The city of Washington will dip into its tax increment financing fund again to make a reimbursement payment to the developers of a $9 million downtown square restaurant.
The City Council voted 6-2 Monday to approve a $51,642 payment for interest costs incurred by the developers of the Tangled Roots Craft Beer & Kitchen in 2023 and 2024. That brought the total city TIF payments to the restaurant developers to $651,642 since 2021.
The interest reimbursement payment was pulled off the meeting's consent agenda for discussion by council member John Blundy, who expressed concerns about the developers' failure to meet the Dec. 1, 2023 deadline for opening the restaurant that's in the city's TIF redevelopment agreement.
No date has been announced for the restaurant's opening. The original 2021 redevelopment agreement was amended by the council in 2022, but hasn't been changed since then.
"Is this a breach of contract by the developers? The city has missed out on a full year of sales tax revenue and property tax payments which would have helped replenish the TIF fund," Blundy said. "We've been very flexible with the developers. Can we defer this payment to create some accountability?"
Jon Oliphant, the city's planning and development director, said the city is obligated in the redevelopment agreement to make the payment.
Mayor Gary Manier said the project has been delayed by supply chain issues.
"The developers are spending $9 million on this project. Have there been delays? Yes. Is it frustrating? Yes. The developers want to get this project finished, too," he said.
"They want to open," said council member Mike Brownfield. "They want to start making money. We just need to be patient for a little while longer."
Council member Lilija Stevens and Blundy voted against making the payment.
They also voted for a failed motion by Blundy to table a decision on the payment until it was determined if the city could defer it. That vote was 5-3, with council member Mike McIntyre also voting for tabling.
Blundy and Stevens each said they support the restaurant project and want it to be a success.
"But the developers need to be held to a legal agreement," Stevens said.
The city entered into the redevelopment agreement in 2021 with CL Real Estate Group, Grist Mill Ventures, Jeffrey and Kelly Pohl, Peter Limberger and Inga Carus for 140 Washington Square and 112 Walnut St.
Under the terms of the agreement, the city can reimburse the developers up to $980,000 from the city's TIF fund for the acquisition of the property, demolition, professional services and interest costs.
There were eight previous TIF fund reimbursements before Monday's vote. Here they are:
- $75,000 for approval of the redevelopment agreement.
- $275,000 for property acquisition.
- $55,560 for architectural services on Sept. 19, 2022.
- $42,000 for architectural services on Oct. 17, 2022.
- $32,000 for architectural services on Jan. 17, 2023.
- $69,592 for architectural services on Feb. 20, 2023.
- $847 for architectural services on April 17, 2023.
- $50,000 for demolition on Sept. 5, 2023.
According to the TIF Act and redevelopment agreement, the city can reimburse the developers up to 30% of the interest costs they incurred during a year. The developers paid $172,140 in interest costs during 2023 and 2024.
The redevelopment agreement prevents the city from reimbursing interest costs after Dec. 31, 2025.
TIF funding agreements used to appear regularly on council agendas. That hasn't happened in recent years.
The last TIF funding agreement considered and approved by the council other than for the downtown square restaurant was for Corpo Bello Salon at 104 N. High St., in 2021.
"TIF funding requests seem to be cyclical for some reason," Oliphant said.
"We've had some existing and potential businesses reach out about possible TIF assistance, but we haven't had anyone apply formally," he said.
"That's not the worst thing since our TIF fund is a little lower as a result of our current agreement obligations, but I do expect to see an application or two in the near future."
Have questions about the proposed Dee Amphitheater? Here's your chance to ask them
An open house where Washington residents can have their questions answered about the $12 million, 5,000-seat amphitheater proposed on 20 acres in the northeast corner of the city's "223" farmland property off U.S. Route 24 and Nofsinger Road will be held from 6-7:30 p.m. Jan. 22 in Banquet Room A at Five Points Washington.
Manier made that announcement Monday. Key players in the proposed project, including the city, architect, contractor, and those who put together a feasibility study will sit at tables and answer questions, Manier said.
The proposed Dee Amphitheater is a dream of former Washington resident Jim Hengst, who is donating the money for it. The amphitheater would be named after Hengst's late wife. The Hengst Foundation established by Hengst would build and operate the amphitheater.
The city would need to spend an estimated $3.5 million for infrastructure work. City officials have said no other infrastructure projects would be cancelled or delayed if the work was done at the "223" site.
Washington had its first DUI traffic stop less than two hours into 2025
When was the first DUI traffic stop in Washington in 2025? It took place one hour and nine minutes into the new year, Police Chief Mike McCoy and Deputy Chief Jeff Stevens reported Monday to the council.
They also reported that:
- The police department continues to gather information about a pedestrian fatality Dec. 27 on the 1200 block of Peoria Street. Washington resident Patrick Merchant, 34, was attempting to cross the street from the south side of the roadway about 400 feet east of the crosswalk at Eagle Street when he was struck by an eastbound car. The driver, a juvenile, stopped and cooperated with the on-site investigation.
- Officers responded to a nighttime, single-vehicle rollover crash on the 300 block of Lynn Street.
- Det. Steve Hinken obtained the "Master Tactical Patrol Officer" designation from the Illinois Tactical Officers Association. He's the 151st police officer in Illinois to earn the designation.
- Officer Derek Thomas led the department with more than 650 traffic stops in 2024.
Work on Washington Park berm has been halted for the winter
City Engineer Dennis Carr reported to the council Monday that a berm project at Washington Park was put on hold for the winter with just a day and a half of work to go.
A short delay in the construction of a manhole riser was the culprit.
"The project in its current condition will work through the winter months," Carr said.
When completed, the berm will retain water and hopefully stop the flooding of yards south of the park after heavy rainstorms. Nearly 300 loads of clay were delivered to the park for the berm.
Carr also reported that Illinois American Water did some unexpected utility work on Hillcrest Drive that blocked vehicle traffic, and the city wasn't happy about it.
"It's been conveyed to Illinois American Water that the city would appreciate a head's-up before work like this begins so we can alert the traveling public," he said.
Holidays limited construction of Tangled Roots project
Oliphant reported to the council Monday that work was limited at the Tangled Roots Craft Beer & Kitchen during the holidays.
"Staff anticipates construction getting back to normal in early January," he said.
Oliphant also reported that the city has issued construction permits for the police department's evidence building at 200 N. Wilmor Road and the J&J Toppers facility at 1875 Constitution St.
$50,000 business improvement grant for Mt. Vernon Plaza approved
The Council unanimously approved a business improvement grant of $50,000 on Monday for the owners of the Mt. Vernon Plaza shopping center at 1217- 1255 Peoria St.
A recently completed project to remove and replace cedar shingles with black steel, repave the parking lot and paint the stucco cost $120,469. The city received the paid invoices for the project, so it awarded the grant.
