Des Plaines close to inking deal with restaurateur for historic downtown building
Des Plaines would spend up to $12 million to renovate a historic, vacant building in the downtown area before turning it over to a restaurateur, proposed lease terms indicate.
The deal for the former bank building at 678 Lee St. would require the tenant to complete the renovation, at an estimated cost of $4.5 million.
A team led by David Villegas, managing partner of Des Plaines’ much-celebrated Foxtail on the Lake restaurant and the Foxtail restaurant in Downers Grove, is set to open a new venture on the site.
“It’s very exciting,” Mayor Andrew Goczkowski said Thursday. “Foxtail’s continued interest in investing here shows that Des Plaines is continuing to make strides in dining and entertainment options.”
The city council could approve the lease terms when it meets Tuesday night. A formal contract still would be needed.
The three-story, marble building at the southwest corner of Lee and Ellinwood streets is considered one of the architectural jewels of downtown Des Plaines.
Constructed in the 1920s, the building was the Des Plaines State Bank until that operation shut down during the Great Depression. It was the temporary home of the Des Plaines Public Library in the 1930s and then resumed use as a bank.
It’s been unoccupied since 2019.
The city bought the building and an adjoining parking lot from a company called Offline Gaming in December for about $1.9 million.
The building is “in rough shape” and doesn’t meet modern building codes, Goczkowski said. While demolishing the building and constructing something new likely would be more affordable, Goczkowski called the structure “something that we had to preserve.”
A 15-year lease with two optional 5-year extensions is proposed.
Villegas’ company will begin paying rent on the date an occupancy permit is issued, documents indicate.
Rent initially will be $18,125 per month or 2% of the restaurant’s gross sales, whichever is greater, officials said. The rent amount or rate will increase every three years until it reaches 4% of gross sales starting in the 13th year of the arrangement. If the arrangement continues beyond 15 years, the rent will increase by 2.5% annually, documents show.
The company will have the option to buy the property after the 10th, 15th and 20th year of the lease, documents indicate.
As part of the proposal, the city council will support a property tax break for the site. It'll be up to the Cook County Board to approve the tax cut.
Tuesday’s city council meeting is set for 7 p.m. at city hall, 1420 Miner St. It will be livestreamed at desplainesil.gov.