http://www.timesunion.com Quoted Text State tax lien put on eatery Cornell's Restaurant owes $154,528, taxation agency says; seizure not planned
By LAUREN STANFORTH, Staff writer First published: Wednesday, October 17, 2007
SCHENECTADY -- Cornell's Restaurant on North Jay Street, which moved to Schenectady's Little Italy about three years ago to help bolster revitalization, owes $154,528 in back taxes to the state, the state Department of Taxation and Finance says. Agency spokesman Michael Bucci said the state is not considerating seizing the property for the back taxes, which represent unpaid withholding and sales taxes since 2005. He said in most instances, the state tries to work with the owner to come up with a payment plan.
Gary Lombardi, lawyer for restaurant owner JoAnn Cornell Aragosa, said about a month ago the restaurant worked out a schedule to pay back the money. Lombardi wouldn't discuss details of the deal or how much Cornell's has paid the state so far.
Bucci said the warrant shows what Cornell's originally owed the state, but it does not show what Cornell's might have paid thus far to satisfy the warrant. He also said he couldn't comment on any payments or plan the state might have negotiated with Cornell's.
A warrant is a lien the state takes out that secures its interest in the money in case a business owner cannot or will not pay.
Cornell's relocated from Van Vranken Avenue to North Jay Street by using more than $1 million in loans and grants: $550,000 from New York Business Development Corp. and $475,000 from Schenectady Metroplex Development Authority. Pat McKrell, president of New York Business Development Corp., said Cornell's account is current. Ray Gillen, chairman of Metroplex, couldn't be reached for comment.
Lombardi said Cornell's serves about 700 dinners a weekend. He said the business had trouble catching up with the initial costs of relocation.
"The company is really doing very well. Hopefully, the success will continue," Lombardi said.
Bucci said Cornell's owes about $929 for not turning over the amount that's supposed to be withheld from employee paychecks. The restaurant also owes three separate amounts of $14,713, $15,981 and $122,905 for not turning over sales tax charged to customers.
Bucci said it's not unusual to see businesses owe more than $100,000 in back taxes.
"I've seen higher, I've seen lower," he said. "It's not uncommon in the restaurant industry." Stanforth can be reached at 454-5697 or by e-mail at lstanforth@timesunion.com.
Well we can kiss yet even MORE of our tax dollar good-bye. Thanks to metroplex!
Actually Cornells has been hurting for quite some time. I know people that have worked there and when they received their checks(if they did), they were asked to wait to cash then cause there wasn't the funds available to cover the them.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Logged
