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Mounds View City Council October 26, 2009 Regular Meeting Page 4 Moe’s in the spring, property taxes were due at that time. Mr. Moritko stated he does not 1 remember the amount due at that time. Council Member Mueller stated at that time she had 2 asked for a firm date and number commitment to assure payments were kept on track. Mr. 3 Moritko stated they were current on the parking lot portion of the property taxes in October. 4 Council Member Mueller asked about the payment of Minnesota liquor sales tax. Mr. Moritko, 5 confirmed that he would be unable to receive deliveries from supplies until sales taxes are paid. 6 He stated he needs product to sell so he sees payment of sales tax as a priority. 7 8 Council Member Mueller stated the investment of $1.2 million shows Mr. Moritko is earnest in 9 his desire to remain in business in Mounds View. Mr. Moritko stated he took a second mortgage 10 on his house to finance some of the work and a bank note for the parking lot and other 11 improvements. He stated since they purchased the parking lot and added the deck, revenues 12 increased for the first two years but with nice summer weather, deck business goes down. He 13 stated they closed their Coon Rapids location in 2008 and were in good standing with Anoka 14 County at that time. Mr. Moritko stated they dropped the general manager and he came on full 15 time at that point. He noted they could have filed bankruptcy but instead have tried to pay all of 16 their bills including $200,000 of debt from the Coon Rapids location. 17 18 Council Member Hull asked about the proposed May 1 st 2010 deadline Mr. Moritko stated it will 19 allow him enough time to catch up and he will send copies of payments made to the City, if 20 desired. He stated this Council has helped other businesses and he is not asking for something 21 they have not done before. 22 23 Council Member Stigney noted the staff report shows that on October 22, 2009, $70,915.74 was 24 delinquent but paying $7,500 per month from December 1 to May 1 would only equal $45,000. 25 It also excludes the pending payment on May 15th so the numbers do not balance out. Mr. 26 Moritko stated they have earmarked $17,000 for sales tax and will pay any remaining balance. 27 He explained they are constantly looking at financing and working with US Bank on what can be 28 done. 29 30 Council Member Stigney noted if delinquent taxes are paid by May 1st, another payment is due 31 on May 15th and asked if another extension will be requested. Mr. Moritko stated he is asking 32 their bank to rewrite their note to require escrowing of property taxes so this is never an issue 33 again. He stated US Bank knows they are speaking with the Council tonight and he hopes 34 financing can be completed within 30 days. Council Member Stigney asked Mr. Moritko if he 35 will submit paperwork to the City showing payments to Ramsey County and bank financing. Mr. 36 Moritko stated he will do so and intends to keep communications open so the City is kept 37 updated along the way. Council Member Stigney stated he would like an accounting as of 38 January 1, 2010, before it goes further. Mr. Moritko agreed to that request. 39 40 Mayor Flaherty stated he can empathize this is a humbling experience and he appreciates Mr. 41 Moritko attending to provide this information. He clarified that the Council has no “power” to 42 close Moe’s but can revisit the liquor license for revocation if the Council finds things are not 43 moving forward. However, the loss of the liquor license would likely impact Moe’s ability to 44 remain open. Mayor Flaherty noted penalties are due for delinquent property taxes and the City 45