$3.5 million tax break would help transform vacant Des Plaines bank into upscale eatery

A promised tax break could save a restaurateur launching a new venture in downtown Des Plaines about $3.5 million, documents reveal.

The city council on Monday is expected to formally declare the former bank building at 678 Lee St. blighted and recommend Cook County officials award entrepreneur David Villegas and his 10 Scents company a 12-year property tax break.

Villegas and his team are turning the three-story, city-owned building into an upscale restaurant called The Dime. The name is a hat tip to the financial origins of the 99-year-old building, which has been vacant since 2019.

A 2027 opening is planned.

The renovation will be the product of a partnership between the city and 10 Scents.

Under an agreement approved last year, Des Plaines will spend up to $12 million to bring the building up to code and make other improvements. The roof, doors, windows, plumbing and other elements need repair or upgrades, documents indicate.

Villegas’ team will add kitchen equipment, furniture, fixtures and other amenities, at a projected $4.5 million cost.

The sought-after tax break is another part of the deal.

Exclusive to Cook County, such incentives encourage redevelopment of vacant, abandoned or rundown properties. They require a recommendation from a municipality and county approval.

The regular assessment rate for commercial property in Cook County is 25% of the fair market value. The proposed break would reduce the assessment rate to 10% for the first 10 years, to 15% for the 11th year and to 20% for the 12th year.

According to documents released this week, if the restaurant project were to move forward without the tax break, the property would generate about $6.5 million in property taxes over those 12 years. But Villegas’ team says continuing the project without the tax break “is not economically feasible,” documents indicate.

If the financial incentive is approved and the roughly 18,400-square-foot building is renovated and reopened as The Dime, officials predict it will generate nearly $3 million in property taxes over those 12 years.

On the other hand, if the project is halted and the building remains vacant, it would generate less than $800,000 in property taxes over those same 12 years, documents show.

In addition to generating more property taxes than a vacant building, The Dime will produce sales tax and food-and-beverage tax revenue for Des Plaines, city spokesperson Brad Goodman noted.

All of that “means more jobs, more long-term tax revenue and a downtown anchor that will drive further development,” Goodman said.

The city will continue owning the building after The Dime opens; 10 Scents will pay rent and be responsible for the property taxes once an occupancy permit is issued. The company will be able to buy the property after the 10th, 15th or 20th year of the lease.

Villegas found success with a similar partnership in 2023 when he converted a Des Plaines Park District building into the Foxtail on the Lake restaurant.

Monday’s meeting is set for 7 p.m. at city hall, 1420 Miner St. It’ll be open to the public and livestreamed at desplainesil.gov.