The Carson City Board of Supervisors voted Thursday to deny an application for $40,000 in Redevelopment Authority funding to Doug and Jamesa Cramer for a new restaurant and retail shop, Paradise Cove Cafe, in the Carson Mall.
The motion failed because the vote was split 3-2. To pass, it required a 4-1 vote.
Supervisors Pete Livermore and Shelly Aldean opposed the application because the Cramers, who also own Mom & Pop's Diner, were using their home to secure the loan, while most businesses use the business itself.
Doug Cramer is unable to use the property where he plans Paradise Cove because he is leasing space from The Carrington Company, owner of the mall.
Aldean said she would be leery because of any future possibility that the home could face foreclosure, in which case the city would lose the investment money.
"I don't know that I'd (personally) want to invest in this and I'm concerned about the riskiness of this venture. If I'm not willing to invest my own money, then I cannot in good conscience invest public funds," Aldean said.
Cramer pointed to the fact that he wanted to help bring nightlife to that area of town as he has done at his Mom & Pop's location.
"I plan to bring entertainment to that part of town. It has not been developed for events at all. It's been a dead area for a long time at night," Cramer said.
He also said he was a good, hard-working businessman.
"I've been 15 years in this town helping the city, and the money would make it easier to be a successful businessman at this location," he said.
"I have faith in you, too, Doug, but I don't have faith in the economy," Aldean said.
And Livermore, who operated a restaurant business in Carson City for about 40 years, shared Aldean's concerns, adding that the "common area" fees paid by tenants in malls and shopping centers "can kill you."
He also said he was surprised that the Carson Mall would be considered a "blighted" area.
Cramer told the board that without the funding, his plans would have to be scaled back.
In other redevelopment business, supervisors:
• Gave consent to $26,144 for Terry and Lara Poor to develop the old Heiss' Steak House at 107 E. Telegraph St. into a high-end bar, The Blue Bull.
• Approved spending $438,589 from the Redevelopment Authority Revolving Fund for the Carson Nugget Developm-ent Project as part of a settlement agreement.
• Approved funding not to exceed $119,900 from the Redevelopment Professional Services Fund for securing equipment and a vendor for the ice rink at Arlington Square.
• Authorized spending $12,000 from the Redev-elopment Authority's Revolving Fund to support the Oct. 24 Ghost Walk.
• Authorized spending $4,500 from the Redevel-opment Authority's Revolving Fund to support the Silver & Snowflakes Holiday Tree Lighting.