I can’t help but take note of the situation down in Raleigh, where the city-subsidized Mint eatery is closing, albeit “with plans to reopen with a new name and concept.”
The City of Raleigh “pitched in $1 million toward the cost of converting the former bank office into a restaurant.” Turns out we’ve had a little bit of that action up here in G’boro when the city pitched in $200k toward a Mexican restaurant on Elm Street:
By an 8-to-1 vote, with (council member Trudy) Wade voting no, the City Council agreed to loan Greensboro Parking Group LLC $200,000 to build a Mexican restaurant, parking lot and outdoor venue in an area just west of South Elm Street and just south of the railroad tracks. According to the deal presented to the council, a private bank has agreed to loan the group $1.47 million for the project if the city ponies up $200,000. The project will create restaurant and parking lot attendant jobs. The $200,000 will be loaned at 2.5 percent for a 20 year term.
One interesting aspect of the project is that the property appraised at $1 million, but the tax value is $318,000. In this economy, for the tax value to be one-third of the appraised value should raise some questions.
Wade questioned whether it was wise to loan a group money that couldn’t get a bank loan unless the city participated.
Without a doubt the restaurant business is one of the riskier ventures in the private sector, so why you have to wonder why public officials would risk taxpayers’ money on such a venture.
