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Louisville Local Licensing Authority
<br />Meeting Date: May 14, 2001
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<br />I4Ammett asked if check #1391, dated August 22, 2000 was for July 2000 sales tax. Davis stated that it was.
<br />I4Ammett asked about check #10000. Davis stated that payment was for May 2000.
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<br />Attorney Moore asked Mr. Davis if he knew why his accountant, Pendleton & Associates, put a stop
<br />payment on their check #10000. Mr. Davis stated that his accountant had offered to send in the May 2000
<br />payment for them, that the funds had been sent to the accountant, and that due to a falling out, the
<br />accountant decided to keep the money in payment for services rendered. Mr. Davis stated that, at that time,
<br />he was unable to come up with the money for the accountant's services, the relationship was terminated,
<br />and the accountant put a stop payment on the check. Mr. Davis stated that the payment was made good
<br />with the state in February 2001. Davis stated that he was not aware a stop payment had been placed on
<br />check #10000 until September 2000.
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<br />Member Kimmett asked Mr. Davis about the copy of check #1617, dated March 20, 2001 for $1,244.00,
<br />which is stamped NSF. Mr. Davis stated it was for February 2001 taxes and that the NSF stamp means that
<br />the check did not clear the bank the first time but that it did clear the second time it was submitted.
<br />Member I4Ammett asked about the next two checks on the page, #1520 and #1531, dated February 6, 2001,
<br />in the amount of $213.11 and $31.00. Mr. Davis stated that he was not sure if they were for penalties or
<br />quarterly tax payments. Mr. Davis stated that the $213.11 was a penalty payment for an earlier payment,
<br />possibly December 2000.
<br />
<br />Member IGmmett asked Mr. Davis about check #1499, dated January 20, 2001 for $115.47 on the next
<br />page. Mr. Davis stated that check was a quarterly tax payment. I4Ammett asked Mr. Davis about check
<br />#1480, dated January 3, 2001 for $1,446.00, and stamped NSF. Mr. Davis stated that payment was for
<br />December 2000 sales tax and that the check was also stamped that it was re-deposited. Kimmett asked
<br />about check #1367, dated October 30, 2000 for $91.00. Mr. Davis stated the check was a quarterly tax
<br />payment. Member KAmmett asked Mr. Davis about the $4,000.00 cashier's check dated February 22, 2001.
<br />Mr. Davis stated that was partial payment of the monies requested by Mr. Kowalis and that he could not
<br />find a copy of the cashier's check for the remainder of the payment he made to the state two days later.
<br />Member KJmmett asked Mr. Davis about check #1174, dated July 19, 2000 for $1,723.00. Mr. Davis stated
<br />the check was for June sales tax.
<br />
<br />Attorney Moore asked Mr. Davis if there were circumstances, other than the stop payment placed on check
<br />#10000 by his accountant, that have caused "short check" payments of sales tax to the state by Holly &
<br />Mike's Ribs, Inc. Mr. Davis stated that last year was a difficult year. Davis stated that they were without a
<br />liquor license for three months, by a 3-2 vote of the Authority, because they could not prove consent of the
<br />previous owners to transfer the liquor license. Mr. Davis stated that being without the liquor license cost
<br />them approximately $45,000 in sales for May, June and July, 2000. Mr. Davis stated that the other factor
<br />was buying out the franchise in January 2000. Mr. Davis stated that they changed the name of the
<br />restaurant, which also contributed to a downturn in business because people were not sure if it was still a
<br />barbecue restaurant. Davis stated that sales last year were $90,000 less than in 1999. Mr. Davis stated they
<br />took out a twenty-four month loan in the amount of $110,000.
<br />
<br />Attorney Moore asked Mr. Davis when the loan will be paid off. Mr. Davis stated he advised the Authority
<br />in November that the last payment is due in June 2001 and there are now three payments left, the April
<br />payment which is late, then May and June. Davis stated that once the loan is paid off, based on sales trends
<br />for this year, they could make a living. Mr. Davis stated that two years ago they did not foresee losing their
<br />liquor license for three months through no fault of their own, and that they have been "robbing Peter to pay
<br />Paul," in order to make it through next month when the business loan will be paid off. Mr. Davis stated
<br />that the circumstances surrounding their struggle has led to them being called before the Authority. Mr.
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<br /> ~ \FRED\VARRAN\LIQUOR\2001 \MINUTES\MINUTES051401.DOC
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