A $4.5 million state loan will help finance expansion of the Peanut Farm, one of Anchorage's landmark spots for hot wings, burgers, beer and ale.
Owners of the restaurant/sports bar had already begun the 13,400-foot expansion of the 3,909 squarefoot popular drinking and eating establishment when the Alaska Industrial Development and Export Authority agreed Jan. 5 to approve the participation loan.
AIDEA will provide 90 percent, or $4,117,500 of the loan, with First National Bank Alaska picking up the rest of the tab, AIDEA officials said.
"This establishment is very popular with local patrons and continued growth has prompted the owners to proceed with a much needed expansion," AIDEA officials noted in a memorandum to the board. Completion of the project is expected this spring.
The Peanut Farm, a wholly owned subsidiary of the Sourdough Mining Co., serves breakfast, lunch and dinner daily. The restaurant, best known for its hot wings and chicken-fried steaks, stays open until the wee hours of the morning.
The Peanut Farm has historically generated the majority of the profits, the memorandum noted. Sourdough Mining Co. was formed in 1982 and purchased the Peanut Farm, which was established in 1959, back in 1986. While the Sourdough Mining Co. restaurant caters more to the tourist trade, both are popular with area residents.
Principals in the Sourdough Mining Co. include brothers Mike and Bob Johnson, managers and owners, who work as full-time managers at both establishments. Each own 27.5 percent of the firm. Other owners include Glen Giammalva, Jack Lewis and Robert Kagan. Mike Johnson declined on behalf of the owners to be interviewed for this article.
Ron Miller, executive director of AIDEA noted in his written presentation to the board that the Peanut Farm was "a stable business, with conservative managers/owners who have 20-plus years of operating experience, as well as good financial strength and excellent credit.
"Borrowers have continually upgraded the property over the years, and have a good borrowing history with FNBA," Miller said.
Security for the loan will be a first deed of trust against the fee simple interest of the existing and proposed restaurant/sports bar. Steve MacSwain of MacSwain & Associates determined that the fair market value, upon completion of the expansion, of the fee simple interest is $6.1 million.
The remaining economic life of the expanded facility is 35 to 40 years and the effective term on the loan lies within requirements of AIDEA's regulations. Additional security on the loan will be adjoining lots, also owned by the borrower, which are essential for additional parking.
