Local leaders are offering about $1.6 million in incentives to developers weighing whether to invest $6 million in the former Der Dutchman restaurant property.

Initial plans call for a cluster of businesses employing more than 100 to go on the 40-acre site where the former Der Dutchman building and an adjoining gift shop building have stood vacant for almost two years, officials said.

“It’s just a shame, a facility like that sitting there deteriorating,” Waynesville Mayor David Stubbs said. “We’ve got to do something with it.”

To assist the developer, the village could forgive $719,775 in property taxes over 10 years, and the county could provide an estimated $995,000 in employment, job training, sales-tax exemption and financing assistance, Warren County Economic Development Director Martin Russell said in a letter obtained by the Dayton Daily News.

A regional attraction for decades, the property has drawn complaints from neighbors upset by high weeds and tractor-trailer rigs temporarily parked in the sprawling parking lot on U.S. 42, east of Waynesville. Dutchman Hospitality Group still owns the property.

This week, members of the Greater Waynesville Chamber of Commerce queried the village council about granting tax abatements on proposed improvements.

“Whatever it takes to get that property up and running,” Councilman Gary Pelkey said, echoing comments from other council members.

Mike Palmer, president of the Dutchman group, visited the site this week, Marketing Manager Vickie VanNatta said.

“We’ve had some buyers who have expressed interest. Nothing definite,” VanNatta said Friday.

An unidentified business group is considering up to $6 million on improvements and property acquisition, according to Ron Kronenberger, president of the area chamber and owner of the Hometown Marketplace chain, with supermarkets in Waynesville and Jamestown.

The incentive package could include forgiveness of up to $719,775 in property taxes over 10 years through formation of a special tax incremental financing district by the village council. Warren County could offer up to $885,000 in help with employment and training and a sales-tax exemption of $110,000, Russell said in the letter.

Contrary to comments from council members, Kronenberger said there was no indication the development would include a restaurant.

On Friday, plywood covered the windows of the restaurant building and two tractor-trailer rigs were parked in the lot.

Before the October 2010 fire, Der Dutchman served Amish foods home-style in a large dining room. Baked goods and souvenirs were sold in the lobby. A wide range of gifts and merchandise were sold in an adjoining building. Previously a community pool and commercial ice and mill businesses operated on the property, which backs onto part of a 200-year-old mill race flowing into the Little Miami River.

The Dutchman group, which still operates six restaurants in Ohio and Florida, decided against rebuilding and reopening the restaurant. On Friday, VanNatta said the company supports efforts leading to the site’s sale and redevelopment.

Kronenberger said he was bound by a confidentiality agreement barring him from identifying the investment group.

“If it goes any further, they’re going to have to step out and be recognized,” he said.

The investment group is weighing the potential tax incentives and other information provided about the property, Kronenberger said.

“We’re waiting on them. The ball’s in their court,” he said.