Fox River Grove conducts business district study
Fox River Grove is considering creating a business district to help facilitate construction of a new banquet facility.
The village will pay $8,000 to Teska Associates of Evanston to conduct a feasibility study for a business district. The proposed district would be laid over the vacant property at 1050 E. Northwest Highway (Route 14) - formerly Five O'Clock Steakhouse, which burned down in July 2009 in a fire later deemed suspicious.
The study is underway and village officials expect to adopt it within the next couple of months, Village Administrator Derek Soderholm said.
Developer George Kalkounos - the owner of Chicago Prime Steakhouse in Schaumburg - is seeking to build a 15,000-square-foot banquet facility there and requested the business district to help with the cost of road construction. It could cost an estimated $550,000 to relocate the main entrance further northwest, more toward the center of the property.
If the business district is approved, an additional 1 percent sales tax would apply to purchases made at businesses on the property. Additional sales tax revenues collected from the property would then be used to help reimburse the developer for eligible expenses allowed for under the business district.
The additional tax would not impact any other business in town, officials said.
There are few banquet facilities in the area and the closest are in Crystal Lake and Kildeer.
The proposed 15,000-square-foot banquet facility could accommodate as many as three events at a time. It is expected to generate $30,000 in annual sales tax revenues for the village, officials said.
"This facility should greatly impact both Fox River Grove and the region, as there is high demand for quality, large-scale event spaces," Village President Robert Nunamaker said.
Construction of the banquet facility is expected to begin this summer with the goal of opening Sept. 1. Future plans for the property include a potential restaurant and assisted-living facility on-site.
Village officials are reviewing site plans and the developer is working with McHenry County on stormwater engineering, Soderholm said.
For project updates, visit foxrivergrove.org.