COLLEGE PARK, Ga. -- Mayor Jack Longino is standing by his city’s decision to loan $130,000 to Michon’s, a high-end meat and seafood restaurant on Virginia Avenue.

CBS Atlanta News broke this story last week and sat down Thursday with the mayor to talk about the loan. Court documents show the business has liquor violations and owes a contracting company nearly $18,000. The owner’s of Michon’s said they also filed for bankruptcy.

CBS Atlanta News asked Longino tough questions about how a company in bankruptcy can be loaned $130,000.

“Michon’s is a very nice restaurant. It gives the kind of atmosphere to attract other businesses to College Park,” Longino said. “You also have to look at what it does for the community, what it does for the tax base for an empty building versus a building that is being occupied -- all that makes so much difference. There are a lot of high-end restaurants north of here. But there are not a lot high-end white table cloth restaurants in College Park. It makes me happy to hear people ate at our restaurants and enjoyed them. It brings additional revenues to the city."

Longino did not vote for the loan to be approved by the Business and Industrial Authority of the City of College Park; he abstained. The chairman did not vote, one member voted no and four others voted yes for the loan.

CBS Atlanta News has learned a similar high-risk loan was awarded to a restaurant called Oscar’s back in 1999. “That $230,000 loan was also risky. But, they paid back their loan in full,” Longino said.

Longino said the city of College Park has no budget problems and currently has 22 million in reserves. “That allows us to take some risk to attract people into our city and make College Park better,” Longino said. “I believe it’s about trying to be better and there is risk every time. I don’t believe we are going to lose this money. I believe this organization is going to pay us back every dime that they owe us. I think in five years, people are going to look back and say it was a good thing."