In an attempt to jump-start its downtown Glenview is spending millions of village dollars to help bring a high end restaurant to the village.
Trustees say it’s an investment in the village’s future but not everyone agrees. They say taxpayers have a big financial stake in the restaurant and could be on the hook for millions of dollars if it closes.
“You’re going to give the money away in the name of progress to a restaurant’s that going to do $100 million in sales during the term of this agreement,” Glenview resident John Brennan told trustees at their Sept. 19 board meeting.
“Many restaurants in the north suburb are doing well without financial assistance from the village,” he said. “I don’t recall us giving them money.”
And resident Bill Seitz told the board the village is giving the restaurant a big financial boost and taxpayers could be on the hook for at least $4 million if the restaurant closes and defaults on its $2.5 million bank loan.
“People who aren’t even born yet would be responsible for this thing,” said Seitz, who is in litigation with the village over the property. “The village is the one picking up the financial responsibility … incurring all the financial risk It’s very much a one sided deal.”
But trustees say it’s a good risk if it spurs downtown development and helps turn the village into a north shore dining and shopping destination. They also said the village has given financial support to other businesses to open in the village in the past year.
The money used in the Ballyhoo agreement comes from the Village’s Permanent Fund, which came from the proceeds of land sold as part of the Navy base redevelopment, David Just, community engagement manager, said.
The board on Sept. 19 voted unanimously in favor of a resolution authorizing the execution of a redevelopment agreement, a loan agreement and an intercreditor agreement with Chicago-based Ballyhoo Hospitality, and Gold Coast Bank, to build the high end restaurant at 1749 Glenview Road.
As part of the agreement the village is giving Ballyhoo Hospitality a $2.25 million loan to be paid back at 2 % interest over 15 years, and also agreed to be a guarantor of sorts on a $2.5 million loan Ballyhoo is getting from Gold Coast bank to further fund the project. If the company defaults on the loan the village could ultimately be on the hook to pay it but it could also end up owning the property.
“There is no way to secure the bank loan by Ballyhoo so therefore the village is involved relative to this intercreditor agreement,” Jeff Brady, Director of Community Development told the board during its Sept. 19 meeting.
If Ballyhoo defaults “the village would own the restaurant and would have to pay back the bank,” said Trustee Tim Doron, adding the village could also renegotiate the loan or sell the property and use proceeds to pay off the loan.
The proposal for the new restaurant comes in the wake of the Glenview 2021 “Downtown Strategic Plan” and in conjunction with “Glenview Connect” a kind of guidebook that asked residents what they want to see in the downtown.
A significant portion of the plan focused on the “revitalization of downtown Glenview” and several “spark sites” or locations susceptible to change, according to a staff memo. It says the village needs to be actively engaged in economic development, as almost all the spark sites included an economic gap that needed to be bridged to ready the environment for private investment and maintain the community’s expectations for “high-quality development.”
“We went through a very thorough process through the Glenview Connect process where it was made very clear what the public wanted,” Trustee Adam Sitodi said at the Sept. 19 meeting. “I think we are all within our fiduciary duty to follow through, not just on what the public wants but also making sure that the village is protected.”
“The terms of this agreement we discussed months ago,” he added. “I don’t have any problems with it. I am in support of this agenda item.”
The village is also responsible for preparing a “pad” for the restaurant building and construction of an adjoining parking lot. Ballyhoo will be responsible for constructing the building as well as the ongoing maintenance of the new restaurant.
“The realization of this concept would begin to address the community concerns and strong desire relayed during the Glenview Connect process regarding the need for additional high-quality restaurants in downtown and giving residents a reason to venture downtown to patronize new, destination-based businesses,” according to a memo to the board from village staff.
The 5,800-square-foot eatery will be called, Jackman & Co. with a 1,160-square-foot exterior patio, 110 dining room seats, 66 bar seats and an additional 88 patio seats. It would employ about 50 staff in full-time and part-time positions and could be opened as early as Spring 2024.
“Founded by longtime hospitality industry veterans Ryan and Anna O’Donnell, Ballyhoo delivers the restaurant experience that guests crave,” says the Ballyhoo website. “Ballyhoo is redefining neighborhood dining throughout Chicago and the North Shore with restaurants including Gemini, Coda di Volpe, Old Pueblo Cantina, Sophia Steak, Pomeroy, Buck Russell’s, Pizza by Sal and continues to expand to more communities.”
Brian L. Cox is a freelance reporter for Pioneer Press.
An earlier version of this story incorrectly stated that the village is using tax dollars in the agreement Ballyhoo Hospitality. The funds come from Village’s Permanent Fund, which is made up of the proceeds of land sold as part of the Navy base redevelopment.
