Despite some opposition to the package, the Northbrook Village Board has approved sales tax breaks that will bring the popular Hometown Coffee and Juice to downtown Northbrook.
Village officials said a $1.5 million development loan, expected to be repaid mostly with sales taxes generated by the new coffee shop/restaurant, will help bring a vibrancy to the downtown area that residents and business owners have long desired.
“Unfortunately, these types of incentives are what surrounding communities do in order to bring these types of anchor businesses within their business corridors,” Trustee Michelle Kohler said. “Hometown is a proven business with a model we’ve seen play out elsewhere. The goal is to create traffic so more people visit more places.”
The board voted 7-0, with Village President Kathryn Ciesla requesting to join the roll call, to grant the 6% loan to Hometown, which will repay the loan at least partially with $60,000 to $80,000 in expected sales taxes annually over 15 years.
“People are leaving our community to go to other communities to eat and spend money,” Ciesla said. “Our biggest sales group, college kids, are all dying for Hometown. The high school kids want it. People are leaving Northbrook to go to businesses in other communities, and Hometown is one of those.”
Lou Rubin, owner and founder of Hometown, said he and his wife, Julie, are excited to open their newest restaurant at 1290 Shermer Road, Northbrook. Rubin said he is proud that Hometown has such a positive effect on the communities in which it locates.
The chain currently serves almost 1 million people each year at its three current locations in Winnetka, Glencoe and Lake Forest, he said.
“Hometown is an opportunity to experience friends, family and community,” Rubin said. “It creates a ripple effect for local businesses. At each location, the existing restaurants and businesses have grown and new ones have come. We want to transform (downtown Northbrook) into something beautiful.”
Three residents and a business owner spoke against the package before the board’s vote.
Kadir Cicek, who said he has waited two and a half months to open Bean Bar, another proposed coffee shop just a few hundred feet from the Hometown site, said he paid more than 12% interest on the loan he took to open Bean Bar.
“Obviously, I’m upset,” Cicek said. “We could use ($1.5 million) to improve multiple restaurants. I just want a fair chance to feed my kids and put them in college. I’m not trying to become a billionaire.”
Northbrook officials said the village is finalizing an economic development program to help all local businesses. They encouraged business owners to reach out for assistance, especially after the details of the program are approved.
“To my mind, this is a one-off consideration, while incentives for other situations are being determined as more of a program than a one-off situation,” Trustee Robert Israel said. “Sometimes in life opportunities present themselves. This was one of those cases.”
Trustee Heather Ross said residents have frequently asked for more development downtown, including more restaurants to attract more people.
“Neighboring communities are bringing in successful restaurants by using economic incentives,” Ross said. “This opportunity fell in our lap.”
“I’m jumping out of my seat at the possibility of getting a Hometown in Northbrook,” Trustee Johannah Hebl said. “Let’s get some vibrancy going downtown, a community space where people can get together. I certainly don’t want to hurt other businesses, but we’re not operating on scarcity. We can all thrive here. I see this as a real opportunity.”
“I always want new businesses to come downtown that are compatible and work well with existing businesses,” Trustee Daniel Pepoon said. “I’ve heard gobs of support for Hometown to come to downtown from existing businesses. I’m hoping it helps downtown. That’s why I’m supportive of it.”
A few trustees who said they were leery of the Hometown proposal a few months ago indicated that changes negotiated by village officials won them over.
Trustee Joy Ebhomielen said she understands the concerns raised by other business owners, but believes Hometown will be beneficial to Northbrook.
“I have come to accept that you can’t please all the people all the time,” Ebhomielen said. “Sitting on the dais, I have to think of everyone, not just a few.”
