September 07, 2024
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Streator council says yes to Arby’s, $30,000 TIF incentive

Councilman Reed says his vote is more about improving a stagnant corner, than which business plans to open

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

The Streator City Council approved a $30,000 economic incentive Wednesday to build a possible Arby’s restaurant on the corner of Oakley Avenue and Bloomington Street, reversing course of a previous council that rejected the proposal in November 2022. (Derek Barichello)

The Streator City Council approved a $30,000 economic incentive Wednesday to build a possible Arby’s restaurant on the corner of Oakley Avenue and Bloomington Street, reversing course of a previous council that rejected the proposal in November 2022.

Councilman David Reed, who was elected in April, voted in favor of the incentive, saying Wednesday his vote is not about Arby’s, it’s about improving a stagnant corner at the city’s first traffic light heading into town from the north. Three of his fellow council members Mayor Tara Bedei, Timothy Geary and David “Moose” Conner, who also was elected in April, joined him in voting in favor of the incentive, while Matt McMullen voted against it.

“We have to take Arby’s out of it,” Reed told the council Wednesday. “What we’re doing is using (Tax Increment Financing) money to develop a corner. Arby’s just happens to be what’s moving into the space. I see it as investing in that corner, and investing it in a way that the money will come back.”

City Manager David Plyman recommended the City Council approve the development agreement that will reimburse the developer up to $30,000 in TIF-related expenses.

Streator Equity Group LLC bought the former gas station from Robert and Eileen Gautschy. Instead of restoring the building, which was initially considered, the developer plans to demolish the building and construct a new building for an Arby’s. New construction will generate about $15,000 in property tax increment per year, Plyman said in a memo to the City Council. The owner pays $3,625 per year in property taxes and two similar restaurants to what is proposed pay between $17,000 and $20,000 per year, Plyman said.

McMullen said the city is better off using the $30,000 on something else and he believes the developer should fund its own project. He said the city has many fast food restaurants in its Route 23 business district and he’s skeptical of giving money to build another one. He said he would be in favor of supporting a unique business he believes would be beneficial to the community.

Conner said he initially agreed with McMullen, but when he learned the $30,000 was being spent from TIF money, he changed his mind.

“TIF money is supposed to be used for economic development,” Conner said. “That corner has sat there.”

In the public comment session of the meeting, Streator resident Andy Manter said he was against the City Council giving money toward a new Arby’s. He said he’d rather see money invested in the city’s infrastructure.

The developer has said the project involves environmental cleanup and testing as a result of the old gas pumps.

Bedei cited other local businesses who have benefitted from TIF funds to get started, and she said she was in favor of the $30,000 cleaning up that corner from an environmental perspective.

Streator does not have an Arby’s. There are Arby’s locations in Ottawa, Peru and Pontiac. Along its Route 23 business corridor, the city has a Harold’s Chicken, Al’s Restaurant (not fast food), McDonald’s, Third Street Cafe, Domino’s, Pizza Hut, Cherry Buffet, New China, Chipper’s Grill (not fast food), Subway, Taco Bell, Burger King, McGrath’s Seafood (not fast food), Dairy Queen, Dunkin’/Baskin Robbins, Dig Doug’s BBQ, Wendy’s and Jimmy John’s.