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UPDATE: The city clerk called this morning with the news that BSG's seller's permit has been reinstated by the Department of Revenue. Apparently they paid whatever they owed this morning and cleared up whatever needed to be cleared up to be reinstated by the state. This action by the state does not reinstate their alcohol licenses, but it does make BSG legally eligible.
Original post:
A surprising development occurred late last week when the city clerk was notified that the state Department of Revenue (DOR) had revoked the Bourbon Street Grille's (BSG) seller's permit at the end of May 2008. Under state law, cities are prohibited from issuing permits to a business that lack a seller's permit (s. 77.61). In other words, during the entire pendency of the current liquor license proceedings against BSG, they in fact were not eligible for a liquor license due to a lack of a state-issued seller's permit.
The state erroneously sent the original notice of revocation to the city clerk of Madison in June 2008. Apparently, the Madison city clerk did not send a copy to the Monona city clerk. The state discovered that BSG was still open for business from news reports about Monona's liquor license suspension proceedings. The state then notified the city of Monona and directed that no licenses be issued to BSG until a seller's permit has been issued. The DOR states that it will not issue a seller's permit until all tax matters have been resolved.
Liquor licenses run from July 1 to June 30. Based on the letters from the DOR, the BSG was never eligible for a 2008-2009 liquor license.
At tonight's city council meeting, the council voted down a proposed settlement agreement that had been negotiated by the chief of police with BSG before the chief knew that BSG lacked the basic state permit to sell anything, let alone alcohol.
Monday, February 16, 2009
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In a case like this one-is it the cities responsiblity to make sure they do not sell....anything?
ReplyDeletethanks-
No, it is the city's responsibility to not issue any business licenses to a person without a seller's permit.
ReplyDeleteOne could say it is the state's responsibility to enforce the law, but really it is the individual's responsibility to follow the law.
What? This has been the most pathetic witch hunt on BSG that I have ever seen!! What have they done to you? This place employs many people especially in the summer. Pick on someone else for a change. So the City of Monona drops the ball, and then BSG pays the price.... I am sick to my stomach with Monona's high and mighty's.
ReplyDeleteJust to be clear, the city of Monona did not learn that BSG's seller's permit had been revoked by the state until last week (Feb. 12).
ReplyDeleteBSG had been operating without a seller's permit since June 1, 2008, but the notice was sent ot eh city of Madison (as well as BSG, presumably).
It seems to me that BSG had to have some awareness that they had no sellers permit and the implications of that revocation by state of Wisconsin, right?
ReplyDeleteWitch hunt? I'm certainly no huge fan of city hall, but I don't see how anyone in city government did anything to cause Bourbon Street's woes. They were collecting sales tax from their customers and keeping it! When a business collects sales tax and then fails to deposit that tax with the state, that is pretty darn close to theft from the taxpayers of Wisconsin. To be clear, the state shut them down, not Monona.
ReplyDeleteMelody,
ReplyDeleteNo witch hunt here. If Mackesey can't follow the rules and pay his bills, this is the direct consequence. It seems pretty simple to me.
Oh my. Check out the public records on this matter! Nearly $100k in past due taxes.
ReplyDelete"They were collecting sales tax from their customers and keeping it! When a business collects sales tax and then fails to deposit that tax with the state, that is pretty darn close to theft from the taxpayers of Wisconsin"
ReplyDeleteJust to be clear: I do not know what they were collecting and/or keeping or specifically why the state revoked their seller's permit.
Melody,
ReplyDeletePlease put your anger where it belongs.
The management of the Bourbon Street Grill is not behaving responsibly--tax-wise or otherwise. This is no witch hunt. Far from it.
And the City of Monona didn't drop the ball. Please check your facts.
It is not high and mighty to want responsible, respectful business owners in Monona.
Doug,
ReplyDeleteDo a quick search of public records. It will become very clear to you very quickly.
I would note for the record that BSG has now paid the past-due taxes and, according to the story posted on the Herald's web site, they did not know the seller's permit had been revoked.
ReplyDeleteNot reaching a reasonable compromise that keeps BSG in business but protects the interest of Monona would be an irresponsible act of the council. The last thing we need is another vacant building, but that is what they are on the verge of leaving us with.
ReplyDeleteFrom what the Herald story says, they are not interested in reaching an agreement with the city and plan to fight the suspension in court.
ReplyDelete" She also said the city's concerns about mutual aid liabilities are exaggerated, saying such inter-community help is commonplace. "
ReplyDeleteReally? Is that really-true?
Commonplace-I mean-I do not get around once, but I have been known to grab a drink a water hither and thither and never seen Madison PD or McFarland PD at other watering holes.
According the the article the city rejected the compromise plan, promting the owners to state they would seek relief in court. If they weren't open to a deal why did they work out an agreement with the police chief?
ReplyDeleteIf the city rejected the agreement because of the state tax issue, instead of on its merits, then they have not acted in the best interests of the city. You had an agreement acceptable to the police on the table that would keep a monona business open, yet you rejected it not on its merits.
"city rejected the compromise plan, promting the owners to state they would seek relief in court"
ReplyDeletePerhaps the story isn't clear. The order of events is important.
The city council rejected the agreement Monday night at which time the BSG did NOT have a state seller's permit and thus were INELIGIBLE to hold a liquor license. We never really reached the merits of the agreement because they did not have a seller's permit.
The FOLLOWING MORNING the BSG got their seller's permit reinstated by the Dept. of Revenue.
They are now eligible to hold a liquor license, but would need to reach an agreement with city to have the suspension lifted. According to the story, the BSG plans to go to court rather than ask the city council to reconsider the agreement.
That's right, Alderman Wood. The story is very clear on the timeline and why the vote was cast to reject the deal, February 16. My sense in speaking with Mackesey is that he is simply frustrated and unsure as to if the council would even accept a deal at this point, which is why he said said they would be going another route. That could change, I suppose, and it would probably be better to speak with him for additional clarification on this once he speaks to his attorney. As of our deadline on Tuesday afternoon, he had not.
ReplyDelete-Adam
Respectful business owners? have you seen Silver Eagle and Tully's record? Apparently not. I have my facts straight and I hope they sue Monona
ReplyDeleteDoug,
ReplyDeleteJust to be clear, it seems to me that the BSG AND the City didn't know about the back taxes until last week, yet at the CC meeting on Monday, the City Attorney waited to bring it up then and knew about it from the week before?The city doesn't want the BSG open, that proves it right there
I am posting no more comments on this one.
ReplyDeleteI disagree with 'Melody', but I don't want to go over the same old ground. Again.
We will see how things work out.
Travis, if you send me an email at dwood@ci.monona.wi.us I would be glad to response to your comments, but I am not posting any more comments here.
ReplyDelete