My city has a program where my business receives  money (3 annual
installments) just for opening a business in an area they are trying
to revitalize. My problem is "How do I account for these funds, in my
books, that I receive?" Is the money I get from the city government
"other income"?
 I just don't know how to make the proper journal entry for this transaction.

The rent payment is made to a non government owner just to clarify
that. The money I receive from the city government is based on my
square footage of my store and is paid at $2 a square foot and paid
over a 3 year period.

My guess is other income is OK on a schedule C. IRS does not seem
overly fussy as long as you show it somewhere. There is a slight
possibility it is not taxable, so you should ask the agency that sends
you this money.  Neil