Default on loan is problem for agency
By Thomas J. Prohaska
NEWS NIAGARA BUREAU
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LOCKPORT The citys development agency will hold a special meeting this week to decide what to do about the closure of a restaurant to which it lent $400,000.

Community Development Director William J. Evert said the Greater Lockport Development Corp. will convene Thursday morning in City Hall to talk about the shutdown of Metropolitan Bar and Grill in Ulrich City Centre on Main Street.

The city agency made three loans last year, totaling $400,000, to restaurateur Peter Calieri.

Corporation Counsel John J. Ottaviano said the payments were up to date, but by shutting the restaurant down Nov. 3, Calieri put himself into default.

Calieri did not return a call Friday to his other Lockport restaurant, the Village Eatery.

But he wrote on Metropolitans Web site, Metropolitan was opened one year ago to help spur the growth and resurgence of our downtown Main Street shopping district. I felt, at the time, that Lockport could use a more modern, hipper restaurant and bar.

The initial response from customers was that now we had a restaurant right here in Niagara County that felt like being in Chicago or New York City. However, the economy is the worst its been since the Great Depression, and surveys indicate 40 percent of customers are eating out less frequently.

Ottaviano said if Metropolitan had stayed in business for 10 years, $131,000 of the loans would have been converted to grants and wouldnt have had to be repaid.

Calieri personally guaranteed repayment. His corporation is now liable, and hes personally liable, Ottaviano said.

Theres no real estate for the city to foreclose on, since Calieri was leasing from Ulrich, but Ottaviano said the citys development agency may tell him to go after the restaurants contents in partial compensation for the default.

We have liens on all the equipment, furniture and fixtures, Ottaviano said.

Metropolitan, along with the neighboring Taboo bar and restaurant, were the anchors of Ulrich City Centre, a $5 million project that filled a large lot on Main Street that had been empty for more than 30 years.

Owner David L. Ulrich said, Well see how it shakes out. [Calieri] is now in default of his lease.

Ulrich owns Taboo, which is open Wednesday to Saturday. The city loaned it $300,000.

Taboos doing fine. Taboos pricing of our food is a real bargain. We average $8 a meal. Maybe were more in line with the economy in Western New York, Ulrich said.

tprohaska@buffnews.com


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When is the city going to stop giving away money??? No real estate to foreclose on?? What about the 2 other buildings the guy owns??