The Wisconsin Dells Community Development Authority approved one loan from its commercial revolving loan fund and denied one Wednesday afternoon.
Charles Sulik, of MSA, recommended the CDA approve a loan guarantee for Char and Skip Krueger to purchase and remodel the former Outlaw Steak House, which the CDA with a contingent that the city is able to purchase land for a lift station on part of the property and final drawings of the restaurant be submitted.
Sulik recommended and the CDA followed the recommendation that a loan for the House of Wines be denied.
The loan would be for $100,000 to guarantee a loan of additional funds, and Sulik explained that the city funds would be invested in a five year CD held by the loaning institution.
The Kruegers already had loan commitments of $1.4 million, which will be used to purchase the building and land and remodel the buildings for a restaurant with seating for 384 indoors and 80 to 100 outdoors. The restaurant would employ about 30 people.
When CDA Chairman Ben Borcher explained the city's interest in acquiring some of the property for the lift station, Skip Krueger said the city's land need was minimal and not a problem.
When asked if the Kruegers planned to apply for a quota plus liquor license, they said no. Skip said they had "no inclination to get into the saloon business."
Char Krueger said the couple wants to run a restaurant that caters to families with children and will only serve beer and wine. She said the couple has plans to have the restaurant open by June 1 "or sooner."
When Char noted that the couple has already hired a general manager and "the three of us" would be running the restaurant, Skip commented, "the two of you. I'm driving the train."
The restaurant has had a miniature railroad running around the property.
When Sulik noted the Kruegers had not submitted drawings of how the restaurant would be remodeled, the Kruegers presented preliminary ones, and said further finished ones would be presented later.
The House of Wines, planned for the Bridge View shopping mall on Stand Rock Road, did not fare as well. Timm and Sheila Breitkreutz applied for a $49,520 loan for equipment and start-up expenses.
In recommending the loan be denied, Sulik said only 30 percent of the proposed amounts meet the criteria of the program, the business will not add significantly to the tax base, few jobs will be added and the applicant's loan applications have been denied.
Before the loan for the Kruegers was approved, the city had $175,000 in the fund and Sulik also noted the city had $16,000 in second loan fund for businesses dating from the 1980s.
The city also has a revolving loan fund for homeowners to repair and remodel homes, said Jeff Thelen of MSA. That fund has a balance of $30,000 but has had no applications. Homeowners who meet income guidelines can get a zero percent interest loan that does not have to be repaid until the home is sold or the homeowner ceases to own it.