Applicant for booze license has trail of bills

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The Morning Call Archives

Copyright 2011 The Morning Call

ID: 4911746

Publication Date: March 22, 2011Day: TuesdayPage: A1Edition: FIFTHSection: NewsType: LocalDateline:Column:Length: long

Byline: Christopher Baxter Of The Morning Call

Headline: Applicant for booze license has trail of bills ** Restaurateurbacked by City Council and City Hall has faced nearly $245,000 injudgments and liens.

When Salvatore Biundo came before Allentown City Council last weekseeking a special, discounted liquor license to offset the cost of renovatinghis new eatery, Councilwoman Jeanette Eichenwald asked theadministration if it had researched the applicant's financial history.

"We have not gone through a full accounting of what Mr. Biundo'sfinancial capacity is," said Todd Collins, the city's development liaison.Rather, Collins explained, Biundo and the administration were hurrying tosubmit the application to the state by the end of the month.

Council accepted the explanation and unanimously endorsed theapplication.

But public records show that since 2005, Biundo and his companies --mainly Primo Bacio Inc. of 1259 S. Cedar Crest Blvd. -- have facednearly $245,000 in civil judgments and tax liens, according to a MorningCall review of court filings in Lehigh County.

The trail of bills includes $117,921 in federal tax liens and $31,497 instate tax liens, the records show. In addition, Biundo and Primo Baciohave faced $95,570 in civil judgments for unpaid advertising, invoices,


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township fees, attorney costs and repairs to a Mercedes-Benz E55, courtfilings detail.

Biundo said Monday the financial problems were caused by other partnersinvolved in his former restaurant, Bacio Italian Trattoria. He said some tax

bills have been settled, and others are part of a payment plan. He said thatas president of the company, he took the fall for the unpaid bills.

"It doesn't look too good for me, I'll be honest," he said. "I can't say I'mhappy about it."

Court files show that four of the 16 state and federal tax liens have beenpaid.

Council's blessing could prove lucrative for Biundo. If approved by thestate Liquor Control Board, he could buy the economic development

liquor license for $50,000, about a third of the cost of a regular liquorlicense. The LCB issues only two such special licenses per county peryear.

Unlike past economic development liquor license applications inAllentown, Biundo's specifically required council's approval. Collinspressed members to act last week because one application for a restaurantin west Bethlehem is already pending.

Now, Eichenwald said she will call on her colleagues to rescind council'ssupport and quash the application. Councilmen Michael Donovan, Mike

Schlossberg, Julio Guridy and Ray O'Connell said they would entertainher proposal.

"I'm furious with our own administration for coming to City Councilwithout doing financial due diligence," Eichenwald said Monday. "I'm notsurprised because we've been around the block with this before. But I'maccepting responsibility for this vote."

"I'm embarrassed," Donovan said. "Now we have egg on our face."

Councilman Peter Schweyer said council's only role was to certify that

Biundo's restaurant would be in an economic development zone. He stillsupports an economic development liquor license for Biundo's westAllentown project, he said.

Council President Michael D'Amore could not be reached for comment.

City spokesman Mike Moore said in an email statement that Biundoprovided the administration with information about the restaurant and


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filled out an application, which did not include financial information.

Moore did not answer questions about why a financial check was notperformed or if the administration stands behind the application. He saidthe ultimate license approval rests with the LCB.

Stacy Kriedeman, spokeswoman for the LCB, said an application for sucha license would go through a financial review, including up to a year ofbank statements and investor information, and would also need taxclearance from the state revenue and treasury departments.

She was unsure, however, if the check would have turned up Biundo'shistory with his former company.

She added that the LCB would hold a hearing to ensure Biundo had noother option to obtain a regular license before granting the discounted

license.

Biundo and his company, Primo Bacio, did have a regular liquor license athis former restaurant. Kriedeman said the license expired April 30, 2009,because it was not validated, and it was briefly seized a month later by thestate treasury.

If all fees, forms and taxes are paid by April 2012, the license wouldremain valid, she said. If not, it would be permanently void. Kriedemansaid Biundo will have to explain why he does not plan to use the licensehe has before being approved for an economic development license.

She also said his history will weigh on the LCB's decision.

Biundo said he needs the discounted liquor license because of the cost ofextensive renovations. His proposed new Mediterranean restaurant wouldbe at the former Salvatore Ruffino's restaurant at 1828 W. Allen St.,Biundo told council last week. It would seat between 125 and 130 peopleand serve Italian and Greek food, with a lot seafood and steaks, he said.

Biundo has opened 10 different establishments in the Lehigh Valleyduring the past nine years, he told council, but remained involved with

only one, for five years, before selling it because of family problems. Hesaid he would consider his new eatery his "stronghold."

According to state regulations, economic development liquor licenses areearmarked for either Keystone Opportunity Zones or Keystone EnterpriseZones, areas designated by the state Department of Community andEconomic Development that offer tax breaks.


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If a property does not qualify in either zone, the host municipality canwaive the requirement and recommend to the LCB that the license isneeded for economic stimulus. Biundo's establishment does not fall intoeither zone, thus requiring council's blessing.

Donovan said council began discussing possible problems with Biundo'sbackground after The Morning Call asked for a copy of his applicationFriday. At that point, Donovan said, members were unaware of his legalhistory, even though the information was publicly available at the countycourthouse.

[email protected]

610-778-2283

WHAT RECORDS SHOW

Since 2005, Salvatore Biundo and his companies have faced nearly$245,000 in civil judgments and tax liens.

*Federal tax liens: $117,921

*State tax liens: $31,497

*Civil judgments: $95,570

Source: Lehigh County court records

Applicant for booze license has trail of bills

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