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Aurora staff report PJ Limes closure and plan to seek loan restructuring
Summary
Staff told the board that PJ Limes closed in December after the building sold and rent terms changed; the borrower owes about $25,570.20 and staff plan to explore a restructured repayment plan that may pause interest accrual and span 6–12 months.
Aurora Capital Development Corporation staff updated the board Jan. 13 on the status of a direct Aurora loan to PJ Limes, reporting the restaurant closed in December after the building was sold and the prior lease expired.
Mr. Watts said the new building owner sought a higher rent—he linked the request in part to sharply higher insurance costs—and that the owners and guarantors, Tony Sonny and Tiffany Cruz, declined the new lease as unaffordable in light of serious family health matters. Mr. Watts told the board that the borrowers sold restaurant equipment to a new tenant without consulting the fund and that the fund had not received the proceeds, "which were about $3,500." He said the outstanding loan balance is "$25,570 and some change, 20¢," which is recorded in staff notes as $25,570.20.
Staff told the board they will pursue a restructuring that prioritizes principal repayment. Mr. Watts said he has spoken with Mike Huber and will work with staff and the guarantors to evaluate obligations including payroll and sales taxes. "My recommendation probably will be that we stop accruing interest, and we just work out a plan with them on somewhat of a 6 months to 12 month basis," he told the board.
Mr. Watts noted PJ Limes previously paid roughly $20,000 of an original $30,000 loan over several years while operating without a restaurant, and said staff remain motivated to reach a repayment plan if the borrowers' circumstances permit. The board did not take formal action on the PJ Limes loan during the meeting; staff will continue negotiations and return with recommendations if a restructuring is proposed.
