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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director
DATE: April 1, 2025
SUBJECT:
A resolution authorizing approval of a Loan Agreement between the City of Aurora, Delicia Bowling, and Darius Butler for the purpose of facilitating the opening of The Soul Spot, a soul food restaurant, in Unit E4 at the Fox Valley Mall located at 195 Fox Valley Center Dr, Aurora, IL 60504.
This request was held for 30 days to ensure the funding request was sufficient to address all remaining tenant financial responsibilities
PURPOSE:
The Loan Agreement will help to facilitate Delicia Bowling and Darius Butler to open "The Soul Spot", a soul restaurant. The agreement codifies the commitments from Delicia Bowling that triggers City incentives that will be repaid to the City as described below.
BACKGROUND:
The subject commercial space, formerly occupied by Tilted Kilt Pub & Eatery who left in 2017. Another eatery temporarily occupied the space in 2021. Despite its prime location, the space has remained vacant not generating any sales tax revenue during this time, an opportunity loss for the city, and its taxpayers estimated at over $160,000 over four years (2021-2025).
Delicia owned and operated Mandy's Soul Food in Bolingbrook for seven years until making the decision to bring her successful and established business to Aurora.
Delicia has recently signed a lease agreement with Centennial Real Estate Management, LLC to improve and occupy the 6,251 square feet restaurant space.
Delicia has invested over $350,000 in kitchen equipment that she is bringing to this space. This together with the landlord's commitment to invest $112,900 to ensure that all equipment is in working order has limited some, but not all, of the costs to open the restaurant. Certain equipment will have to be replaced as this kitchen is smaller and has a layout that is different than her previous space. In addition, there are requirements for new signage, retrofitting, and working capital in addition to the funds that has already been expended. The City will require a final drawing(s) as a part of the permitting process, and no loan disbursement will happen prior to this time.
The Fox Valley Mall has undergone significant redevelopment beginning in 2019 following the City’s adoption of Route 59 Corridor Plan. At that time the new owners of the mall, Centennial, were faced with an aging traditional mall that had just lost Sears, Carson’s, and neighboring Toys R Us. Over the last several years Centennial has invested millions of dollars in renovating the mall into a mixed-use development. The primary focus has been to demolish the vacant anchors and construct new market-rate apartments. The First phase was Lumen, a 304-unit apartment complex that is doing extremely well. The second phase of the redevelopment is currently underway, which includes the construction of a 323-unit luxury apartment community. The next phase will be a 212-unit senior housing development called Sophia.
Competition in this area continues to increase especially with the new Block 59 development just to the east in Naperville. It’s worth noting that even Naperville approved incentives to help with the Block 59 project. Naperville provided a 1% sales tax incentive for the Block 59 development. This tax is applied to retail and restaurant sales within the business district, which includes the Westridge Court and Heritage Square shopping centers. The revenue generated from this tax is intended to fund the estimated $13.4 million in infrastructure improvements needed for the project. It is important to note that the majority of the West bridge/Heritage tenants are national brands with significant corporate capital as compared to the three minority owned businesses that are and will occupy these close proximate spaces next to Macys.
While this redevelopment is in the Fox Valley TIF District, the City is not planning to use Tax Increment Funding for incentives in this project.
Centennial and the City are both excited about attracting a new restaurant destination into the Fox Valley Mall - and it’s “front-facing” unit - will continue to strengthen the mall as a walkable, mixed-use development.
DISCUSSION:
The City joined forces with the SBA funded "Small Business Entrepreneurial Center" at Waubonsee to assure the comprehensiveness of the projections included as an attachement in the RDA. Aside from guiding financial operations the projections estimate revenues which in turn will generate new incremental Sales/Food and Beverage Taxes. Sections of this proforma are attached to the Loan Agreement.
Financial Overview:
Contributed Capital - $350,000.00 (Equipment)
The Soul Spot Equity - $30,000
Total Owner Contribution = $380,000
Landlord equity - $112,900.00
City Short Term Loan - $75,000.00
The incentives being offered as a part of this Agreement are:
- A City loan of $75,000 (Paid through sales/ food and beverage taxes over a three (3) year period and personally guaranteed)
- $1,350 for grease trap
- $25,000 for general contracting and including electrical and plumbing
- $6,000 for hood
- $6,700 for signage
- $10,950 for FF&E
- $25,000 working capital
Total annual sales are estimated at a minimum of $1,000,000 which would produce $37,500 in sales/food and beverage annually. This means the City would be paid back in three years. In any event, the loan is guaranteed by the principles of The Soul Spot.
A DST meeting was held on February 27,2025. As a result of the meeting the City needed to verify all items required to obtain the permit were met which is the reason the item was held for a the time necessary to satisfy these requirements.
The restaurant will be open seven days a week with the following hours:
Monday-Friday 10am-8pm
Thursday-Friday 10am-8pm
Sunday 10am-8pm
IMPACT STATEMENT:
The Soul Spot will expand the dining choices at the mall by offering an cuisine that is currently not available. An addition the City will begin to reap sales, food and beverage taxes that have not been received for the better part of seven years.
RECOMMENDATIONS:
Staff recommends approval of the resolution authorizing approval of a Sales Tax Sharing Agreement between the City of Aurora and Delicia Bowling for the purpose of facilitating the new restaurant in Unit E4 at the Fox Valley Mall at 195 Fox Valley Center Dr, Aurora, IL 60504.
cc: Committee of the Whole
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing approval of a Loan Agreement between the City of Aurora, Delicia Bowling, and Darius Butler for the purpose of facilitating the opening of The Soul Spot, a soul food restaurant, in Unit E4 at the Fox Valley Mall located at 195 Fox Valley Center Dr, Aurora, IL 60504
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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, (The Soul Spot, a restaurant owned by Delicia Bowling and Darius Butler have approached the City with a proposal for the development of the vacant property for "The Soul Spot" for a restaurant at Unit E4, 195 Fox Valley Center Dr, Aurora, IL 60504; and
WHEREAS, this commercial space at Unit E4, 195 Fox Valley Center Dr, Aurora, IL 60504 is currently vacant and has not generated any Sales/Food and Beverage tax income for the City or housed a tax-generating business for a significant period of time; and
WHEREAS, the City finds that this property at Unit E4, 195 Fox Valley Center Dr, Aurora, IL 60504 will not develop without some assistance and incentive from the City with respect to the costs of buildout; and
WHEREAS, the City recognized the need to financially assist the project by providing The Soul Spot a Loan in the amount of Seventy Five Thousand dollars $75,000; and
WHEREAS, the City finds that as a direct result of the Project, the City will benefit through the creation of jobs; the strengthening of the commercial environment within the City and the enhancement of its tax base; and
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: pursuant to its statutory and home rule powers, as follows: that the Agreement attached to this Resolution as Exhibit "A" shall be and hereby is approved; and further
BE IT RESOLVED, 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/diner 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.