By Neale Gulley<br><a href="mailto:gulleyn@gnnewspaper.com">E-mail Neale</a>
The former Frog Grill in the City of Tonawanda will soon be the property of Leisure Living pool supply, located just across the street.
However the company is strongly considering re-opening the 561 Main St. restaurant.
Cash Cunningham of Cash Realty Auctions said 20 minutes of bidding Saturday resulted in an offer of $135,000 by Gerspach Properties, LLC, the principal company behind real estate used by Leisure Living, located at 574 Main Street and elsewhere in Buffalo and on Grand Island.
The former restaurant was property of M&T; Bank since the former Frog Grill entered foreclosure early this year.
The sale price is for the entire property sold as one lot, including the restaurant, a parking lot and the building’s contents.
“We had a sale,” Cunningham said. “We anticipate the property will transfer in the next 30 days.”
At first each piece of the property was offered separately, resulting in a combined $89,000 before all three parcels were combined and offered as one package. Cunningham said that drew “more spirited bidding.”
In the first few minutes, the live auction culled offers of $5,000 for the parking lot, $80,000 for the building and another $4,000 for its contents, Cunningham said, before the complete package topped out at roughly a third of its value.
City of Tonawanda Treasurer Joe Hogenkamp said the property’s assessed value is $365,500.
The property was up to date on its taxes prior to the auction Saturday.
Gerspach General Manager Linda Owen said the company now hopes to re-open some kind of restaurant on the property.
“There were several ideas kicked around but we have to do a lot of work in the building still,” she said. “We haven’t closed yet so we haven’t got electricity turned on yet ... we’re just taking it day by day.”
Frog Grill, now no more, closed last year. Insurance coverage for a 2006 fire couldn’t be recouped, those involved with the restaurant said at least five months ago. The blaze caused an estimated $200,000 damage, mostly to the upstairs apartment where it started.
The bank, Cunningham said, reserves the right to deny the offer, though he said that won’t likely happen and the bid was within the expected range for the property in a foreclosure auction.
“I think it’s fair to say that the bank was very happy with their auctioneer and his work — there’s no question about that. They won’t be made whole of course, but I think they’re well satisfied,” he said.
Leisure Living, a Buffalo-based pool supply company, took over the Tonawanda address occupied by Hy-Grade Distributors until 2006. The Town of Tonawanda in December expanded its Empire Zone into the Main Street corridor as the pool supplier expanded to the new location following a boom in online sales.
At that time, Town of Tonawanda Development Corporation Director Bob Dimmig said tax credits made available through the program would augment the $3 million the company planned to invest at the new location and create new jobs for residents in both the city and town.
About 45 employees worked for the firm at the start of 2009, and plans call for adding about 20 more in five years.
Contact reporter Neale Gulley at 693-1000, ext. 114.
