Saturday, May 29, 2004
The owner is worried about paying back loans on the closed restaurant.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
NORTH LIMA -- Floodwaters have closed the Belleria Pizzeria on Market Street for the second time in less than a year.
This time, the closing may be for good, said George Guarnieri, who owns that franchised location and one in Struthers.
He said he doesn't want to go further into debt to try to reopen the North Lima restaurant.
"It's really frustrating," Guarnieri said.
Heavy rains May 21 caused about 12 inches of water to stream into the dining room and about 18 inches in the kitchen. To reopen, parts of interior walls and much of the kitchen equipment would have to be replaced because of concern about mold growth, he said.
Last August, a heavy downpour brought 3 feet of water rushing into the restaurant, causing part of a wall to collapse.
At that time, Guarnieri and his daughter, Josa, who managed the restaurant, decided to reopen after a new drainage system was installed on the property. They also liked the location, figuring they would benefit from increasing commercial development in the area.
Even though they lease the location, they had to pay the cost of repairs and remodeling. They didn't have flood insurance last year.
Borrowing money
Guarnieri said they took out a loan of $270,000 from the U.S. Small Business Administration, plus paid $50,000 of their own money for the extensive repairs, which included new walls, booths and kitchen equipment.
The restaurant was closed for six months, opening again in February.
They used the Struthers restaurant as collateral for the loan. They also owe $100,000 on a loan they received three years ago when they took over the restaurant.
"We're going to do everything we can to pay back those two loans out of [the Struthers restaurant], but it's going to be tough," Guarnieri said.
He said they have flood insurance with a maximum payment of $129,000, but they don't know how much will be paid.
He said he appreciates customers from the North Lima restaurant who are coming to Struthers but understands that isn't convenient for many.
shilling@vindy.com