A3
THE DAILY ASTORIAN • WEDNESDAY, MARCH 6, 2019
Portland sues Shilo Inn
over unpaid hotel tax bill
Shilo Inn, like all hotels
in Portland and Mult-
nomah County, collected
a 17.5 percent tax on every
patron’s hotel bill. It did
not turn that money over
to the city and county as
required, the lawsuit says.
On a smaller scale,
Shilo Inn was sued in Jan-
uary by a locksmith who
says the hotel didn’t pay
him $148 owed for work
on a padlock and keys
at the chain’s hotel in
Newport.
“I called about a month
ago to the offi ce and faxed
the invoice,” wrote Jesse
Day in his Lincoln County
small claims fi ling. “Was
told it would be taken care
of. Never was.”
The company faced a
much bigger legal ordeal
in 2016, when a California
judge ruled the Shilo Inn
defaulted on several bank
loans. The penalty: $20
million.
City attorneys in Sea-
side also sued Shilo in
2016 for failing to pay
$143,000 in hotel taxes
owed to the city. The case
was dismissed after the
company paid its bill. The
hotel had previously paid
another $146,000 to Sea-
side after it brought two
similar cases.
The company, founded
in 1974, has struggled
in the past two decades.
Twenty-seven of its 46
hotels fi led for bankruptcy
protection in 2001. Today,
the chain has 22 locations,
according to its website.
By GORDON R.
FRIEDMAN
The Oregonian
Edward Stratton/The Daily Astorian
Jeremy and Nan Schoenwald are trying to sell Smokehouse Butcher Block.
Astoria butcher shop on the block
Last day set for
March 23
By EDWARD STRATTON
The Daily Astorian
Smokehouse
Butcher
Block, the butcher shop
opened near the Astoria
Transit Center nearly two
years ago, will close March
23 if the owners cannot fi nd
a buyer.
Jeremy and Nan Scho-
enwald, who opened the
butcher shop along Ninth
Street in the former Rio
Cafe, said the business
has been successful but
too time-consuming to run
along with their other ven-
ture, Port Town Property
Management. They are
offering up the butcher shop
and three years remaining
on their lease.
“We had no idea how
busy we would get,” Jeremy
Schoenwald said. “Between
the two businesses, we’re at
the point where we’re either
going to fail at both or suc-
ceed at one.”
The couple relocated to
the North Coast in 2016.
Jeremy Schoenwald had
stayed in Astoria previ-
ously while working on
the Dredge Oregon, and
later worked in local gro-
cery store meat departments
and at Gulley’s Butcher
Shop on Commercial Street.
Nan Schoenwald, who has
managed properties for 22
years, opened River and
Coast Property Manage-
ment, later changing the
name to Port Town Property
Management.
Since
moving
Port
Town’s offi ces next to
Butcher Block on Ninth
Street, the company has rap-
idly expanded, Nan Schoen-
wald said. Port Town now
manages about two dozen
commercial spaces and 175
residential units. Jeremy
Schoenwald handles much
of the property maintenance.
Smokehouse produced
10,000 pounds of sausages
last year, but struggled with
fi nding reliable employees
and the demands of man-
aging both businesses, he
said. The couple tried to
fi nd a buyer for the butcher
shop before going public,
but have so far not had any
takers.
Smokehouse’s last day is
March 23, unless they sell
out of inventory early.
“I got a 1,000-pound
delivery, and we’re going
out strong,” Jeremy Scho-
enwald said. “I got more
smoked goodies coming
in the next two weeks, and
we’re having great sales so
everyone has an opportu-
nity to stock up their freez-
ers with our stuff.”
The Schoenwalds have
received interest from peo-
ple wanting to take over
their lease for other busi-
nesses, such as a restaurant.
But the space is a success-
ful, turnkey butcher shop
approved by the state, Jer-
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1
THE DAILY
ASTORIAN
A
emy Schoenwald said.
“Licensing renews as of
April 1, so that’s why we
decided on March 23,” he
said. “So we’re hoping any-
one will come give us any
inclination before. But as of
March 23, we will start sell-
ing off” equipment.
Portland has fi led suit
against the Shilo Inn,
alleging the company
owes the city and Mult-
nomah County more than
$314,000 in unpaid taxes
from business at its Port-
land Airport hotel.
The
lawsuit,
fi led
Thursday , is the latest in a
string of fi nancial and legal
troubles for the hotel chain
and its owner, Mark Hem-
street, ranging from small
claims for allegedly stiff-
ing a contractor to a mul-
timillion-dollar judgment
against the company.
In February, Warrenton
announced the city is try-
ing to collect more than
$125,000 of unpaid lodg-
ing taxes owed by the
Shilo Inn.
Hemstreet didn’t return
requests for comment
about the Portland lawsuit.
City Attorney Tracy Reeve
referred questions to Dep-
uty City Attorney Simon
Whang, who declined to
comment.
City attorneys regu-
larly fi le suit against com-
panies that don’t pay their
local business taxes. But
lawsuits alleging a fail-
ure to pay hotel taxes are
unusual. The city’s suit
against Shilo says the com-
pany didn’t pay its hotel
tax bill for July to Decem-
ber and owes $252,000 in
taxes plus $61,000 in pen-
alties and interest.
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