It was a unanimous vote Wednesday to approve the nearly $300,000 request for the Gilmore building at 107 South 6th St.
Owner Rick Gilmore wants to restore the building and put in a coffee and art house on the first floor with market-rate apartments on upper floors.
The TIF recommendation comes as good news for those who support downtown St. Joseph.
"Our historic buildings that are downtown are essential to our culture for our community," said Rhabecca Boerkircher, president of the Downtown Partnership. "It's so important to do everything we can to save them because once they're gone, they're gone. You never get them back."
City staff said the building is currently valued at $18,000 for tax purposes. After work is complete, it's estimated that the value will increase to $400,000.
Final approval for the TIF will come from the city council.