Update: DeKalb's O'Leary's building could become El Jimador Mexican Grill by May

DeKALB – Local developers are looking to turn the former O'Leary's Irish Pub & Grill at 260 E. Lincoln Highway downtown into a family-oriented Mexican restaurant by May, and are asking the city for tax increment finance support to do so.

Tom Weaver of, Sycamore-based Weaver Construction, Inc., and Ryan Gifford, of First National Bank, have a contract to purchase the building, once home to O'Leary's until the pub closed in November 2018 when owners Mel and Deborah Witmer retired, and turn it into El Jimador Mexican Grill. According to city documents, they're asking the city to fund $273,600 or 40% of total project costs, which are estimated at $684,100 to remodel the first floor and the exterior of the building. The total project cost includes the $560,000 purchase price.

The $273,600 TIF request exceeds the $124,000 amount actually eligible for TIF-funds, documents show, and the developers' 40% request is based off total project costs which include 100% of the building acquisition. Although land acquisition is a TIF-eligible expense, the city council has in the past been limited in its approval of such inclusions.

The council is not expected to vote on the issue at its regular meeting Monday, but will begin discussions on the TIF request at 6 p.m. at city hall. According to documents, the developers hope to have the site open and ready in May.

City Manager Bill Nicklas said the two businessmen approached him recently with the request.

"We were approached maybe six weeks ago," Nicklas said Thursday. "They're hoping to change the outside so it will no longer look like an Irish pub."

The building was built in 1937 by retailer J.C. Penny and remodeled as a restaurant and bar in the early 2000s, documents show. The first floor of El Jimador would include a 4,870-square-foot restaurant area and the second floor would be a 3,800-square-foot banquet space.

Remodeling plans on the first floor would include adding another 35 seats for a total of 185 seats at full capacity, and continuing the existing land lease with the City of DeKalb for a 710-square-foot portion of outdoor pace on the west side of South Third Street, which has been an outdoor dining area since May 2018, documents show.

Additional work will include installing a new awning, stucco later and tile on the outside facade, changing the sign, installing new tile floors in the bathroom, painting and carpentry work inside.

The new business comes months after a longtime Mexican restaurant, Eduardo's Mexican Restaurant, closed in December down the street at 206 E. Lincoln Highway. The Balli family, who owns the building, were awarded 216,800 in tax increment finance money, 40% of the project costs to build four luxury apartments on the second floor. They also hope to rent out the first floor for commercial use.