Good for Brian Weydert. As an independent small business owner of Sunshine Scoop Shoppe and Bakery located in the Junction Shopping Center in DeKalb he provided the city council with a voice of fiscal common sense. It should remind the council of how to do things right.
Last year about this time the council rejected a request for a $150,000 tax incentive through the form of a sales tax rebate from Thomas Murphy, on behalf of Lincoln Highway LLC. The tax break was needed or else CVS/Pharmacy, a potential tenant for property on the southwest corner of W. Lincoln and Annie Glidden (kiddie corner from Lukalos), would surely be looking for another location and that might not be DeKalb. After much discussion Brendon Gallagher (4th ward) moved to deny the request; seconded by Ron Naylor (5th ward). His motion carried unanimously.
The council is currently considering a similar proposal — this time for the Lukalos property on the northwest corner of W. Lincoln and Annie Glidden. The potential tenant this time is a Dunkin’ Donuts/Baskin Robbins restaurant and the party requesting the tax break is Pearl Street Commercial, LLC who is represented by Steven Schwartz. Schwartz has requested a 7 year 50/50 sales tax rebate in order to complete exterior and tenant improvements required to secure the two national restaurant chains to the site. He estimates that the two tenants will produce $2,500,000 of annual sales. According to staff” Schwartz has demonstrated that the financing for the building renovations needs a sales tax rebate due to meet the rental and buildout demands of the tenant and the discount in rent.”
Weydert did not object to new competition for his ice cream shop. He objected to the City of DeKalb subsidizing competition that would likely transfer sales from local neighboring businesses such as his shop, the new Aspen Yogurt, McDonalds, Starbucks, etc.
In the backup material staff and economic development gurus indicated a reason for approving the tax break was a brand new Dunkin’ Donuts in DeKalb might capture sales from the still new Dunkin’ Donuts on the Sycamore side of Rte 23. But if you say that out loud it doesn’t make any sense. Why would Dunkin’ Donuts do that?
Weydert’s position is more feasible. It’s actually more in line with the City’s business incentive guidelines that prohibit financial assistance to fast food restaurants.
In the meantime, kiddie corner from the proposed Dunkin’ Donuts/Baskin Robbins site, CVS/Pharmacy appears to be nearing completion of construction of its new store in DeKalb — despite the city council’s rejection of a request for a similar tax break.
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13 Comments
I remember those days and those TIF deals (Pags, Elsners, Walgreens, old Post Office). And I remember when Gary Whisler owned Sgt Peppers. Great guy. Great restaurant. I wish you folks well! Were you told you were ineligible by staff or did you have to go through the whole plan commission, committee of the whole, regular council meeting routine? Good policy that is clearly written and uniformly enforced greatly reduces wasted time. Unfortunately the economic development incentive policies of the City of DeKalb are too complicated, complex and/or burdensome to be enforced. Thus the embarrassing dog ‘n pony show. I thought we fixed this. I know we hired some experts…
Well, if Mac is right about the notion of the big 3 coffee outlets “clustering”, then they will buy and build without an incentive. Which reminds me of CVS…they built after being denied the incentive, yes? And what a prison they did build. It has to be the ugliest drugstore I have seen, especially before the signage went up. Doesn’t the City have any say over the aesthetics of a proposed plan? Doesn’t CVS know what windows are? Are they afraid of drive-by shootings or something? Fine building to have on one of our “gateway” roads! Where do they get the planning people around here?
I never saw an attractive looking CVS building. Even the new ones give the illusion of having boarded-up windows. Check out this picture:
Sorry, it was your posting, not Grace’s. My bad.
Actually if you attended the meeting, the Baskin and Robbins, Dunkin Donuts project would occupy only half the space. There would also be a sit down restaurant (which is indeed eligible for incentives). Some of the names being discussed would be very exciting for the DeKalb/NIU market. Go ahead and deny these incentives and play roulette with this intersection. Let’s see how long it remains empty. Hopefully the seller will come down on his price because it is deplorable that he should profit from letting this corner become an eyesore.
Bill, we did attend the meeting on channel 14 and I read the back up material in total. I’m fully aware of the tenant configuration. There is no risk at all to the public by denying the request. The risk is in approving it. Approving it will incentivize deliberate property decay. It will also open the City up to subsidizing fast food national chain restaurants or face descrimination-based legal battles with corporations who have the financial resources for such contests. There “might” be a sit down restaurant on the other half. There could be a pawn shop. I suspect whoever is willing to sign a lease at the terms offered would be the tenant. The property is sold pending. That usually means the price has been negotiated — past tense.
That’s great you attended the meeting via Channel 14! Unfortunately, the story posted by Grace doesn’t reflect the idea that this involves a sit-down restaurant as well.
Mr. Schwartz told the council (and the public) that the deal was still pending but maybe you know the real story.
So I’m neutral on the providing of incentives… particularly if the deal can be structured to include protections against revenue cannibalized from other entities.
But the list of abandoned and distressed properties in commercial districts around this city is ridiculously long… what is the solution to that?
Bill, I am actually in favor of incentives if they are available on an equal opportunity basis. City taxpayers have already financed countless hours of staff and council time, consultant recommendations and legal review to create an incentive program that was approved as policy. That policy prohibits providing incentives for fast food restaurants. It also prohibits incentives to an unknown tenant who might later locate beside the two fast food restaurants sharing the same space (and incentives). So as Lynn points out, why are we even discussing it (or paying for the discussion)? If this incentive proposal was sent to the Plan Commission it should have been rejected because it is prohibited by policy. If policy is to be changed it should not be on a case-by-case basis. Impulse community planning? It really isn’t that difficult. That’s embarrassing.
If they are able to give tax incentives I also hope they are able to afford a “pooper scooper” and someone to clean up the lot where Ralphs used to stand. In this heat it has been just lovely parking in the area.
There was some irony in Weydert, an independent business owner, having to explain market principles to the city council. Starbucks, Dunkin Donuts and McDonalds (all publicly traded) are pretty much the Big 3 in fast food coffee sales thus the site selection on the W Lincoln/Annie Glidden corner. Cluster. As is the case on DeKalb Ave (Sycamore Rd) in Sycamore. Mickey D, Starbucks and Dunkin Donuts in close proximity.
And that’s a difference between Main Street and Wall Street. Main Street business owners attend local government meetings to fight for a fair shake. The Wall Street Corps send their agents to cut a deal.
Just sayin’…
Does anyone remember that there used to be a Baskin Robbins in the Junction Center. It went out of business. The projected income figures also seem like wishful thinking in my opinion – if a Baskin/Dunkin hybrid were able to generate over a million in sales, I think the one that was operating previously would still be open. Plus, this business will not create any jobs with livable wages. It’s crazy to grant a sales tax break for these proposed businesses when doing so will likely prop up two businesses at the expense of current businesses that are not enjoying those sales tax breaks.
If the guidelines prohibit assistance to fast food restaurants, how the heck did it still end up on the agenda?
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I used to own a restaurant in the location of the new CVS Pharmacy when TIF funds were given to Pagliai’s Pizza to relocate from the Walgreen’s build downtown. We applied for TIF funds and were told by the city, “We would love to provide you funds however, since you are outside of the funding TIF district, this would be impossible.” Just saying.