Wednesday, October 2, 1996

Warehouse restaurant investors face strict criteria

By ARN

Investors interested in opening a restaurant in the renovated T&P Freight Warehouse must adhere to strict criteria released Tuesday by the city's economic development department.

Responding to concerns about the openness of the search for a tenant for the dilapidated downtown building, the city will accept proposals for 30 days before executing a contract with restaurateurs Joe and Sharon Allen.

City Council members have said they will consider proposals that better the Allens' plans.

Under that agreement, the city will renovate the 15,000-square-foot building and pay for $357,000 in restaurant-specific construction. The Allens are expected to pay about $200,000 in start-up costs.
The first year of the five-year lease will be free. Afterward, the Allens will pay 6 percent of their gross receipts and a prorated share of property taxes.

Proposals must be for a restaurant - the top priority use, according to citizen surveys - and must result in renovating the building to its historic state.

Applicants must have five years experience in food service and demonstrate financial ability to operate and manage a full-service restaurant. Capability can be documented with personal financial statements, tax returns, a credit history review, and professional and bank references.

By submitting a proposal, the proposer grants the city access to all credit and financial information necessary to determine the plan's viability. Proposals must list all owners, participants and investors. Submissions will be subject to the Open Records Act.

Proposals will be considered based on:

-- The proposer's experience and ability.
-- The proposal's ability to encourage downtown activity during weeknights and weekends.
-- The consistency of the proposal with the goals of the Tax Increment Financing District.
-- The level of private participation in the project.

The city reserves the right to reject any and all proposals, and to negotiate with any party.