Evanston restaurants could see their sidewalk dining permit costs drop from thousands of dollars to as little as $175 under a proposal headed to City Council.

The Economic Development Committee voted Wednesday, Sept. 23, to recommend a new tiered flat-fee structure that would replace the city's current system of base fees, per-square-foot charges and winter storage fees, Evanston Now reported. The change would cut roughly $20,300 from the city's annual revenue.

Under the proposal, restaurants with less than 200 square feet of outdoor space would pay $175 a year. Those with 200 to 400 square feet would pay $425, and those with more than 400 square feet would pay $750.

Permits now range from about $1,000 to $4,000, depending on size. Ald. Clare Kelly (1st Ward), who chairs the committee and championed the reduction, pointed to specific restaurants paying far more than peers in neighboring suburbs. La Principal currently pays $2,600 a year. Stacked and Folded pays $3,000. Burl pays $1,800.

Meanwhile, Wilmette charges a flat $50 for outdoor dining permits. Arlington Heights charges $115. Naperville charges $100 without a liquor license and $500 with one, according to a memo from Economic Development Manager Paul Zalmezak reviewed by the Evanston Roundtable.

"I feel it's a small price to pay at $20,000 … it's a small investment … into making our downtown more appealing," Kelly said at the Sept. 23 meeting.

Andy Vick, executive director of Downtown Evanston, urged the committee to drop rates as far as possible. He said more outdoor dining would benefit the entire community.

Not everyone was as enthusiastic. Ald. Jonathan Nieuwsma (4th Ward) ultimately voted to advance the proposal but raised concerns about the city's finances. At the committee's Aug. 27 meeting, when the idea was first reviewed, Nieuwsma warned the city faces "the most difficult budget discussion at the council in the last probably six, seven years."

Evanston faces a projected $12 million budget deficit for 2027, the Evanston Roundtable reported Sept. 3.

Committee member Lisa Dziekan acknowledged she was unsure whether lower fees would bring more restaurants into the outdoor dining program. But she said the reduction would send an important signal that the city is looking to ease burdens on business owners.

The city currently has 51 businesses with outdoor dining permits, generating about $60,000 in invoiced fees this year, according to Senior Project Manager Jason Krohn.

The fee reduction will be folded into the city's 2027 budget, which is set for release in early October. City Council will have the final vote.