Evanston’s Economic Development Committee voted Wednesday to advance to the full City Council a $400,000 TIF grant request for building out a new health restaurant at 1826-30 Dempster St.
Several councilmembers were hesitant to pitch in that much money but voted in favor to avoid potentially killing the application in committee.
Following the much-debated Popeyes application getting pulled in October, the corner property is now being eyed by partners Gabi Walker-Aguilar and Byron Glapion of 4 Suns Plant-Based Kitchen for a new 80-seat dine-in restaurant called “Choice Authentic,” envisioned as a healthier alternative to the area’s multiple fast food spots. The concept is backed by the neighboring Heartwood Center, as director Nancy Floy said Wednesday the center is poised to close on buying the building, after which it would enter a lease-to-own agreement with Walker-Aguilar and Glapion.
Out of a total budget of around $1.9 million between acquisition and construction, the $400,000 request would go solely toward build-out costs for converting the building into a restaurant space, improvements that would remain even if Choice Authentic closed down. Throughout the meeting, both the project team and supporters in public comment pitched this investment as helping make the property into a new third space and “hub of the community,” as Walker-Aguilar put it.
“If this is not what a TIF is for,” she said, “you cannot tell me what it is for.”
TIF, or tax increment financing, is when governments like the City of Evanston create districts where gains in property tax revenue are set aside for economic reinvestment within that district, funding things like infrastructure projects, redevelopment and business grants. The Dempster site in question is in the West Evanston TIF district that stretches across the Second and Fifth Wards, roughly following the path of the former Mayfair rail line.
TIF fund trouble
Choice Authentic’s concept was lauded by each committee member who spoke Wednesday, but several balanced that out with hesitation toward the application’s high price tag. Some of this came from scrutinizing details in the business plan, with Councilmembers Jonathan Nieuwsma (4th Ward) and Matt Rodgers (8th) wanting clarity on the financial projections and the lease-to-own terms respectively.
Floy addressed several of these questions, telling the committee at one point that with Heartwood taking on a mortgage for buying the property, she checked the numbers herself to ensure they were solid.
“I’ve already fought the whole Popeyes fight to keep Heartwood safe,” Floy said. “I’m not going to put a business next door that’s going to endanger us in any way financially.” She added that while the project has secured funding through the mortgage, a credit line and private fundraising, they’ve exhausted their options other than the TIF grant application.”That’s why we’re here, we don’t want to be here asking [for city funds].”
Councilmembers’ larger issue, though, was how the grant could impact the West Evanston TIF, which will expire and stop collecting funds at the end of 2029.
The fund has a balance around $2.8 million as of Sept. 30, and hefty project expenses are projected for its last years, including a “placeholder” figure of $6.8 million in 2027 for work on the Mason Park expansion and water main replacement. Economic manager Paul Zalmezak told the committee that while this expected allocation could be reduced to free up TIF funds for the Choice Authentic request, the reduction would have to be made up for in other ways such as borrowing.
Porting potential
Councilmember Clare Kelly (1st Ward) suggested that the Choice Authentic grant could be paid for by the Five-Fifths TIF, partially paying back the several hundreds of thousands ported to the new district from the West Evanston TIF for assisting the Soul and Smoke restaurant and demolishing several houses at Emerson Street and Jackson Avenue. Bobby Burns (5th Ward) responded that the Five-Fifths fund isn’t accumulating enough revenue yet to do so, at least not without cutting budgeted spending within the district.
“If we wanted to say, other than the money that has been approved by Council, we want everything else [in the Five-Fifths TIF] to go to this project,” Burns said, referring to Choice Authentic, “the reality is, certain things in the Five-Fifths TIF wouldn’t happen. But I think that’s a possibility.”
A potential alternative could come from much closer to Choice Authentic, however, as Parielle Davis (7th Ward) asked whether the $400,000 could be ported over to West Evanston from the adjacent Dempster Dodge TIF district, which solely covers the Evanston Plaza shopping center.
Zalmezak said that fund is sitting at around $1.2 million, most of which is put toward debt payments that could be extended to allow for the funding port to West Evanston. Davis accordingly moved to amend the grant with this funding swap, subject to a second opinion from the city’s finance and budget staff, and the committee approved the change unanimously.
No time to wait
Even with the funding switch, some councilmembers were still hesitant to provide support before their remaining questions could be talked through outside of the meeting. But when Nieuwsma suggested holding the grant application until the committee’s next meeting in January, project consultant Melissa Klotz warned this would be “catastrophic” for the project’s timeline, especially since Heartwood will soon start paying for the property’s mortgage.
“We are here before even closing on the property, because as soon as that clock starts ticking, it is eating up funds from Heartwood,” Klotz said. “Our real hope is that we can get to City Council in January. If that means that a lot of conversations need to happen between now and then, that’s fine. We’ll do whatever is necessary.”
And although the committee’s agenda said it was only taking a recommending vote on the TIF grant, there was some uncertainty whether a negative vote would kill the application in committee before it could go to council. With that in mind, some hesitant members flipped to yes and the vote passed 5 to 2: Councilmembers Kelly, Burns, Davis and Rodgers voted yes along with resident member Cheryl Judice, and Councilmembers Nieuwsma and Tom Suffredin (6th Ward) voted no.
Despite the hesitation, Glapion told the RoundTable he felt “celebratory” after the vote, and Walker-Aguilar said she’s grateful and looking forward to going before the full council. The next regular meeting where the application could be up for approval is scheduled for Monday, Jan. 12.
