Story originally printed in the Westby Times or online at www.westbytimes.com
Published - Thursday, February 21, 2008
Angel investors looking to reopen Borgen’s restaurant
On the heels of the recent loss of a proposed extensive downtown community redevelopment project, some local residents are hoping to start small, pool their resources and reopen the Borgen’s restaurant in downtown Westby.
Retired Attorney Russell Hanson, who is spearheading the project, has held a few informational meetings for potential investors of the proposal at the former Borgen’s Cafe building in downtown Westby. Hanson was pleasantly surprised when nearly 40 people showed up for the first meeting on Jan. 31 and showed real interest in possibly investing financially in the project. Since that time Hanson has received daily inquiries from other potential investors seeking more information about the project.
According to Hanson the city is in desperate need of an economic boost and another downtown restaurant. Hanson, who operated a law office in downtown Westby until he sold his practice in July of 2006, believes that when Borgen’s Cafe locked its doors on June 29, 2006, the city of Westby lost its logo and the heartbeat of the community.
“We need our Effil Tower back. Some thought the Borgen’s closing wouldn’t have such a negative impact on downtown business, but no one is saying that today, they can see it first hand. We need to reverse the trend and bring people back to downtown Westby,” Hanson said.
Hanson, who brainstormed the idea of reopening Borgen’s months ago, sat by idly while the city negotiated with an outside development firm looking to revitalize downtown Westby, but re-energized the idea after the larger scale development plans fell through in December.
With only sporadic interest from parties looking to purchase the Borgen’s building since it went on the real estate market in 2006, Hanson believes it would behoove the entire community to create an independent investment group in conjunction with possible city funding to jointly purchase the Borgen’s building for $160,000, and invest any additional monies to bring the building up to code, before leasing the facility after the interior and exterior work is completed.
There was a general consensus at the meetings that although there has been outside interest in re-opening the facility as a restaurant that the cost of the property purchase, along with needed repairs and upgrades would be too great for new buyers to afford and operate. It was that consensus that initially sparked Hanson’s quest to develop an investment group to complete the building purchase and repairs before leasing the remodeled business to qualified operators.
Hanson presented a building code inspection list compiled in November of 2006, listing numerous items which would have to be corrected before the restaurant would be allowed to reopen. The inspection list, although out-dated, led to further questions and speculated costs of repairs.
Former teacher and local handyman, Ed Klos, was on hand at the meeting and although he couldn’t provide exact cost estimates for all repairs a projected upgrade for items listed on the inspection sheet was guesstimated at $80,000. That figure stimulated conversation about actual costs which would have to be obtained from people in each specialized service area: including plumbers and electricians.
Some items discussed and in need of replacement or repair included the chimney, roof, bathrooms, kitchen and the front facade of the building, along with the removal of asbestos in the basement.
Hanson suggested that the investment group consider leasing the restaurant to a couple who recently moved to Westby from Northern Wisconsin, where he was a chef for 15 years. According to Hanson the couple has family in the area and a strong interest in operating a facility like Borgen’s, although he added that other people in the area would be considered.
Hanson was pleased to inform the group that the former owners of Borgen’s Cafe, LeRoy and Donna Perkins, have agreed to sell the business name along with the building and further agreed to offer the use of some of their homemade recipes for pies and rolls to the new business operators.
Hanson presented a verbal business proposal to the city of Westby RDA (Redevelopment Association) on Feb. 12. According to Clem Safranek, the RDA will make a recommendation to the city council regarding a proposed investment from the city to the project utilizing TIF funds or city money after they receive the information they require from the investment group, including an appraisal of the property, upgrade cost estimates and a formal business request for funds.
“We want to make this project work, but in order to utilize city funds we need guidelines to follow to make it happen. These guidelines would have to be followed by any business looking for city funding in the future as well,” RDA member Gary Daines said.
Hanson tentatively asked the city to invest $120,000 of money for the project, a total which would be matched by private investors. Those figures would stand only if the Perkins accepted $160,000 for the building and repairs of the facility did not top $80,000. The numbers could change once actual repair figures are available from contractors and an updated inspection of the facility is completed.
Hanson noted that he already has investment offers of $100,000, but those numbers are all contingent on city assistance with the redevelopment project.
“People want this to happen. They know we need a spark and we as investors want to light the fire. None of us here planned on owning Borgen's, but we see the need and we feel the city should share part of the burden for getting new business downtown,” Hanson said.
Vince Paduano would have been remiss as chairman of the RDA not to remind everyone that the city is not a bank and they have to borrow money just like everyone else to complete special projects. That said, he added that the RDA was developed to promote new business and their goal as the economic arm of the city is to assist new ventures within the community. The RDA is in the process of creating a redevelopment loan program where money could be borrowed and paid back over a maximum 10-year time period.
“We want to assist and then return money to the account for the next business looking to borrow funds. We want to help, but we have to do this right,” Paduano said.
The investment group agreed to try and provide the RDA with the information they required before the group’s March 11 meeting.
With the 40th annual Westby Syttende Mai celebration scheduled for May 16-18, Hanson is optimistically looking to open the restaurant to coincide with the event. The investment group is holding another public meeting at Borgen’s Cafe on Monday, Feb. 25 at 7 p.m. for possible investors. A minimum investment of $1,000 is required for shares in the venture. Anyone interested in becoming an angel investor in the Borgen’s reopening project can find out more information by contacting David or Vanessa Mills at 608-634-2117 or e-mail them at mills4887@yahoo.com
All stories copyright 2006 Westby Times and other attributed sources.