Pine City EDA and City Council Approve Loan for Don Julio
The hope of Mexican food in Pine City continues to slowly come to fruition after a joint special meeting between Pine City City Council and Economic Development Authority approved a loan to assist in the remodel of the future Don Julio's location in Pine City.
The $34,583 loan will come from the city's Revolving Loan Fund, and the loan will then be part of a buy-in on a $103,750 loan from the Entrepreneur Fund.
While excitement over the prospect of the restaurant was shared by almost everyone present, issues over the terms of the loan were raised by a few members of the EDA.
Doug D'Aigle voiced concerns over the City's security if Erica Morales, the owner of the Pine City location, defaulted.
"A corporate guarantee while it doesn't provide collateral, does provide potentially five additional sources of repayment for the loan," said D'Aigle.
EDA President Kevin Anderson and fellow EDA board member Mike Sauser both echoed D'Aigle's concerns.
All in all, the motion to approve the loan passed the EDA in a vote of 4 to 3 with Anderson, D'Aigle, and Sauser voting against. After the vote, Anderson noted that he would've voted in favor if they could have secured the corporate guarantee.
The loan was then passed to the Pine City City Council, who unanimously voted in favor of the loan.
No open date for the Pine City Don Julio's location has been set, but it was noted at the joint special meeting that inside of the restaurant is nearly completed.
Photo courtesy of Don Julio's website.