New pizza place, entertainment venue among projects eyeing downtown DeKalb

DeKALB – DeKalb city leaders are exploring whether to extend public incentives to help revive plans for two downtown buildings, including a proposed new pizza business and an entertainment spot.

If approved by the DeKalb City Council, the proposed development agreements, which include forgivable tax increment financing (TIF) loans, would go to support improvements at the former Eduardo’s building, 206 E. Lincoln Highway, and the former McCabe’s building at 323 and 333 E. Lincoln Highway. Eduardo’s Restaurant closed in December 2019.

“The McCabe’s building and Eduardo’s, as it’s been said, [are] really key vacancies in our downtown area,” City Manager Bill Nicklas said. “They are seen by people everyday driving through.”

The applicant, Tom Cottingham on behalf of the Balli ownership group, wants to open up Iniga restaurant. The new place would feature a full bar and an open-hearth pizza oven in the former Eduardo’s building.

Cottingham has requested a $98,000 TIF loan which he said would help make the development happen, city documents show.

Nicklas said he’s excited to see potential development occurring in DeKalb.

“This is a major initiative larger than any initiative since the old city hall was a development proposal,” Nicklas said.

Some remodeling already has commenced in the former McCabe’s building in the downtown, officials said. But the applicant is waiting for members of the city’s Joint Review Board to weigh in on the request. The Board reviews the city’s TIF spending.

A previous forgivable loan was extended to the McCabe’s building in 2020, city documents show.

The Long family wants to set up an entertainment venue in the former McCabe’s building.

The petitioner wants the council’s backing of a $200,000 TIF loan to help make the development possible, city documents show.

Fifth Ward Alderman Andre Powell asked what happens if TIF loan repayment doesn’t materialize.

Nicklas said the city has been looking into how it can better protect its interests.

“The last TIF is not going to rely on the new sales tax to amortize what’s left of this,” Nicklas said. “This will rely on a sales tax. In all of our agreement that we’ve been doing now since about 2011 when we’ve been doing some harder look at these promissory notes, forgivable notes and that is that we have a claim, we have a lien on the property. So, if it doesn’t work, then they have 90 days to pay us.”

Second Ward Alderwoman Barb Larson said she’s supportive of the development ideas.

“It’s always good for any city or town to have all their storefronts full,” Larson said. “This has been empty for quite a while.”

More discussion and potential action on the two development agreements is expected at the council’s Feb. 24 meeting.