Batavia OKs sales tax rebate for proposed Texas Roadhouse

A Texas Roadhouse restaurant may soon be coming to Batavia after the Batavia City Council last week approved an economic development agreement for a proposed location along Randall Road.

Included in this agreement is a sales tax rebate capped at $230,000, funds that are intended to go toward site improvements for the project.

Texas Roadhouse is looking to build a 7,926-square-foot restaurant in Batavia at 275 N. Randall Road, according to a memo from the city about the economic development agreement.

The overall project is set to cost about $5 million and is expected to create around 50 full-time equivalent positions and management positions, per the city memo.

To support the project, the city has been considering an agreement that would allow Texas Roadhouse to receive a rebate equal to a 50% share of the 1% city sales tax revenue the restaurant generates, for up to 10 years, the city memo indicated. The incentive is meant to provide financial assistance for site development and public infrastructure costs, with the total payment capped at $230,000.

In addition to the economic development agreement, the project will still have to go through the city’s applicable review and approval processes, per the city. The agreement stipulates that the restaurant be in operation by the end of 2028.

The proposed agreement was discussed and recommended for approval at a committee of the whole meeting earlier this month and, on Sept. 21, came to the city council, which approved it unanimously.

At the meeting, Batavia Mayor Jeff Schielke said the project has gotten a lot of positive attention from residents.

Anthony Isom, economic development manager for Batavia, said the city is “very excited” to work with Texas Roadhouse and that the project will “bring more than just Batavians out here to enjoy some good food.”

The incentive mechanism was also noted, with Ald. Alan Wolff explaining that the rebate is money the business is generating via sales tax. He also highlighted that this development will result in a new building and in the creation of jobs.

“The benefit to the city is way beyond just the sales tax money that we’re rebating back to them,” Wolff said. “And they’re creating that. We’re not taking that from another source or any, you know, general fund monies.”

mmorrow@chicagotribune.com