Archive for Thursday, May 22, 2008
Papa Keno’s assets seized by state
Pizzeria to remain closed unless owner pays back taxes
Passers-by read the “Seized” sign displayed Wednesday in the window of Papa Keno’s, 1035 Mass. The sign read, “This property has been seized for nonpayment of taxes, and is now in the possession of the state of Kansas.”
May 22, 2008
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State seizes Papa Keno's assets
A longtime pizzeria in downtown Lawrence faces legal heat from the state. Agents from the Kansas Department of Revenue paid a visit to the pizza shop today. 6News reporter Mark Fagan has more. Enlarge video
Papa Keno’s Pizzeria is closed in downtown Lawrence and Overland Park, and its signature slices won’t be cooked to order anymore unless owner Greg Keenan can pay his taxes.
Agents from the Kansas Department of Revenue seized all cash, known bank accounts, business inventory and equipment from Keenan and his two restaurants Wednesday morning, seeking to cut into more than $170,000 in unpaid taxes and penalties.
The moves came after the department filed tax warrants seeking repayment for unpaid sales taxes and payroll-withholding taxes, plus interest and penalties. One of the warrants is from this year, and another goes back to 2005, when Keenan had owed $150,000 and had established a payment plan to satisfy the debt.
On Wednesday — with the 2005 warrant showing a debt of $84,000, but the combined total having reached up to $170,419.98 — the department took the next step: closing the shops, seizing their assets and making plans to sell items to cut the state’s losses.
“Warrant execution occurs only after all other collection attempts — including letters, calls and all other types of communication — have failed to resolve it,” said Dedra Platt, manager of civil tax enforcement. “Warrant execution and business seizure only occurs as a last resort. …
“Our goal is not to put them out of business. We go to extra effort to try and resolve it. We will continue to work with him — with any taxpayer.”
Keenan, reached Wednesday at his office, said that he was working to resolve his tax issues.
“We’re dealing with it,” Keenan said, a few hours after agents posted a “SEIZED” sign on the front door at 1035 Mass., downstairs from his office. “We just got it all settled.”
Keenan declined to discuss the situation further, saying he had to talk with his attorney.
“Everything will be fine,” he said.
Later in the afternoon, state agents sat at tables inside the pizzeria, eating to-go food from Dairy Queen. An unmarked van showed up, and a man got out and quickly changed the restaurant’s door locks. Others affiliated with the operation stood nearby in silence, awaiting instructions.
Platt said the assets were being seized with one goal: to be sold at auction, so the tax debt could be paid. Removal of tables, chairs, ovens and other equipment could begin as soon as Friday.
“As long as the taxpayer is working with the department, trying to resolve the debt, we never get to this type of action,” she said. “This is not a normal activity.”
Papa Keno’s started in 1990, when Keenan opened his first restaurant on East Ninth Street. It later moved to 1035 Mass., and he opened the downtown Overland Park location in 1995.
He later lived in Denver, where he opened two Papa Keno’s storefronts — one in 2001, and another in 2003. But he sold those in December 2003 and moved back to Lawrence to grapple with financial problems that he says were caused by one of his own employees.
In 2005, the state said the Lawrence store had been under-reporting sales beginning in 2002 and extending into 2004.
“Somebody was stealing in my office,” Keenan said at the time. “I chose not to press criminal charges, and I handled the matter internally.”
Keenan had said that he had made a $40,000 downpayment on the debt and had established a payment plan.
On Wednesday, Platt declined to discuss specifics of Keenan’s current tax debt, other than what had been included in the tax warrants themselves.
22 May 2008 at 6:04 a.m.
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458casul (Anonymous) says…
he couldnt pay his bills for years.not a shock
22 May 2008 at 6:05 a.m.
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The_Voice_of_Reason (Anonymous) says…
Yep… Death and Taxes
22 May 2008 at 6:33 a.m.
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moveforward (Anonymous) says…
To bad. At its peak. Papa Kenos was the best pizza in the midwest by a long shot.
22 May 2008 at 6:42 a.m.
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b3 (Anonymous) says…
That place had the worse pizza in town, no joke.
22 May 2008 at 6:59 a.m.
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gwjayhawk (Anonymous) says…
““We’re dealing with it,” Keenan said, a few hors after agents posted a “SEIZED” sign on the front door at 1035 Mass.”
Might want to change that typo—hors into hours.
22 May 2008 at 7:12 a.m.
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satchel (Anonymous) says…
Does anyone know how hard it is to run a business when you are taxed out the ying yang? Withholding, quarterly, state, federal, sales taxes. It is ridiculous how much money you lose trying to run a business. For all we know he put paying his employees above paying his taxes which is the humane thing to do. But he could have just been irresponsible with his money also. Who knows.
I feel sorry for this guy if he was just trying to do the right thing. Regardless, no one thinks about how small business' get Scr***d when taxes go up. The libs try to brainwash people into thinking it is just affecting the rich. when in reality it hits small business'. When they report their income at tax time it will put them in the 'rich' tax bracket when in reality they aren't, so they are taxed at a higher level.
I am sorry but taxes stink. We had a business go under for the very same reason. We were able to pay back our taxes but at a HUGE expense to us.. Try having to work three jobs to do it and even then it isn't enough. When things were getting rough we chose to pay our employees who were great workers.
22 May 2008 at 7:13 a.m.
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rattler (Anonymous) says…
Worst pizza in town? No way, Gumbi's holds that distinction.
22 May 2008 at 7:24 a.m.
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quisp (Anonymous) says…
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22 May 2008 at 7:28 a.m.
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Crossfire (Anonymous) says…
Willie Nelson came back from Tax-Hell…
Hope Papa can too.
A slice as big as your face was the best around.
22 May 2008 at 7:44 a.m.
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otto (Anonymous) says…
quisp –
The employees are screwed - who is going to pay them?
I hope they are job hunting and not waiting to see what happens. This place is done.
22 May 2008 at 7:51 a.m.
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quisp (Anonymous) says…
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22 May 2008 at 7:57 a.m.
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ronwell_dobbs (Anonymous) says…
satchel,
Just to be completely accurate, withholding tax and sales tax are collected by the business owner on behalf of the state. It isn't money that is “lost”. Perhaps the employees and the consumers can complain about high tax rates, but the businessman can't complain about these two types.
As a business owner, Douglas County property taxes on inventory and equipment are what chaps my hide.
ronwell
22 May 2008 at 8:26 a.m.
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acg (Anonymous) says…
Are you forgetting the employer's portion of withholding taxes, ron? That's roughly, what, 7.65% of every dollar paid to an employee that's paid into FICA and MCare, above and beyond the wages. Unemployment taxes, state and fed, are also employer contributions and are not withheld from employee wages. Depending upon what a person's unemployment rating is, that can be a steep bill, as well. True, it's only paid on the first $8000 an employee earns, but take it from a person who does tons of payroll, it adds up, quickly.
22 May 2008 at 8:36 a.m.
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ihatejohntravolta (Anonymous) says…
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22 May 2008 at 8:39 a.m.
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Burton (Anonymous) says…
So the KC locations are still open then? I wonder if the Missouri Department of Revenue reads LJ World?
22 May 2008 at 8:45 a.m.
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BigAl (Anonymous) says…
acg… and one of my biggest employee expenses is to Health Care Premiums. That is, and has been, the fastest and largest growing payroll expense I have.
I like how satchel just blames the “libs”… it goes much deeper than that.
22 May 2008 at 8:57 a.m.
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nverlost (Anonymous) says…
satchel- you are delusional. He took taxes out of his employee’s checks each pay period but failed to give those deductions to the state. Feel sorry for him…no way.
At his O.P. location he fails to pay the historic downtown's dues, as the other tenants contribute, so hopefully he's out of the picture soon so he's no longer a drain on KS taxpayers and a burden to his business neighbors.
22 May 2008 at 9:08 a.m.
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aquakej (Anonymous) says…
This sucks; it was my favorite pizza!! It always seems busy in there; how could business have been so bad that he couldn't afford his bills??
22 May 2008 at 9:11 a.m.
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unklemonkey (Anonymous) says…
Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo!
22 May 2008 at 9:14 a.m.
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Take_a_letter_Maria (Anonymous) says…
Al I doubt Papa K was providing health care insurance for any of his employees. I'd be surprised if any of the service establishments in town provide this for anyone beside their management staff if that.
Finally, as the story stated he failed to pay withholding tax and sales tax. One of those he already collected from his employees, the other from his customer. No sympathy from me, even though I will miss the pizza.
22 May 2008 at 9:23 a.m.
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BigPrune (Anonymous) says…
Shouldn't have voted for Sebelius.
22 May 2008 at 9:30 a.m.
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sissezz (Anonymous) says…
love the pizza…………….but the service ws beginning to suck. Too bad.
22 May 2008 at 9:31 a.m.
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artwhore (Anonymous) says…
the KC location in westport closed a few months back.
22 May 2008 at 9:32 a.m.
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overplayedhistory (Anonymous) says…
Satchel
Ah yes, Libs, the mythical creatures that live in the hills. Sooo when businesses fail due to high fuel cost I suppose we can attribute it to these fantastical creatures and their mind control abilities. A real by the numbers conservative would never let a business taxes get so far back that they would need three jobs(up hill both ways) to pay them. Real conservatives don't seem to exist anymore.
Sounds like you were one of those liberal dreamer business owners that never had a real viable business plan.
I can tell you for sure that Greg's problems have nothing to do with libs brainwashing people or the tax code.
Conservative pundit is the job for you.
22 May 2008 at 9:33 a.m.
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geniusmannumber1 (Anonymous) says…
And no one. Is. Surprised.
22 May 2008 at 9:34 a.m.
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vavs0929 (Anonymous) says…
No, the KC store is closed as well… it says that in the first paragraph.
The pizza was decent…. it just took them like 30 minutes to make 2 slices for us one day… and it was completely dead when we were there. How hard is it to pay your damn taxes?!
22 May 2008 at 9:35 a.m.
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smerdyakov (Anonymous) says…
Anyone who knew an employee from Keno's could have seen this coming a mile away. Read some of the comments here http://www.lawrence.com/blogs/search_my_… from the employees. His own words in this story also indicate his maturity level — he's blaming one of his employees for his financial problems. Laughable — and pathetic.
22 May 2008 at 9:38 a.m.
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greasytony (Anonymous) says…
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22 May 2008 at 9:52 a.m.
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OldEnuf2BYurDad (Anonymous) says…
I now know how to tell if a restaurant is going to close: I like eating there. Those are the ones that always go under.
22 May 2008 at 9:54 a.m.
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monkfellow (Anonymous) says…
..as to the location in Westport,that location seems to be snakebit.Keno's was at least the THIRD shop at that site in recent years to either not open at all or drop out after a few months.
You could attribute it to the number of resturants in Westport or who knows what else, but the major unaddressed problem around there is the distinct lack of parking.
22 May 2008 at 10:05 a.m.
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auturgy (Anonymous) says…
This is a tragedy for me, who's favorite restaurant in town was Papa Kenos.
Curses.
22 May 2008 at 10:06 a.m.
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Marcus (Anonymous) says…
At $4 a slice, I am surprised the place even stayed in business this long, Now if we could just get Pyramid Pizza back to it's original glory. I can only eat it when I'm wasted.
22 May 2008 at 10:13 a.m.
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tony88 (Anonymous) says…
why was greasytony's post removed? the truth?
22 May 2008 at 10:15 a.m.
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ihatejohntravolta (Anonymous) says…
I don't understand why my comment was deleted so I am going to repeat it. This man owes money to his previous employees, money owed before his business was seized. He needs to pay these people. He took advantage of college kids who really need a job and are now out hundreds of dollars. This is not new information, or incorrect information, and if you don't believe me you can check the Kansas City Fox station's story on it in February. The Kansas Department of Labor should really be looking into this.
22 May 2008 at 10:20 a.m.
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geniusmannumber1 (Anonymous) says…
OldEnuf2BYurDad —
Ain't that the truth?
22 May 2008 at 10:21 a.m.
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ronwell_dobbs (Anonymous) says…
acg,
You're right. I shouldn't have been quite so specific. Indeed there are two components of the withholding tax: the employee's portion and the company's portion. I suspect that the owner was withholding the employee's portion as well as not paying his portion. Thanks for pointing out my lack of specificity.
Ronwell
22 May 2008 at 10:37 a.m.
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somedude20 (Anonymous) says…
I never liked waiting 15-20 minutes for them to reheat the pizza only to wait 5-10 minutes for it to cool down. I can reheat stuff as well! Maybe I should open up a pizza joint and call it PaPa Taxes. Service stunk as did his accounting I guess
22 May 2008 at 10:37 a.m.
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tkofford (Anonymous) says…
Take_a_letter_Maria
I'm pretty sure that the Free State Brewing Company provides health care for many (if not all) of their employees.
TK
22 May 2008 at 10:52 a.m.
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Bossa_Nova (Anonymous) says…
indeed this was the best pizza in lawrence. maybe shakespeare's from columbia will take his place. oops, i'm sorry, did i say something good about missouri?!?!?!?
22 May 2008 at 10:56 a.m.
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BrianR (Anonymous) says…
Johnny's Tavern has the best pizza in Lawrence.
22 May 2008 at 11:02 a.m.
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stuckinthemiddle (Anonymous) says…
Bossa_Nova
Do you know if the Shakespeare's in Columbia has any connection to the Shakespeare's that use to be here in Lawrence back in the early 70s? It was located in the building where Jayhawk Bookstore is now…
that was some of the best pizza I ever ate…
22 May 2008 at 11:04 a.m.
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Take_a_letter_Maria (Anonymous) says…
TK - Good for them and even more reason for me to patronize the brewery. That is something that is quite rare.
TLM
22 May 2008 at 11:05 a.m.
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stuckinthemiddle (Anonymous) says…
Bossa_Nova
and I agree… Keno's was the best pizza in town…
though I am fond of Wheat State…
22 May 2008 at 11:07 a.m.
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Bossa_Nova (Anonymous) says…
stuck,
no clue man. i wish i had an answer, but i was still in diapers back in the 70's. shake's in columbia is definitely some of the finest i've ever had. maybe we should contact shakespeare's and demand that they bail keno out and open up shop on mass.
22 May 2008 at 11:10 a.m.
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stuckinthemiddle (Anonymous) says…
Bossa_Nova
well… I suppose I dated myself…
but yeah… if Shakespeare's in Columbia is as good as the Shakespeare's was here in Lawrence we should definitely get them to move in…
by the way… thought I'm an avid Jayhawk fan I actully think Columbia is a great town… and… for the most part has better restaurants than Lawrence…
22 May 2008 at 11:21 a.m.
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Bossa_Nova (Anonymous) says…
stuck,
i've lived in both cities. and yes columbia is great just like lawrence. i know a lot of people dont want to admit it, but lawrence and columbia are so much alike. take away the jayhawk vs. tigers crap and you've got sister cities on the same mission.
22 May 2008 at 11:24 a.m.
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greasytony (Anonymous) says…
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22 May 2008 at 11:25 a.m.
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NotaKenoFan (Anonymous) says…
Two of my sons worked for Mr. Keenan. One never received his last paycheck and the other had his last check bounce.
Too bad only the tax man will recover any money. My only satisfaction will be seeing Keenan go broke.
22 May 2008 at 11:30 a.m.
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TriSigmaKS (Anonymous) says…
It's ABOUT time! Back in college it was an amazing place, but ever since I moved back here (after being gone 10 years) the quality was CRAP, on numerous occasions their ice machine was out, gone or 'repossessed' as one employee told me, glad they got what they deserved.
22 May 2008 at 11:34 a.m.
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Bossa_Nova (Anonymous) says…
hey guys, regardless of the quality, bounced checks, personal behaviour of keenan, etc. his tuscan pizza was da shiznitz! anybody got the recipe?
22 May 2008 at 11:38 a.m.
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WALSTIB (Anonymous) says…
greasytony nailed it, as did others
as a former employee I have but one word for Keenan:
KARMA
22 May 2008 at 11:41 a.m.
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nverlost (Anonymous) says…
Yea, good point…anyone know the process into making their dough? And sauce?
22 May 2008 at 11:46 a.m.
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lexi (Anonymous) says…
Harderfaster “I worked for Keno's for 10 years and have had my paychecks bounce too many times to count. This guy is a cheat,”
zzzzzzzzzzzzzzzzz
And to think, it only took you 10 years to figure it out.
…. 10 years is a long time to put up with something like that. Should've found a different job.
22 May 2008 at 11:51 a.m.
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Marion (Marion Lynn) says…
The state will recover bupkis.
Used restaurant equipment brings only pennies on the dollar and the stuff that I last saw in the place was only barely worth hauling off if someone gave it to you.
The stainless will be high grade scrap metal and the tables and chairs only garage sale quality, if that.
Who owns the building?
22 May 2008 at 11:58 a.m.
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Sigmund (Anonymous) says…
“The moves came after the department filed tax warrants seeking repayment for unpaid sales taxes and payroll-withholding taxes, plus interest and penalties.”
How many businesses in Downtown Lawrence have failed to pay not only sales taxes but they never paid the taxes they “withheld” from their employees paycheck? That money is the employees, not the KDOR's, at least not until April 15th and I can name at least five others, all locally owned.
So, if you work downtown and your employer is “withholding taxes” and supposedly “sending them in for you,” you might want to make sure they really are being paid and your accounts are current.
22 May 2008 at 12:11 p.m.
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whatatown (Anonymous) says…
Marcus (Anonymous) says…
“At $4 a slice, I am surprised the place even stayed in business this long”
How long has it been since you've actually ate there? a one topping slice is now $6.50. I ate there this last Friday and had some of the worst quality pizza ever. Felt like I was back eating cafeteria food, which is sad because I used to L O V E it. Oh well, won't have to worry about it anymore!
22 May 2008 at 12:24 p.m.
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jumpin_catfish (Anonymous) says…
Don't pay your taxes you are screwed. Govt misuse those tax dollars, no problem!
22 May 2008 at 12:34 p.m.
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nugget (Anonymous) says…
Their pizza really went downhill the past few years. We stopped going there. Too inconsistent. They were all too happy to serve you a slice with a burnt crust. Bye-bye Papa's. What was once a terrific slice, the best around, will be no more.
22 May 2008 at 12:50 p.m.
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vavs0929 (Anonymous) says…
harderfaster: Why would you stay at a place for 10 years if your paychecks bounced frequently? Shouldnt that be a warning bell?
22 May 2008 at 12:55 p.m.
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Jaylee (Anonymous) says…
i agree that i loved the pizza at a time, then my visits became more nostalgic. i used to work there as well and can attest to any and all things everyone else who worked there is saying… i guess i dont know what to think yet but i DO know this—
i make the best pizza in town!!!!!!!!! hahahahaaaaaaaaaaaaaaaaaaaa
22 May 2008 at 12:59 p.m.
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Marion (Marion Lynn) says…
Hey, Jay, let's rent the building and go for it!
22 May 2008 at 1:04 p.m.
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jackpot (Anonymous) says…
Reminds me of L.P.C. I had a pizza on order they called me and said KDOR was shutting them done. They never reopened.
22 May 2008 at 1:13 p.m.
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Gareth (Anonymous) says…
As a born-and-bred New Yorker, I thought PKs was the best pizza in town — made by someone who understood that pizza crust is thin and *chewy*, not the thin-and-crispy that Midwesterners seem to think is “NY Style.”
Sadly, though — over the past 5 years, the quality dropped so sharply that I really only kept getting pizza there out of a combined sense of nostalgia and hope that it would get better.
There was an inverse relationship between the quality of that night's pizza and how high the staff was on that particular night. (Kinda like Yello Sub, in that respect)
Hearing about Keenan's tax (and other) problems, it's pretty obvious that the run is over. 18 years isn't bad. I'll miss it — but really, I'll miss what it was….not what it became in recent years.
22 May 2008 at 1:55 p.m.
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Bossa_Nova (Anonymous) says…
what caused all of this is when the KDOR agents got the munchies and unassumingly went in there last week late after hours hustlin Keenan for some “free pizza or else”. when Keenan refused to play their dangerous game they shut him down. so let that be a message to all of you restaurant owners, “unless you want to end up like Keenan, give those KDOR agents all the free food they ask for even if it's after hours”. i know, i know, that sounded retarded, but i just had to post it.
22 May 2008 at 2:10 p.m.
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Marion (Marion Lynn) says…
Bossa_Nova:
I just do doubt that but if you have witnesses, I'd like to talk to them.
22 May 2008 at 2:19 p.m.
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more_cowbell (Anonymous) says…
As far as pizza goes in this town, it's usually delivery anyway, and there are tons of chains already here.
For local, I preferred Rudy's. But then again, I'm a Free State/Java Break/Liberty Hall aging liberal hippie dou**e. ;-)
In any case, not paying taxes will get you in trouble, whether you're a business or an individual. In this case, it's a business—and a restaurant, to boot. And there was already a payment plan arrangment, but that seemed to be going in reverse. No surprise then that the state chose to cut its losses, tax-wise. Or perhaps some of the people whining about paying taxes don't realize that they may be high *because* some businesses (and individuals) default (or cheat) on theirs?
The restaurant business is notoriously difficult, as the overall turnover on Mass. *AND* elsewhere demonstrates. Keenan gave it a go, and did well—for a while. But longevity won't keep you in business if you don't also maintain quality—and if you also don't keep your taxes current.
R.I.P. Papa Keno's. And Mass St. Deli. Et cetera.
22 May 2008 at 2:26 p.m.
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kmat (Anonymous) says…
No offense, but the pizza there has always sucked. There is only one good pizza place in town and that is RUDY'S!!!!!! Fresh, local ingredients. Sauce made daily. Nothings ever frozen. Great service, locally owned and operated. I have never, ever had a bad slice from there and I've been a patron since the old days when they were back behind the Crossing. For those who haven't tried it. please do.
22 May 2008 at 2:40 p.m.
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stuckinthemiddle (Anonymous) says…
kmat
no offense taken… but I suppose it's a matter of taste…
I like Rudy's pizza but it doesn't really stand out as being much different than other pizza…
for my taste, Papa Keno's was better… and much more unique…
22 May 2008 at 2:43 p.m.
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notnowdear (Anonymous) says…
Glass Nickel in Madison, Wi beats keno's all to hey.
22 May 2008 at 3:10 p.m.
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BrianR (Anonymous) says…
Gareth,
The guy who has the ovens at Johnny's is a New Yorker, I love their pies. Now if there could only be a NY bagel…
22 May 2008 at 3:22 p.m.
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West_Sider (Anonymous) says…
We quit going there several years back after I watched an employee engage in a drug deal with a person that came into the restaraunt late on a Saturday night. God only knows what they were putting in the pizza or if they were following sanitary practices.
22 May 2008 at 3:34 p.m.
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Sigmund (Anonymous) says…
When “Pizza Shoppe” closed on Wakarusa I tried Papa Keno's again. The slice came out burned black nearly 1/2 inch around all the edges. I asked if they were going to redo it and was told “some people like it that way.” When I asked them what people those were and got a blank stare, they redid it. Decided I would get my specialty pizza fix in KC from then on.
Rudy's pizza is average on its very best day although their other offerings are not too bad. I guess the homeless and the hippies like it enough to eat it out of their dumpster every night.
22 May 2008 at 3:35 p.m.
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Sigmund (Anonymous) says…
“Keenan gave it a go, and did well—for a while. But longevity won't keep you in business if you don't also maintain quality—and if you also don't keep your taxes current.”
My understanding was that PK's was profitable just not profitable enough to support Keenan's lifestyle and that pizza wasn't the only thing available for sale there.
22 May 2008 at 3:37 p.m.
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geniusmannumber1 (Anonymous) says…
Got news for you West_Sider—ain't no pizza place in this town (maybe not in the country) where you're not going to see that.
22 May 2008 at 3:40 p.m.
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Sigmund (