Elk Grove sues former Slow & Low BBQ owner Hargis for loan default
Elk Grove has sued a former restaurant owner whose eatery once symbolized new investment in the city’s historic downtown.
Sacramento restaurateur Michael Hargis’ Slow & Low Smokehouse barbecue restaurant at 9700 Railroad St. in Old Town Elk Grove closed in January. Attorneys for the city filed a complaint June 23 in Sacramento Superior Court seeking more than $457,000 following foreclosure on a loan extended to Hargis in October 2023.
That month, Elk Grove issued a $500,000 business loan through River City Bank to finance tenant improvements at the Railroad Street site. The city also backed the loan with a $500,000 certificate of deposit.
City planners had envisioned Hargis’ Slow & Low, along with next door neighbor, Dust Bowl Brewing Co., a key component in turning Railroad Street and the historic district into a dining and entertainment destination. Hargis previously led midtown Sacramento restaurants LowBrau, which was sold earlier this year, and Beast + Bounty, which closed on Jan. 1.
“I think it’s part of an opportunity to be a part of the revitalization of Old Town,” Hargis told The Sacramento Bee in May 2024 as he prepared to open the restaurant. “We have friends and family that live out there and it’s always been an area of interest to us.”
A newly built Old Town Pavilion, apartments, street scape and undergrounding improvements completed the makeover.
Hargis defaulted on the loan less than a year later in August, according to the complaint; and River City in January took more than $425,000 from the CD to partially satisfy the debt.
Now Elk Grove says Hargis and partner Carry Hargis owe more than $457,000 — the more than $425,000 recovered by River City, plus interest and attorneys fees — with the amount growing by the day.
Elk Grove City Manager Jason Behrmann announced plans at the city’s April 9 council meeting to foreclose on Slow & Low’s loan to recover its losses.
A second suit by food wholesaler Performance Food Group, filed in Sacramento Superior Court in June, seeks nearly $67,000 for “goods sold and delivered,” according to court filings.
Horn Barbecue, headed by acclaimed James Beard Award finalist Matt Horn, now occupies the Railroad Street spot. Hargis, earlier this year announced he was partnering with the pitmaster to bring the Oakland-based restaurant concept to Elk Grove.
This story was originally published July 1, 2025 at 1:34 PM.
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