smoothie Smooth’s Sports Grille, the restaurant at 144 Pine Avenue that under a couple of names has been a crossroads of politics and culture in downtown Long Beach for a quarter century, was closed Sunday by owner John Morris, LBReport.com reported early today.

“Smooth’s is closed and a new chapter begins,” Morris told LBReport.com.

Morris made his decision following his receipt of a letter from the City Attorney’s office, dated Sept. 1, 2010, declaring that a 2004 note (loan) by the City of Long Beach—with a balance currently remaining of roughly $147,000—is in default after payments were allegedly missed in June, July and August 2010.

The 2004 loan principle sum was $175,400.

A copy of the letter, provided by the City Attorney’s office upon request by LBReport.com, states that the City seeks payment of the $147,000 loan balance—and if not paid within 60 days, the City will proceed to exercise its rights and remedies including foreclosure of a 2004 Deed of Trust and Assignment of Rents on the property at 144 Pine Ave.

The City of Long Beach’s loan to Morris had been modified by the Long Beach City Council in a December 1, 2009, agendized item that was recommended by the City Manager, part of modifications to loans with other downtown eateries.

In the item’s agendizing memo, then-Director of Development Services Craig Beck wrote in part:

“In 1987, the City Council authorized the establishment of the Commercial and Industrial Revolving Loan Program (Program), which is capitalized by the U.S. Department of Commerce, Economic Development Administration, Community Development Block Grant (CDBG), Redevelopment Agency funding and program loan repayments. The purpose of the Program is to provide access to capital to retain, attract, expand, and create businesses in the City of Long Beach. Financing under the Program supplements, but does not replace, private lending… Under existing program language, City Council authorization is required to make loans for $100,000 or more and to make significant subsequent modifications to those loans.

“In early 2009, staff worked with the City Manager to identify economic development strategies to assist existing businesses affected by the global recession. Staff proposes to modify the terms of certain existing loans made under the Program in order to allow the borrowers to defer payments for twelve months beginning April 1, 2009 until March 31, 2010.

“The loans would continue to accrue interest during the payment suspension period. The accrued interest would then be added to the principal balance and the entire new balance would be amortized over the remaining term of the loan. To keep the monthly payments from increasing significantly, a one- or two-year extension to the loan term would be added. The interest rate and other terms and conditions would remain unchanged.

Another alternative is for the borrower to make interest only payments for twelve months and extend the term one year .

“In February 2009, the Economic Development Bureau sent a letter to all borrowers within the Program offering this loan modification. Those with loans over the $100,000 initial principal amount who accepted the offer to participate are listed on the following chart.

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“Because these loans are over $100,000, City Council approval is required to make the loan modifications.”

The Council vote approving the management recommended item was 8-1 (Garcia absent).

Morris came to downtown Long Beach in the 1980s, first creating the elegant/upscale Mum’s restaurant at 144 Pine Ave. (after operating Legends in Belmont Shore for several years). For more than two decades, Mr. Morris was Pine Ave.’s tireless booster, organizing multiple promotions and charity events (including New Years Eve events) that drew crowds.

While receiving City Hall accolades for promoting downtown Long Beach, the outspoken Morris locked horns with city management over, among other things, City Hall’s support for a retail/entertainment development (now known as “The Pike”) south of Ocean Blvd., which he predicted would make it tougher for Pine Ave. businesses north of Ocean Blvd.

The Pike development led Mr. Morris to convert Mum’s into Smoothe’s Sports Grille. During both incarnations, the 144 Pine Ave. address was a gathering place for a who’s who of city officialdom and VIPs. [LBReport.com compared it to "Rick's Cafe" in the movie Casablanca.]

Mr. Morris had an uncanny ability to bridge seemingly unbridgeable civic constituencies. When City Manager Pat West was chosen to succeed Jerry Miller, Morris held a welcoming event for him on Smooth’s rooftop that had members of City Hall’s elite rubbing elbows with grassroots civic activists.

In a famously unofficial 2007 “State of the City” address to the Long Beach Rotary Club, Morris openly raised the issue of costs incurred over several decades by the City as a byproduct for Port expansion, including fouled downtown water quality. He make his points with a video showing surf at downtown’s now erased beach and crowds packing the former Pike amusement area. To a room filled with Long Beach establishment figures, Morris called for reconfiguring the Los Angeles River (outflow aimed eastward toward local  beaches years ago to accommodate Port expansion) as well as having the Port repay the City to repair damages done.

LBReport.com covered Mr. Morris’ speech in detail, and his civic heresies alarmed Port officialdom. They prepared talking points against the L.A. River configuration and invited Mr. Morris to speak to the Harbor Commission, which he did, where Port staff provided a point-by-point rebuttal.

Morris was also critical of certain actions—he alleged inactions—by the leadership of Downtown Long Beach Associates (parking was one of several sore points) and voiced his criticism outside and inside the group (in which he held a leadership position during several periods).

Morris made Smooth’s rooftop venue available to grassroots activists and civic groups for multiple events, including Long Beach Press Club debates on civic issues (2008: Measure I; 2010: 1st district Council).

Mr. Morris/Smooths also sponsored Mum’s the Word, a news/interview program cablecast by Charter Communications, hosted by former Councilmember Les Robbins, which tackled newsworthy topics. Smooth’s was also an LBReport.com advertiser during certain business periods.

Further to follow on LBReport.com.