Mayor: Potato restaurant loan common practiceMarch 13, 2014
By JONATHAN STREETMAN
Herald Staff Writer
HUNTINGBURG — The City of Huntingburg put its Revolving Loan Fund to use again Thursday night, as the common council approved a $25,000 loan to David Tucker of Holland.
Tucker plans to open Spudz N Stuff, a restaurant with a menu focused on potatoes with a variety of toppings, at 320 E. Fourth St., the location previously occupied by Sweet Violet and Mama Ts.
Huntingburg Mayor Denny Spinner said the loan, which will be paid back in five years at 4 percent interest, is a common practice to bring businesses into the city. It will act as a gap loan, as Tucker has already received financing from a bank, but needed the $25,000 to round out the $57,000 necessary for startup costs.
“This happens all the time. At least 10 loans have come from that fund since it was set up in 2004,” Spinner said.
The Revolving Loan Fund was arranged when the city received a $90,000 grant from the United States Department of Agriculture Business and Industry Loan Guarantee Program. The city matched the grant with $10,000, setting up the $100,000 loan fund. The balance of the fund before Thursday night’s meeting was $86,794.
“This is not taxpayer money. It all comes from that USDA grant,” Spinner said.
There are currently two other loans out from the fund, one with the Dubois County Bombers summer college baseball team that plays home games at League Stadium and the other with Optimal Performance Chiropractic.
Spinner said the restaurant, which plans to have evenings hours, fits into the downtown revitalization plan. Part of that agenda is a push for more businesses to hold extended hours.
“It’ll also be unique for this area,” Spinner said. “We don’t really have anything like it right now.”
Contact Jonathan Streetman at firstname.lastname@example.org.
Spudz N Stuff's website is here.
(An earlier version of this story incorrectly reported that David Tucker owned the other five Spudz N Stuff restaurants. The Huntingburg location will be he his first Spudz N Stuff.)