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convert and use a 6,000-square-foot space on the building’s first
floor for a “Bluesroom” instead of proceeding with his original
plans for a restaurant and nightclub on the second floor.
During 1991, 1992, and 1993, petitioner rented or tried to
rent approximately half of the building’s first floor to various
third parties. In January 1991, he rented space on that floor to
an artist. However, the artist occupied the space for less than
3 months and failed to pay petitioner the rent required under
their lease agreement. During 1992 and 1993, petitioner
permitted an attorney to maintain her law office on part of the
first floor. Pursuant to their rental arrangement, the attorney
agreed to perform legal services for petitioner in lieu of paying
petitioner cash rent. From July through December 1992, this
attorney also rented additional space on the first floor from
petitioner for a nursery/flower shop business, but this planned
business venture never got off the ground. In November 1992,
petitioner had a commercial property realtor attempt to rent
space on the first floor to prospective tenants, but the
realtor’s efforts proved unsuccessful.
During 1991, 1992, and 1993, petitioner also sought to raise
funds to complete the building’s renovation. For example,
beginning in 1991, petitioner attempted to interest others in
renovating the building and reopening the 5-4 Ballroom. Among
other things, petitioner filed a fictitious business name for the
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Last modified: May 25, 2011