Questions of loan compliance loom for Morehead Foundry owners
GREENSBORO -- Six months after Morehead Foundry, Lee Comer’s multi-venue restaurant complex on Spring Garden Street, closed its doors, the city of Greensboro is reviewing loans obtained by the owners to determine whether they are in compliance.
The complex opened in November 2016 with assistance through two loans from the city and then closed after just 18 months in business. Both loans came with conditions that, if not met, could result in default or repayment of the loans.
The foundry, which began as a unique concept that combined multiple food businesses in one complex with a shared kitchen, opened after co-owners Lee Comer and Fareed Al-Khori secured two separate loans from the city. One is a forgivable loan for $100,000 and the other, a 10-year loan for $275,000. Both loans, which were approved by city council in March 2015, included conditions requiring the borrowers to invest $3.2 million by Dec. 30, 2016, creating and retaining 90 new jobs — 29 full time and 61 part time — for up to two years after obtaining a certificate of occupancy, and having 10 percent of the total construction earmarked for M/WBE contractor and subcontractor participation.
Comer-Khori LLC also owns the Iron Hen, a popular café that opened in 2010, and a catering business under the Fresh. Local. Good. Food Group. During the March 2015 city council meeting in which the loans were passed, several council members praised the food at Iron Hen and said they voted for the project because it would activate the area and bring new jobs.
Read more: https://triad-city-beat.com/questions-of-loan-compliance-loom-for-morehead-foundry-owners/