Polk County News
Polk County Itemizer-Observer • September 13, 2017 3A
Mecanico mortgage in limbo
After months of discussion, the local watering hole’s fate decided by council
By Stephanie Blair
The Itemizer-Observer
INDEPENDENCE — The
property at 87 N. Main St.,
Independence has had a
number of businesses on its
soil over the years: a one-
pump gas station, an auto
shop and, most recently, a
pub and barbecue.
The idea of what Mecani-
co would become was first
conceived by Salem native
Matthew Lind in 2007.
Though boarded up, Lind
saw the potential for a chic,
modern bar that would mir-
ror the trends that are draw-
ing in countless patrons in
Portland.
After purchasing the land
from the city in 2008, there
was a lot of work to be done.
First, there was the issue
of the environmental con-
cerns of an old gas station,
but after removing the un-
derground storage tanks, the
Oregon Department of Envi-
ronmental Quality issued a
“No Further Action” letter,
declaring the site satisfacto-
ry in 2009. Second, the sale
didn’t fully close until 2010.
It would be two years be-
fore a grand opening was set
for Mecanico — a grand
opening that didn’t happen.
Mecanico operated only
seasonally and for special
occasions for years before
becoming a year-round
business in 2013. According
to Lind, between the envi-
ronmental issues, getting
the business up and run-
ning, and the economic tur-
moil of the late 2000s, it was
hard for him to keep up on
his monthly payments.
In 2015, Lind approached
the council and asked for an
extension. After a couple of
months of negotiations, the
two parties came to an
agreement of a two-year ex-
tension. In Lind’s final offer,
which was accepted by the
council, he stated, “We can
all agree now that there will
not be another request for
extension, and this way
there will be nothing left
with any uncertainty mov-
ing forward."
But that extension ends
on Sept. 20, and Lind hasn’t
been able to fulfill the 2015
contract.
Business has continued to
pick up over the last two
years — most notably, after
the arrival of barbecue en-
thusiast Ray Walter and In-
dePit at Mecanico in 2016 —
but the business has just
now hit its stride and there
hasn’t been enough time to
accrue that amount, ex-
plained Lind.
“I’m 40 years old, I’ve spent a
quarter of my life pouring my
heart and soul into this place,”
Lind said in an interview in Au-
gust. “And I haven’t made any
money off this venture yet.”
On May 23, Lind present-
ed a proposal to the council.
Still owing $185,000 to the
city, he asked for a two-year
extension and offered to put
down $25,000 upfront be-
fore Sept. 20.
Lind explained that he hasn’t
been able to find an outside
lender to pay the city and shift
the debt because of the high
loan-to-value ratio and the po-
tential environmental con-
cerns. Lind said that, though
the city was satisfied with the
DEQ’s letter, commercial
lenders were not.
“The history of the prop-
erty as an old gas station
presents challenges and red
flags to any new lender and
requires phase one and two
environmental testing
which is very expensive and
only exacerbates the eco-
nomic challenges of conven-
tional and/or private lend-
ing,” Lind said.
Just before he left the
podium, councilwoman
Marilyn Morton asked Lind
if he would consider a one-
year extension deal.
“Absolutely,” responded
Lind. “You guys have been
so patient with me, and I
know I don’t want to keep
coming back and asking for
more. I really think that this,
the math that I’m doing,
shows that we can do it —
two years really makes it
work, but if a year is the best
you can, yes.”
On June 7, Lind met with
City Manager David Clyne
and city staff to discuss his
offer.
At the next city council
meeting, on June 13, Clyne
submitted his recommenda-
tion against accepting Lind’s
offer. In his recommenda-
tion, Clyne stated, “(the city
staff) are strongly recom-
mending denial of the re-
quest. Mr. Lind should be
asked to surrender the
building with a deed in lieu
of foreclosure.”
Clyne also said that he
had consulted with the city’s
Realtor of Record, Alex
Rhoten of Coldwell Bankers,
and included that Rhoten
“was very confident that
there would be no problem
finding cash purchasers at
the remaining principal bal-
ance.”
The same day, the council
held an executive session “to
consult with the city’s real
property negotiator.” The
meeting’s minutes report
that there was no action
taken after the session.
On July 25, Lind returned
to the council to present the
same deal, with one change
— the lump sum being of-
fered upfront was upped to
$ 5 0 , 0 0 0 . Ma r t h a L i n d ,
Matthew’s mother, then
took the podium to advo-
cate for Matthew.
“I have observed over the
last nine-plus years just how
hard my son has worked on
this enterprise of Mecanico,”
Martha said. “He has not
only put money, but he has
put hours and hours of
sweat equity into this busi-
ness. … He has repurposed
an existing building that has
sentimental, nostalgic ef-
fects for a lot of people, and
it provides the unique venue
— it’s loved by locals and
out-of-towners, alike.”
Though John Bodnovitz
had not come to the city
council meeting to speak
about Mecanico, upon hear-
ing the Linds’ statements, he
took the podium to speak in
favor of the council accept-
ing Lind’s offer, saying “if he
can come up with $50,000,
that’s more than Minet has
ever done. If we can help a
small business owner out,
I’m all for it.”
The council asked no
questions and offered no re-
sponse to the request.
Having heard nothing
from the council, Lind re-
turned on Aug. 8 and re-
quested to be added to the
agenda as an action item. In
his speech, Lind shared that
another obstacle to him ob-
taining a loan for Mecanico
was that he had become un-
employed in 2016, making
him a less desirable candi-
date for a loan.
After three minutes — the
time limit for public comments
— Mayor John McArdle noti-
fied Lind that his allotted time
had expired. Lind continued
speaking. The mayor remind-
ed him twice more that his
time had expired before
breaking to say that Lind
was welcome to speak fur-
ther with Independence’s fi-
nancial director, Gloria
Butsch, or the city’s legal coun-
sel, but “the council has already
dealt with this matter, (they)
will not be putting it on the
agenda and (Mr. Lind) is wel-
come to fulfill (his) contract.”
Upon hearing this, Lind
continued to speak, and
spoke over McArdle when he
attempted to speak. After
two more warnings, McAr-
dle began to move on to the
mayor’s report, only to be in-
terrupted by Lind again.
“So, after working in the
community this long and deliv-
ering, this is the end? How does
this make sense?” Lind asked,
raising his voice. “I honestly
don’t understand.”
After two more warnings
and being ruled out of order,
Lind was escorted from the
room by two officers per
McArdle’s request.
That seemed to be the
end of the road — but it
wasn’t.
Lind submitted one last
proposal, this time outside
of a city council meeting: a
six-month extension with
$100,000 upfront.
On Aug. 29, the council
held an executive session
“for the purpose of negotiat-
ing real property transac-
tions.” Once again, no action
was taken after the session,
but Lind was notified soon
thereafter that the council
would be voting on whether
to accept the proposal on
Tuesday.
And, while the agenda for
Tuesday’s meeting does not
have Lind’s business listed
specifically in either the new
or unfinished business por-
tions, the council does have
another executive session
scheduled — “for the pur-
pose of conferring with the
agency's real property nego-
tiator” — and allotted time
for action.
Results of the vote were
not available at press time —
see polkio.com for the out-
come.
Independence City Coun-
cil meetings are video
recorded and posted on the
City of Independence’s
YouTube channel within a
week of the meeting.
NEWS IN BRIEF
New Horizons resumes rehearsals
MONMOUTH — The Willamette Valley New Horizons Or-
chestra resumes weekly rehearsals Monday at 6:30 p.m. at the
Monmouth Senior Center.
The orchestra is open to players of all levels. There are no
auditions.
A $25 monthly fee covers the cost of purchasing music and
paying the conductor.
For more information: Paul Doellinger, 503-838-4884.
Program offers homeowners help
POLK COUNTY — The state of Oregon launched a foreclo-
sure prevention program in July.
The program, called Home Rescue, will provide assistance to
homeowners struggling to pay their mortgage in two
ways — through monthly mortgage payments (up to 12 pay-
ments with a maximum benefit of $20,000) and a reinstate-
ment payment to bring mortgages current (up to $15,000).
To qualify, applicants must be able to demonstrate at least a
10 percent reduction in projected 2016 income compared to
any tax year between 2009 and 2016.
To apply or for more information: www.OregonHomeonwer-
Help.org.
Hop & Heritage Festival on hiatus
INDEPENDENCE — The Hop & Heritage Festival, scheduled
for Sept. 23, is taking a year hiatus because of a lack of volun-
teers to organize the annual event celebrating the history of
Independence as the “Hop Capital of the World.”
But that doesn’t mean other events traditionally held
around the festival are canceled. The annual Ghost Walk is still
on for Sept. 22, with tours starting every 15 minutes from 6 to
7 p.m. The tour is free, with donations welcome.
The Ghost Walk requires many volunteers to help lead
groups around town to “haunted” destinations, and volunteers
are still needed. For more information or to volunteer: Marilyn
Morton, 503-580-8525 or marilyn97351@gmail.com.
The Independence Public Library will host a family scare-
crow workshop Monday at 6:30 p.m. to get ready for the annu-
al scarecrow contest, another event traditionally associated
with the Hop & Heritage Festival, but still going on without the
festival.
The annual contest will be Sept. 22. Entries must be turned
in by 6 p.m. For more information: ci.independence.or.us/li-
brary.
Community can meet candidates
MONMOUTH — Candidates for the position of Monmouth
community development director will be in Monmouth for in-
terviews on Friday. An open house will be held for business
owners and residents may meet the candidates and provide
comments.
The event will be from 5:15 to 6:30 p.m. on Friday at the
Monmouth Public Library.
Joyful Sound Hearing
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hearing aids? We are currently
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