Niko Kanakaris has told city staff he has $1,175,000 in improvements in mind as part of his planned purchase of Vickie’s Place in McHenry.

With that price tag attached, Kanakaris is preparing to ask the McHenry City Council for a sales tax rebate to help offset those costs. At Tuesday’s meeting – bumped a day because of the Martin Luther King Jr. Day holiday – he’ll ask if McHenry is into the idea.

A motion to approve the request is not on the agenda, but it is offered as a discussion. If the City Council indicates it’s in support of Kanakaris’ request “staff will proceed with working with the applicant on an incentive agreement,” according to the report from Economic Development Director Doug Martin.

Vickie Clawson operated Vickie’s Place riverfront restaurant at 1211 N. River Road for 40 years before retiring at the end of 2025. Kanakaris is under contract to purchase the restaurant on the Fox River, built in 1972.

According to Martin’s report to the Council, Kanakaris’ planned improvements include ADA-compliant bathrooms, renovations to the A-frame building’s facade, new signage, changes to the patio area, new windows and doors, updated heating and air conditioning systems, upgrades to the kitchen and other site and building improvements.

He also will ask for an outdoor entertainment permit, with amplified music on weekdays, acoustic music on the weekends, and live outdoor bands on Saturday and Sunday afternoons, Martin said.

Kanakaris told Shaw Local in December that he planned to focus on the building’s exterior, redoing the boat slips, deck and railings and adding an outdoor bar to the patio for a “nice, fresh new look and the great food that we have been known for.”

Live music with a “Jumbotron, like we do at Red Mill,” is also part of his plans, Kanakaris said. Niko’s Red Mill Tavern is his Woodstock location. He also owns restaurants in Elgin, Pingree Grove and Marengo.

Parking is a potential concern on the property, which is less than a half-acre in size. A similar concern arose last summer, when a developer asked for Council input on an idea to bring condos to the property. That idea did not move forward.

“While the property successfully operated as a restaurant for four decades, the addition of outdoor entertainment may increase patron demand,” according to Martin’s report. Kanakaris and city staff have reached out to neighboring property owners about possible land acquisition, and valet parking is also an option, according to the report.