Butchers to pay part of debt to Millwood

MILLWOOD – The Millwood Town Council unanimously agreed Monday to collect $25,000 of the $93,000 debt owed to the town by the previous owners of the Old Mill Tavern.

Town officials say Daniel Butcher and Terry Lewis Butcher owe the money for delinquent and unpaid gambling taxes, penalties and interest.

Since July 2004, the Butchers accrued a principle balance of $9,065.45 in unpaid taxes. Interest and penalties increased their amount owed to $93,580.

“We were taken aback at how quickly that compounds up under the statute,” explained Town Attorney Brian Werst. “It is a privilege to have that (gambling) activity and if you’re not paying your taxes then the hammer drops and it’s pretty significant.”

During their presentation to the council, the Butchers offered to pay $25,000.

Saying he’s unable to pay the full amount, Daniel Butcher asked for leniency based on having owned the tavern for over 20 years, and noted that he and Terry are town residents. He also requested the council be fair to the new owners and not put a lien on the property for the amount due.

“It’s all about fairness,” he said. “We are offering the proceeds from the close of the business toward that bill. That is a win for the community because it is two and a half times the amount that is owed. I think that is fair.”

The Butchers asked in July that the town forgive their debt. But state gifting laws prohibit municipalities from forgiving debt if the delinquent parties can pay – only a portion can be forgiven.

“The town is making a sound business decision under the circumstances,” said Werst. “The town’s action should not be construed by any person or entity in creating a precedent regarding the collection of debts owed to the town.”

The town learned of the Butcher’s gambling tax arrear with the sale of the tavern in early July.

Mayor Dan Mork praised the council for a decision he said was pro-business, as well as “friendly for the people who live here.”

In other news, the council:

• Decided against adopting the city of Spokane Valley’s nuisance ordinances as its own. Instead, the town drafted an original ordinance to cover junk vehicles, litter, and public health and safety.

Enforcement would fall to code enforcement officer Bill Schultz. The council plans to vote on the matter during its September meeting.

“This is a big step for the town,” said Werst. “You don’t have the teeth behind the nuisance ordinances right now, other than to refer them to the prosecutors office. That is not always a feasible option. This would impose a civil enforcement mechanism.”

In addition, the town is searching for a cost-effective way of providing a hearing examiner so people can appeal decisions made under the nuisance ordinance, as well as other land-use issues.

• Voted to name a flower bed at the southeast corner of Empire Way and Argonne after the mayor whom Mork replaced. Council members were unanimous that the spot should be called the Jeanne Batson Arboretum.

Batson, 85, served four terms as town mayor, and once told a reporter that her first campaign consisted of a flier saying, “I lived here all my life, I like Millwood the way it is and that’s the way I’m going to keep it.”