After a troubled few years, Arcadia Brewing officially closed on Wednesday, September 19. The short version is that the owner, Tim Suprise, was behind on mortgage payments and taxes for years. Rather than foreclose, the mortgage was "discharged" (translation - quitclaim deed in lieu of foreclosure) to First National Bank of Michigan, and the back-taxes and fees were paid (only ~$5,000). Now, FNB owns the building, but intends to sell it (and an adjacent parcel - likely for more parking) to a future restaurant owner that is already fitting out the space. The plan is to stop brewing beer and convert to a full-service restaurant. The restaurant is reported to be the second location for "The Grand Woods Lounge" - out of downtown Grand Rapids.
I went here once in the past 5 years. Compared to all of the other local offerings, it was underwhelming enough to never need to return.
This could be perceived as "get out of jail free" card for the former owner, and a bad wrap for the BRA. The BRA is out a cool ~$173K (the outstanding principal balance on a loan), due to circumstances regarding how the original $200K loan was negotiated (the authority was in the third position behind other lenders involved, including the bank, so it was likely never to recoup any loss in the eventuality of a default or foreclosure).
There are two articles below that recap the whole process. Are there any lessons that the city should learn from this?
Source:
MLive | Courtesy Truscott Rossman