DELAVAN — Chad Endres, co-owner of AO’s Ice Cream Parlor, is urging Delavan residents and city leaders to view Tax Increment Financing (TIF) as a critical tool for attracting new businesses and reversing economic decline in the community.

In a letter submitted to the Delavan Dispatch, Endres argued that TIF districts are specifically designed to encourage redevelopment in struggling areas by reinvesting increases in property tax revenue into projects that spur business growth. He noted that state requirements for establishing a TIF district include demonstrating that redevelopment would not occur without financial assistance.

Endres described Delavan as a welcoming, family-oriented community with many positive qualities, but said the city faces ongoing challenges, including vacant storefronts and deteriorating buildings along Locust Street. He noted that longtime residents often speak nostalgically about a period when Locust Street was filled with thriving shops and restaurants.

Since moving to Delavan six years ago, Endres said he has attended community meetings where residents and officials debated the causes of the city’s economic struggles. During that time, he said he has watched multiple businesses open and close on Locust Street.

According to Endres, attracting and sustaining businesses in smaller communities is particularly challenging due to declining populations and a limited customer base. He believes Delavan must offer stronger incentives than larger communities in order to encourage entrepreneurs to invest locally.

Endres also sought to shed light on the financial realities of opening a small business. He said AO’s Ice Cream Parlor was launched using his family’s savings, loans from relatives and personal borrowing. He added that the business, which opened in February, has faced significant startup costs and that Jovon, his wife and AO’s co-owner, has not yet received a paycheck because revenues continue to be reinvested in operating expenses.

“The vision behind AO’s Ice Cream was to improve the community where our family lives,” Endres wrote.

A central theme of Endres’ letter was concern over how TIF funds are being used. He argued that the program was established by previous city leaders primarily as a tool to attract business development and that directing those funds toward business incentives would provide a long-term return through future property and sales tax revenue.

Endres warned that if Delavan fails to attract additional businesses before the TIF district expires, local taxpayers could eventually face higher costs to maintain roads, sewers, parks and other public infrastructure due to a lack of commercial tax revenue.

He also questioned whether some city officials are doing enough to support entrepreneurs and encouraged residents to discuss economic development policies with their elected aldermen.

“The city needs businesses to survive and pay bills,” Endres wrote, contending that local government should prioritize creating an environment that encourages business investment and long-term economic growth.

Endres concluded by emphasizing the importance of small businesses to Delavan’s future and calling on city leaders to focus on policies that attract new commercial development to the community.

Endres’ concerns were echoed by a number of local business owners interviewed by the Delavan Dispatch. Business owners both with and without TIF assistance expressed similar frustrations with local government and argued that Delavan’s long-term success depends on attracting more businesses, investment and foot traffic to the downtown district. Several said economic development efforts should focus on creating an environment that encourages new businesses to open and helps existing businesses remain viable.

While opinions differ on the role of TIF funding, many business owners agreed that expanding the downtown business base and drawing more residents and visitors to the area are essential to strengthening Delavan’s tax base and supporting future community growth.

The Delavan Dispatch welcomes input from local business owners on the challenges and opportunities facing Delavan’s business community. We want to hear your perspective. What policies or initiatives would help existing businesses grow and encourage new businesses? Contact the Dispatch to share your story.