HESPERIA Three years after opening its doors, Kid's Planet will be going on the auction block later this month.


The Main Street restaurant received a $340,000 loan from the Hesperia Redevelopment Agency. However, the agency is third in line behind Arrowhead Central Credit Union and the U.S. Small Business Administration for getting its money back after the property is auctioned off or sold.


"The project, back in the day, it worked. It worked financially. The numbers were positive for the agency to get involved," Steve Lantsberger, the city's director of economic development, said. "It was a unanimous vote by the (City Council) because it was a viable deal. You fast-forward to today and it's 100 percent different."


The restaurant location at 15775 Main St. and building will go up for auction at noon Thursday, according to records viewable at the San Bernardino County Assessor's office website. The asking price, for property and building together, is $1.6 million.


Kid's Planet was a victim of the recession, Lantsberger said.


"If you're not commanding the same level of sales because of the economy, that's going to affect your ability to pay" a mortgage, he said. "The deal worked. The deal penciled out for the city and the agency at the outset."


The overall track record of the redevelopment agency, which uses its funds to spur development in the city, is excellent, according to Lantsberger.


"We have a very, very low, extremely low rate it's probably in the single digits of defaults in the district's 20-year history," he said. "If you try to ensure you'd never take any loss, you'd never make a loan ever." The redevelopment agency's default rate on loans is less than 1 percent, according to city spokeswoman Kelly Malloy.


Beau Yarbrough may be reached at (760) 956-7108 or at beau@HesperiaStar.com.