MONROE - The status of a Class B full liquor license and a $95,000 loan from the city's Revolving Loan Fund for a now-defunct business will be put through two committees and the Common Council next week.
The Class B liquor and fermented malt beverage license, granted Sept. 1 to Barrett's Brick Cafe at 1015 18th Ave., could end up in the hands of Woodford State Bank.
The license and the loans are connected to the closure of the restaurant, after less than two years in business.
According to a news release from the city Thursday, Woodford State Bank has "entered into an agreement for the conditional surrender of the Barrett's Brick Café's Class B liquor and fermented malt beverage license." The agreement is contingent upon the city approving the reissuance of the liquor license to Woodford State Bank.
License Committee Chairman Charles Schuringa said a city ordinance on alcohol licenses passed in May, 2009 might prevent issuing the license to Woodford.
"We'll have to peel it out," Schuringa said about reviewing the ordinance. "Legally, you have to use it (the license) or lose it."
Schuringa was referring to city ordinance 3-4-3(I), continuity of business, which states a holder of a license can't close for more than 120 consecutive days, nor serve beverages less than 25 percent of the days in any license year.
The council can grant a variance only under a unique circumstance, not shared by other holders of the same kind of license, where its judgment to grant a variance "advances a significant public interest."
On Tuesday, the city's Revolving Loan Fund Committee is scheduled to discuss and make recommendations to the License Committee and Common Council regarding an agreement with Woodford State Bank about the loans and the liquor license.
According to the city agenda, the Class B License is "being voluntarily surrendered by Barrett's Brick Café, LLC."
Barrett and Lisa Allman, owners of Barrett's Brick Cafe and defendants in a lawsuit brought by Woodford State Bank in Green County Circuit Court, declined comment, on advice of their attorney.
According to the city's news release, Barrett's Brick Café has ceased operations. Two of the three promissory notes, on which the lawsuit alleges the defendants have defaulted, are for funds loaned through the city's revolving loan fund.
The current balances on these two notes total about $95,000.00.
Green County property tax roll shows the business real estate is valued at $154,400.
Tom Rowe, a vice-president at Woodford State Bank, said Friday he wouldn't comment on the case because the situation was in an "active process" until the city makes its decision.
On Sept. 29, the Revolving Loan Fund Committee agreed to modify the loan agreement for Barrett and Lisa Allman to make interest-only payments on a $100,000 loan that was originally approved by the Common Council March 18, 2008.
The revolving Loan Fund Committee meets at 3:30 p.m. Tuesday. The license committee meets at 6:46 p.m.
Monroe Common Council meets at 7:30 p.m. All meets are held at the Monroe City Hall.
Revolving Loan Fund records on Aug. 31, 2009, showed the 37 loans had been made totaling $2.1 million. Of those, 60.9 percent (worth $1.3 million) had been repaid; 38.4 percent (worth $814,300) were current, and 0.7 percent (worth $15,150) were past due.
The Class B liquor and fermented malt beverage license, granted Sept. 1 to Barrett's Brick Cafe at 1015 18th Ave., could end up in the hands of Woodford State Bank.
The license and the loans are connected to the closure of the restaurant, after less than two years in business.
According to a news release from the city Thursday, Woodford State Bank has "entered into an agreement for the conditional surrender of the Barrett's Brick Café's Class B liquor and fermented malt beverage license." The agreement is contingent upon the city approving the reissuance of the liquor license to Woodford State Bank.
License Committee Chairman Charles Schuringa said a city ordinance on alcohol licenses passed in May, 2009 might prevent issuing the license to Woodford.
"We'll have to peel it out," Schuringa said about reviewing the ordinance. "Legally, you have to use it (the license) or lose it."
Schuringa was referring to city ordinance 3-4-3(I), continuity of business, which states a holder of a license can't close for more than 120 consecutive days, nor serve beverages less than 25 percent of the days in any license year.
The council can grant a variance only under a unique circumstance, not shared by other holders of the same kind of license, where its judgment to grant a variance "advances a significant public interest."
On Tuesday, the city's Revolving Loan Fund Committee is scheduled to discuss and make recommendations to the License Committee and Common Council regarding an agreement with Woodford State Bank about the loans and the liquor license.
According to the city agenda, the Class B License is "being voluntarily surrendered by Barrett's Brick Café, LLC."
Barrett and Lisa Allman, owners of Barrett's Brick Cafe and defendants in a lawsuit brought by Woodford State Bank in Green County Circuit Court, declined comment, on advice of their attorney.
According to the city's news release, Barrett's Brick Café has ceased operations. Two of the three promissory notes, on which the lawsuit alleges the defendants have defaulted, are for funds loaned through the city's revolving loan fund.
The current balances on these two notes total about $95,000.00.
Green County property tax roll shows the business real estate is valued at $154,400.
Tom Rowe, a vice-president at Woodford State Bank, said Friday he wouldn't comment on the case because the situation was in an "active process" until the city makes its decision.
On Sept. 29, the Revolving Loan Fund Committee agreed to modify the loan agreement for Barrett and Lisa Allman to make interest-only payments on a $100,000 loan that was originally approved by the Common Council March 18, 2008.
The revolving Loan Fund Committee meets at 3:30 p.m. Tuesday. The license committee meets at 6:46 p.m.
Monroe Common Council meets at 7:30 p.m. All meets are held at the Monroe City Hall.
Revolving Loan Fund records on Aug. 31, 2009, showed the 37 loans had been made totaling $2.1 million. Of those, 60.9 percent (worth $1.3 million) had been repaid; 38.4 percent (worth $814,300) were current, and 0.7 percent (worth $15,150) were past due.