By Adam Studzinski
NORMAL – Portillo’s is looking for a tax rebate from the Town of Normal to help with the cost of its new location at 202 Landmark Drive.
City Manager Mark Peterson explained the Chicago-style restaurant chain is looking at about an $8 million total cost for the project. The town’s proposal is to offer a rebate on sales, and food and beverage taxes to help fill a funding gap.
“They are going to have to buy not only the 2.5 acres right on Veterans Parkway, but it also happens to include a hotel that is income producing and active,” said Peterson. “They approached the hotel owner and he’s willing to sell.
“It wasn’t on the market, but he was willing to sell it.”
Peterson said the town agrees there is a funding gap for the redevelopment.
“When you do redevelopment on Veterans Parkway, that’s the challenge is you’re having to buy an income producing property, pay that value, then tear it down,” said Peterson. “It’s different than going onto a farm field.”
Peterson added it will take between four and seven years of rebates to meet the funding gap, depending on how successful the restaurant is. Once the tax rebate ends, Normal estimates it will see between $330,000 and $350,000 per year in new revenue.
The Town Council will consider the redevelopment agreement Monday night.
Adam Studzinski can be reached at [email protected].
