Officials are thinking about deferring the receipt of $1.4 million in sales, food and beverage taxes to entice a banquet and catering business.
Victoria’s Banquets is seeking to develop and operate a 40,000- to 55,000-square-foot banquet and catering business on 10 acres along the Northwest Tollway. The owners said they need the tax deferral to cover the difference on an $8.6 million bank loan and the $10 million it will cost to construct the building.
According to officials, Victoria’s Banquets would pay the village 50 percent of sales, food and beverage taxes over the first seven years. The business owners would repay the other half of those deferred taxes over the following seven years or once Victoria’s Banquets makes a profit, whichever comes first.
“We’re not losing anything. We’re just deferring those taxes,” Village President Dennis Gallitano said. In the worst scenario, if the business goes fail in the first couple years, the village would lose the deferred taxes, though it would be first in line to receive assets from the bankruptcy.