A Mexican restaurant, Tequila Raizes, is planned in downtown Homewood on village-owned property, with the village backing a property tax incentive for the owner.

The property, at 18134 Dixie Highway, used to be the location of Savoia’s T’Go. The village has owned the site since 2015.

The sale to Joaquin Anguiano, for $1, includes the adjacent Independence Park.

Anguiano owns a restaurant on Chicago’s Southwest Side and plans to invest $2.3 million in building Tequila Raizes, according to the village.

A redevelopment and sales agreement with Anguiano were approved this month by the Homewood Village Board.

Village officials said other options had been sought for developing the site, now vacant with the exception of the park. They received and rejected a proposal for a one-story, mixed-use retail and restaurant building.

Under the terms of the redevelopment agreement, Homewood will rebate to Anguiano the village’s 2% restaurant tax for three years, up to $60,000.

The Village Board also supported a resolution to Cook County for a property tax break that will reduce the property tax assessment level from the rate imposed on commercial property to the 10% rate assessed on homes. The reduction will be in effect for 10 years and doesn’t start until the business opens.

Anguiano operates Tequlia CJ Grill, 5750 S. Archer Ave., Chicago, and plans to have the Homewood restaurant open by 2026.

Under a business plan filed with the village, Anguiano expects revenue for the restaurant to be $4.3 million in 2026, rising to $6.7 million by 2030.

Anguiano said the restaurant patrons “don’t just enjoy a meal, they are transported to a traditional Mexican party,” where the “flavors and traditions of different regions of Mexico come together to create an unforgettable experience.”

Village levy

The Village Board also approved a property tax levy for the next fiscal year, which begins May 1, up sharply from this year’s levy.

The increase is due in large part to assessing homeowners to pay for a bond issue approved this year to pay for capital improvements, officials said.

The coming year’s levy, for taxes assessed in 2024, will be $7.8 million compared with $6.9 million.

Of the levy revenue, $3.6 million will go to the village’s general fund, to pay for most operations of the village, while $3.4 million will be used to pay for police and fire pension obligations. Just under $747,000 will be used for debt service.

The village in September issued $2.6 million in bonds to pay for capital work such as improving streets and replacing lead water service lines.

Officials said Homewood’s property tax represents about 10% of the typical village resident’s tax bill, but that could increase to about 11%. The dollar amount paid depends on property tax assessments this year.

The board is also moving ahead with creating a new tax increment financing district, taking in properties on the west side of Halsted Street between Ridge Road and 175th Street.

TIF districts can use property tax money generated within the TIF to pay for public improvements and offer incentives to spur development. A public hearing on creating the new TIF is scheduled for 7 p.m. on Feb. 11 at Village Hall.

The proposed TIF includes 43 properties, 16 of which are developed. The 236-acre TIF includes the vacant Walmart store southwest of Halsted and 175th that the village is trying to redevelop.

mnolan@southtownstar.com