MONROE - Woodford State Bank will put Barrett's Brick Cafe on the selling block and the sale will include the restaurant's equipment, which is owned by the City of Monroe. Members of the city's Revolving Loan Fund Committee and representatives of the bank agreed at a meeting Tuesday that selling the cafe and its equipment as a package would bring the best offer from interested buyers.
The committee voted unanimously for the bank to sign a real estate sale contract for the building and the equipment with an asking price of about $285,000.
The business closed in the spring, leaving the city with a first lien on the restaurant equipment and fixtures and a second mortgage on the restaurant property through a revolving loan with about $95,000 remaining. Woodford holds a first lien on the building for a loan of about $250,000.
The movable restaurant equipment has been appraised at about $12,700. The real estate was appraised at about $240,000; $253,000 with the equipment.
Tuesday's meeting was called in response to questions from Tom Rowe, Woodford State Bank vice-president.
Rowe said he wanted to know what the city's position was regarding the sale and about the potential $30,000 "gap" between asking price and appraisal quotes.
He told the committee that the bank would be willing to sell the building and equipment separately, if an offer came in for either.
Woodford's attorney, Robert Duxstad, believed attempting to sell the restaurant with its equipment would benefit the city.
Mike Doyle, committee chairman, agreed and estimated that the city could receive about $35,000 of the sale price.
"That's the potential upside of recapturing more money for the revolving loan fund," he said.
Doyle said removing the equipment and trying to sell the equipment and the building separately would reduce the selling prices of both.
"The building doesn't look as good and the equipment doesn't look as good," he said.
Duxstad said the equipment would not lose any more value in the current economic market.
Once the bank receives an offer on the property and equipment, committee members and bank representatives will meet in closed session to negotiate who will get what percentage of the sale.
Barrett's liquor license
Barrett's Brick Cafe owners, Lisa and Barrett Allman, did not reapply for a full Class B liquor and fermented malt beverage license that they held for the business. That license officially expires June 30.
The City of Monroe License Committee could discuss the future of the license as early as July 6, according to Carol Stamm, city clerk.
The Common Council voted 9-1 against granting the license to Woodford State Bank June 1. Dan Henke voted in favor.
The city's Revolving Loan Fund and the License committees had recommended the council grant the license to Woodford, which some committee members believed would allow the bank to sell the property as a complete business more quickly and at a higher price, which could give the city a greater chance at recouping its loan repayment loss.
The committee voted unanimously for the bank to sign a real estate sale contract for the building and the equipment with an asking price of about $285,000.
The business closed in the spring, leaving the city with a first lien on the restaurant equipment and fixtures and a second mortgage on the restaurant property through a revolving loan with about $95,000 remaining. Woodford holds a first lien on the building for a loan of about $250,000.
The movable restaurant equipment has been appraised at about $12,700. The real estate was appraised at about $240,000; $253,000 with the equipment.
Tuesday's meeting was called in response to questions from Tom Rowe, Woodford State Bank vice-president.
Rowe said he wanted to know what the city's position was regarding the sale and about the potential $30,000 "gap" between asking price and appraisal quotes.
He told the committee that the bank would be willing to sell the building and equipment separately, if an offer came in for either.
Woodford's attorney, Robert Duxstad, believed attempting to sell the restaurant with its equipment would benefit the city.
Mike Doyle, committee chairman, agreed and estimated that the city could receive about $35,000 of the sale price.
"That's the potential upside of recapturing more money for the revolving loan fund," he said.
Doyle said removing the equipment and trying to sell the equipment and the building separately would reduce the selling prices of both.
"The building doesn't look as good and the equipment doesn't look as good," he said.
Duxstad said the equipment would not lose any more value in the current economic market.
Once the bank receives an offer on the property and equipment, committee members and bank representatives will meet in closed session to negotiate who will get what percentage of the sale.
Barrett's liquor license
Barrett's Brick Cafe owners, Lisa and Barrett Allman, did not reapply for a full Class B liquor and fermented malt beverage license that they held for the business. That license officially expires June 30.
The City of Monroe License Committee could discuss the future of the license as early as July 6, according to Carol Stamm, city clerk.
The Common Council voted 9-1 against granting the license to Woodford State Bank June 1. Dan Henke voted in favor.
The city's Revolving Loan Fund and the License committees had recommended the council grant the license to Woodford, which some committee members believed would allow the bank to sell the property as a complete business more quickly and at a higher price, which could give the city a greater chance at recouping its loan repayment loss.