Batavia is putting real money behind its bet on a new steakhouse. The city council voted unanimously on Sept. 21 to approve an economic development agreement that hands Texas Roadhouse a sales tax rebate worth up to $230,000, clearing the way for the chain to build a restaurant along Randall Road.
The deal covers a proposed outlot at the Windpoint Shopping Center, 275 N. Randall Road, according to the Daily Herald. Texas Roadhouse expects to sink about $5 million into the site, a project the Chicago Tribune reports is expected to create the equivalent of roughly 50 full-time and management positions.
Under the agreement, the restaurant would receive a rebate equal to half of the 1% municipal sales tax it generates each year, continuing for up to 10 years or until payments hit the $230,000 cap, whichever comes first. That money is earmarked for site development and public infrastructure, not general operating costs. The Daily Herald's reporting notes the funds would specifically help cover water main, stormwater and sanitary sewer work at the site, along with extending a sidewalk along Randall Road.
How the Deal Reached the Council
The proposal wasn't a surprise vote. It had already cleared a committee of the whole meeting on Sept. 15, where it was recommended for approval before heading to the full council for Monday's final sign-off. The council gave its unanimous approval Monday.
Batavia Mayor Jeff Schielke said the project has drawn considerable attention from residents even before ground has been broken, calling it a proposal that has received a lot of positive attention from the community. City officials frame the rebate as a straightforward trade: help offset upfront site costs now, in exchange for a new building, added jobs and a long-term sales tax generator on Randall Road.
What City Officials Are Saying
Batavia Economic Development Manager Anthony Isom said the city is very excited to work with Texas Roadhouse, adding that the project will bring more than just Batavians in to enjoy food, suggesting the restaurant could draw diners from beyond city limits. The rebate is one of the ways Batavia is supporting Texas Roadhouse's investment in the city.
Batavia alderman Alan Wolff explained that the rebate itself is funded entirely by sales tax the business generates, meaning it isn't drawn from existing city revenue streams. Wolff said the city's benefit extends beyond the sales tax dollars rebated to the business, pointing to the new construction and job creation the project would bring to the corridor.
The Deal's Fine Print and Its Deadline
The agreement isn't open-ended. It requires the restaurant to be up and running by the end of 2028, and the project still has to clear Batavia's applicable review and approval processes before construction can move forward. Texas Roadhouse currently operates 755 locations nationwide, including restaurants in Naperville and Bloomingdale, per the Daily Herald's earlier report.
A Familiar Playbook in the Suburbs
Batavia isn't inventing a new incentive here. Nearby Geneva has used sales tax rebates on a case-by-case basis for years to recruit businesses and encourage development, structuring its agreements with a capped rebate amount and a defined timeframe, according to the City of Geneva. St. Charles describes a similar approach, framing its sales tax sharing agreements as a tool to support local businesses and economic growth, per the city's economic development office.
The structure Batavia landed on has echoes well beyond Illinois, too. In Baytown, Texas, city council approved a similar arrangement for a Texas Roadhouse and Bubba's 33 location, rebating 50% of city-collected sales tax for 10 years, capped at $300,000, though that vote passed by a narrower 5-2 margin rather than unanimously, according to the Baytown Sun.
