A Milwaukee tavern operator's plan to open a new coffee shop, aided by a $750,000 city grant, has hit a roadblock. It turns out that the operator owes the city over $6,000 in unpaid taxes. The issue was not brought up during a recent Common Council committee meeting where the lease was being reviewed.
Delay in Lease Approval
The lease for the coffee shop, which was recommended by Mayor Cavalier Johnson's administration, was set to be approved by the Common Council's Zoning, Neighborhoods, and Development Committee. However, the committee decided to delay the process after learning about a separate legal battle involving the operator and the owner of Turner Hall.
Turner Ballroom Preservation Trust Ltd., the owner of Turner Hall, has a pending judgment of $95,734 against the operator's previous business, Barcity Club LLC, which operated a restaurant at Turner Hall. The operator's group stopped paying rent in 2019 and was subsequently evicted. The trust believes that the city's lease should include a personal guarantee from the operator.
Unpaid Taxes Come to Light
During an online public records check, it was discovered that the operator's company, Caravan Hospitality Group LLC, has an outstanding judgment of $6,011 from the City of Milwaukee. This amount includes penalties and interest and is related to delinquent personal property taxes associated with the operator's Nomad World Pub.
It is surprising that the Department of City Development (DCD) officials did not mention the tax debt during the committee meeting. Ald. Michael Murphy, the committee chair, expressed shock at this oversight. The DCD claims that they were unaware of the unpaid debt until after the meeting, as they typically focus on city real estate taxes and fees.
Building's Future Uncertain
The city is now evaluating its options for the building where the coffee shop was planned. The plaza, located at 401 W. Wisconsin Ave., is currently under construction and scheduled to open this summer.
However, there is a complication. The $750,000 grant from the downtown tax incremental financing district, intended to support the building's interior work, must be approved by March 5th.
As for the delinquent tax bill, the operator stated that he is discussing the matter with his attorney to determine the best course of action for resolution.
Court records also reveal that Caravan Hospitality owes $12,680 in overdue taxes to the Wisconsin Department of Revenue. The company has paid off nine other state tax warrants totaling $27,268.
The operator's other businesses include SportClub and Barrel Burrito Co., both located in Milwaukee.
For now, it remains unclear how this tax issue will affect the operator's plans for the coffee shop. As the city explores its options, the fate of the building and the future of the operator's venture hang in the balance.
Tom Daykin can be emailed at [email protected] and followed on Instagram, X and Facebook.
