The sun may finally be setting on Hacienda del Sol, a beloved downtown Duluth staple that has been closed since a kitchen fire in 2011.
Earlier this year, a judge approved the sale of the property at 319 and 321 E. Superior St. for $425,000 over the objections of owner Kevin Deutsch.
"After all these tribulations, I can only speculate that the bank, large developers or other investment groups are looking to benefit financially from the Hacienda property and crush me and the future of the Hacienda in the process," Deutsch wrote on Facebook late Sunday night. "I will again work to seek resolutions to prevent nonproductive court actions and allow me to focus on the Hacienda's return."
Despite the go-ahead for the sale in April, the potential buyer has not yet finalized the purchase.
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"I have a purchase agreement for the property, but it's pending several items," said Michael Shaepfer, co-owner of Lake Avenue Restaurant & Bar. He said he's waiting to make his plans public until after the ink dries on the sale.
The 2011 fire and subsequent water damage from the sprinkler system led to the untimely closure of the Mexican restaurant that had been open since 1982.
Deutsch, who could not be reached for further comment Monday, had planned to reopen the restaurant in fall 2013 but had to file for bankruptcy to prevent a foreclosure sale.
"Sadly, our publicly announced reopening and financing was destroyed by the bank's actions," he wrote.
As Deutsch was trying to line up a buyer for the property to revive Hacienda, North Shore Bank of Commerce last October asked a judge to appoint a receiver, or financial administrator, to oversee the property and help recover what is owed to the bank. The courts complied in November, and a sale was approved by court order in April.
Deutsch wrote this week that the receivership upended a sale he had lined up that would have "completely paid off the bank, resolved outstanding debt and reopened the business."
St. Louis County District Court Judge Mark A. Munger, in allowing the sale to go forward, wrote: "While defendants indicate that they have received offers from other interested parties, there is no evidence outside of the assertions of Mr. Deutsch lending credence to their existence or their reliability. ... The sale of said receivership property is in the best interests of all parties."
Court records show no appeal of the receivership case has been filed, leaving Deutsch's options to reopen Hacienda unclear and likely limited.
