Interest in Liquor License Spurs Tax Questions for Palm Palace Restaurant

Palm Palace customers won’t be able to enjoy a glass of chardonnay with their shawarma just yet.

While Clinton Township’s board of trustees authorized the Hall Road restaurant to begin the standard application process for a Class C liquor license, Treasurer William Sowerby cited a number of tax issues that he argues should make Palm Palace ineligible for a quota liquor license from the township.

“What took you so long to pay your taxes?” Sowerby asked Palm Palace CEO Mustafa Dakroub at Monday’s township meeting. “And why are you not filing proper personal property tax (information) here with assessing?”

“You’re asking for a free liquor license that the people of Clinton Township own, up to a $45,000 value,” Sowerby added. “If I’m going to give out something of that value, I want to make sure that business has been a responsible business owner.”

Sowerby said he finds it “awful curious” that Palm Palace only paid its real property taxes from 2010, 2011 and part of 2012 in full on March 5, around the same time the restaurant approached Clinton Township about applying for one of the four quota liquor licenses that are currently available.

And though Palm Palace has consistently paid its PPT on time, Sowerby said the company has undervalued its owed amount year after year, despite continued notification from township assessors.

Dakroub responded that his company has been working to pay off its back taxes in installments for the past four years, but said he was not aware of the personal property tax issue.

Although assured by Dakroub of his commitment to resolve these issues, Sowerby maintained that the restaurant is “not in a place to come before (the township board) and ask for a liquor license.”

“I don’t feel you are worthy,” he added.

Fellow board members disagreed and authorized the restaurant to proceed in the application process for a Class C liquor license. Part of this process includes an investigation by the police department and review by department heads, including the township assessor.

Once this process is complete, the board will consider the issue once again and decide whether to grant or deny the license request.

Addressing the board Monday, Dakroub said he hopes that eventual decision will be in his favor, as a liquor license is “essential to survival” for any restaurant on Hall Road. He estimates Palm Palace has lost some $300,000 a year in past profits as a result of not offering alcoholic beverages.

"It is a part of the whole dining experience and will level the playing field for Palm Palace," he added.

It is unknown when this issue will return to the board.