Two businesses coming to downtown Elgin are likely to receive incentives from the city.

The City Council gave final approval Feb. 8 for a $21,000 incentive for A&R Global Logistics, which already has a location on Davis Road in Elgin. With the incentive, the company plans to move its office to a downtown location in the Leath Building, 166 E. Chicago St. — which has remained mostly vacant for years.

Officials also gave initial approval to an agreement with THKFL, Inc. — a real estate company that will purchase 216 Prairie St. and turn it into a multi-tenant office for small, start-up businesses in digital media and other creative studios.

That agreement will provide THKFL with $37,489 annually for five years. Before it goes into effect, the council must again offer approval at its next meeting on Feb. 22. As part of the deal, the city reimburses the business for the interest it pays on a commercial loan.

But, councilman John Prigge called the deal a “thinly-veiled business incentive” before he voted against the plan. He was the lone council member to do so. However, he went on to say he might change his mind and vote yes later this month because “there are some good things to this too.”

“It’s a lot cheaper than some of the other incentive packages we’ve seen,” he said.

Councilman John Steffen disagreed with Prigge’s assessment of the deal.

“We’re trying to bring back and revitalize our downtown,” he said. “This application follows the rules that we as a council have put in place.”

Tonya Hudson, executive director the Downtown Neighborhood Association said without the incentive, the 10 small businesses would not be able to open in that building. The businesses also fit into the association’s plan for more technology in the downtown, she added.

Prigge also was the lone vote against the A&R agreement, which is expected to create 15 new jobs by September, according to officials. He said he’s against paying a business to simply move to another location in the city.