New Steakhouse Eyes Vacant Storefront In Downtown Oswego

OSWEGO, IL — A new steakhouse is looking to open in a vacant retail space in the Reserve at Hudson Crossing building in downtown Oswego, according to village documents.

The Village Board is set to consider Tuesday evening economic incentive and loan agreements with 4 Guys Kitchen Oswego, LLC, which is hoping to transform the raw space at 180 W. Washington St. into Ellwood Steak and Fish House.

Village staff described the concept as "a higher end American-style restaurant." Ellwood Steak and Fish House in Oswego would be the group's second in the Chicagoland area. The first is located in DeKalb.

"Due to the raw condition of the space and high construction costs," the company requested up to $340,000 in direct financial assistance as well as a $300,000 loan at a 3 percent interest rate to help offset the $1.15 million project, Economic Development Director Kevin Leighty wrote in a memo.

"With the space being largely unfinished and the large amount of related capital needing to be invested, the project is ultimately dependent on financial assistance to move forward," Leighty wrote.

The developer agreement to the terms of the proposed economic incentive agreement. Documents state that the agreement would start once the restaurant space is fully built and open for business by receiving an occupancy permit no later than Dec. 31. Once the restaurant opens, the village will rebate half of the sales tax it collects from the business for up to 10 years or until $300,000 is incurred. The village will also provide a grant of $40,000 once the buildout is complete.

The restaurant is expected to generate between $500,000 to $1 million in total sales tax over a 10-year period, depending on sales performance, according to Leighty. Of the amount, the village would collect between $65,000 to $80,000 annually.

Several clawback provisions were also drafted in case Ellwood were to close within 12 months.

The retail space has been vacant since the residential building opened in 2021. A pizzeria considered taking over the space, but plans were abandoned in 2022.