Oak Lawn will rebate both a portion of the land purchase and a percentage of sales taxes collected to Paisan’s Pizzeria as part of an inventive agreement to bring the chain to the village.
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Paisan’s will join other restaurants, such as Coopers Hawk and Meatheads, at 111th Street and Cicero Avenue in the village’s tax increment financing district, known as Stony Creek Promenade.
Paisan’s is purchasing its site from the village for $1.25 million.
If Paisan’s opens its restaurant within a year of getting the necessary building permits, Oak Lawn will refund $400,000 of the purchase price.
“The $400,000 is an incentive to complete their project within 365 days . . . which will ensure that it gets done and open, something we wanted, given Paisan’s explosive growth over the last few years,” Oak Lawn village manager Tom Phelan said in an email. “They have plans for another six to 10 restaurants in the next two to three years.”
Paisan’s, a family business started in 1985, already has seven restaurants in Chicago and surrounding towns, including in the South Loop, West Lawn, Lisle and Brookfield, according to its website.
The 365-day period will begin once Paisan’s has received the last permit required from the various government agencies involved in the Oak Lawn build out.
“We don’t want to penalize them because of governmental delays or approvals,” Phelan said.
Oak Lawn also will rebate 50% of the sales tax it receives from the restaurant during the first 10 years it is open.
The Village Board approved the agreement at its meeting March 22.
The village has used a variety of tax incentives to attract businesses, including sales tax rebates of 50%, property tax reductions and grant money, when available, Phelan said.
Kimberly Fornek is a freelance reporter for the Daily Southtown.