Hacienda del Sol’s comeback derailedDespite promoting signs of a comeback in recent months, it’s unlikely that Hacienda del Sol will be reopening anytime soon.
By: News Tribune staff, Duluth News Tribune
Despite promoting signs of a comeback in recent months, it’s unlikely that Hacienda del Sol will be reopening anytime soon.
Owner Kevin Deutsch, in a letter on the former restaurant’s Facebook page, said he will file for “reorganization protection” after a mortgage deal with his bank fell through.
“I will continue to fight to open the Hacienda,” Deutsch wrote Monday.
Hacienda del Sol, at 319 E. Superior St., has been closed for more than two years, after a kitchen fire and subsequent water damage from a sprinkler system in July 2011. Opened in 1982, it once was a darling on the city restaurant scene, which has limited options for Mexican fare. At one time, it employed as many as 20 people.
In August, the Duluth City Council voted unanimously to approve the issuance of a liquor license after past utility bills of more than $33,000 went into a payment plan. Deutsch had planned to open in October after a “rejuvenating” late-September “fiesta” at the restaurant celebrating the planned reopening.
In negotiating with the city, Deutsch said his financial troubles began with damage done to his building during the construction of the Sheraton Hotel from 2005 to 2007. He called the settlement for that damage
“unsatisfactory,” according to city documents.
Deutsch said that along with getting current with city bills and licensing, he obtained a loan for operations. He said he assumed North Shore Bank would resume his mortgage with all those hurdles cleared.
“A sustainable business plan is in place which includes secured financial backing that would guarantee mortgage payments,” Deutsch wrote in his letter.
According to state records, Deutsch filed for Chapter 11 bankruptcy protection Nov. 13. The deadline for filing a final new business plan is next fall.
The bankruptcy filing stopped a foreclosure sale of the Hacienda building that was to occur on Nov. 14.
Creditors have been called to court in December.