Des Plaines City Council to Approve Multimillion-Dollar Deal for Historic Building Renovation

Strategic Insights -

Des Plaines is on the verge of a major downtown development project as the city council prepares to give its final blessing to a proposed deal to renovate a historic building at 678 Lee St. The project, spearheaded by local entrepreneur David Villegas, will see the city spend up to $12 million to renovate the nearly century-old building, with Villegas' company spending an additional $4.5 million to complete the renovation. The project is expected to serve as a catalyst for additional development throughout downtown Des Plaines, attracting both residents and visitors and strengthening the downtown economy.

Key Takeaways:

  • The city will spend up to $12 million to renovate the building, with Villegas' company spending an additional $4.5 million.
  • The building, designed as a bank, has been unoccupied since 2019 and was purchased by the city for nearly $1.9 million in December 2024.
  • Villegas' company will lease the property but have the option to buy it after the 10th, 15th, and 20th years of the contract.
  • Rent will be a percentage of the restaurant's net sales from the previous month, with Villegas responsible for utilities, taxes, insurance, and other expenses.
  • The city will support Villegas' plan to ask the Cook County Board for a property tax break.
  • Villegas will give Des Plaines a $100,000 deposit before the renovation begins to guarantee his involvement in the project.
  • The restaurant is expected to open in 2027, coinciding with the building's centennial.
  • The project will be designed by Pope Design Group, a Minnesota-based company, and will cost $943,550 over three years.

Statistics:

  • $12 million: the maximum city expenditure for renovating the building
  • $4.5 million: the additional amount Villegas' company will spend to complete the renovation
  • $1.9 million: the price the city paid to purchase the building in December 2024
  • $943,550: the cost of designing and overseeing construction of the renovation over three years
  • 2027: the expected opening year of the restaurant
  • 10th, 15th, and 20th years: the years in which Villegas' company has the option to buy the property

Sources:

  • Daily Herald, "Des Plaines council set to approve deal for historic downtown building renovation" (no date mentioned)
  • [Available on the Daily Herald's website]