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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director of Economic Development
DATE: June 26, 2023
SUBJECT:
A Resolution authorizing a Redevelopment Agreement with a new Italian restaurant at 31-33 West New York Street. known as Amore Mio, curated by Roberto Avila, the popular Latin chef and proprietor of the successful Altiro Latin Fusion restaurant.
PURPOSE:
This Resolution and Redevelopment Agreement will facilitate the remodeling of dining services at the former restaurant located at 33 West New York Street (Gillerson’s Grubbery) which ceased operations in August 2022. The new restaurant will occupy the ground floor as well as the lowest level that opens on to Pinney Street (previously an unused raw space).
BACKGROUND:
Amore Mio is leasing 5,292 square feet of space on two floors. The seating capacity will double from the current 80 seats to 160 seats. The second floor is a rental apartment not part of the lease agreement between the property owner and the restaurant operator.
In addition to a complete redo of the first floor, Roberto is taking the ground floor raw space and converting it into a lounge-piano bar with additional seating capacity.
Roberto has infused about $350,000 thus far into the project from a combination of his own capital, a loan secured by family members, and a Finish Line Grant provided at the end of 2022.
To complete the restaurant, an additional $200,000 is required which would make the total renovation cost $550,000 or roughly $100/SF. This includes an entirely new kitchen plus the first floor and lowest level renovation. As with all costs post-COVID-19 these are significantly higher than they would have been before the pandemic. The property will be brought up to ADA compliant standards.
Consistent with other similar projects, the City has recognized this $200,000 as a reasonable financial gap that can be advanced by the City because it will receive these monies back with interest within a short timeframe from a combination of sales and food and beverage taxes.
Aside from his restaurant in Aurora, Roberto operates two additional full-service restaurants and a coffee shop in Wheaton. At Altiro, projected revenues were initially in the $700,000 range. Despite the hardships of the COVID-19 pandemic, Roberto kept his restaurant operating and his staff employed, despite experiencing significant losses. Revenues have now increased above $1,000,000 annually.
The City has not only reaped the benefits of this dependable and popular destination but has gained food and beverage and sales taxes which has created an approximate 20% return on its investment in Altiro (see April 11, 2023 Council presentation on Return on Investment).
Altiro has been recognized and voted a Top 10 Fusion/Tapas Restaurant in Illinois by Yelp, 2022 Best Mexican Restaurant by West Suburban Living and the 2021 & 2023 2nd Best Mexican Restaurant by West Suburban Living.
Amore Mio pays homage to the essence of the great Italian American restaurants of mid-20th century in New York City, where delicious, exceptionally well-prepared food was served in settings that were simultaneously elegant, comfortable, and unpretentious. Amore Mio will offer nightly live music in its renovated piano bar Wednesday-Sunday. In line with other downtown restaurants, they will offer customer-friendly business hours serving lunch, dinner, and a late-night menu, independently from the Paramount operations.
A former professional soccer player in Mexico, Roberto went from humble beginnings to a highly sought-after restauranteur. Roberto continues to be an invested, social, and active member in our Aurora community. Just last week he recruited Angel Reyne, a professional soccer player and international star from Mexico, as part of the One Goal Aurora program offering free soccer programs to Aurora youth and a community talk. Hundreds of Aurora children have benefitted from these programs.
DISCUSSION:
The property is located within Restaurant Row on New York Street. The addition of Amore Mio will complement the area by bringing a new dining and lounge experience. With the additional residential units, planned and approved, on the East and West bank of the River, upcoming demand for diversified dining and entertainment will be met.
When Gillerson’s was operating, the City received an uneven flow of food and beverage taxes. For this analysis, we assumed Gillerson’s average revenues at approximately $500,000 which would equate to about $20,000 of taxes to the City.
Amore Mio estimates revenues of approximately of $1,600,000 or about $300/SF which is in-line with other successful restaurants in Aurora and other locales or more than three times the average revenues for the prior tenant. This revenue would produce approximately $60,000 in food & beverage sales taxes or about $40,000 greater than the average intake from the previous restaurant. Although the City is not receiving any food and beverage and sales taxes from the property now, it would be paid back in about three years if we assume that the property would continue not to be revenue producing. To be conservative, we are assuming only this incremental increase of $40,000 as if the Gillerson’s City contributions were still intact. Using this $40,000 increment, the City will get paid back in approximately five years or assuming a 5.5% imputed interest, the City would be able to pay itself back in six years. For whatever reason if the City has not repaid itself within eight years, Amore Mio has agreed to refund the difference to the City.
The sources and uses for Amore Mio are as follows:
SOURCES: USES:
EDL Loan: $222,000 First round renovation: $350,000
Owner Equity: $ 53,000 Second round renovation: $200,000
City Grant: $200,000
Finish Line Grant: $ 75,000
TOTAL $550,000 $550,000
IMPACT STATEMENT:
Approval of this resolution will ensure that chef Avila’s new Italian restaurant concept will originate here in Aurora and solidify the company’s presence and headquarter base in the City. It will facilitate the opening of a new restaurant on Restaurant Row, now in the direct path of development given the activity on the nearby Westbank and the impending move of the Casino opening up its vacated space for future development. Approval will acknowledge Roberto and his family’s commitment to the City demonstrated both during the COVID-19 pandemic and his various charitable contributions here. The City will receive its money back for the grant by obtaining incremental sales and food and beverage funds that it otherwise would not have received.
RECOMMENDATIONS:
That this resolution be adopted.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing a Redevelopment Agreement with a new Italian restaurant at 31-33 West New York Street known as Amore Mio, curated by Roberto Avila, the popular Latin chef and proprietor of the successful Altiro Latin Fusion restaurant.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, Amore Mio (the "Developer") has approached the City with a proposal to redevelop the property at 31-33 W. New York Street (the "Property") and operate it as a restaurant; and
WHEREAS, the City finds that the Developer will not redevelop without some assistance and incentive from the City with respect to construction and renovation costs and
WHEREAS, the City finds that as a direct result of the Project, the City will benefit
through the retention or creation of jobs, the strengthening of the commercial environment within the City and the enhancement of its tax base, and that the Project will serve as a catalyst for the commercial development of adjacent areas;
WHEREAS, the Project would not be economically viable but for the assistance and participation of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor is authorized to execute an Agreement that substantially and materially conforms to the provisions of the Agreement set forth in Exhibit A on behalf of the City for redevelopment of the Property as a restaurant and the provision of economic incentives to the Developer to make the Project economically viable, as set forth in the Agreement; and further
BE IT RESOLVED, that the several City Officers and employees designated in the Agreement are authorized to perform the function and duties set forth in the Agreement; and further
BE IT RESOLVED, that the Mayor is authorized to execute such documents or agreements between the City and the Developer which are related to and subordinate to the Agreement so long as (1) such additional documents or agreements are consistent with and do not conflict with the provisions of the Agreement authorized by this Resolution (2) are necessary to carry into effect the purposes of the Agreement, and (3) do not create any additional liabilities upon the City.