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Des Plaines approves incentives for new downtown restaurants

The first step in a plan to revitalize downtown Des Plaines proposed by the mayor and city staff has earned the endorsement of aldermen.

On Thursday the city council authorized a program to reimburse new downtown eateries half their costs for interior and exterior renovations, up to $100,000.

City council approval would be needed for anything over $20,000, and restaurants would have up to a year to make the improvements or lose the money. A restaurant that closes within five years will be required to pay the city back.

Otherwise, the city expects to recoup its investments by increased sales taxes generated by the restaurants.

As an example, the Tap House Grill in Metropolitan Square was given $80,000 in 2013. The city says the money was "paid back" within 19 months, through sales taxes generated by the renovated restaurant.

Mayor Matt Bogusz introduced the incentive program in early September, as part of a larger plan to breathe new life into the shuttered Des Plaines Theatre.

The city and Rivers Casino have agreed in concept to a public-private partnership to acquire and renovate the 91-year-old landmark theater, in which the Des Plaines-based casino will provide up to $2 million in matching funds. The plan also calls for hiring noted concert promoter Ron Onesti, who successfully revitalized the Arcada Theatre in St. Charles.

In an attempt to link redevelopment of the theater with potential new restaurants that would be frequented by theatergoers, Bogusz initially labeled the incentives a "theatre and restaurant district program."

But at the prompting of some aldermen, "theatre" was stripped from the title before they approved it Thursday.

"A lot of things need to be discussed with the Des Plaines Theatre," said Alderman Patti Haugeberg, whose 1st Ward includes much of the downtown area. "I've heard from a lot of residents. I personally feel no taxpayer money should be used for the theater."

While the theater takeover plan may face an uphill battle, only one alderman, Dick Sayad, voted against the restaurant incentive program. He said it was putting the "cart before the horse" and questioned whether small restaurants would be sustainable in downtown Des Plaines.

"Where are you going to put them?" Sayad challenged. "We've got storefronts. Are you going to bring a Maggiano's down here?"

Bogusz said there are both big and small options downtown. He identified some vacancies he believes are well-suited for restaurants, including at Metropolitan Square, the former Citibank next to the library, and a former doctor's office on Lee Street.

Bogusz wanted the incentive program approved in September, so the city staff can promote it at an Oct. 19-20 International Council of Shopping Centers networking event at Navy Pier.

"We need something to get our foot in the door with the developers," Bogusz said.

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