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Local convenience store owes thousands in taxes

September 29, 2011

Although local convenience store 24/7 officially has reopened its doors to the public, delinquent personal property taxes, unpredictable hours of operation and other issues continue to shroud the business in mystery.

The business initially was closed down in fall 2010 and reopened this fall.

Since 2006, the property, located at 210 Michigan Ave., has incurred $15,746.20 in personal property taxes — which cover equipment and other non-permanent aspects of the property — with about $2,241 in delinquent dollars during the summer 2011 tax quarter alone, East Lansing Treasurer Jill Feldpausch said.

Owners of the business have not returned multiple interview requests from The State News.
Real property tax, or tax on the building and surrounding land itself, is up to date for the 24/7 property on both city and county levels, according to Karen Conroy, an employee from Ingham County Treasurer Eric Schertzing’s office.

City officials and City Attorney Dennis Mcginty met with business owners last week to work toward a payment plan for delinquent personal property taxes owed, Feldpausch said. A $500 a month payment plan for the payments was set, but if the problem persists, 24/7 could see trouble.

“Technically, we can shut the business down — we can lock the doors, take possession of the personal property that’s in the business — but that would only be used in an extreme case,” Feldpausch said. “We have been in discussions with them to work out some kind of a payment plan.”

Feldpausch said even before the business closed for an extended period of time, operation hours of 24/7 were in flux and a cause of concern for city employees.

“They’d be open one day and then be closed for a week — it’s strange,” Feldpausch said.
The property’s closure was not caused by city officials or by the East Lansing Police Department, and the initial cause of closure or reasons for reopening are unknown.

Michigan’s Department of Licensing and Regulatory Affairs records lists the business’ licensee as East Lansing Convenience Store Inc., and members of the company include Falguni Bhatt, Hemant Bhatt and Jagdishchandra Upadhyay. An active liquor license allowing the store to sell beer, wine and other beverages for consumption off the licensed premises is in affect, according to the record.

Michigan Liquor Control Commission Spokesperson Andrea Miller said 24/7 incurred a liquor license violation when owners did not apply to put their license in escrow, a required practice to prohibit stores from selling alcohol under the license until the business is up and running again.

“(Closing businesses are required to) put the license in escrow, where it’s put on hold for an indefinite period of time,” she said. “They failed to submit an application.”

Miller said the owners of 24/7 were fined $100 for the offense, and the matter was resolved between East Lansing police and the owners June 17.

Officer James Didion confirmed the report and said sting operations on the property and all others with a liquor license in the city would be subject to two sting operations each year.

No other police reports on the property have been filed during the past year, East Lansing police Capt. Kim Johnson said.

Staff writer Kyle Campbell contributed to this report.

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