Portillo's coming to Algonquin, joining Cooper's Hawk, BJ's Brewhouse and Raising Cane's

A Portillo's is set to join a Cooper's Hawk, Raising Cane's and BJ's Brewhouse next year in Algonquin.

On Tuesday night, the village board approved a development deal with the owners of the Enclave, a 13-acre commercial development set for the southeast corner of Randall Road and Commons Drive, to bring the restaurants to town.

Construction is expected to begin in early 2023, with the new restaurants hoping to open before the end of the year, Village President Debby Sosine said.

The restaurants will join the tire repair business Belle Tire in the planned development.

Kensington Enclave LLC asked Algonquin for a sales tax rebate totaling $554,332, Community Development Director Jason Shallcross said.

Under the agreement approved Tuesday, the village could either pay that requested sales tax rebate as a regular quarterly payment at a high-interest rate or give the developer a one-time payment with no interest included, Shallcross said. The village board unanimously voted Tuesday to approve the one-time payment.

Using conservative staff estimates, once operations are fully up and running, annual village tax revenues from the development would be over $605,000, Shallcross said.

"We expect to recoup (the payment) after one or two years of these businesses being up and operating," he said.

In addition, the development is expected to generate $300,000 in annual property tax revenues for area public bodies, he said.

There is no risk associated with making the payment early and not waiting for sales taxes to come in, Village Manager Tim Schloneger said.

He said the developer has to pay $1.5 million in fees to the village, the Algonquin-Lake in the Hills Fire Protection District and Kane County before the site opens for business.

"This is an awesome benefit to the village to have all of these businesses come here," Sosine said.

The additional restaurants and tire repair business should have a "spillover effect that benefits all businesses in the area and bring people to Algonquin the might not have to come here otherwise," Shallcross said.

Portillo's had approached the village before, Shallcross said, but the building design did not fit into Algonquin's design standards.

This time, Portillo's came to the village with its garage-style building concept.