The year-old restaurant closed after he disappeared and is more than $9,000 behind on a $1.5 million loan with the Roseville Community Development Corp. It was designed to anchor downtown redevelopment for the city of 124,000.
The city declared Sept. 15, 2012, to be "Sammy Hagar Day" to tout the restaurant's opening, with a concert and street party featuring Hagar and his band. The restaurant licensed Hagar's name, but the rocker does not have an ownership stake, city spokesman Brian Jacobson said.
Jacobson said it is up to the restaurant's surviving owners on how to proceed, but the city remains "very bullish" on efforts to revive the historic downtown, which has been eclipsed by development around a regional mall on the outskirts of the city.
Pease paid the first loan installment in September, said Roseville Community Development Corp. president Howard Rudd. But he missed the second payment days before he disappeared on Halloween.
The corporation is not expecting Pease's company, Innova Restaurant Concepts LLC, to make the payment that is due this month and its attorneys have filed to hold the firm in default.
A second company operated by Pease was the rental agent for three other downtown properties, all of which have tenants who are making their monthly payments, Rudd said.
Foot traffic has been good and other merchants are happy, he said, partly due to the risk that Pease took in developing the Hagar-themed restaurant.
"He was taking a huge big step and that's what the Roseville Community Development Corp. was partnering to do, was to take that first big step to get a restaurant with a big name associated with it. Once that starts, you get momentum," Rudd said.