Streator Arby’s project requests $30,000 for environmental cleanup, developer says

After a developer recently was denied a $30,000 incentive from the Streator City Council to build a new Arby’s, the developer told the council Tuesday the money would be used to offset environmental costs.

Arby’s is looking to build a location at the northwest corner of Bloomington Street and Oakley Avenue, at the former location of Gautschy’s Corner, a former gas station and auto shop.

Brett Paul, of Xsite Real Estate, said the project involves removing former gas tanks from the property, checking for leaks and testing on neighboring sites.

City Manager David Plyman had recommended the $30,000 incentive in a prior memo to the City Council. He said new construction will generate about $15,000 in property tax increment, larger than a remodeling project. The owner pays about $3,265 per year in taxes and two similar restaurants in Streator pay between $17,000 and $20,000 in property taxes. The prospective restaurant also would add sales tax revenue to the city.

The council had voted 4-1 against the project, with Brian Crouch, Matt McMullen, Timothy Geary and Jacob Darby voting against it and Mayor Tara Bedei voting in favor of the incentive.

Crouch said Tuesday that nearby developments of Wendy’s, Dunkin’ Donuts and Jimmy John’s did not receive incentives from the city. Geary wasn’t present Tuesday, but Darby said he agreed with Crouch.

“I don’t see why we would do it with this business, if we didn’t do it for the others,” Crouch said.

Bedei said the environmental situation makes the prospective Arby’s a different case.

Paul told the council not receiving the incentive could cause a delay in construction, noting the property may sit vacant “a couple of years” until the economy improves.

“If we are able to do the project soon, then we can increase the tax revenue coming into the city,” Paul said. “Right now, it brings $3,500 per year to the city.”

When asked after the meeting if not receiving an incentive would be a deal breaker for the project, Paul said he didn’t know until he talked with his colleagues. Bedei concluded Tuesday’s agenda item by saying the council would consider the developer’s information.

Plyman said the city initially offered the developer an invitation to apply for a facade grant, because the city wants to improve the look of its gateway locations, considering the intersection within its Route 23 business district as one of those spots. Plyman said the property would have been eligible for up to $30,000 through the facade program, which is why the city offered that amount for a rebuild.

Streator does not have an Arby’s. There are Arby’s locations in Ottawa, Peru and Pontiac.