A proposed Mexican restaurant got another extension with the village as the developer tries to finalize construction financing.
The Homewood Village Board approved a second amendment to a redevelopment agreement for the proposed Tequila Raizes restaurant, 18134-18138 Dixie Highway, at the June 9 meeting, giving the developer additional time to secure financing and meet project deadlines.
The project is proposed by Raices Restaurant Inc. and Anguiano Guido Properties LLC, which plan to construct a 6,000-square-foot Mexican restaurant. The developer also owns Casa Catrina in Joliet, said Noah Schumerth, Homewood interim director of economic and community development.
The project has been delayed because the developer has not yet secured the financing needed to complete construction and obtain final building permits. Under the amended agreement, the developer now has until July 31 to obtain full construction loan commitments, Schumerth said.
The amendment also extends the deadline for obtaining building permits to Aug. 14, which is also when the project’s planning and zoning approvals expire. The proposed restaurant is now expected to be completed by June 30, 2027, he said.
The village first approved a redevelopment agreement and property sale with the developer on Dec. 10, 2024. As part of that agreement, Homewood committed to supporting a Cook County Class 8 property tax incentive and approved a places-of-eating tax rebate of up to $60,000 over three years, Schumerth said.
The developer purchased the property from the village for $1 on March 25, 2025. Planning and zoning approvals were granted on Aug. 14, 2025, he said.
A first amendment to the redevelopment agreement was approved April 14, extending the project deadlines and providing an updated schedule. That amendment required the developer to provide proof of financing by May 29, 2026. Since that deadline passed without financing being secured, the village decided to consider a second amendment to allow additional time to the developer to move the project forward, he said.
According to Schumerth, redevelopment agreements allow the village to reclaim ownership of a property if key project milestones are not met.
Trustee Jay Heiferman voted in favor of the amendment, but he said he thought it should be the last one.
“I’m hoping that there are no more requests to extend it. I think that we should ultimately take this property back to the market,” Heiferman said.
“Well like so many projects now, it’s a matter of financing,” Mayor Rich Hofeld said.
Related stories:
- Homewood approves property sale for Mexican restaurant development (Dec. 15, 2024).
- Homewood board approves extension for Tequila Raizes restaurant project (April 21, 2026).
