Politics & Government

Delinquent Taxes Threaten Eden Nightclub's Liquor License

Ferndale wants $20,552 plus costs.

has until April 30 to come up with $20,552 in delinquent real estate taxes or it may lose its liquor license.

This is the third year in a row that Aubrey Tobin requested extra time to pay taxes on the night club. Tobin owns Posh Entertainment Inc., Eden's parent.

Each year Michigan requires liquor license owners to renew their licenses by April 30, the expiration date. In addition to the renewal, Ferndale adopted requirements that license holders must meet to keep their license. Some of those  include code ordinance compliance and payment of real estate taxes.

Find out what's happening in Ferndalewith free, real-time updates from Patch.

For the last two years the council worked with Tobin to get the taxes current and keep the business in Ferndale. Tobin is asking for that assistance again. Tobin said last year that the council allowed Tobin to pay part of the debt on April 30 and the remainder on May 31. If the payment schedule was not met, the license would be revoked. "We'd like to do that again," Tobin said.

Tobin said Eden has not been able to raise the money but if the council allowed him, he would be able to come up with half by April 30 and the other half by May 31."It's been a very difficult year and it's not getting better," he said.

Find out what's happening in Ferndalewith free, real-time updates from Patch.

Councilman Scott Galloway said that to work on the agreement and write it up requires staff time that costs the city. "If you pay your bills two months late anywhere else, you're hit with a late fee or an administration fee," Galloway said.

The council passed a resolution recommending that Eden's liquor license not be renewed but that City Attorney Daniel Christ work out a payment agreement and look into folding costs incurred by the city into Eden's tax bill.

"We want to see a business stay in business and want to collect the tax revenue as well as see you be successful," Galloway said. "But I think we need to bring this to some sort of better solution for next year."

Other establishments that had delinquent taxes were Nami Sushi Bar, no longer operating in downtown Ferndale, and the Post Bar which closed on March 26.

Christ said Nami's delinquent taxes, $883.54, were paid. The Post Bar, owing $12,303.25, could not be reached for comment.


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