determine whether an eligible Application is awarded a grant.

 

(Source:  Amended at 35 Ill. Reg. 18608, effective October 28, 2011)

SUBPART C: TOURISM ATTRACTION DEVELOPMENT GRANT AND LOAN PROGRAM

 

Section 510.210  Purpose

 

Section 8a of the Act authorizes the Department to make grants and loans to counties, municipalities, not-for-profit organizations, local promotion groups, and for-profit businesses for the development or improvement of tourism attractions in Illinois.

 

Section 510.220  Eligible Uses of Grant and Loan Funds

 

a)         Eligible Projects and Activities – The Program shall provide grants and loans to eligible Applicants for Projects and activities including, but not limited to, the following:

 

1)         Capital Projects – land and building acquisition, construction and renovation of buildings for the purpose of creating or enhancing a Tourism Attraction;

 

2)         Equipment – purchase and installation of machinery and equipment designed to create or enhance the Tourism Attraction, or rental of equipment for a Festival;

 

3)         Training – development and presentation of hospitality, quality service and/or other types of tourism training programs intended to provide a competitive workforce for the tourism industry of Illinois;

 

4)         Interpretive Programs – creation, implementation and staffing of, and fabrication of exhibits for, interpretive programs located within historic/cultural sites.

 

b)         Ineligible Projects and Activities – Projects and activities ineligible for funding include, but are not limited to, the following:

 

1)         Debt refinancing;

 

2)         Contingency funding;

 

3)         Normal operating expenses; and

 

4)         Administrative expenses except administrative expenses to hire temporary staff for Festivals; and

 

5)         Purchase of alcoholic beverages.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.230  Allocation of Appropriations

 

Annual appropriations made by the General Assembly to the Department for the purpose of making loans and grants under Section 8a of the Act may be used by the Department in any county in the State.

 

Section 510.240  Funding Limitation

 

a)         For grants awarded under Section 8a(1) of the Act, the Department shall provide no more than 50 percent of the entire amount of actual expenditures for a single Project, with grants not to exceed $1,000,000.

 

b)         For grants awarded under Section 8a(2) of the Act, the Department shall provide no more than 75 percent of the entire amount of actual expenditures for a single Project, with grants not to exceed $1,000,000.

 

c)         For grants awarded under Section 8a(1) and 8a(2) of the Act to for profit businesses, the Department shall provide no more than 25 percent of the entire amount of actual expenditures for a single Project, with grants not to exceed $1,000,000.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.250  Matching Funds

 

a)         The Grantee shall provide Matching Funds to the Total Project Cost that:

 

1)         Are identified in the budget of the Grant Agreement;

 

2)         Conform to the requirements of Section 510.240 for match amount;

 

3)         Are not funds from other Department funded grant programs or funds used to match any other grants; and

 

4)         Are necessary and irrevocably obligated to the Project.

 

b)         Allowable match includes:

 

1)         Term loan proceeds, bond sale proceeds, or other forms of financial institution participation;

 

2)         Other public grant or loan program funds;

 

3)         Retained earnings, proceeds of a public stock offering, or other cash equity, excluding pre-project officer notes payable, off-balance sheet debt financing and goodwill;

 

4)         Local hotel/motel tax, membership dues, or other cash contributions; and

 

5)         In Kind Contributions necessary to complete the Project and for which the cash value is easily documented (i.e., donated labor, equipment, supplies and materials), and that are eligible grant and match line-item expenditures identified in the budget of the Grant Agreement.  In Kind Contributions may only be used as allowable match by municipalities, counties, not-for-profit organizations, or Local Promotion Group and cannot exceed 25 percent of the match requirement.

 

c)         Unallowable match includes:

 

1)         Costs incurred or funds expended prior to the date of the grant or loan award, unless those costs are approved by the Department as being otherwise compliant with the provisions of this Part and consistent with the purposes of the Act;

 

2)         Funds from other Department funded grant programs (although they may be used to further the Project);

 

3)         Existing equipment, buildings, furnishings, or inventory, already owned;

 

4)         Lines of credit;

 

5)         Contract for deed without a due and payable clause or that is an apparent substitution for simple rent;

 

6)         Post-Project costs such as normal operational expenses;

 

7)         Debt refinancing; and

 

8)         In Kind Contributions, if the Grantee is a for-profit business.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.260  Evaluation and Selection Process

 

a)         The Department's internal review committee shall conduct an evaluation of each Application, with a maximum cumulative score of 100.  The criteria used in determining whether an Application will be considered for a grant award include, but are not limited to, the questions listed on the Notice of Funding Opportunity and the following:

 

1)         Description of activities proposed to be undertaken during the grant period;

 

2)         Budget requesting grant funds for eligible costs including justification for costs requested; and

 

3)         The impact of the Project on the local economy.

 

b)         The scores of the Department's internal review committee are averaged to obtain the Application's total score.  An Application must receive a minimum of 60 out of 100 possible points to be considered eligible for funding.  The internal review committee shall forward all eligible Applications, together with its recommendations, to the Director for final determination.  During the final review process, the Director will determine whether an eligible Application is awarded a grant.

 

c)         Financial Evaluation Component − The Department shall conduct a financial analysis of the loan Application submitted by for-profit companies.  The Department shall review the company's financial statements, including the annual balance sheets and profit and loss statements for the past 3 years, as well as the most recent 90 days, and a 3 year projected balance sheet and profit and loss statement, and a one year monthly cash flow statement.  A comprehensive business plan or company annual reports may be submitted in lieu of the aforementioned material.  This shall be reviewed through a standard credit analysis that will determine the:  liquidity and debt coverage for the Project; ability of the company to manage debt; business trends; and projected earnings.  This data will be compared to similar data for companies in the same industry using the 1999-2000 (no later amendments or editions included) "RMA Annual Statement Studies", published by Risk Management Association, One Liberty Plaza, 1650 Market, Suite 2300, Philadelphia PA 19103, or a comparable source if the industry is evaluated by this source or a comparable source.  This standard credit analysis will determine the financial stability of the company and need for funding.

 

(Source:  Amended at 46 Ill. Reg. 11991, effective July 1, 2022)

 

Section 510.270  Administrative Requirements for Loans

 

a)         Loan Terms – The Department shall negotiate the loan terms and amortization schedule.  All payments shall be applied first to interest and then to principal.

 

b)         Default – Upon default, the entire principal of the loan, and any interest accrued thereon, shall become immediately due and payable upon the written demand of the Department, without any other notice or demand of any kind or any presentiment of protest, when one of the following events occurs.  However, if the Borrower's payments have been deferred, the Borrower shall remit payments in accordance with the deferred payment plan.  The Department may grant payment deferrals on a case by case basis after reviewing the Borrower's financial statements and projections in determining whether the Borrower will be able to make payments at a future date.

 

1)         Failure to Remit Payments – The Borrower shall be considered to have breached the loan agreement when a scheduled payment is not timely remitted and remains unpaid for 15 days from the due date.

 

2)         Inaccurate Representation – The Borrower shall be considered to have breached the loan agreement if it furnishes any inaccurate information, whether expressed or implied, to the Department in connection with the execution and/or delivering of the loan agreement.

 

3)         Breach of Terms – If the Borrower fails to perform or comply with any of its obligations or duties under the terms of the loan agreement and if that nonperformance is not cured within 30 days after notice to the Borrower, the Borrower shall be held in default after either:

 

A)        the nonperformance becomes known to an executive officer of the Borrower; or

 

B)        written notice is given to the Borrower by the Department.

 

c)         Notice of Default – The Department shall give the Borrower written notice of any breach specified in this Section.  In the event the Borrower fails to cure the breach within 30 days after the notice, the Borrower shall be held in default.

 

d)         Maintenance and Insurance of Property

 

1)         The Borrower shall at all times maintain the property provided as security for the loan in such condition and repair that the Department's security will be adequately protected.

 

2)         The Borrower shall maintain, during the term of the loan, adequate (at least covering the amount of the loan) hazard (e.g., tornado, hail, acts of God) insurance policies providing fire and extended coverage for all such other hazards. Insurance coverage shall be issued by an insurance company authorized to do business in the State of Illinois, with loss payee clauses in favor of the Department.

 

3)         If at any time during the life of the loan, the Borrower's property is declared to be within a flood hazard area, the Borrower shall purchase federal flood insurance, if available.  The flood insurance shall be equal to the amount of the loan.

 

4)         The Borrower shall maintain liability and worker's compensation insurance.

 

5)         The Borrower shall provide written notice to the Department of any public hearing or meeting before any administrative or other public agency that may, in any manner, affect the chattel, personal property or real estate securing the loan.

SUBPART D: TOURISM PRIVATE SECTOR GRANT PROGRAM

 

Section 510.310  Purpose

 

Section 5(b) of the Act authorizes the Department to make grants to Illinois not-for-profit organizations, for-profit entities, counties, municipalities and Local Promotion Groups to match funds from sources in the Private Sector for the purpose of attracting and hosting Tourism Events.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.320  Eligible Uses of Grant Funds

 

a)         Eligible Projects and Activities – Activities eligible for funding include, but are not limited to, the following costs associated with attracting and hosting events:

 

1)         Advertising and marketing activities directed toward areas outside of 50 miles from the event;

 

2)         Transportation and housing;

 

3)         Prize/award money;

 

4)         Building or equipment rental;

 

5)         Receptions and banquets;

 

6)         Registrations;

 

7)         Entertainment and speakers;

 

8)         Programming;

 

9)         Photography, postage and printing;

 

10)         Audiovisual;

 

11)         Telemarketing;

 

12)         Promotional items; and

 

13)         Temporary staff.

 

b)         Ineligible Projects and Activities – Activities that are ineligible for funding include, but are not limited to, the following:

 

1)         Developing or making permanent improvements to facilities;

 

2)         Purchase of equipment;

 

3)         Normal payroll or operating expenses; and

 

4)         Purchase of alcoholic beverages.

 

c)         Grant Funds cannot be used to assist one community in attracting an existing Illinois event from another Illinois community.  If multiple eligible Illinois entities apply for a grant associated with attracting the same event, no entity will receive Grant Funds for the attraction of that event.  If an Illinois entity is successful in its bid and gets the event, Grant Funds may be available to that entity for the hosting of the event.

 

d)        Costs associated with hosting existing or repeat events will not be eligible unless documentation can be provided that the event was secured in direct competition with other states or significant enhancements will be made to the event to increase the attendance from travel outside 50 miles.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.330  Allocation of Appropriations

 

Annual appropriations made by the Illinois General Assembly to the Department for the purpose of making grants under Section 5 of the Act to match funds from the Private Sector may be used by the Department in any county of this State.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.340  Funding Limitation

 

The Department shall provide no more than 50 percent of the entire amount of eligible expenditures for a single Project.  Total Project Costs must be a minimum of $20,000.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.350  Matching Funds

 

a)         The Grantee shall provide Matching Funds to the Total Project Cost that:

 

1)         Are identified in the budget of the Grant Agreement;

 

2)         In no case shall be less than an amount equal to the grant award;

 

3)         Are not other government funds or funds used to match any other grants; and

 

4)         Are necessary and irrevocably obligated to the Project.

 

b)         Allowable Match

 

1)         Private Sector funds − Grant funds must be matched with dollar-for-dollar cash funding from the Private Sector.

 

2)         Up to 25 percent of the amount required in subsection (b)(1) may be substituted with In Kind Contributions from the Private Sector for which the value is easily documented, such as hotel services and transportation company services.

 

c)         Unallowable match includes:

 

1)         Costs incurred or funds expended prior to the date of the grant award, unless those costs are approved by the Department as being otherwise compliant with the provisions of this Part and consistent with the purposes of the Act;

 

2)         Post-Project costs not identified in the budget of the Grant Agreement;

 

3)         Funds from sources other than the Private Sector (although they may be used to further the Project);

 

4)         Funds used as match for other grant programs; and

 

5)         Normal operational expenses such as payroll costs, office and equipment rental, utilities, etc.

 

(Source:  Amended at 32 Ill. Reg. 13443, effective July 29, 2008)

 

Section 510.360  Evaluation and Selection Process

 

a)         The Department's internal review committee shall conduct an evaluation of each Application.  Each question will be scored using a rating system of 1-10 with 10 being the highest possible score per question, with a maximum possible score of 100.  The criteria used in determining whether an Application will be considered for a grant award includes, but is not limited to, the following:

 

1)         To what extent is the event being held within 30 miles of an area with Supporting Visitor Services?

 

2)         To what extent are the costs itemized on the budget reasonable and necessary to hold the event?

 

3)         To what extent will the event be marketed to visitors from areas outside 50 miles of the event?

 

4)         To what extent will the event attract visitors from outside a 50-mile radius?

 

5)         To what extent will the event generate media coverage outside the local area?

 

6)         To what extent will the event increase visitation, length of stay and/or Tourism expenditures from outside 50 miles?

 

7)         To what extent are there established tracking and evaluation measures for the event?

 

8)         To what extent will State and local tax revenue will be generated (assuming 6.9 cents in State and local taxes generated for every $1 in visitor expenditures) in comparison to the amount requested?

 

9)         To what extent will the event have a significant impact on the area's overall tourism efforts?

 

10)         To what extent will the event have a significant impact on the State's overall tourism efforts?

 

b)         The scores of the Department's internal review committee are averaged to obtain the Application's total score.  An Application must receive a minimum of 60 out of 100 possible points to be considered eligible for funding.  The internal review committee shall forward all eligible Applications, together with its recommendations, to the Director for final determination.  During the final review process, the Director will determine whether an eligible Application is awarded a grant.

 

(Source:  Amended at 35 Ill. Reg. 18608, effective October 28, 2011)

SUBPART E: MUNICIPAL CONVENTION CENTER AND SPORTS FACILITY INCENTIVE GRANT PROGRAM

 

Section 510.410  Purpose

 

Section 8b of the Act authorizes the Department, until July 1, 2020, to make grants to a unit of local government, municipal convention center, or convention center authority that provides incentives for the purpose of attracting conventions, meetings and trade shows to municipal convention centers and attracting sporting events to municipal amateur sports facilities.  

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)

 

Section 510.420  Eligible Applicant

 

a)         Eligible Projects and Activities – The Municipal Convention Center and Sports Facility Incentive Grant Program shall provide grants to a unit of local government, municipal convention center, or convention center authority for Projects and activities including, but not limited to, publicizing, promoting, advertising or otherwise attracting:

 

1)         conventions, meetings and trade shows to municipal convention centers; or

 

2)         sporting events to municipal amateur sports facilities.

 

b)         Grants awarded under Section 8b of the Act shall be based upon the net proceeds received under the Hotel Operators' Occupation Tax Act [35 ILCS 145] for the renting, leasing or letting of hotel rooms in the municipality for the month in which the convention, meeting, trade show or sporting event occurs.

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)

 

Section 510.430  Allocation of Appropriations

 

Annual appropriations made by the General Assembly to the Department for the purpose of making grants under Section 8b of the Act may be used by the Department in any county in the State.

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)

 

Section 510.440  Funding Limitations

 

a)         The net proceeds received under the Hotel Operators' Occupation Tax Act for the same month in the three immediately preceding years must exceed the average of those three years in order to be reimbursed.

 

b)         Grants shall not exceed 80% of the incentives amount provided by the unit of local government, municipal convention center, convention center authority or municipal sports facility.

 

c)         In no event may the aggregate amount of grants awarded to a single municipal convention center, convention center authority or municipal sports facility exceed $200,000 in any calendar year.

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)

 

Section 510.450  Annual Certification

 

a)         The unit of local government, municipal convention center, convention center authority or municipal sports facility shall certify, no later than May 15 of each year through May 15, 2020, to the Department the amounts of funds expended in the previous fiscal year to provide qualified incentives; however, in no event may the amount certified exceed $200,000 for any municipal convention center, convention center authority or municipal amateur sports facility in any calendar year.

 

b)         The unit of local government, convention center, convention center authority or municipal sports facility shall certify:

 

1)         The net proceeds received under the Hotel Operators' Occupation Tax Act for the renting, leasing or letting of hotel rooms in the municipality for the month in which the convention, meeting or trade show occurs; and

 

2)         The average of the net proceeds received under the Hotel Operators' Occupation Tax Act for the renting, leasing or letting of hotel rooms in the municipality for the same month in the three immediately preceding years.

 

c)         The unit of local government, municipal convention center, convention center authority or municipal sports facility shall include the incentive amounts as part of its regular audit identified in subsection (a).

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)

 

Section 510.460  Certification Supporting Documentation

 

When Grantee submits a Department approved application for reimbursement, it shall also include the supporting documentation, including the following:

 

a)         A statement, with documentation, reflecting the net proceeds received under the Hotel Operators' Occupation Tax Act for the month in which the convention, meeting or trade show occurs; and

 

b)         A statement, with documentation, comparing the average net proceeds received under the Hotel Operators' Occupation Tax Act for the same month in the three immediately preceding years; and

 

c)         A letter from the Grantee certifying that the statements, as appropriate, were reviewed and audited by the appropriate staff of the Grantee or an independent monitor or accountant and that the monitor or accountant concurs with and certifies the findings.

 

(Source:  Added at 40 Ill. Reg. 10844, effective July 29, 2016)