DEMOREST - The Demorest City Council is trying to figure how to best help the business they hope will anchor the downtown district.
Sweet Breads, an upscale restaurant destroyed by fire in early 2014 in Clarkesville, is relocating to the former Demorest City Hall at 579 Georgia St., downtown.
Owner Lee Hull has been making renovations to the building, but is finding there isn't as much dining space as the restaurant needs, according to Demorest Mayor Rick Austin. He noted the majority of the building is occupied by the kitchen.
For that reason, Hull wants to construct a large deck on the back of the building to accommodate more diners, particularly in season.
Austin said Hull is facing a challenge because he's already invested $90,000 into the renovation project, on top of the improvements being made by the Demorest Downtown Development Authority on the DDA-owned building.
Because Hull doesn't own the building, he can't seek a loan to finance construction of the deck.
Hull has a rental agreement that gives him the option to buy the building at the end of five years, minus the roughly $21,000 he paid to the DDA to retire its note.
Mayor Rick Austin said Hull is willing to purchase the building outright now so he'll have equity and can get a loan to construct the deck.
Council members discussed how the DDA would recover the costs of the vent hood, sprinkler system, and heating and air system upgrades it currently is making if Sweet Breads doesn't pay rent for the five years agreed upon.
Another option discussed was having Hull purchase the materials and allowing city employees to construct the deck, since the building is owned by the DDA. City Attorney Joey Homans stressed that would only be with a signed agreement and agreed-upon plans.
A third option is for the DDA or city to pay for construction of the deck, with Hull paying for the bulk of it upon purchase of the building at the end of five years.
Austin said he and all city officials believe the launch of an established business with the reputation of Sweet Breads will boost development in and around downtown, though Councilman Sean Moore was reluctant to spend taxpayers' money to help Hull get his business started.
Finance Director Joely Mixon said if Hull is willing to purchase the building, the city should encourage the DDA to proceed with that without hesitation.
"We're not making that much money in rent off that," Mixon told the mayor and council. "That would be a deal changer for the whole DDA getting a loan - that would prevent them from having to go out and borrow money. "If he has offered that ... gosh, I would surely take him up on it real quick."
City leaders agreed the DDA will need to decide how it wants to proceed before the city council gets involved.
http://accesswdun.com/article/2015/7/325991/demorest-discusses-how-to-help-sweet-breads-help-downtown