Cost overruns have led to Whitey's restaurant in East Grand Forks asking for a $68,000 loan from the city's Economic Development and Housing Authority, according to the agency's chief.
Jim Richter told the EDHA board today that parts of the building new owner Tim Bjerk is remodeling are quite old, so the request was not especially surprising.
Bjerk had to spend more on kitchen floors and plumbing than he had expected, Richter said.
The board approved the loan on reports that Bjerk's credit rating is strong and he has income from apartments above the restaurant.
Bjerk had planned to open early this month, but regulatory hurdles at the state Health Department slowed him down, Richter said. Board member Wayne Gregoire wondered if the city could intervene on Bjerk's behalf with the state, but Richter said Bjerk is being helped by his state representative.
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Whitey's, an icon of downtown East Grand Forks for decades, closed in February. Bjerk, who owns Gene's Bar & Grill in Roseau, Minn., bought the building in August.
Bjerk could not be reached for comment.
