Bank claims former restaurant site in Hernandez foreclosure proceeding

Mike ErwinJournal-Capital

The former Hernandez Mexican Restaurant site was sold last week as part of foreclosure proceedings.

American Heritage Bank paid $300,000 for the property during a sheriff’s sale held Tuesday at the Osage County Courthouse. An order confirming that sale will be considered at a hearing schedled for 1 p.m. on Thursday, July 14.

Located at 1201 John Dahl Ave. (on U.S. Highway 60/99, two blocks north of Main Street), the popular local restaurant closed abruptly last fall. Reportedly, no warning was given to Hernandez customers or employees.

AHB initiated the foreclosure action in Osage County District Court on Oct. 30, 2015, shortly after the location was closed to business. Named as defendants in the civil suit were Jimmy Hernandez and Rodolfo’s Mexican Restaurant, Inc., doing business as Hernandez Mexican Restaurant Inc.

The court subsequently approved the plaintiff bank’s request “to protect and preserve the abandoned property.” On March 22, District Judge John Kane granted a motion for a summary judgment on behalf of American Heritage. Kane further ordered that the former restaurant site be sold at a sheriff’s auction.

The Hernandez site had initially been appraised at $650,000 — which included equipment, furniture, fixtures and “intangibles.” When the “subject property” went on sale at a May 17 sheriff’s auction and failed to elicit an opening bid, its appraised value was lowered to $450,000. The second sheriff’s sale was set for June 28.

In the court notice authorizing sale of the property, the principal amount of an AHB loan to the defendant(s) was listed at $375,000 and a $60,000 judgment was added to that. The document also said the defendant’s owed $60,000 to the Oklahoma Tax Commission.