Request for loan increase is denied

Portland Redevelopment Commission has decided against providing additional loans for a planned restaurant and brewery. 

At its meeting Friday, commission members entertained increasing its loan to the owners of HoosierBoy Smokehouse & Brew, a restaurant planned to open this year.

They also expressed support for renovation work to Brick Alley and heard a request to help fix up Jalisco Mexican Store’s building. 

Rusty Inman, a commission member, said HoosierBoy Smokehouse & Brew has run into a funding roadblock. Kelly and Ryan Johnson plan to open the restaurant and brewery at 105 W. Main St. this year. 

The couple told the commission last year that First Bank of Berne had agreed to finance most of the project. In January, the commission voted to give the couple a $100,000 forgivable loan and a $50,000 low-interest loan to help with infrastructure improvements. 

However, according to Inman, the bank has backed out of providing some of the money, leaving the couple with a gap.

Inman asked the commission if it would be willing to provide an additional loan of $250,000 to the Johnsons. They would pay back the loan in full, but would be required to do so before the tax increment financing (TIF) district expires.

Commission president Mark Clemens pointed out that to repay the total of $300,000 in grants to the commission in five years, it would require monthly payments of $5,000. That would be in addition to the payments the couple would be making to the bank. 

“Does it benefit the town? Absolutely, 100 percent, I firmly believe that. That’s why we did the project to begin with,” Clemens said of the restaurant. “The breakout of the numbers? I’ll be honest, they scare me a little bit.” 

Commission members tabled the matter, but asked Inman to relay to the Johnsons that they’d be willing to entertain other ideas for funding in the coming months. 

The commission also voted to move forward with a project to revamp Brick Alley, which is next to Community Resource Center and runs behind HoosierBoy. 

New sewage and gas lines need to be installed to accommodate HoosierBoy when it opens, and the lines are located underneath the alley. The bricks will have to be removed to allow for the utility work. 

Community developer Ami Huffman proposed taking advantage of the utility work to give the alley a makeover, creating a space for residents to sit and walk through. 

According to Huffman’s proposal, the bricks removed during the utility work would be relaid, with new bricks supplementing as needed. The city could close part of the alley to traffic, creating a pedestrian space with places to sit and room for activities.

While there have been concerns from local business owners who use the alley for deliveries and access to parking, Huffman said the work would not block off parking spaces. If the alley were closed to traffic, it would only be from Meridian Street to the west side of the Community Resource Building.

Additionally, the project could include removable barriers that would allow delivery trucks access to the buildings when needed. 

The commission received bids from Cook’s Nursery of Portland, Nature’s Green Nursery of Fort Recovery and Decorative Paving Company of Loveland, Ohio. Based on those bids, the commission agreed to pay up to $50,000 for the brick work in the alley. It will present the project to Portland City Council at its May 20 meeting for approval.

Also on Friday, the commission heard a request from Erick Gutierrez, the son of the owners of Jalisco Mexican Store at 316 N. Meridian St. 

Gutierrez asked the commission to help pay for three separate renovation projects at the building. That includes repair work to crumbling bricks on the south and west walls, repairing the roof and replacing windows on the back of the building. 

The combined work is estimated to cost about $60,000. However, because Gutierrez only got one quote for each separate project, the commission delayed voting on his request. Commission members asked Gutierrez to seek out at least one more bid for each project and bring both to the next meeting, which is scheduled for 8 a.m. May 31. 

Finally, the commission welcomed its new member, Dave Teeter, who was appointed by Portland Mayor Randy Geesaman.