A long-vacant storefront in downtown Oswego may finally see some life, as the Village Board prepares this week to vote on an incentive package meant to bring Ellwood Steak and Fish House to Washington Street. The deal bundles grants, a low-interest loan and a sales-tax rebate intended to cover much of a roughly $1.15 million project. Village leaders say the pitch is simple: help land a full-service restaurant, drive more foot traffic and give neighboring small businesses a lift.
Numbers Behind The Proposal
Under the recommendation, the village would rebate 50% of the restaurant’s sales taxes for up to 10 years or until a $300,000 cap is reached. The package also includes up to $340,000 in direct assistance paid out over a decade.
The applicant is seeking a $300,000 loan at 3% interest and has shown proof of up to $150,000 in equity, along with noting private financing availability of up to $300,000. Documents reviewed by staff list a buildout cost of about $905,000 and an all-in total of roughly $1,154,000. The proposal also cites a landlord tenant-improvement allowance of up to $400,000, plus needs for opening inventory and working capital. Officials note the space has remained empty since the Reserve at Hudson Crossing opened in 2021, as reported by the Chicago Tribune.
Who’s Paying For The Space
The Reserve at Hudson Crossing, a Shodeen development, offers street-facing retail along Washington Street, and the proposed restaurant tenant is Ellwood Steak and Fish House, a DeKalb operator with a full-service menu. Shodeen’s marketing materials spotlight the project’s retail shells and frontage, while Ellwood’s website describes the steakhouse-and-seafood format it would bring to downtown Oswego. The developer on record, 4 Guys Kitchen Oswego LLC, is the applicant for the loan and incentive package to build out the unit (see Shodeen and Ellwood Steak & Fish House).
Tax Revenue And The Village's Payback
Village staff project the restaurant could generate between $500,000 and $1 million in sales taxes over 10 years. During the incentive term, the village would collect half of that amount, then see an estimated $65,000 to $80,000 annually after the rebate period ends. The plan also calls for a $40,000 economic-development grant, payable when the buildout is complete, which officials say is structured to help offset the initial assistance. Those figures and terms were outlined in the Chicago Tribune.
Next Steps
The Village Board is scheduled to consider the incentive and loan agreements at its June 23 meeting, according to the village calendar. If trustees sign off, the project would move into permitting and final financing stages before construction begins. Residents can review the agenda and follow the meeting through the village’s online calendar, which includes details and any public comment opportunities (see Oswego Village).
How trustees weigh the package as a short-term subsidy for potential long-term downtown vitality will likely define the debate. Their decision will determine whether a higher-end steakhouse replaces the empty bay and could shape how future downtown redevelopment pitches are handled.
