Motel 6 Granted Temporary Business License Despite $74K Owed in Back Taxes

Wentzville Motel 6 Owner and Manager Sam Rama has been awarded a temporary business license by the Wentzville Board of Aldermen despite owing $74,429.18 in back taxes.

City documents show that Rama first requested a temporary license in March of 2010. Since that time, he has been awarded five temporary licenses in addition to his three regular business licenses.

Speaking to the board at Wednesday night's meeting, Rama said that the figure of $74,429.18 was incorrect and that he had made payments that had reduced that amount to around $50,000, plus another $5,000 in penalties.

Ward 1 Alderman Cheryl Kross said that the city does not have the authority to shut down the business. "Not allowing this business license only triggers a citation," Kross said.

"I am pro business, I want to help our business owners," Kross said. "The county is already penalizing him (on the back taxes)."

"What signal are we sending to the businesses out there that are doing the right thing?" Ward 1 Alderman Forrest Gossett said. "We have a set of rules that we ask people to follow. This has gone on for three years and I don’t think it’s fair to the other businesses in town." Ward 3's Michael Hays agreed with Gossett.

Sonya Shryock, Ward 2, said, "Everybody struggles. Businesses are no different. What good does it do a city not to work with them on it?"

Rama told the board that he has struggled to pay his taxes ever since he bought the hotel four years ago. "This is the last request," he said.

Gossett listened to the discussion and changed his mind on his vote. "I will vote yes," he said, "but this is the last time."

The board voted to approve the temporary business license, with Hays the single nay vote.

The city does not normally issue a business license "until all city taxes are current, sales tax is current with the Department of Revenue, a $25 fee is paid along with an application to the city, an occupancy permit has been issued by the city, and a certificate of insurance for worker's compensation, if required, has been submitted to the city," according to city documents.

If a business license is denied because of unpaid city real taxes, the applicant may apply for the temporary license "on the grounds of undue hardship."