Wednesday, June 16, 2010

Breaking News RE: The Captain's Wheel

Everyone in Bayview wonders what is happening with the lawsuit between Carletta Berry and Michael McFarland et al. That there are rumours, mostly false that have floated about the area, mostly started by advocates of one or the other camps, a final judgement has been rendered by Judge Hosack. The restaurant, closed down since January of this year, was slammed by a what some called a biased verdict. Apparently the judge felt the same.

The original judgement by the jury has been set aside. Essentially we are back to square one meaning whether the two majority owners can get real and agree on a sale price, since neither has the ability to financially start the restaurant back up. The alternative is that while stuck in limbo, the bank forecloses and nobody wins. Also a new trial could be ordered, a solution that wouldn't benefit either party.

As a former mortgage professional, and one that actually did a loan on the wheel back in 1996, I can without reservation state that the reputed value of this facility is no more than $700,000 and possibly less in this economy. Any rumoured commercial appraisal to the contrary, no MAI appraisal has been done on this restaurant since I did the original SBA loan.

Another option is for one of the principle stockholders to buy out the other. Unfortunately neither has that financial ability. Neither, in my opinion has either the business acumen and/or restaurant management ability to run the place, ergo, a sale.

For those that think the whole building is under a red tag cloud, there are only two such red tags. One over the dance floor not being raised 18 inches above the current level so as to protect the dance floor against a flood that would have already obliterated the kitchen, bar and all of the other high value portions of the business, which while a bureaucratic logic might prevail, when I asked the enforcement arm of Kootenai County what it would take to cure these ills, He replied, "we could probably work out these issues." The other is the large tall sign in front of which a permit was never asked for nor issued. There again, an after the fact permit could and probably would be issued.

1 comment:

Anonymous said...

Any options available to rent the space using the Captain's name and liquor liscense? It would provide revenue to the owners (in the form of royalties) and would provide a service to the local residents. Do you know?