(rshsdepot) St. Joseph, MI

[Bernie Wagenblast <brwagenblast_@_comcast.net>]

Link:
http://user.mc.net/~louisvw/depot/st-joe/st-joe.htm  (information and photos)

Depot Diner drawing interest from two restaurant owners

By MIKE RUPERT / H-P Staff Writer
Herald-Palladium

ST. JOSEPH -- Two St. Joseph restaurant owners could wage a bidding war in court to see who will take control of the bankrupt Roxy's Depot Diner's assets and its lease with the city. 

St. Joseph City Attorney Mark Bowman told the City Commission Monday night that Tom Jennings, owner of Czar's 505 Club and co-owner of the Pump House Grill, and Chris Barnett, co-owner of Clementine's Too and Barney's Boathouse, have shown interest in the property. Jennings' company managed the restaurant last year.

The Depot Diner was opened in the city-owned train depot by Roxy's Inc. in June 1998. Roxy's Inc., owned by Kevin Clements, also operated Roxy's on the Plaza on Michigan 139 in Benton Township. 

Both restaurants closed last fall. 

Roxy's Inc. filed for Chapter 11 bankruptcy protection in February 2001, and its assets, previously estimated at $70,000 -- with nearly $40,000 in secured debt -- were turned over to U.S. Bankruptcy Judge James Gregg in Kalamazoo.

Bowman said Gregg is expected to hold a public auction for the assets and lease any day. 

Barnett's spokesman, Pete Jorgensen, said Barnett plans to open something similar to Clementine's Too if his bid is accepted.

Jennings, who was not at Monday's meeting, could not be reached for comment Monday night. Bowman said he was not aware of Jennings' plans.

Bowman said anyone can bid on the assets and lease, but he said bankruptcy judges have wide discretion in accepting bids. Bowman said a recommendation by the city could "weigh heavily" on the judge's decision. 

After an informal discussion, the city took no official stance Monday night other than entrusting Bowman to make the best recommendation possible.

Commissioner Jeff Richards said the city should recommend Jennings to the court because of his experience with the Depot Diner. Last April, Judge Gregg approved a management agreement with 505 Group LLC, which Jennings co-owns with his brother-in-law, Raymond Mays. The agreement let 505 Group manage the restaurant.

Jennings first approached Clements in fall of 2000 about possibly taking over management of the Depot Diner. The two have known each other "for some time," Jennings has said. 

After continued poor results, Jennings closed the restaurant and its assets were turned over to a court trustee. Roxy's lease with the city for the diner space runs until June 2003, Bowman said.

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The Railroad Station Historical Society maintains a database of existing
railroad structures at: http://www.rrshs.org

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