(rshsdepot) St. Joseph, MI

[Bernie Wagenblast <brwagenblast_@_comcast.net>]

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

Jennings gets preliminary OK to buy Depot

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

KALAMAZOO - A U.S. District Court judge gave initial approval Tuesday to an
estimated $145,000 agreement to sell the assets of bankrupt Roxy's Depot
Diner to St. Joseph businessman Tom Jennings. Jennings, owner of Czars 505
club and co-owner of the Pump House Grill, would pay $40,000 in cash and
assume an estimated $32,000 in debt as part of the deal approved by Judge
Jeffrey Hughes in a federal bankruptcy court in Kalamazoo.  Jennings and 505
Group LLC, which he co-owns with his brother-in-law Raymond Mays, were owed
an estimated $73,000 in loans and management fees by Roxy's Inc. under a
court-approved management contract with the company last summer. Under the
agreement, Jennings will withdraw those claims against Roxy's Inc. "Frankly,
we didn't want to lose all that money," Jennings told The Herald-Palladium
on Tuesday. "And we didn't want to leave the city holding the bag since
they've been so kind in working with us on this project."We really didn't
want to just abandon the project without it being completed." Roxy's Inc.
opened the Depot Diner in the city-owned train depot 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 were
turned over to U.S. Bankruptcy Court. Roxy's lease with the city for the
diner space runs until June 2003. Roxy's owes the city an estimated $10,000
in rent and utility payments, according to figures in the agreement.Approval
of the agreement cannot be finalized until the Depot's liquor license is
transferred to Jennings and a new lease is completed with the city of St.
Joseph, according to the agreement. Jennings said the license transfer could
take as long as three months. City Attorney Mark Bowman said the City
Commission is expected to vote on a new lease early next month.Jennings said
he expects to open the restaurant sometime in June, either under his
ownership or under bankruptcy supervision until the agreement is final. "The
plan, I think, will be to run it through this season and evaluate it and see
if someone's really interested after we see some results," Jennings said.
"Hopefully people will patronize it and appreciate if we can improve it this
year."Chris Barnett, co-owner of Clementine's Too and Barney's Boathouse,
had considered making an offer for the business, but decided not to late
last week, said Barnett spokesman Pete Jorgensen. "We are absolutely
interested in purchasing the property and fully intend to negotiate
something satisfactory in the future," Jorgensen said Tuesday. "But we're
not going to get caught up in legal manipulation and the chaos of bankruptcy
court."Jorgensen said the amount of money owed by Roxy's Inc. to Jennings
and the 505 Group gave them a significant advantage in buying the business.

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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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End of RSHSDepot Digest V1 #363
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The Railroad Station Historical Society maintains a database of existing
railroad structures at: http://www.rrshs.org