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Debt led to closure of Northpoint Bar & Grill

The restaurant and bar at 501 Sixth St. N. (Hwy. 35) has been a North Hudson gathering spot for many years. The latest business to occupy the building, Northpoint Bar & Grill, closed Aug. 17. Photo by Randy Hanson

Court records reveal that there was a mountain of debt behind the sudden closure of the Northpoint Bar & Grill.

Customers who came to the restaurant on Monday, Aug. 17, found the doors locked.

The Pepper Festival weekend closed out a six-month run by the latest entrepreneurs - Stephen "Bodie" and Rebecca McCarty - to try to turn a profit at the long-time North Hudson establishment.

Records on file with the St. Croix County Clerk of Court indicate that The RiverBank filed for foreclosure of a mortgage on the restaurant property three days before the McCartys vacated the premises.

Benoy Limited Partnership, The Cabin NH Inc., North Hudson Hospitality LLC and Northland Fire and Security of Edina, Minn., are listed as defendants in the lawsuit.

Shane Benoy of Hudson, operator of the business for two and a half years prior to the McCartys, is the registered agent for Benoy Limited Partnership and The Cabin NH Inc.

Stephen McCarty is the registered agent for North Hudson Hospitality LLC.

The RiverBank's lawsuit says Benoy and The Cabin signed a mortgage for $317,500 in August 2006. The monthly payment on that mortgage was to be $2,935, according to lawsuit.

The lawsuit says the building owners obtained a second loan for $210,329 in March 2009, which required a monthly payment of $1,466.

As of Aug. 13, 2009, the defendants had defaulted on the mortgages and owed a total of $530,494 in principal, interest and late charges, according to the lawsuit. Interest is continuing to accrue at a total rate of $117.68 per day on the two loans, the lawsuit says.

Wells Fargo Bank also has filed for foreclosure on the Northpoint property.

The Wells Fargo lawsuit says another of Benoy's companies, Benoy Investments, has defaulted on a $75,000 mortgage.

As of July 2009, Benoy Investments was alleged to owe Wells Fargo a total of $76,236 in principal, interest and late charges. The lawsuit says interest on that loan is continuing to accrue at $14.57 per day.

St. Croix County Circuit Judge Scott Needham on Aug. 24 entered a judgment against Hudson Warehouse Liquors, another corporation formed by Benoy, for $17,883.

Bank of America was the plaintiff in that case, alleging that Benoy had gotten cash advances on a credit card for small businesses and failed to make the required payments.

Meanwhile, a Ramsey County, Minn., judgment against Stephen McCarty and Madeline Restaurants Inc. (a corporation he formed) for $471,599 has been entered in St. Croix County Circuit Court.

Landmark Community Bank of Ramsey, Minn., won that Nov. 25, 2008, judgment against McCarty. The details of the case weren't filed with the St. Croix County clerk of court.

McCarty also is named as a defendant in a July 2009 lawsuit in St. Croix County brought by The RiverBank.

The lawsuit indicates that he was a partner in a Somerset land deal gone bad.

The RiverBank alleges that McCarty and Ryan W. Grubbs have defaulted on two loans and owe more than $3.4 million in principal, interest and late fees.

Shane and Melissa Benoy purchased the Northpoint building, then known as Cabin Fever, in August 2006.

The McCartys were reported to have purchased the establishment in February 2009.

The foreclosure cases, however, make it clear that the Benoys retained a financial interest in the property.

Randy Hanson

Randy Hanson has reported for the Star-Observer since 1997. He came to Hudson after 11 years with the Inter-County Leader at Frederic, and eight years of teaching social studies. He’s a graduate of UW-Eau Claire.

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