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Restaurants

Des Plaines Council Approves $16.45 Million Downtown Restaurant Project

Strategic Insights

— 1 min read

Des Plaines officials have finalized a landmark deal to transform a historic building into a restaurant, following a unanimous vote by the City Council. The multimillion-dollar project involves renovating the 1927 three-story marble structure at 678 Lee St., turning it into a thriving eatery that's expected to bring significant economic benefits to the downtown area. Local restaurateur David Villegas' 10 Scents company has partnered with the city to revive the vacant bank-turned-office space, which has been dormant since 2019.

Key Takeaways:

  • The Des Plaines City Council has approved a 15-year lease with two optional five-year extensions for the renovation of the historic building at 678 Lee St.
  • The city will spend up to $12 million to bring the building up to code and make necessary improvements, while Villegas' company will cover an additional $4.5 million for kitchen equipment, furniture, fixtures, signs, and other restaurant-specific amenities.
  • The agreement includes a clause allowing Villegas' company to purchase the property from the city after the 10th, 15th, or 20th year of the contract.
  • Rent will be a percentage of the restaurant's net sales from the previous month, starting at 2% and increasing to a maximum of 6% in the 19th year.
  • Villegas, who previously converted a former church into the popular Foxtail on the Lake restaurant, plans to open the new eatery in 2027.
  • The council has also approved a three-year contract with Pope Design Group to design the renovation and oversee construction for $943,550.

Statistics:

  • The total budget for the project is $16.45 million ($12 million from the city and $4.5 million from Villegas' company).
  • The restaurant is slated to open in 2027, with a possible purchase option for the property after the 10th, 15th, or 20th year of the contract.
  • Rent will increase from 2% to a maximum of 6% of net sales from the 19th year of the contract.
  • Pope Design Group will oversee the renovation and construction for a cost of $943,550.

Sources:

  • "Des Plaines Council Approves Deal to Convert Downtown Building into Restaurant." Daily Herald.
  • "City Council Minutes, January [2023]." City of Des Plaines.
  • "Pope Design Group Contract." City of Des Plaines.

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