What a Stimulus!

March 23, 2009 3:03 PM

On March 14, we had a sneak peek at the new Buffalo Wild Wings restaurant in Crystal Lake. When I read the NW Herald article about it the next day it occured to me what a real stimulus is. I called John Weiler, the owner of 7 of these restaurants to get some stats so I could wrap my mind around what something like one restaurant means to a community. Let me start with the cost. It cost over $1 million for the dirt which is about 1 1/2 acres. The 6,250 + SF building costs over $2 million, so we are talking about a $3+ million investment "all in". Aside from all the jobs that are created to construct and equip a restaurant in the building process, the 120 employees it takes to run a single restaurant like this is significant. Why? Because they generate $750,000/year in wages, the bulk of which are pumped back into the local economy. The average Buffalo Wild Wings generates $3.5 million annual revenue. You can bet over $1 million of that goes to "cost of goods" which is primarily the cost of food which they buy from any number of purveyors, pumping more money into the economy. The sales tax revenue on $3.5 million at 7.75% is $271,250. The portion Crystal Lake gets to keep which gets pumped back into the community is $61,250.
The completion of a new commercial real estate project represents a powerful stream of benefits for the community in which it is located, especially when that property is occupied and put to productive use. It's projects like these and the net new jobs they create and the sales tax revenue they generate that help keep a community economically healthy.
Let us know about any new or proposed commercial projects you are aware of in the McHenry and Kane County corridors.