Diners, drinkers may pay more

Food and drinks in downtown Naperville could cost diners and bar-hoppers just a little bit more than anywhere else in town under a proposed parking deck financing option that gained the most steam at city council workshop Monday.

The council is slated to vote Nov. 6 on a proposal that would increase restaurant and bar tabs downtown by 1.5 percentage point to help pay for the construction of three new parking deck projects. The new tax would cover two-thirds of the estimated overall $32 million price tag. The remaining funding will come from the city property taxpayers.

According to city estimates, under the proposed funding scheme the owner of a $400,000 home would experience about a $17 increase on his or her property tax bill.

However, some councilmen demanded more research into a downtown business type impact fee they believe would help balance the area's commercial mix. They want to lessen the burden on property owners outside the downtown area.

"I would suggest this thing is way out of whack and by not leveling it up at some point in time all we're going to do is wind up with restaurants and no more retail," said Councilman Richard Furstenau.

The city's finance department promised a report back on an impact fee proposal sometime next year. Finance officials said the time was needed to compile data on parking usage by business types.

Some councilmen called the food and beverage tax hike a "pass-through" tax that business owners would simply impose on patrons without feeling any impact.

James Bergeron, owner of two downtown restaurants and chairman of the Downtown Naperville Alliance board, said the tax hike wouldn't put him out of business, but he does fear some patrons may be turned off by the increase and go elsewhere.

Naperville restaurants already charge a 1 percent food and beverage tax that goes toward the city's Special Events and Cultural Amenities Fund. The new tax would bring the downtown bar and restaurant food and beverage tax to 2.5 percent.

Finance Director Doug Krieger said he expects to start collecting the increased food and beverage tax Feb. 1 if the council passes the funding scheme next month. However, council approval is only one component of the approval process. State law requires 75 percent of the affected business owners approve the tax hike as well. There 46 restaurants affected by the proposal, city officials said.

In all, three deck projects would add about 1,400 parking spaces downtown. Two of the deck projects are public-private ventures that would get started almost immediately. The final project is a controversial four-level deck at Nichols Library that would cost nearly $20 million, which is up almost $5 million in costs from estimates a year ago, according to paperwork provided prior to Monday's workshop. Some downtown property owners would rather see the city invest that kind of money into rebuilding and enlarging the Chicago Avenue parking facility, which is closer to the more active area of downtown.