Owner cannot move forward because transfer of liquor license
help up by creditors
Gilroy – A trail of debt left by the former owner of Old City Hall restaurant is blocking a new venture from opening at the same site, and costing the new manager thousands of dollars in the process.
Glenn Gurries, who abruptly closed Old City Hall restaurant in December 2004, has yet to pay off nearly half a million dollars in debt to various creditors, according to Jim Angelopoulos, a local restaurateur who took over the lease payments on Old City Hall in spring.
Angelopoulos, who owns family restaurant Scramble’z in Morgan Hill, had planned to replace Gurries’ venture with a lower-cost alternative he dubbed Chips N’ Salsa – a Mexican restaurant with a tropical theme. The menu and interior decorations are largely complete, but Angelopoulos, who planned to open last month, said he cannot move forward because the transfer of the liquor license has been held up by Gurries’ creditors.
“The reason that I can’t open is because the liquor license is tied into escrow, and escrow will not close until creditors are satisfied,” Angelopoulos explained. “The creditors are anyone from government agencies to companies that have given out loans. If there isn’t enough money to pay these creditors, there’s a problem. I’m paying PG&E, I’m paying rent. It’s costing me money every day.”
Gurries could not be reached for comment. The former owner of the restaurant in the city’s historic hall, at the corner of Sixth and Monterey streets, closed down after little more than a year in business. In the wake of the closing, Gurries left not only lenders, but even purchasers of gift certificates without compensation. At the time, he said the restaurant, which offered entrees costing above $20, failed to recoup the hundreds of thousands he invested.
Angelopoulos said he was aware of the debt, but never imagined the scale of the problem.
“I’ve done my part, waited patiently,” he said. “I can’t do anymore. These things should have been negotiated before. I knew there were liens, but not this much.”
Angelopoulos held out hope the new restaurant would open in 30 days. Through the large glass windows, passers-by already can see the yellow and red paint on the walls that will feature a mix of tropical paraphernalia such as a life-size canoe.
“In the meantime, we’re in there doing our part to make sure we’re ready to go.” said Angelopoulos, who appeared determined to hold off on opening until the liquor license goes through.
Steve Gearing, owner of Happy Dog Pizza Company off Fifth Street, sympathized with Angelopoulos’s plight, but believes the new restaurant can succeed even without margaritas or other liquor.
“If he’s got to open without a liquor license, with the amount of work he’s put into that place, there’s going to be a lot of people who don’t care about liquor,” Gearing said. “They’re going to want to come down and have some good food.”
