The Dillon Town Council approved supplemental appropriations to the town’s 2026 budget May 19, including one providing funding for a business incentive program.

A memo from interim finance director Heather Pezzella stated $45,000 will be budgeted from the general fund for a targeted lease activation and vacancy reduction program. Pezzella said the program could not be funded with money from the Dillon Urban Renewal Authority as originally intended, but town staff is working on other programs for tenant improvement grants that would use authority funds.

The council discussed business incentive programs at an April 14 work session. Council members showed support for four programs proposed by town staff, which included facade or storefront improvement, vacancy activation, tenant improvement and relocation assistance.

The targeted lease activation and vacancy reduction program would look to fill empty commercial space within Dillon’s town core, or the area within and around La Bonte Street, Buffalo Street and Lake Dillon Drive, according to a town memo from April 14. The memo stated the town would issue grants ranging from $3,000 to $12,000 to help fill vacant spaces. At the April 14 meeting, then-town manager Nathan Johnson said the town core had around 20 open business spaces.

Other supplemental appropriations approved by the council included $195,000 for new lights at the Dillon Amphitheater, $16,000 for concerts at the marina tiki bar and a $61,000 transfer from the parking fund to the general fund to cover the costs of the tiki bar concerts and business incentive program.

Pezzella said the $61,000 from the parking fund is “essentially” its projected revenue for 2026, meaning its fund balance will not grow this year.