Oswego to give financial help for proposed Nash Vegas bar, restaurant

The Oswego Village Board will provide a restaurant owner with $380,000 in economic assistance so he can redevelop the space that formerly housed Oswego Brewing Company in downtown Oswego into a Nashville-inspired bar and restaurant.

At the March 18 Village Board meeting, village trustees unanimously voted to approve $340,000 in low-interest loan funding and $40,000 in grant funding from the village. The funds will help offset the escalating costs of lending and building materials in the current market, according to village officials.

“I think it is going to be a huge hit in our downtown.”

—  Oswego Village President Ryan Kauffman

Plans are for the new restaurant to open by mid-June. Yonas Lagos owns several restaurants in the area – including Silver Fox Bar & Grill in Yorkville.

He asked for economic assistance from the village as part of a $724,000 project to redevelop the space at 61 Main St. The loan will feature a 3% interest rate on the outstanding balance with a repayment term of 10 years.

The monthly payment will be approximately $3,283 per month for 120 months.

“The project would not be viable without the economic incentive,” Oswego Economic Development Director Kevin Leighty said during the meeting.

Both programs are matched based.

“For the grant program, they have to spend the funds first and then they will be reimbursed for the $40,000,” Leighty said. “So they have to first make the improvements and then we will cut them a check for $40,000.”

He said for the $340,000 low-interest loan, the village has more of a pay-as-you go approach.

“As the work is completed and they receive invoices, we will give them up to 50% of the loan funds, which they will then pay back once they open,” Leighty said.

Leighty said the whole purpose of the grant program is to build up the downtown and reinvest in properties. Oswego Brewing Company closed in September 2023 after first opening its doors in May 2018. In an announcement on its website and Facebook page, owners said the financial impact caused by the COVID-19 pandemic was the primary cause leading to the pending shutdown.

After the loan is paid off, Lagos is estimating that Nash Vegas will generate a maximum of $100,000 in annual revenue for the village, Leighty said.

Lagos plans to turn the space into a Nashville-inspired bar and restaurant called Nash Vegas Saloon that will offer food, a full bar, live music and line dancing. The project will involve major renovation work, including interior demolition, bathroom remodeling, the installation of a new kitchen, construction of a band stage and dance floor and the creation of a new bar area.

In addressing Lagos and his business partners, Oswego Village President Ryan Kauffman said he loved the concept of Nash Vegas.

“I think it is going to be a huge hit in our downtown,” Kauffman said. “It is wonderful. It is needed. I could not be more excited.”

Village Trustee Karen Novy asked about how they came up with the idea for the concept. Lagos replied that their customers voiced support for the idea.

“Country is a big hit,” Lagos replied. “We live here, we spend money here and we want to be part of Oswego.”

To prevent any noise problems, he said they will do their best to soundproof the building, including using insulation spray.

While Village Trustee Tom Guist said he was in full support of the concept, he questioned whether the restaurant should be able to apply for both a loan and a grant.

“I struggle a little bit with the fact that we’re doing both,” he said. “I would like to look at not having to use taxpayer money on a grant as opposed to a lesser rate in repayment of a loan.”

Guist suggested providing just a loan at a 1% interest rate on the outstanding balance rather than 3%. Village Administrator Dan Di Santo noted the village has provided both a grant and a loan to other businesses.

“Tap House back in 2020, when they did their renovations, we gave them a $20,000 grant and a $80,000 loan…What is being asked for in the agreement fits under the current parameters,” he said.