News - Local

Wednesday, Nov. 04, 2009

McElroy wants to be back in Biloxi

Businessman plans new restaurant

BILOXI — Mickey McElroy said if he had $1 for every person who asks when his seafood restaurant will return to Biloxi, he’d have the money to rebuild it.

Instead he’s looking to the Small Business Administration, a bank and the Biloxi City Council to help him build a new Harbor House Seafood Restaurant at the Small Craft Harbor next to Hard Rock Casino.

His restaurant washed away during Hurricane Katrina and he had hoped to partner with Wyndham Hotels or a condo developer to share the site. The economy dashed those plans, and McElroy said, “I can’t wait forever. I am ready to go back.”

On Tuesday his attorney, Wayne Hengen, asked the city to return the insurance proceeds McElroy turned over to Biloxi and to extend his long-term lease.

“I built that entire building,” said McElroy, and over 25 years he grew the business and the building from a snack bar into a popular seafood restaurant. He leased the land from the city and when the building was destroyed, Hengen said, McElroy hired adjusters to get a fair insurance settlement.

McElroy signed over insurance proceeds of more than $600,000 because technically the city owned the building.

McElroy said he plans to build a harbor-style building raised 22 feet to meet new flood elevation standards.

“Should be a beautiful view,” he said.

Plenty of Biloxians have eaten at McElroy’s and many had regular tables said Biloxi Mayor A.J. Holloway.

“I’m for him building back,” he said, calling McElroy’s return another step in the city’s recovery. He said it was part of the agreement that the city would return the insurance money when the restaurant could be rebuilt.

McElroy has continued paying the lease of $1,822 per month since Katrina. Hengen said there are 17 or 18 years left on the lease and McElroy is asking for an extension to 30 or more years so he can get the financing to rebuild.

The preliminary estimate is $2 million and Hengen said McElroy will have to get loans to make up the expense beyond the insurance proceeds.

“It was a very popular restaurant with tourists and with locals,” said Councilman Tom Wall. He sees McElroy helping the charter boat industry by bringing people to the harbor.

“It’s a piece of Biloxi that’s been around for decades,” Hengen said, and he says putting it back where it was, only 22 feet higher, will be good for Biloxi.