Inver Grove Heights joins franchisee in lawsuit against A&W

Inver Grove Heights is pursuing legal action against A&W Restaurants and the company that owns it in a joint lawsuit with a former franchisee who abruptly closed four Minnesota fast-food restaurants earlier this year.

At a closed session during a recent City Council meeting, the city agreed to join former franchisees Patrick Nickleson and his wife Patricia in arguing that A&W and Yum Brands, which manages A&W and several other fast-food brands, were misleading in revenue projections that they gave.

The A&W off County Road 56 in Inver Grove Heights closed in February. Nickleson and his wife opened the restaurant in the summer of 2009 with the help of a $50,000 loan from the city.

Nickleson was told by Yum that he should expect to make more than $1 million in revenue annually at his Inver Grove Heights location. But in 2010, he made about $650,000.

In granting the loan, "We relied on the same information," City Administrator Joe Lynch said.

Even though what was provided were just predictions since the Inver Grove Heights' A&W was going to feature a new 3-D Drive-In Concept -- meaning it offered drive-in, dine-in and drive-thru service -- the estimates were heavily relied on, Lynch said. "They sold him a concept," he said.

John Holland, the attorney representing the city and Nickleson, said the numbers the company gave had "no basis" plus the company went against state franchising law.

Nickleson never made payments on the loan, Lynch said. The city also had allowed Nickleson to pay for the property's special assessments of about $10,000 over five years. The city hopes to recoup that money once the property is sold, Lynch said.

Earlier this year, a representative from Yum! Brands, which also owns Taco Bell and KFC, said the chain had terminated Nickleson's franchise agreements because of his failure to meet "financial obligations."

Cameron's move closer to being reality

Cameron's Warehouse Liquors is one step closer to moving back to Concord Boulevard.

The Inver Grove Heights City Council recently approved final plans and a purchase agreement needed for liquor store owner George Cameron to move his century-old family business to Cameron Park.

The new Cameron's will be across the street from its original location. The park, believed to be the oldest in the city, was made possible by a land donation by the Cameron family in the mid-1900s.

At a recent City Council meeting, Mayor George Tourville said it would be good for Concord if the business moved from its current location on Cahill Avenue.

"For the betterment of Concord Street, it will be great to be back," Tourville said. "You won't be on the same side of the street, but, again, you soon will be able to say that you'll start your 116th year at least on Concord Street."

Cameron's still must get its liquor license approved before work can be done.

Taste of Lakeville coming Thursday

More than 30 local restaurants and caterers will provide samples of food and beverages. After drawing a record crowd last year, this Taste will feature an expanded event area to accommodate more vendors and guests, plus live cooking demonstrations featuring top local chefs.

Auction items will be up for bid, and live entertainment is planned.

The event is hosted by the Lakeville Rotary Club. It will be held from 5 to 9 p.m. at the Lakeville Area Arts Center. Tickets are $30 before the event and $35 at the gate. You must be 21 years old to attend. For more information, go to www.Taste-of-Lakeville.org.