extension to its agreement to purchase the former police station on
the northwest corner of Monterey Road and Main Avenue and turn it
into a restaurant and brewpub.
El Toro Brewing Company will ask the City Council for a second extension to its agreement to purchase the former police station on the northwest corner of Monterey Road and Main Avenue and turn it into a restaurant and brewpub.
While the company, owned by Geno and Cindy Acevedo, has made “significant progress” according to Garrett Toy, business assistance and housing services director, extending the deadline to Nov. 30 will give El Toro time to raise the 30 percent equity its lender insists upon before processing the loan.
Toy said the amount is 30 percent of what the bank interprets as the total project cost, which is between $1.8 and $2 million. The 30 percent, Toy said, is $650,000.
Council approved the original agreement on March 17.
Toy said in his report that the lender also may require El Toro to close on the property before it will complete the loan. Toy recommends that the city allow closing before pulling, but after applying, for permits, giving them 90 days to pull – or complete the permit process – after loan approval.
Toy’s report said that the City Councilmen Larry Carr and Steve Tate, the subcommittee supervising the El Toro purchase, are recommending approval of the extension.
El Toro has already satisfied three of the five milestones included in the “Exclusive Right to Negotiate.” It has put $20,000 into escrow, reimbursed the Redevelopment Agency for 50 percent of environmental impact costs, found a lender and had its architectural and site plans approved by the city Architectural Review Board.
If the El Toro were unable to meet the contract’s requirements the city will re-open bidding to sell the property.
City Council and/or the Redevelopment Agency meets at 7 p.m. most Wednesdays in City Hall Chambers, 17555 Peak Ave. Details: www.morganhill.ca.gov or 779-7271.