City to apply for grant on behalf of Dinky Diner

On March 28, 2023 the Dinky Diner, a popular eatery housed in a 100-year-old building at 230 Thayer Street, was destroyed by fire. It was a gut-wrenching loss for the neighborhood long known as the Hollow.

Now, nearly 17 months later, the owners of the Dinky Diner are planning to reopen in a new location — 130 Brown Street, the former home of Frasier’s Kitchen.

On Monday evening Aug. 26, the Rhinelander Common Council authorized city administration to submit an application for a Community Development Investment (CDI) grant in the amount of $250,000 for the commercial redevelopment project at 130 Brown Street.

According to the Wisconsin Economic Development Corporation, which administers the grant program, the goal is to assist in transforming communities across the state by providing matching funds up to $250,000 to support “shovel-ready projects that focus on revitalizing a community’s downtown area or commercial center.”

The matter was brought to the common council for consideration because the application must come from a municipality.

 “It has been determined that the development proposal at 130 North Brown Street (commonly known as “The Dinky Diner”) will enhance the community by bringing employment opportunities to the city, helping to eliminate blight from the community, and enhance the tax base,” the council resolution said.

In his report to the council, city administrator Patrick Reagan stressed that the project does not involve city funds.

 “Please remember that the City is the applicant for this grant — we then work directly with the interested party (in this case, the Dinky Diner) and the WEDC,” he explained. “No City of Rhinelander funds will be used to fund this project. We are basically the grant administrators. I have been working with Jim Rosenberg from the WEDC and Rick Colvin, the owner of the Dinky Diner, on this project and will continue to do so.”

“This is the exact same grant that Rodeway Inn got,” he added, referring to the recent conversion of the former Rodeway Inn on Kemp Street to affordable, low-income housing.

As the discussion continued, Mayor Kris Hanus noted that the city can pick only project per year for this grant opportunity.

“If this is the one you guys pick, this would be (the only choice) for this fiscal year ...,” the mayor advised.

Hearing that, alderman Gerald Anderson asked if anyone else had expressed interest.

“We haven’t had any other interest,” Reagan replied.

With that, the council voted unanimously to submit the application on behalf of Dinky Diner. The panel also authorized and directed Hanus to sign a developer’s agreement with Colvin, another requirement of the program.

The council action prompted the River News to reach out to the office of the State Fire Marshal for information as to the investigation into the March 2023 fire. The newspaper first reached out to the state office last September at which time officials reported that the investigation was still open.

The River News made a number of follow-up inquiries over the course of the last year and each time the response was that the investigation was still open. 

In attempt to provide some clarity to the public as to the status of the investigation, the newspaper opted to contact Josh Pudlowski, the director of the state fire marshal’s office and a former Rhinelander police officer.

Pudlowski confirmed the case remains “open/pending” and explained that “fire investigation cases often remain open for a prolonged period due to a multitude of factors such as pending data from additional sources (laboratories, insurance companies, engineers etc.), prioritization of other criminal/fatal cases, peer review of work etc.”

“While the documents you are seeking are not available for release at this point, I did reach out to the assigned agent for information that may clarify some of your questions,” he continued. “There has been no data collected to date to indicate that the fire at the Dinky Diner was the result of an intentional criminal action. There is also no information at this time to link the fire to other issues occurring in either of the owner’s lives, most notably Ms. (Terrie) Bowman’s pending criminal case. Of course, as with any investigation, there is always a possibility that new information could be discovered/provided at any time that would require additional investigation and consideration.”

Bowman, who operated the original Dinky Diner with Colvin, was charged last summer with transferring thousands of dollars from the account of an elderly person to her personal bank account. She was serving as the individual’s power of attorney at the time, according to the complaint.

The felony charge — theft of property (special facts) with an enhancer for elderly person victim —  was filed in May 2023 but progress in litigating the matter has been slow. Bowman’s first attorney left his legal practice several months after taking the case and then the retirement of Oneida County circuit judge Mike Bloom necessitated a transfer to another judge. 

According to court records, Judge Mary Sowinski, who was elected to succeed Bloom, has recused herself. Judge Galen Bayne-Allison of Lincoln County has since been appointed to preside over the matter. A status conference is now scheduled for October. Bowman has entered a not guilty plea.

In early August, when Bowman was last in court, her new attorney indicated the case was in trial posture, pending resolution of the judicial appointment.

It should be noted that Bowman’s name is not included the developer’s agreement with the city. The only listed signatory is Colvin.

According to the Dinky Diner’s Facebook page, the owners are “cautiously optimistic’ that the new location will open in late September.

Heather Schaefer may be reached at [email protected].