Restaurant Gets Preliminary Approval on $300K Economic Incentive
The city will complete up to $300,000 in parking lot renovations on behalf of Chuck's Southern Comforts Café, which plans to buy the old Cornerstone Restaurant.
Plans for a Darien location of Chuck’s Southern Comforts Café took a step forward Monday when City Council preliminarily approved a $300,000 economic incentive.
The city would redo the parking lot, as well as work on other exterior projects up to the $300,000 limit at the old Cornerstone Restaurant building on Cass Avenue.
Municipal Services Director Dan Gombac said the city would serve as general contractor on the project. The concrete and pavement companies with which Darien contracts have agreed to honor their 2012 prices, he said.
Chuck’s would pay the difference if the project goes over $300,000, café representative Jim Pine said. Since Darien would pay the contractors directly, Chuck’s wouldn’t receive cash from the city if the project comes in under budget.
City Administrator Bryon Vana said the city has extra money in its 2013 budget because the council did not ultimately approve all the ditch projects originally slated for completion this summer. That decision opened up about $535,000 in the budget.
The original Chuck’s in Burbank brings in about $6 million annually, Pine said. He predicted a Darien location would generate about $4 million its first year. Because of its proximity to Interstate 55, however, he said it could soon eclipse $7 or $8 million in yearly sales.
At Darien’s 2 percent sales tax rate for restaurants, it would take just shy of four years for the city to recoup its investment if Chuck’s brings in $4 million in annual receipts.
If it takes longer than four years for Darien to break even on its investment, Pine said the café’s owners would pay the city the difference in cash.
Vana said the city will work with Chuck’s over the next few weeks on securing collateral on the investment in the event the café would close before Darien gets its money back.
The café’s first incarnation, known as Chuck’s BBQ, opened in 1995. It underwent a name change in 1999 to encompass the blend of southern, Mexican and Cajun food on its menu. Three years ago it moved one mile down the road to its current Burbank location.
Chef Chuck Pine worked in Rick Bayless’ famed Topolobampo Mexican restaurant before starting his own café. The Food Network show Diners, Drive-Ins and Dives featured Chuck’s in an October 2011 episode.
Several aldermen expressed their support of the incentive.
“In this situation, if we have a breakfast location-slash-dinner location in that area, I truly believe it’s going to pay for itself,” Ward 1 Alderman Ted Schauer said.
Ward 4 Alderman Joerg Seifert said he thought the deal was a win-win for the city, regardless what eventually happened to the restaurant.
“We’d still have improved a property that’s not there now,” he said.
Gombac said he has received more than 100 emails from residents over the past few days supporting the project.
The city will work with Chuck’s over the next few weeks to finalize details of the agreement, which will come up for official vote at the July 16 City Council meeting.
If all elements of the deal go through on schedule, Pine said he expects the restaurant could open by late September or early October.
Mel Kunicki
12:51 pm on Tuesday, June 19, 2012
Amazing! They didn't have money to repair ditches in my neighborhood, but found $300,000 for another restaurant we don't need. Maybe they need to rethink these incentives.
jim Prueter
3:05 pm on Tuesday, June 19, 2012
sorry Mel, but ditches don't pay taxes. chucks is a good idea for that location.
Marcia
3:31 pm on Tuesday, June 19, 2012
I agree with Jim - we definitely need a good restaurant in Darien and Chuck's is very good.
Marcia Ryba
Andrew M
4:58 pm on Wednesday, June 20, 2012
Mel, quite the thinker...
More taxes = better ditches next year.
Colleen Corey
8:04 am on Friday, June 22, 2012
The Cornerstone location has been an eyesore since Ripples closed. The restaurants that followed did not succeed or do much to the exterior. We need something successful in that location. This will be a win/win for the City & that part of our town!!!
Joan Gundlach Brandeis
10:59 am on Friday, June 22, 2012
I agree with Colleen! That location has been an eyesore for a long time. A new restaurant can't afford to put that much money into fixing the parking lot. I can't wait to try Chuck's. We actually do need new restaurants other than fast food in Darien!
Ken Wilson
10:54 am on Friday, July 6, 2012
Why do multi-multi millionaires need $300K of Darien Taxpayer money, couldn't they have fixed their own parking lot? Yeh they say on one hand they will generat $4M in sales the first year, a decent restaurant has 30% margins, yet they shake the taxpayers down, THAT is how the rich get richer.
Ken Wilson
10:53 am on Friday, July 6, 2012
Why do multi-multi millionaires need $300K of Darien Taxpayer money, couldn't they have fixed their own parking lot? Yeh they say on one hand they will generat $4M in sales the first year, a decent restaurant has 30% margins, yet they shake the taxpayers down, THAT is how the rich get richer.
Bob B
11:06 am on Friday, July 6, 2012
So would you prefer that the place stay vacant? Without the city fixing up the property, that is the alternative. No savvy business person is going to pony up for that type of tab when a different location could likely be found without having such extensive fix up costs to the parking and entrance areas. These folks will fix up the interior on their own; this is a good deal for all.
Don Damon
11:38 am on Friday, July 6, 2012
I had no idea that Chuck Pine was a multi-multi millionaire. What does he do other than own that one restaurant in Burbank?