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Wednesday, July 01, 2009
Garduño's Owes City About $146,000 in Rent
By Dan McKay
Journal Staff Writer
Garduño's has rung up a tab, the city says, and it's about time to pay up.
The local restaurant chain owes City Hall about $146,000, according to estimates provided by the Mayor's Office this week. The company pays the city a share of its revenue as rent for its location at the city's Balloon Fiesta Park.
The precise amount owed isn't clear because Garduño's hasn't provided its records during negotiations, said Irene Garcia, Albuquerque's chief operations officer. The restaurant is supposed to pay the city 7.5 percent of its gross revenues and 3 percent of its liquor sales at the balloon field location, with a minimum monthly rent of $5,000, she said.
The company has been making payments but hasn't caught up, Garcia said.
Mayor Martin Chávez said he will terminate the Garduño's contract if the payments can't be worked out, but added that "we want to work with them."
The Journal was unable to reach the Garduño's executive who handles calls from the media.
Garduño's also has been in trouble with state government. The Taxation and Revenue Department contended last month that the restaurant chain owed $750,739 in gross-receipts taxes, and was seeking a court order to close it down unless it pays up or makes acceptable arrangements.
A hold has been lifted from Garduño's application for a liquor license renewal, indicating progress.
Garcia said the unpaid rent has accumulated during the past year-and-a-half. It's difficult to determine how much the city is due, she said, because Garduño's contends problems with its accounting system have made it "difficult or impossible" to produce records showing how much revenue should be shared with the city.
The city's $146,000 estimate is based on historical averages of how much the company has paid, she said. The contract has been in effect since 2001.
Regardless, the city wants to establish a payment plan to get Garduño's caught up, Garcia said. She said Garduño's is a "locally grown company that's done very well by this community. We enjoy having them here."
The Mexican restaurant chain operates a half-dozen locations in New Mexico. Its restaurant at Balloon Fiesta Park is known as Garduño's on the Green. Garcia said she expects it to remain open for now.
"We're just very anxious to get it resolved," she said.
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