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Oswego board approves $300,000 loan, $40,000 grant and sales-tax rebate for Elwood Steakhouse
Summary
The Village of Oswego approved an economic incentive package for 4 Guys Kitchen, Oswego LLC (Elwood Steakhouse & Fish House) to open at 180 W. Washington St.: a $300,000 loan at 3% over 15 years, a $40,000 grant for eligible improvements and up to $300,000 in sales-tax rebates over 10 years, contingent on milestones.
Oswego — The Village of Oswego on June 23 approved an economic assistance package to help 4 Guys Kitchen, Oswego LLC, open Elwood Steakhouse & Fish House at 180 West Washington Street in downtown Oswego.
Staff presented a package that combines a $300,000 low-interest loan (3% annual interest, 15-year term) with a $40,000 grant for eligible downtown improvements and up to $300,000 in sales-tax rebates paid over 10 years or until the rebate cap is reached. The sales-tax rebate would apply only to taxes generated at that business and is structured as a 50% rebate of collected sales taxes, covering home-rule/non–home-rule and food-and-beverage taxes tied to the restaurant.
Kevin (staff) said the loan draws are staggered to align with construction milestones: $100,000 at project start, $100,000 after reaching a 25% construction milestone (interior framing), and $100,000 at the 75% mark (rough inspections). He said the loan is secured by furniture, fixtures and equipment and a personal guarantee; the village’s independent financial reviewers (Johnson Review Group) corroborated staff’s analysis.
On the projected fiscal return, Kevin told trustees that, if fully repaid over 15 years and not paid off early, the loan would yield about $73,000 in interest income to taxpayers. He also stressed the clawback and milestone provisions designed to protect the village if the project does not meet its commitments.
Owners on hand included Sharag and Sweta Amin, who operate an existing Elwood location in DeKalb. Sharag told the board, "I'm very excited to be here and part of the Oswego team," and noted plans to open later in the year. Trustees asked questions about timelines, tenant-improvement timing, and protections in the agreements; staff noted the landlord (Shodine Group) has committed $400,000 in tenant-improvement support and the applicant plans additional private financing and equity.
Trustees voted to approve an ordinance authorizing the economic incentive agreement and the loan agreement between the Village of Oswego and 4 Guys Kitchen, Oswego LLC (Elwood Steakhouse & Fish House). The motion carried on roll call.
The agreements approved by the board include milestone-driven loan disbursements, a $40,000 grant that will be paid on completion of the build-out, and a sales-tax rebate program that ends once $300,000 has been rebated or after 10 years, whichever comes first. Staff said the structure is designed to incentivize timely completion and protect taxpayer interests.
The village president and multiple trustees praised the proposal as an important downtown investment and said the project addresses a long-vacant corner space and resident demand for higher-end downtown dining. The board’s approval authorizes staff to finalize agreements consistent with the terms described at the meeting.
What’s next: staff will finalize the loan and incentive contracts and the developer may draw on the loan as construction milestones are met. The board did not modify the approved incentive structure during the meeting.
