Deal keeps Rathskeller Biergarten open

INDIANAPOLIS (WISH) - After months of what became bitter negotiation, the doors to downtown’s Rathskeller Biergarten will remain open after all.

Rathskeller owner Dan McMichael and Athenaeum Foundation President Cassie Stockamp announced the deal together late Tuesday, calling it a “win-win” for both sides.

“We finally reached an agreement that we feel is mutually beneficial, and will help the Athenaeum Foundation to maintain the integrity of this great building,” McMichael told 24-Hour News 8.

“I think both parties really listened to each other, and that's why we were able to sit down and get it done,” Stockamp agreed.

In a letter to McMichael earlier this month, the Athenaeum Foundation which owns the historic building said concerts in the Biergarten violate the lease the two sides signed in 1996.

It ordered the restaurant to "cease and desist" all entertainment in the venue except for weddings and catered events after July 1.

McMichael says attorneys for the restaurant and Athenaeum Foundation participated in a pre-trial hearing with a Marion County judge by phone Thursday. Both sides were ordered to attend an injunction hearing on the matter on July 12, clearing the way for the concert space to remain open until then.

But, on Tuesday, the two sides agreed to terms that included dropping lawsuits filed against each other.

“I think we both believed that that's not the best solution,” Stockamp said. “It's for the parties to come together and work together to avoid that expensive cost, the time, the stress. It's a much better solution to work it out as two individuals."

Under the new agreement, which still needs review and approval by both sides’ attorneys, McMichael will pay 50 percent of the gross cover charge collected at the door during events at the Biergarten.

That fee will remain at $5 per person, McMichael told 24-Hour News 8.

McMichael also agreed to host an annual fundraiser that will help offset “costs identified by the Athenaeum Foundation.”

The nonprofit organization also now owns the Rathskeller name and the facility’s liquor license, according to a news release.

“There will be a sharing of the cover charges at the door. We've agreed to split that on an equal basis.And, from the Athenaeum Foundation's side, they'll be able to use this money to help restore some of the things that are badly needed at this point. And, from our side of it, we'll continue to keep the level of bands high. It'll help us with band costs,” McMichael said.

Asked if the money alleviated the Foundation’s financial fears, Stockamp shook her head.

“That still doesn't bridge our gap,” she said. “But, that wasn't our intent to put the whole burden on the Rathskeller restaurant itself. We're working on creating a sustainable model for this wonderful old historic structure, and it's just a piece of it. We still have to have strong fundraising efforts. This crazy wall still needs to be soundproofed, so we can continue to improve the quality of what comes through the theater. This building is expensive to maintain. It's a beautiful structure, but it has a lot of wear and tear.”

“We hope that it's just vastly improved [through the agreement],” McMichael said. “It means we'll continue to do what we do. Both parties had to give a little bit to get a little bit. But I did feel like it is a win-win.”