Posted: Jan. 20, 2010 |(0) Comments

Shorewood — The North Star American Bistro will move across Oakland Avenue and open in the Cornerstone Building, the official name for the development now under way on the northeast corner of Oakland and Kensington Boulevard.

Acting upon the recommendation of the Community Development Authority, the Village Board on Tuesday night approved a $102,500 loan and a $50,000 grant from tax-incremental financing funds to facilitate the short trip. The money is part of the estimated moving cost of $536,000 and includes furnishings for the new space.

Mike Stoner, co-owner of the bistro, said he and his partners will all sign the loan agreement, with one partner putting up the collateral to guarantee the loan.

Stoner said the restaurant will be larger, 4,300 square feet vs. the current 3,500.

"We will be able to lay out the space," he said. "The bar will be a bar, the main dining room a dining room."

The restaurant will occupy the first floor of the building on the north end of the development. There will be outdoor seating in the warmer months.

CDA Chairman Pete Petrie said the loan and grant were calculated in the original project costs approved by the board last October.

"There are quite a few benefits to the village in return for the investment in the developer and tenants," Petrie said.

Those benefits include the eventual increase to the tax base for the community once the TIF district is closed. The first floor of the Cornerstone Building will be completely leased to businesses when it opens, a plus for the north end of Oakland Avenue.

One resident, John Reinhart, thought the financial projections should show the loss of value to the building that now houses the bistro.

"You are not reflecting the decrease in the value of the property across the street," he said. "I don't think that is reflective of the overall economics."

Reinhart said the owner of that building could ask for a reassessment based on the vacant space.

Village President Guy Johnson said any change in assessment for the property would depend on how long it is vacant.

Trustee Margaret Hickey said the board hopes that the opening of the new building and the new bistro location will bring other restaurants to the area.

"We hope this will improve our chances of improving that end of Oakland," she said.

Trustee Jeff Hanewall, also a CDA member, said the issues Reinhart raised were considered and discussed at the CDA. He acknowledged there is always a risk in redevelopment.

"We have to balance what is reasonable and likely," Hanewall said. "This may be an opportunity for a younger business to start up (in that vacant space)."

The board approved the funding by a 6-0 vote. Trustee Sean Cummings was excused from the meeting.