SIST tax bill paid in cash: Licenses issued after $200,000 payment received

The Shawano Leader/August 8, 2006
By Tim Ryan

Representatives of the Samanta Roy Institute of Science and Technology (SIST) arrived at City Hall late Monday afternoon with cash payment for a roughly $200,000 in delinquent taxes, according to city officials.

The payment made good on a check that the city said was returned twice for non sufficient funds.

The bounced check led to licenses being pulled on July 14 for the sale of beer and liquor, cigarettes, soda, and amusements at five businesses owned by SIST and its subsidiaries, and another business that leases property from SIST.

City officials said it is the city’s policy to accept only cash after a check has been returned by the bank.

According to city clerk/treasurer Marlene Brath, SIST representatives Naomi Isaacson and Darlene Sense came to City Hall around 4 p.m., along with a man who was carrying a "small bag of cash."

Brath said she wanted to request a security escort from the police department to make the trip from City Hall to the city’s bank across the parking lot, but the man replied security was not necessary.

Brath then met them at the bank where the money was put through the counting machine. Brath then provided the bank with the city’s account information so that the money could be deposited.

Licenses were reissued to the businesses in question after the transaction was completed.

The total paid was $200,734.07. That was less than the amount of the original bounced check because three businesses that lease from SIST and its subsidiaries paid the property taxes on their buildings on behalf of their landlords.

According to the city, a check in the amount of $204,262.34 from Midwest Properties of Shawano, LLC, to cover delinquent property and motel room taxes twice failed to clear the bank due to insufficient funds. The check was delivered to the city on June 30, the day before beer and liquor and other licenses were due to expire.

Five businesses owned by SIST subsidiaries and three that lease property from SIST subsidiaries had been granted licenses for 2006-2007 that were set to go into effect on July 1. However, those licenses could not be issued until all property and motel room taxes were paid.

Businesses that lost their licenses included the Best Western and Village Haus, 201 N. Airport Dr., and the AmericInn, 1330 E. Green Bay St., both owned by Midwest Hotels and Motels of Shawano, LLC; and three gas stations owned by Midwest Oil of Shawano, LLC, at 1381 E. Green Bay St., 1206 E. Green Bay St., and 716 S. Main St.

In addition, licenses were also pulled at the Family Dollar Store, 229 E. Green Bay St., which leases from Midwest Properties. Family Dollar later paid the delinquent property tax on behalf of Midwest Properties and had their licenses reissued.

Two businesses – The Hunan Chinese Restaurant, 145 S. Main St., which leases from SIST, and El Mariachi Cantina and Grill, 635 S. Main St., which leases from Midwest Properties – never lost their licenses because the owners of those businesses paid the property taxes the same day the city took action.

Monday’s payment also included $36,376 in delinquent motel room taxes at the AmericInn and Best Western, as well as $3,380 in interest on the motel room tax debt.

Last week, the city received an $11,000 cashier’s check covering motel room taxes at the AmericInn and Best Western that were currently due for the second quarter of 2006.

Questions seeking comment regarding the tax payment were sent to SIST representative Kal Gronvall. The response, received just before deadline Monday night, consisted of a series of questions. Most of the questions asked about how the Leader obtained the information about Monday’s tax payment, and why the Leader did not cover an event last weekend at USA International Raceway.