State forgives Minihane's loan, approves sale

ANNAPOLIS — The Maryland Board of Public Works has decided to forgive a portion of a state loan given to the owners of the Minihane’s property in Elkton alongside approving a short sale of the property.

A purchase contract was signed Aug. 16 for sale of the property in exchange for the state receiving $400,000 for property that had once been appraised for $1,740,000.

In announcing the loan paydown, BPW pointed to a key benefit.

“In addition to obtaining the paydown, the sale will allow for the expeditious clearance and redevelopment of the fire damaged lot,” the statement reads.

As Sandy Island LLC, property owners Denis Minihane and Ingrid Rautenberg obtained a Maryland Department of Housing and Community Development loan in 2014 to convert the former Howard Hotel into Minihane’s Irish Pub at 101 West Main St. The loan was modified in 2017. However, BPW noted that the restaurant was not a success and the loan went into default. In Nov. 2019, the amount in a confessed judgment was $633,834.01.

The owner’s efforts to sell the historic property in downtown Elkton was confounded by the pandemic. Even though the state granted several extensions the loan went to default.

The building dates back to 1853. Over the years, it has been used as a hotel, several different retail businesses, horse stables, apartments, a dentist office, a barbershop and — most recently — a restaurant. Rautenberg tried to rebrand the site from an Irish pub to intimate dining, opening Minihane’s 1853 Land & Sea in April 2021. It closed a year later.

In May 2023, the property was destroyed by fire; the loss estimated at $1.5 million. The property at the corner of Main and North Streets is now surrounded by chain link fence.

According to BPW, Sandy Island LLC has a contract with Mitchell Park Properties LLC. No closing date was disclosed. As of Tuesday, the Maryland Department of Assessments and Taxation still lists Sandy Island LLC as the owner of 101 West Main St.

Maryland will get its money from the sale to Mitchell Park Properties, a Baltimore-based limited liability corporation. Factoring in costs and commissions and the FY 25 tax year, DHCD agreed to accept a payment of $393,755 to close the loan.