Why Capri decided to relocate to Loves Park, and how Rockford tried to convince them to stay

By Kevin Haas
Rock River Current
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ROCKFORD — The decision to relocate Capri Restaurant to Loves Park was a combination of economics, timing and months of frustration for the family that owns the restaurant as it hit roadblocks while trying to rebuild downtown.

The location change came despite an effort from the city of Rockford to offer incentives worth hundreds of thousands of dollars to convince the family to stay at 313 E. State St., where it has been a cherished staple in downtown for six decades.

Instead, Capri is moving to 6480 E. Riverside Blvd. in Loves Park after it faced multimillion-dollar renovation costs in Rockford. The cost to rebuild would have been higher than what the building was worth once the work was complete, owners said.

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What the city offered

The city reached out to offer financial support in a letter to Vito Grisanzio, the patriarch of the family that owns the restaurant, as recently as Nov. 15 as it made a last-ditch effort to convince the family to renovate and reopen the restaurant roughly 13 months after it was severely damaged in a fire. The letter was reiterating previously made offers, city officials said.

“I love the Capri Restaurant and love the family behind it and have tremendous respect for them,” Mayor Tom McNamara said in an interview with the Rock River Current. “We understood the importance of them. We respected their history and investment and we showed that in writing to them and in numerous meetings.”

The city was willing to create a new, 23-year tax-increment finance district and rebate 100% of the revenue toward the renovations. TIF districts capture increases in property tax revenue that come because of improvements that boost a property’s value into a special fund used for redevelopment purposes.

The city also offered $700,000 in federal Community Development Block Grant funds and free or reduced rent at a city-owned property in downtown for a temporary location.

However, the temporary property wasn’t feasible because it didn’t provide sufficient parking, the family said, and the cost to start service there didn’t make sense for the short time it would be used. The family also said the TIF district wasn’t expected to generate a substantial amount of revenue.

Capri is also in a River Edge Redevelopment Zone, which provides sales tax exemptions on building materials and other financial benefits.

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“We are highly interested and engaged in helping to find a solution for your property, as well as coordinating the permitting and construction process,” McNamara wrote in the letter, which was provided to the Current upon request. “We are committed to working with you to realize a positive outcome for your family and the community.”

Why Capri relocated

The Grisanzio family had every intention to rebuild downtown, but the cost of the building materials and changes needed to meet code pushed construction costs too high.

The family’s first estimate to rebuild came in at more than $4 million. Its second, which was for renovating the main floor only, was about $2.3 million. Those costs well exceed the market value of the property, Vito Grisanzio Jr. said.

“Our intention was to rebuild downtown, but there were just too many factors working against us,” Grisanzio Jr. said. “Ultimately the challenges with code upgrades, cost and the timeline of the project were so extended that it made the project not feasible.”

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They faced several delays from the outset, including waiting several months to connect temporary power due to requirements from city inspectors that the family contends weren’t needed.

There were disagreements with city inspectors about just how much of the equipment and materials inside the restaurant needed to be replaced. The city’s inspectors were calling for more costly changes than contractors felt was necessary.

One example was with the restaurant’s air handler units, which circulate air through the facility. The city called for them to be replaced, while Capri’s contractors felt the condition was up to code.

“I can see their frustration, but our decisions are based on code and public health,” McNamara said. “The overall emphasis on public health and what we’re mandated to do, I think our team had to deliver tough information.”

McNamara said the city was willing to provide large incentives in part because of the cost of bringing the facility up to code. He also learned the facility was under-insured. The cost of replacing materials at Capri skyrocketed with post-pandemic inflation and its insurance plan didn’t cover the higher-than-expected costs.

“The richness of what we offered is also based on the understanding of what that code requires them to do,” McNamara said.

What’s next

The family purchased a former Shell gas station at 6480 E. Riverside Blvd. for $1.125 million on Thursday for its future home. They immediately started work to renovate the space for carryout service before a full restaurant can open sometime in 2024.

A 3,000-square-foot structure on the Shell site will be remodeled for its kitchen and carryout service. The gas station canopy will be demolished to make way for parking. In 2024, Capri will build a 2,200-square-feet addition to serve as the main dining space and an additional 2,000-square-foot outdoor seating space. In later construction phases, three 2,000-square-foot retail spaces would be built on the site.

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In Loves Park, the family could benefit from its location in an Enterprise Zone, a state program that provides tax exemptions on building materials and state utility taxes for electricity and gas. The city may also create a business development district along Riverside Boulevard that could provide additional financial support.

The future of the downtown Rockford restaurant isn’t determined, but Grisanzio said it could reopen as an event and venue space. The family’s first priority, however, would be to get its core business up and running in Loves Park.

McNamara said the city is still willing to work with the family to help with future improvements to the downtown property. He said the city also needs to work quickly to make sure the building is safe and up to code.

“Even though this project didn’t work out, we still look forward to working with the city to pursue our next endeavor,” with the downtown space, Grisanzio Jr. said.

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas