El Jimador Mexican Restaurant awarded $124K from DeKalb council for O'Leary's remodel

DeKALB - After more than a month of deliberation, local developers landed $124,100 in tax increment finance money to turn the former O'Leary's building downtown into a Mexican Restaurant, after the DeKalb City Council approved the request Monday.

"Normally I'm anti TIF on everything but I commend city staff for working hard on getting that number down," McAdams said, who, like Ward 2 Alderman Bill Finucane and Mayor Jerry Smith, wore a mask during Monday's meeting. "It’s a rare turn of events because it's an extraordinary time and I really do appreciate businesses who are willing to come forward in this extraordinarily challenging environment."

Ward 1 Alderman Carolyn Morris, Ward 3 Alderman Tracy Smith and City Clerk Lynn Fazekas participated remotely during Monday's meeting, and the remainder of council and staff sat at least six feet apart. The request, which will fund 100% of the remodel costs but zero of the acquisition costs to turn 260 E. Lincoln Highway, the former O'Leary's into El Jimador Mexican Grill, was approved by a 7-1 vote, with Ward 4 Alderman Greg Perkins the only dissenting voice in the room. Perkins said he felt funding 100% of remodel costs set a 'dangerous precedent' for future TIF requests, and said he didn't think the property met the 'blighted' criteria of the TIF Act.

The developers plan to purchase the building for $560,000, making the TIF request 18% of total project costs if acquisition is factored into total cost.

Perkins said he supported the endeavor but was uncomfortable with the percentage amount attached to the city's contribution.

"I think it sets a dangerous precedent when we’re underwriting 100% of the remodeling costs for anything," Perkins said. "That sets a dangerous precedent for everyone else coming down the road. I get that it’s a trying time, there's a lot going on, but philosophically I have a lot of reservations."

Ward 7 Alderman Tony Faivre said he applauded the developers, Tom Weaver of Sycamore-based Weaver Construction Inc. and Ryan Gifford of First National Bank, for continuing to pursue the venture given the rapidly changing economic reality that local restaurants are facing now amid the coronavirus pandemic.

"Looking at this dollar-wise this is a lot smaller than several projects we’ve done in downtown DeKalb, even renovations to existing buildings across the street," Faivre said. "I was speaking with the owner on the phone and was thinking, 'Boy, I'm glad I didn’t decide to open a business three months ago because these are very uncertain times. In this climate, I feel pretty comfortable making the investment."

Faivre said all future TIF requests should be considered individually and not based upon percentages, since projects costs vary based on the scope of the work.

"As long as I'm on the council, I won't just be writing blank checks," he said. "I'm going to weight the return on investment, does it fit the community."

Morris said the COVID-19 pandemic and its ensuing economic uncertainty made her question whether more opportunities would be forthcoming.

"I think we can't afford to not do this," Morris said. "I think that because of the uncertainty of these times, we won't see another investor come along. And I think it's really imperative at this time that we support this project."