Posted on 06/08/2007 6:16:14 AM PDT by P-40
Las Manitas restaurant will get the money needed to relocate, remodel and stay in downtown Austin.
Austin City Council members voted Thursday to grant the owners, Cynthia and Lydia Perez, a $750,000 forgivable loan that does not have to be repaid if certain requirements are met for a set time period.
Las Manitas has been at its current location on 211 Congress Avenue since 1981. Last September, Marriot announced a $185 million hotel complex will be built there. The project will add 1,000 hotel rooms, 600 jobs and is being called the largest hotel development in Austin history.
The community rallied to save Las Manitas, and the Austin City Council responded by creating a Business Enhancement and Retention Fund to help the diner relocate. The money comes from development fees that had been waived for large downtown developers.
Las Manitas qualifies for the "special circumstance" provision so they can move to their new location on 227 Congress Avenue. The loan requires the Perez sisters to put in $94,000 of their own money into the project. The money they pay will go back into the fund for other businesses to use.
"Any business that exists on Congress Avenue or that would like to move to Congress Avenue and East Sixth Street can apply for the same type of assistance," council member Mike Martinez said.
The Perez sisters must make monthly payments of $4,500 (for a total of $270,000 over five years), have 15 fulltime employees and use the money only for renovations. The Perez sisters say the money will go to a renovating the kitchen at the new location, which they said will cost $844,000.
After the five years, if all the requirements are met, then the sisters do not have to repay the loan.A search by the Travis Central Appraisal District shows properties owned by the sisters total $1.3 million.
Yeah, the “sisters” attitude as played on talk radio this morning made me fume!
My comment to the City Clowns would be: How dare you give a “gift” of that nature, then do a press release about how taxes have to rise because of a budget shortfall next year. Though I know it comes from different funds, it still doesn’t make sense - seems to me they need a new accountant or a class in budgeting.
A City is not a bank. Bad enough it loans itself money on tax exempt bonds its residents must pay back. Now for a City to give away money and then ‘forgive it’ and not get 100% of it all back ... that is pis*ing away tax dollars. This action is a farce and next election .. my vote goes to any non-incumbent on the ballot.
A forgivable loan is really a grant with conditions. To call it a loan is fundamentally dishonest. Sometimes grants have reasonable uses. I don’t know the details of this particular case.
Our town council wound up guaranteeing a loan for a developer a few years back. We’re going to be paying that bill for a loooooong time.
I'm more sick and disgusted that another huge modern building is going in downtown. Austin used to be such a lovely city---the capitol was visible from many miles around. There was either a law or just a sentiment, I don't know which---that no building could block the view of the capitol .
That of course, fell by the wayside years ago, and Austin today is just another ordinary city (except for it's weird politicians and plethora of weird people who keep voting them into office).
“That of course, fell by the wayside years ago, and Austin today is just another ordinary city (except for it’s weird politicians and plethora of weird people who keep voting them into office).”
When I was there a few years ago there were hookers and crack dealers just a few blocks from the capitol.
Strangely enough, when I visited Little Rock, it actually fulfilled my expectations of what I had hoped Austin would be like.
I am SOOOO glad I live in Williamson County, not Travis.
You must have wondered close to 6th Street, LOL!
Did you hear the owner of Bert’s BBQ call in? Now the City could have given him some money since the fire department (next door) did not respond to the 9/11 calls about smoke. And the city charging him full property taxes for 2007 was just too much!
I don't know the specifics, but in all likelihood the restaurant leased space in the building that is being replaced. The owner sells the building to Marriott and the tenants have to relocate.
The loan (grant) to the sisters is actually a grant to the Mariott hotel chain.
Reminds me of the old song......."Nice work if you can get it, if you can get it, so can I".
Leni
Dude, if you’ve ever eaten at Las Manitas you’d join me in celebrating this news. I don’t care if Karl Marx himself is behind the grill and Fidel Castro is chopping onions — Las Manitas is GREAT. Their chorizo is the best I’ve ever had. Austin wouldn’t be Austin without it.
¡Que viva Las Manitas! Felicidades, Austin!
I’ve eaten there but never will again. Their food is not $750,000 good. And if their food is so great...why do they need taxpayer money to move a few blocks to a property they already own?
From what was reported on the radio - the hotel offered to move them to their other location - but they hired an attorney and “held out” for this from the city council in stead so they could get the $$ rather than just moved.
I don’t know the exact specifics other than what was reported.
I don’t blame him in the least. What’s fair is fair.
a “forgivable loan” is like a
“free gift”,
right?
I’m not sure what you mean. Berts will have to pay full taxes for 2007 on a burned out building...next door to the fire station that failed to respond.
Basically yes. It is a free gift. They will pay some of it back but it is essentially free money to them.
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