Rogers Park’s Heartland Cafe “is precariously close to shutting its doors for good,” said the press release, e-mailed on September 28. And a fledgling arts organization called the Seen will be holding a benefit to help keep it alive.
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The release was sent out by Heather Bodie, 25, an actor, painter, and—by day—freelance financial services rep. Bodie founded the Seen, which is meant to bring all kinds of artists together and is still in the process of getting its nonprofit designation. On her very first visit to the Heartland about two weeks ago, Bodie noticed a letter attached to the back of the menu. “Dear Friends,” it read. “The Heartland Cafe has arrived at a crucial fork in the road in terms of our financial survival. A severe cash flow crisis produced by two years of increasing bank charges and overdraft fees has placed us in a ever-deepening hole. Money we need to pay for everyday costs involved in running the Heartland has gone right into the hands of our bank. This bank has hurt more than helped our small business, and will not lend us money. . . .
How much will it take to keep the endangered Heartland empire going? According to the letter, $50,000 by mid-October and over $50,000 more “very quickly in order to get through the winter.” Long-range goal: $1 million.
“We’re not going out of business,” says Hogan’s partner, Michael James, adding that he’ll do “whatever it takes” to keep the Heartland going. “It’s a question of cash flow, the bad economy, and our relationship with a bank that’s charged us a lot.” About $18,000 in liquor and restaurant license fees are due October 15, he says, but the liquor license renewals can’t go through until the Heartland catches up on its state sales tax payments (he says they’re a month behind). That’ll require another $18,000. He also says he’s spent a whopping $118,000 on bank charges incurred—at the rate of $32 a pop—on overdrafts during the last 18 months.
“We’ve been in tight fixes before,” Hogan adds, but “this fix feels differently tight.” She thinks their predicament, which she says started with a clampdown on credit by smaller banks two years ago, is shared by a lot of small businesses. Changes in state tax collection (it’s now taken directly from the bank account every month), along with the city’s revised policy on license fees—requiring that they be paid in full every two years rather than annually—are part of the problem.
Mon-Tue 10/11-10/12, 7-11 PM, Heartland Cafe, 7000 N. Glenwood, 773-465-8005, heartlandcafe.com, $10 includes one free drink.
