Large new retail business complex to break ground in Atlanta this spring
Complex includes Truck Stop, Convenience Store, Car Wash, and Dairy Queen Grill and Chill

 

[March 07, 2019] 

At the Tuesday, March 5th meeting of the Atlanta City Council, aldermen approved motions that will pave the way for the development of an eight acre plot. The land is located on the east side of the city between Interstate 66 and Route 66.

The $5.8 million project will include a truck stop, convenience store, car wash and a Dairy Queen Grill and Chill restaurant.

The first motion was to authorize the sale of the property and the second motion was to execute a development agreement between the city and Harikrishna, LLC, a development company out of Jacksonville. Both motions passed with a 5-1 vote.

For both motions Adam McVey, Billie Cheek, Amber Finchum, Andrea Halley, and Keith Eimer voted “yes,” and Tommy Young voted “no.”

The evening began with the council hearing from a number of speakers representing the project. Jeff Giebelhausen, who was hired to be the city’s development consultant, began by saying that the city had purchased 15 acres for the purpose of development three years ago. Since then he has worked with the city to find good fits for developing the acreage. He noted that in looking for a project, the major considerations had been to create something new for the city.

Giebelhausen explained further saying that the new development should not compete with what is already in Atlanta. It should add things that the city does not have. It should also generate good revenue that is able to pay back the city and profit the business owners, and it should generate jobs.

He said that in looking at the voids in the city, the fast food component was very important. The town has good restaurants but no fast food options. The Dairy Queen will be a full service facility offering main course meals as well as the dessert options and will benefit the community as well as traffic coming in off I-55 or traveling Route 66.

The car wash is another component that the city does not currently have. The car wash will benefit the community and again those coming in off the two highways.

And the truck stop will bring in new traffic that the city has never seen. Giebelhausen said on the whole the project will answer all the desired targets.

Bishap Patel is one of three brothers who make up Harikrishna, LLC. Patel spoke about the project saying that offering the Dairy Queen within the complex was going to be a very big plus for the developers. He said that the sale of diesel fuel, which is limited in Atlanta now, will also provide a big plus.

Patel estimated that the truck stop and convenience store side of the property will provide 15 to 20 jobs. The Dairy Queen side will provide an extra 30 to 40 jobs. He said that these would be full time and part time jobs, and would employ local people. He noted that Dairy Queen is a good employer for young people.

The Patels have been involved in development for a number of years. Bishap explained that he and his brother Amit have been working with the LLC for about five years. Brother Shawn has been there considerably longer, and their father was the backbone behind the company.

In their history, Bishap has done one from the ground up project at Jacksonville, a new motel. Bishap said that project has gone very well. He noted that one reason he feels it has gone well is because the brothers worked to think outside the box. They developed a special entertainment area for youth, and travelers are finding that very attractive. The area he said features game and other entertainment geared to children and enhancing the family experience.

Brother Shawn has most recently worked on a project in Hillsboro, Missouri with good success, and brother Amit is currently working on a truck stop project in Henry that is going well enough that he is ready to now to move on to the Atlanta project. Bishap explained that Amit will be moving to Atlanta and will be the on-site developer for the project.

Bob Kohlhase of Farnsworth Group also spoke as the site engineer. He noted that the city is going to benefit from the fact that much of the needed utility service for the project is already in place on or near the property. This will cut back on the infrastructure costs. He noted the sewer already exists. There will be a need to extend the water main into the property and there needs to be roadways built. He said that the Illinois Department of Transportation had to approve the connection to Route 66 and they have done so.

The plan includes a 32-foot-wide roadway, which is wider than normal to accommodate semi traffic. The eventual plan is for “Empire Street” to wrap around the complex. However Kohlase said that for this project the road would be built where needed for access to the complex and would “dead-end” until further development.

Kohlhase said that there would also be need for a detention basin on the property because of the high volume of concrete surface. He said that paving that much area will impact the natural flow of water so the basin will serve to control flooding.

Nic Nelson of Jacob & Klein, LTD, spoke about the TIF for the project. The city of Atlanta implemented a Tax Increment Financing plan some time ago. To date the largest recipient of TIF funding has been Central Illinois Ag.

Left to right project developers Bishap, Shawn, and Amit Patel.

Nelson said the sale price for the acreage is $480,000. The Patels will pay $10,000 and will sign a promissory note for $470,000 with three percent interest. The Patels will not be making payments on the balance, but will take credits from the TIF and other tax revenues to make the payments. The city will record as payment of the note 50 percent of the property tax generated through the TIF, 50 percent of the sales tax generated, and 50 percent of the gaming revenue from video gaming offered on the truck-stop side.

With those credits, the note should be paid with interest within a 10 year period. If the note is paid in less than 10 years, then those percentages will be distributed to the developers for additional development costs.

Nelson said the city is going to be out very little for this project.

As the floor was opened for discussion, Alderman Eimer asked if the current sewer and water mains were adequate for the project. Kohlhase said that they were. The mains will be eight-inch, he said, and noted that the city has been working to convert all mains to that same capacity. Kohlhase added that with Atlanta just now completing a new well, there will be ample water supply for the new project.

Alderwoman Finchum said she wanted to verify and clarify for the public that the project is not going to impact taxpayers in Atlanta. Nelson gave that verification saying that the TIF would take care of the project and would not impact taxpayers.

Alderwoman Cheek asked about a timeline for the project. Bishap Patel said that the completed development would take eight to 10 months.

Later in the meeting it was said that the developers are ready to break ground as soon as the weather permits.
Their hope is to get started as quickly as possible with a projected opening date for the complex in late 2019 to early 2020.

Amber Finchum asked what impact the brothers’ developments have had in other towns. Bishap said that the best impact is jobs. He went on to say there will be other benefits. He noted that the complex will offer more buses for example for tours coming through town, and that the complex will promote Route 66 and offer information that will encourage visitors to explore Atlanta.

Alderman McVey asked what the fuel products would be at the truck stop. Bishap Patel answered that the gasoline would be Shell and the diesel fuel would be Ambest.

Mayor Fred Finchum asked what ancillary businesses could be developed on the remaining acreage?

Giebelhausen said the first and most obvious choice would be a motel. After the meeting the Patel brothers indicated that they would be very interested in placing a motel on the remaining acreage at some point.

Alderman Eimer asked what impact the new complex would have on other businesses close by. Giebelhausen said he felt like they would all benefit. He noted especially the NAPA store nearby will have the added traffic from the semi drivers. He said there will be visitors who don’t wish to eat Dairy Queen. They will have the option of the Country Aire very close by or the Casey’s if they are hungry for pizza. There is a Dollar Store close and of course, they can explore what is downtown.

As the discussion came to an end, the aldermen began considering the motions. The first motion to authorize the sale of the property was made by Cheek and seconded by Alley. At that time Tommy Young said that he would have wished for more time to study all the documents presented, but he also could see that was not going to happen. When it came to a vote all aldermen except Young voted to approve the sale of the property. Young also voted no on the second vote to execute a development agreement with the Patels.

Alderwoman Amber Finchum visits with the Patel brothers after the meeting.

Bill Thomas explains the layout to local media.

In a press release issued by Bill Thomas of the Logan County Economic Development Partnership, Thomas stated:

The Logan County Economic Development Partnership began work on the project in October 2015, following the City of Atlanta’s purchase of 15 acres at the interstate interchange. The LCEDP was requested by the city to seek a developer to bring projects to the property. With assistance from the Greater Peoria Economic Development Council, Mr. Jeff Giebelhausen of East Peoria, was engaged.

Giebelhausen reached out to Mr. Bishap Patel of Jacksonville, who proposed the truck stop project. Over the course of the next three and a half years, the LCEDP continued to move the project forward resulting in the Atlanta City Council’s action to enter into an agreement with Patel.

The approximately eight acres needed for the truck stop project are being sold to the developer for $480,000, or $80,000 an acre. In March 2016, the city of Atlanta purchased 15 acres at the interstate interchange at a cost of $495,000, or $33,000 per acre. The development is in the city’s TIF district, which will generate the funds to pay off the city’s loan to purchase the 15 acres, and cover the cost of street improvements and other infrastructure work needed for the truck stop. Over the remaining years in the TIF, which ends in 2034, the truck stop is estimated to bring in $1.1 million.

[Nila Smith]

Project RFP from city of Atlanta - Pdf

Site Improvement Plan - Pdf