Sycamore could soon be home to the newest location of a popular Italian chain restaurant, according to city documents posted this week.

Documents shared by the Sycamore Clerk and Recorder’s Office show that Olive Garden has selected Sycamore to build a new eatery.

If approved, the restaurant would be built on the southeast corner of Route 23 and Gateway Drive, directly across from Northwestern Medicine Kishwaukee Hospital at the Sycamore-DeKalb line, documents show.

In a letter dated proactively Feb. 2 (but shared with the public through the clerk’s office on Jan. 29), Sycamore City Manager Michael Hall told the Sycamore City Council that the city had negotiated an economic incentive agreement with Olive Garden Holdings, LLC.

“The proposed agreement is a performance-based restaurant tax revenue-sharing agreement,” Hall wrote. “The City does not provide any upfront financial assistance. Incentive payments are made only after the restaurant opens and generates taxable sales.”

Over a maximum of 10 years, the Olive Garden would receive incentive payments from a portion of the city’s restaurant, bar, and package liquor tax revenues generated by the restaurant, Hall said.

For the first three years of taxable operation, the restaurant would receive 75% from that pool of package liquor tax revenue back from the city, 50% from four to seven years and 25% after eight years.

The business incentive would be capped at $400,000, regardless of when that amount is reached over the 10-year period of the agreement, documents show.