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Cove of Lake Geneva again on the Brink

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The Cove of Lake Geneva once again is on the brink of losing their liquor license for failure to turn over the room tax money they have collected during 2009. This makes three years in a row they have failed to pay the taxes on time. The Cove according to Finance chairman Krause owes the city $57K in back taxes.

Lake Geneva City Atty. Draper pointed out the council has three options in these matters.

  1. Grant it.
  2. Non-renewal, basically taking the license away.
  3. Renew, but not grant license, withhold issuance till he pays all his back fees.

The council selected the last option, and withholds issuance till they pay all back taxes. Last year this matter prompted the council to pass an ordinance requiring all taxes to be paid before the issuance of any liquor license.

[Code 1992, § 11.15(8)]

No license shall be granted for any premises for which taxes, assessments or other claims of the city are delinquent and unpaid or to any person delinquent in payment of such claims to the city.

The taxes must be paid by all license holders by June 30th.

This year the city clerk wants the council to require “constructive receipt” before any license will be issued. “What usually happens is they, and others, show up on June 30th and they pay but (the check) does not clear.” The council went along with her suggestion and made it a condition before any license will be issued.

The Delavan City Council recently voted to deny the financially troubled Lake Lawn Lodge’s liquor license because of back taxes and bills owed.

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