Oliver W. and Edna D. Wilson - Page 26




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          No food or entertainment was offered to the public either on the            
          premises or inside the building during those years.                         
               B.   1992 and 1993                                                     
               Because of the many difficulties petitioners encountered in            
          financing and completing the renovation of the 5401-9 S. Broadway           
          property, petitioners were forced to alter their original plans.            
          They put their plans for the 5-4 Ballroom on hold and decided to            
          open a “Bluesroom” on part of the building’s first floor.                   
               Beginning in August 1992, petitioners permitted a few                  
          performances and fundraising events to be held on the 5401-9 S.             
          Broadway property.  As of that date, however, and continuing                
          through 1993, petitioners did not yet have any functioning                  
          restaurant or entertainment facility that petitioners operated              
          for profit.  Any events held on the 5401-9 S. Broadway property             
          during 1992 and 1993 were organized by volunteers who collected             
          admission fees and used the admission fees to offset the cost of            
          the event and to pay the performer.  Petitioners did not retain             
          any of the receipts from the events and charged no rent for the             
          use of the property.  Petitioners viewed these events as                    
          opportunities to promote the Bluesroom and to solicit investors             
          who might be willing to invest funds to complete the renovation             
          of the property.                                                            
               During 1992 and 1993, petitioners did not maintain any                 
          general ledger, cash receipts and disbursements journals, or                






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