Beloved Ice Cream Shop Dairy Hut Closes, Will Be Redeveloped

OSWEGO, IL — A staple of Downtown Oswego summers is no more, but a local developer is promising to replace the shuttered business with a new local attraction. After nearly 60 years in business, Dairy Hut ice cream shop closed in August, and its building was sold to development firm Imperial Investments.

A reason for the ice cream shops closing was not given, and customers said online that the business appeared to have closed in early August. Since then, the Dairy Hut building at 121 Main St. was sold to Yorkville-based Imperial Investments for $290,000, said Mike Mann, Imperial's director of development.

Mann, of Oswego, said he was sad to see the longtime local business go.

"I've been going there for 40 years," Mann said. "When I heard the Dairy Hut was closing, I didn't want just anyone coming in and scooping it up."

Imperial Investments has not said how it will redevelop the business site. Plans for the building could be released as early as next week, Mann said.

Imperial is also redeveloping the lot neighboring Dairy Hut. At the former Village Hall site, the development firm is working to construct a three-story mixed-use building with a ground-floor restaurant and office space on upper floors. A groundbreaking for the project was held Wednesday.

Mann said his firm gave thought to combining the Dairy Hut and Village Hall parcels into one development. But the village plans to rebuild the alley that separates the two businesses, eventually connecting it to a new road to be built behind the businesses.

"We decided, we'll keep the alley for safety purposes," Mann said.

Dairy Hut has been an Oswego family favorite for generations. It has had a number of different owners and names over the years, with the new owners bringing in new food items like french fry sundaes, fried pickle chips and canine sundaes.