The federal Internal Revenue Service (IRS) will try to recover about $93,000 by auctioning off the vacant Shady Point Restaurant at 623 N. Fraley St. in Kane.
The public auction is set for Wednesday, July 27 at 11:30 a.m. Registration begins at 10:30 a.m. The minimum bid to be accepted is $70,000, according to a legal notice announcing the auction.
Prospective bidders are invited to "drive by" the closed restaurant building on North Fraley Street (Route 6) in Kane. Interior inspections are not available at this time, but may be offered in the future, according to a legal notice.
The auction comes after the U.S. District Court in Erie ruled in favor of the IRS and rendered a judgment Nov. 17, 2010 against Patricia E. Lindquist of 1265 Wetmore Road, Hamilton Township.
Lindquist and her late husband Raymond Lindquist purchased the property for the restaurant in 1980, according to court records. The restaurant closed several years ago.
According to court documents, Patricia Lindquist as of April 7, 2008 owed the federal government $92,940.64 for the employment and unemployment tax assessments for the fourth quarter of 2004, all four quarters in 2005 and the third and fourth quarters of 2006. Court records indicate that the actual amount owed is larger because of "statutory additions to the tax that have accrued and will continue to accrue."
Court documents show that the federal government's "interest in the property shall have priority over the claims of the others defendants." The other defendants include the Pennsylvania Department of Revenue, the Pennsylvania Department of Labor and Industry and the McKean County Tax Claim Bureau.
According to the county Tax Claim Bureau, property taxes on the restaurant haven't been paid since 2004. A spokesman for the tax claim bureau said back taxes on the property now total $41,478.30. These unpaid taxes have been levied by the borough, school district and county. The tax claim bureau spokesman said $226.31 in interest is added to the tax bill each month.