Nomad Operator Was to Get $750,000 City Grant for New Coffee Shop. He Owes $6,000 in Unpaid Taxes

Milwaukee tavern operator Michael Eitel, who planned to lease a city-owned building for his new coffee shop, has owed the city over $6,000 in overdue taxes. The decision was made at a recent Common Council committee meeting where the lease was reviewed. The company, Caravan Hospitality Group LLC, was to operate the coffee shop at the plaza building through a lease recommended by Mayor Cavalier Johnson’s administration. The three-year lease included a $750,000 grant for the 2,900-square-foot building’s interior improvements and fixtures. The lease was endorsed at a Jan. 18 Redevelopment Authority board meeting.

The Common Council’s Zoning, Neighborhoods and Development Committee on Jan. 30 delayed acting on the lease after learning Turner Ballroom Preservation Trust Ltd., which owns Turner Hall, has a $95,734 judgment pending against Eitel’s Barcity Club LLC, which operated a restaurant there. The trust has been unable to collect the judgment because Barcity Club has no other assets. The committee was to review a revised lease with a personal guaranty but was canceled after Eitel dropped his plans.

The City of Milwaukee has held a $6,011 judgment against Caravan Hospitality since October 2021. The amount owed includes penalties and interest, stemming from a lawsuit the city filed against the company for delinquent personal property taxes tied to Nomad World Pub, which Eitel operates at 1401 E. Brady St. Another company operated by Eitel sold the Nomad pub building in 2019 to a Chicago group, Gnome Brady LLC, which pays the real estate property taxes.

Department of City Development officials didn’t mention the delinquent tax debt at the zoning committee meeting. The department would have done further research and learned about the court judgment prior to executing a lease. The lease, which would have needed Common Council approval, would not have been executed until Eitel paid off the judgment.

Read More @ Milwaukee Journal Sentinel

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