ONEONTA, NY – The Oneonta Common Council voted 5 to 3 Tuesday evening to table discussion on releasing its $50,000 mortgage on the former Bombers Burrito Bar.
The facility closed its doors last December, just six months after opening with the owner declaring bankruptcy.
It’s estimated he owes the New York Small Business Development Center (NYBDC) as much as $1 million.
In order to facilitate the resale of the building, the city is being asked to release its $50,000 mortgage to the NYBDC in exchange for $5,000.
The city of Oneonta originally loaned the former owner the $50,000 from the Community Development Fund to help get the restaurant up and running.
Councilman Scott Harrington believes the city can get a better deal if they wait.
“Sometimes I think we settle too quickly to try and settle things. I don’t see a rush to get this completed tonight. I think we could reach back out and try to get a little bit more.”
If the city does not end up agreeing to the proposal from the NYBDC, they run the risk of not being able to recoup any of their losses if the property goes into foreclosure.