Rathskeller owner hopeful for new deal

INDIANAPOLIS (WISH) - New developments surfaced Tuesday in the fight over the future of the Rathskeller Biergarten downtown. The restaurant's owner says he's hopeful the two sides are close to a deal that would keep the popular live music venue open.

In a letter to owner Dan McMichael earlier this month, the Anthenaeum 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 said the Foundation agreed to waive that order if the Rathskeller would give it 50 percent of the proceeds of cover charges McMichael began charging in 2008 for certain bands. McMichael says he agreed to split whatever was left of the cover charge money after he'd used it to pay the bands he hires.

That offer, he said, was rejected.

During a meeting with Foundation President Cassie Stockamp and three other Foundation members late Tuesday, McMichael says he's now willing to give the Foundation the full 50-50 split it asked for. He hopes that offer will help the Foundation close what it said is a $100,000 a year gap in funding and allow the Biergarten to stay open for business.

"Cassie Stockamp had made some comments regarding the $100,000 shortfall in their budget. This was really a matter of them being able to obtain 50 percent of the gross cover charge at the gate. My attorney did make a formal offer to settle the matter with their counsel, and we fully met the demands. Basically, we stepped up to the additional money," McMichael told 24-Hour News 8's Troy Kehoe on Tuesday.

But, the Anthenaeum Foundation sees things a little differently.

Stockamp said closing the budget gap is only "part of the solution."

"There are still some issues with other parts of the lease to work out," she said.

Asked if she planned to push for the lease with the Rathskeller to be re-written, Stockamp hesitated.

"I don't think so," she replied. "It may take a new letter of understanding between the two sides, though."

McMichael isn't convinced.

"That's a fear of mine," he said. "There is discussion, and it does involve changing the terms of our lease. And, I'm not going to let that happen."

Both sides agree progress was made during Tuesday's meeting, but opinions on how much seem to differ.

"I certainly hope so," said McMichael, when asked if he thought a deal was close. "If it isn't, then ultimately this may end up in the courts. We're hoping it doesn't come to that."

"We're talking. That's a good sign," Stockamp replied to the same question. "But, if there's not an agreement, then nothing changes. The July 1 deadline is still looming."

The two sides plan to meet again Wednesday morning.