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Businesses struggle with E.L. taxes

April 19, 2002
Chemical engineering senior Brian Casey makes a pita for Lansing Community College no-preference freshman Hilary Buggs and kinesiology freshman Derek Croftchik at All-American Pita, 553 E. Grand River Ave. on Thursday.

An East Lansing discussion of taxes and restaurant licenses has raised the question over the role of independent businesses in the city.

During Tuesday’s city council meeting, council members discussed the possible denial of license renewal for six local businesses because of taxes delinquent as of last week.

Since then, the list has dropped to three businesses - Domino’s Pizza, 966 Trowbridge Road; Famous Taco, 901 Trowbridge Road; and Sidestreet Deli of East Lansing, 605 E. Grand River Ave. - but local business owners said it is typical that the city’s taxes get pushed back.

“It’s not that I refuse to pay it,” said Angela Kuciban, owner of All-American Pita, 553 E. Grand River Ave. “I will get to it, but there are more important things that I need to pay to survive.”

Many small East Lansing businesses, Kuciban’s included, haven’t been able to get ahead in finances after increases in property taxes, which are collected twice a year, she said.

Her property taxes doubled last year, putting pressure on the small businesses. But Kuciban said her main objection is with the city’s usage of the money.

Kuciban said the city’s involvement with and funding of the City Center project and the fountain at the corner of M.A.C. and Albert avenues is not her responsibility.

“I think they’re trying to make this into a beautiful city, which it is a gorgeous city,” she said. “But I think they go about it the wrong way. Taxing me to put a fountain there and to pay that is ridiculous because it’s an alley.”

Jim van Ravensway, East Lansing director of planning and community development, said the city has tried to keep property taxes low, but businesses may pay a little more in the city since East Lansing doesn’t collect income taxes that would supplement the property taxes.

As for supporting small businesses, van Ravensway said the city tries to bring new businesses in, but entrepreneurs need to know where to look.

“We don’t know where these people are so the best thing we can do is to make sure the downtown is an attractive place,” he said. “We all scramble around and find a place for them to locate once these people identify themselves.”

But some business owners think instead of scrambling around, the city should focus on just letting the businesses do their own things - including not just lowering property taxes but allowing businesses to advertise on the sidewalks.

Under city ordinances, businesses are not allowed to advertise with A-frames on sidewalks due to interference with pedestrians.

For businesses such as Sidestreet Deli, however, those signs are a big draw.

“No one really knows where Sidestreets is,” owner Vinnie Bartalone said. “I get people who come in here and say, ‘This is my first time in here, I never knew where it was before now.’”

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