New Downtown Tenant Improvement Program Launches to Revitalize First-Floor Retail Spaces

The City of Sioux City and Downtown Partners are proud to announce the launch of the Downtown Tenant Improvement Program, an innovative initiative designed to provide meaningful financial support to entrepreneurs planning to open new retail stores or restaurants in available first-floor spaces in the heart of downtown.

The program helps cover build-out costs for new businesses by offering reimbursement grants after project completion. Funding is capped at the lower amount of $45,000 for retail tenants ($60,000 per restaurant tenants), $15 per square foot per retail tenant ($20 per restaurant tenant), or 50% of construction costs. Property owners must also contribute a minimum of 25% of total construction costs. The goal is to breathe new life into vacant properties, attract new businesses, and create a more walkable and vibrant downtown retail experience.

“The goal is simple: to attract new retail, restaurant, and grocery tenants in our available downtown storefronts by reducing upfront costs," said Sioux City Economic Development Specialist Clayton Bengford. "We want to bring new life to these available street-level spaces, creating more places to shop, eat, and connect downtown.”

“This is a major step in strengthening our downtown business community,” added Ragen Cote, Executive Director of Downtown Partners. “We’re excited to collaborate with the City on this initiative.”

In addition to the City’s program, Downtown Partners is offering a 50% match, up to $8,000, through their Storefront Grant Program and up to $7,000 through their Rent Relief Program to further support new and expanding businesses. Separate applications are required for each program before starting construction to ensure businesses can fully benefit from these funding opportunities.

To qualify, properties must be located within Downtown Sioux City’s Self-Supported Municipal Improvement District (SSMID), have first-floor space with direct street/sidewalk access, have been vacant for at least 24 months, and funds must be used for interior tenant improvements. Tenants must operate a sales tax-generating business, such as a restaurant, boutique, home goods store, or coffee shop.

Funding is awarded via a scored application process beginning July 1, 2025 and reviewed on a rolling, first-come, first-served basis. Construction must be completed, and the business must open within 12 months of the award date.

For more information, visit locatesiouxcity.com/tenantimprovement or call 712-279-6246.