The McHenry City Council this week approved a 10-year, $142,000 sales tax rebate deal with Niko Kanakaris, who is set to buy and rehab Vickie’s Place on the Fox River.

The McHenry County business owner has 90 days to close on the restaurant at 1211 N. River Road, according to the agreement. It was approved at Tuesday’s meeting – bumped a day due to Presidents’ Day – on a 6-1 vote, with Alderwoman Chris Bassi, 4th Ward, the sole no vote.

“Overuse of economic incentives are a race to the bottom that results in reduced public revenue,” Bassi said before her dissenting vote.

If Kanakaris planned to install a fire suppression sprinkler system in the circa 1970 restaurant, a sales tax rebate “might be a more attractive option,” she added.

As he is not adding more interior seating, the local building code does not call for sprinklers in the building’s interior.

Kanakaris’ plans for the restaurant – $1.25 million in total – include $300,000 for new decks and reinforced piers; $200,000 in exterior improvements including patios, windows, doors and the facade; $350,000 in kitchen equipment; and $250,000 in bathroom upgrades, including ADA accessibility.

Mayor Wayne Jett voiced his support for the incentive, saying he wants to ensure the site does not remain vacant. The previous owner, Vickie Clawson, retired at the end of 2025 after 40 years there.

“Let’s be realistic – it has not generated a lot of sales tax," Jett said, adding that if the restaurant is not purchased by a new owner, then “sitting vacant will deteriorate that property even more.”

Sixth Ward Alderman Michael Koch, who was among those who expressed skepticism at the Jan. 20 meeting about giving Kanakaris a tax rebate, voted yes Tuesday.

“It is going to draw eyes to the riverwalk,” Koch said.

The restaurant, preliminarily being called Niko’s on the Fox, sits across the Fox River from McHenry’s Riverwalk.

“You run a first-class joint. It is nice that you come in here and beef up the city,” Koch said.