Hell's BBQ is asking the Village of Oswego for $40,000 to help cover the cost of turning the long-vacant former Danelli's building at 228 E. Washington St. into its new barbecue restaurant. The Oswego Village Board is set to consider the maximum grant award Tuesday night, a request tied to a roughly $100,000 renovation project that includes a new kitchen hood fire protection system, a concrete pad and fencing for a meat smoker, and facade work including exterior painting.
The request comes as Hell's BBQ, Inc. works to relocate from its original home at 1019 Station Drive, where it operated from 2022 until closing in July, according to the Chicago Tribune. Owner Keith Richards built the business from a catering operation he founded in 2014 before opening that first brick-and-mortar storefront, as detailed by Shaw Local. After the Station Drive closure, the business kept serving customers in Kendall County by running its food truck at 111 S. Lake St. in neighboring Montgomery, according to Patch.
The 228 E. Washington St. building has sat empty since Danelli's Italian Restaurant & Pizzeria closed at the end of 2024, when longtime owners John and Chris Daniels retired after operating the restaurant for more than 45 years. The property required a zoning change before it could welcome a new tenant in that condition; in May 2025, the Oswego Planning and Zoning Commission unanimously recommended rezoning the site from M-1 light manufacturing to B-2 business zoning to bring it into alignment with the village's Unified Development Ordinance, per Shaw Local. The building, a 1,700-square-foot structure on a 0.24-acre lot, was listed for $450,000 and sold in mid-2025 to a buyer intending to lease it to a new restaurant tenant.
A Familiar Financing Arrangement for Oswego's Pitmaster
This isn't Hell's BBQ's first time tapping village financing. The Oswego Village Board approved a loan agreement with the business back in May 2023, when it requested $30,000 against a $66,000 project budget to help open its first brick-and-mortar restaurant — covering a drive-thru telecom system, a barbecue smoker structure, and exterior fencing. The business continues to make monthly payments on that 2023 loan and is current on them.
Kevin Leighty, Oswego's economic development director, says the new grant request and the $100,000 total project budget reflect the plans for the Washington Street site. The project's second phase, expected next year, calls for adding a patio area. Meanwhile, the building's owner is handling a separate portion of the renovation later this year, including installing a grease trap and paving the parking lot.
Part of a Broader Downtown Push
Oswego's incentive program, which supports businesses expanding or relocating into the downtown Tax Increment Financing district covering Main and Washington streets, is designed to promote property improvements. Village officials have used similar grants elsewhere downtown: in July, the Village Board approved a $40,000 grant and a $125,000 revolving loan for Wholey Granoly's downtown expansion, and in September, the board awarded $63,158 in matching grants to DTG Investments to renovate storefronts at 8 and 12 W. Washington St., Hoodline previously reported.
Hell's BBQ, Inc. is described as an established business owner proposing a new restaurant that officials say will contribute to and enhance the downtown TIF. Owner Keith Richards announced in late August that the restaurant aims to open at the new location in time for the 2026 holiday season, according to WhatNow, reversing an earlier decision to close brick-and-mortar operations entirely. The menu — rib tips, brisket egg rolls, cornbread and Mexican corn among the staples — is expected to expand once the business can take advantage of the larger kitchen layout at the Washington Street site.
The business has stayed visible in the community during its transition, serving as a pitmaster vendor at Oswego's municipal Boots, Bourbon & BBQ Fest on September 19 at Venue 1012. The relocation follows a pattern of downtown reinvestment that Hoodline has tracked in recent months, including the Billy Bricks move downtown. Whether the Village Board grants final approval for the $40,000 award Tuesday night, and whether the renovation stays on pace for a holiday-season opening, remain open questions as the project moves forward.
