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Chi Chi's Underwhelmed by HURA's Initial Offer
For HNN by Art Harvath


“We’re dumbfounded, we just couldn’t believe it,” said Rob Carl after receiving the latest offer to buy out Chi Chi’s for the Pullman Square project. Carl is Vice President of public and media relations for Prandium Inc. Chi Chi’s is a subsidiary of Prandium.

“They want to take our business out for less than half of what it’s worth,” said Carl in referring to the $975,000 that was offered to Chi Chi’s by Ron Smith on Tuesday. Smith, chairman of the Huntington Urban Renewal Authority, made the offer to Chi Chi’s by telephone Tuesday. HURA member David Harrington also sat in on the telephone conversation. Smith is owner of Chili Willi’s Mexican Cantina and has reportedly recused himself from voting on any matter concerning Chi Chi’s. It is not publicly known to what extent Smith has been involved in the Chi Chi’s negotiations.

Carl said that the latest offer is the first made to Chi Chi’s by the city in two years.

Ron Smith said in a recent Herald Dispatch article that he expected eminent domain proceedings against Chi Chi’s before March 1st. That leaves Chi Chi’s two days to reply to Smith’s offer. Smith said in the same article that a “new found urgency is driving the project now. It’s what’s bringing the Chi Chi’s property and the construction schedule to quick action and quick decisions.”

Vickie Shaffer, President and CEO of the Tri-State Transit Authority, said in a recent Herald Dispatch article that “all of us-HURA, Metropolitan and TTA-are working together to accomplish a fair and reasonable transaction for all the parties.” She didn’t mention Chi Chi’s. Shaffer went on to say that “the purchase of Chi Chi’s is really all that currently stands in the in the way of this development going forward.” At the HURA meeting on January 22 Shaffer said that “the construction cannot begin with Chi Chi’s on the site.”

Not withstanding all the “urgency” to get moving on the Pullman Square project, Carl says they waited until Tuesday to make their latest offer.

Carl said that he received the drawing plans for the Pullman Square project from the city about two weeks ago. To his amazement, he said the plans showed an Italian restaurant in the very same spot where Chi Chi’s now stands.

“They don’t have the decency to offer us the space, but they offer it to an Italian restaurant,” said Carl. “I don’t understand how an Italian restaurant fits any better than ours,” he added. “I mean, giving our prime space to an Italian restaurant, what’s up with that?”

Tim Rollins, one of the Pullman developers, has said that having a free-standing restaurant with its own off-street parking would not allow the kind of development envisioned for Pullman Square.

Last year Chi Chi’s made a pre-tax profit of $377,000, according to Carl. “Why in the world would we take $975,000 and then have to pour in that much again to open a new restaurant?” asked Carl. “If we want to stay in business, then we’ll have to put that much and then some (into the new business)”

There will be a HURA meeting for an update/status report at 10 a.m. on Friday, March 1st at the vacant Mountain State Outfitters store in downtown Huntington.