BATAVIA – Limestone Coffee & Tea has moved a step closer to securing a city loan so it can reopen at another location in downtown Batavia.

The City Council’s Government Services Committee on Monday voted, 4-1, to give Limestone a $15,000 micro-loan. The full City Council will vote on the issue Aug. 20.

Second Ward Alderman Victor Dietz, chairman of the Government Services Committee, voted “no,” citing financial concerns about the loan.

Limestone closed its cafe in November at the corner of Wilson and North River streets after being in the building since September 2007. The Rhino Room restaurant since has moved into the space.

Limestone found a location at 8 W. Wilson St. in downtown Batavia, the former home of Lane Allen Architects, and has requested a $25,000 city loan toward the purchase of kitchen equipment and supplies to expand and enhance its business.

The city’s Business Loan Review Committee previously voted, 3-1, to provide financial support to Limestone Coffee & Tea, but at a reduced level of $15,000. The committee had concerns with respect to Limestone’s debt load and relatively low profit margin.

Limestone Coffee has worked out a lease arrangement with Batavia Enterprises, which owns the space.

“I think it’s a great fit,” said Batavia Enterprises vice president Austin Dempsey. “They had a great following where they were before.”

Under the terms of the loan, Limestone would have 36 months to repay the city at an annual interest rate of 3.25 percent.

Maureen Mares runs Limestone Coffee with her daughter, Kendall Ertz. Batavia Mayor Jeff Schielke said he thought the new cafe would further grow Batavia’s downtown.

“It has a history here,” Schielke said. “I just think this is a shoe that really fits in downtown Batavia at this time.”

Fourth Ward Alderman Jim Volk, who is not a member of the Government Services Committee, agreed.

“I think we have to take some risks to get the momentum going,” Volk said. “Empty storefronts breed empty storefronts.”