A plan for one of two restaurant businesses in a shared Warehouse District storefront to serve alcohol has gained initial approval from the Peoria City Council.
Whether or not the Love Shack hamburger shop gets a liquor license remains to be seen.
The council voted unanimously, with one absence, in favor of site approval for Love Shack’s application during Tuesday’s meeting. Love Shack shares its location at 800 SW Adams St., Suite 106, with Pop-Up Chicken.
“With regards to the site approval, is this a physical location that would support the amenity of the requested uses? The answer to that question is, ‘Yes it is,’” city attorney Patrick Hayes told the council.
The application was submitted by Shayla Talley, who operates Love Shack under the business name S&A Hospitality, LLC — separate from Pop-Up Chicken. Under the plan, diners at the site in the Adams & Oak building will be able to order food from either business, but Love Shack would operate the bar rail and process all liquor transactions.
“I have had an opportunity to eat at the Pop-Up Chicken; I’ve been there a few times, and I must say the ambiance is beautiful, the food is delicious, and it’s in the heart of the Warehouse District,” said District 1 council member Denise Jackson in support of the site application.
With the site approval granted, the two-step process moves on to the formal issuance of a liquor license. That requires a police investigation and a background check before Mayor Rita Ali, in her role as liquor commissioner, determines whether or not to grant the license.
Pop-Up Chicken owner Aaron Francis previously had gotten site approval for the restaurant, but ultimately was denied a liquor license. Pop-Up Chicken and Love Shack also share a single location with alcohol service in Bloomington.
Earlier this month, the liquor commission voted 3-2 to recommend the site approval for Love Shack. According to minutes of the hearing, commissioner Scott Jordan expressed concerns about opening a “Pandora’s Box” of businesses getting around a liquor license denial. Chairman Paul Winkler felt more legal guidance was needed in joining Jordan in voting against the recommendation.
In a social media post earlier this month, Francis attempted to shift the focus away from his inability to get a liquor license himself, asking supporters to celebrate Talley and the modified business plan.
“At the end of the day, Pop-Up Chicken exists because we want to create the most customer-satisfied experience possible; in a town like Peoria we believe getting a nice cold beverage for dinner would enhance that. So, we found the right person, with the right proven track record to provide you that, in a 100% legal way,” the post said.
Possible Dutch Bros site
The council also approved preliminary development plans for at least one drive-through-only business near the intersection of War Memorial Drive and University Street, while removing a condition that would limit the site to right-turn-only access from northbound University.
The proposal from the Rockford-based RSCC Group calls for incremental development of a shopping center at the former car dealership site, likely beginning with a Dutch Bros Coffee location on the corner parcel.
District 2 council member Alex Carmona motioned to approve the special use change for the property, but with removal of the staff’s conditions for the turn-limited access from University, as well as a traffic impact study at the developers’ expense.
“The thing that I don’t want to happen is that if Dutch Bros walks away from this … because we restrict their access onto University and off to University, I think it’s safe to say that the lot will probably remain vacant for years to come, and it will negatively impact the ability for a developer to do anything there,” said Carmona.
Todd Raufeisen of RSCC Group told the council that having sufficient access is critical to the success of the project. He said they’ve already done their own traffic analysis by using several artificial intelligence platforms, anticipating that more than 90% of the likely customers already are frequent drivers through the intersection.
“It’s experienced traffic, and that’s a benefit,” said Raufeisen. “They predict, relative to the business historical model of Dutch Bros, minimal if any impact on the traffic flow at that intersection.”
Concerns over traffic patterns near the busy intersection prompted the staff’s recommendation for the partial University access. A condition for turn-limited access south of the property on Florence Avenue remained in the approved proposal.
“I think it’s important to note that drivers are oftentimes smarter than we give them credit for,” said District 3 council member Tim Riggenbach. “If I’m trying to make a left turn and I sit there for an inordinate amount of time, the next time I go there, I’m going to make a right and flip down War Memorial and do whatever I need to do.”
Ali cast the lone vote against Carmona’s motion, saying she supported the project but wanted to keep the removed conditions.
“I think it’s a safety issue, not to have the right-in and right-out on University only. That’s one of our busiest intersections that we have in the city,” she said. “I don’t want to delay the project at all. I’d love to see a traffic impact study as well, and maybe it will come to that down the road. But it looks like if it gets approved with the modification, then the city is fully responsible for the cost.”
The entire 4.5-acre development site is property that formerly held a car dealership and is now a part of the city’s War Memorial-University tax increment financing [TIF] district. The initial coffee shop would occupy a little more than 1.5 acres, while future development is expected to bring a second drive-through restaurant to a lot just east of the planned Dutch Bros site.
“It’s been vacant or unused for about 10 years, and the buildings that were there have been raised,” said Assistant Community Development Director Leah Allison. “The property, the site has been leveled and graded, priming it for a new use, a new development.”
Financial outlook
Requested report-backs from the previous council meeting by District 5 council member Denis Cyr and Ali, aimed at getting a clearer picture of the city’s fiscal health, resulted in a 45-minute question-and-answer session with Finance Director Kyle Cratty.
In response to Ali’s inquiry, Cratty detailed allocation changes in the Local Government Distributive Fund [LGDF]. That fund is a designated portion of state income tax revenue returned to cities annually on a per capita basis.
For decades, that amount was 10% of all state income taxes received, but in recent years, it has been closer to 6% since a rollback in 2011.
For 2025, the city budgeted a $19.8 million allocation from LGDF based on a 6.47% estimate set by the Illinois Municipal League. If that percentage had returned to the previous 10% mark, Peoria would’ve received $30.6 million.
“This is why cities feel like they’re being robbed, that we’re not getting our full LGDF of 10%,” said Ali.
Cyr’s series of questions also focused on financial issues, including how proceeds from the Hotel, Restaurant and Amusement [HRA] Tax are spent. A breakdown of those dollars show anticipated revenue of $12.5 million, with $7.3 million going toward debt service and $2.5 million subsidizing the Peoria Civic Center.
Cratty also expanded on such budget topics as tax deductible revenue options, revenue growth, restricted fund accounts, and tax increment financing [TIF] expenses to satisfy Cyr’s inquiries.
“The goal of these reports back, I want my people — our people — to understand the budget, how their tax dollars are being spent or invested, whatever word you want to pick,” said Cyr.
“My goal is not to scare anybody. I just want to have discussion — when we have, in a few months from now, when we start the budget discussion — so that people know where the money goes, how all the money is [broken] up now, and where all these accounts are at.”
In other business
Cratty presented the unaudited city financial report for March, showing overall year-to-date revenues down 8.9% compared with the estimated budget and 6% compared to last year.
“Overall, we’re actually seeing relatively strong state sales tax as well as home rule sales tax, as well as income tax receipts,” said Cratty, adding that year-to-date expenses are down 4.8% from the budget and 6.8% from a year ago.
Items approved as part of the consent agenda included:
- A pair of ordinances that will enable the Greater Peoria Sanitary District to develop a natural gas reclamation system at its site on Darst Street;
- Two Highway Authority agreements that prohibit drilling for groundwater wells at lots adjacent to former gas stations;
- Spending $870,000 on existing liability insurance policies, crime coverage, and broker of record services;
- Updating an intergovernmental agreement related to Peoria’s membership in the Illinois Public Works Mutual Aid Network; and
- Three appointments to various boards.
In unfinished business, the council voted unanimously to deny a short-term rental application for a property in the 200 block of West Detweiller Drive.
The council scheduled a policy session for June 17 at 5 p.m. at the Gateway Building to continue discussion on addressing the city’s unsheltered population and to get an update on the combined sewer overflow project.
No one appeared during the public comments portion of the meeting before the council moved into an executive session.
