The Lansing Village Board will consider using $1.4 million in funds from the Ridge Road tax increment financing district to help redevelop two former restaurants.
WeEat Hospitality Group plans to open Honey Berry Cafe at 3545 Ridge Road and Bulldog Ale House at 3323 Ridge Road, both with gaming machines, by redeveloping the former Bakers Square and Jack’s Pub, said David Wabick, a consultant with Kreshmore Group.
The Ridge Road TIF fund has an excess of $4 million, said Village Administrator Dan Podgorski, which can be spent on redevelopment and improvements. Through property, sales and gaming taxes the two businesses will pay back the funds, he said.
“We felt it was a significant investment in our town. They weren’t asking for other incentives,” Podgorski said. “These are two important anchor buildings in our downtown.”
The renovation of Honey Berry Cafe, a breakfast and brunch restaurant, is projected to cost about $2.1 million, Wabick said. WeEat Hospitality Group officials are requesting $833,710 or 40% of the cost, whichever is less, in TIF funds for redevelopment and repurposing, Podgorski said.
The renovation for Bulldog Ale House, a gastro pub, is projected to cost $1.3 million, Wabick said. WeEat Hospitality is seeking $573,075 or 45% of that cost, whichever is less, Podgorski said.
Both restaurants are anticipated to open in the spring and will generate revenue that exceeds the request from the TIF fund, Wabick said. Within the first year, Honey Berry Cafe is projected to generate $1.8 million in revenue and Bulldog Ale House is projected to generate $1.3 million, he said.
The projected revenue is based off the success of Honey Berry Cafe and Bulldog Ale House restaurants in Illinois, Wisconsin and Texas, Wabick said.
Dani Landau, director of operations with WeEat Hospitality Group, said the restaurants have some menu items that overlap, and offer coupons and various specials.
The design of Honey Berry Cafe infuses greenery and white tiles to give it a modern feel, Landau said.
The company hired Jack’s Pub employees and those employees are being trained at the Bulldog Ale House in New Lenox, Landau said.
The Jack’s Pub location is already divided into two spaces, so the company plans to maintain the look by having a bar side, with a bar and high-tops, and a restaurant-looking side, with booths and tables, he said. It will also have an outdoor patio space.
Trustee Saad Abbasy said he’s excited about the businesses opening downtown and the brand’s vision for the establishments.
Abbasy asked village attorney Matthew Welch if the village will recoup the funds even if the businesses were to close. Welch said there are provisions in the agreement.
“That makes me quite a bit more comfortable in terms of redevelopment dollars going toward an exciting project,” Abbasy said.
The board is scheduled to vote on the TIF redevelopment agreement at its next meeting, 7 p.m. Feb. 21 at Village Hall, 2710 170th St.