Walled Lake council authorizes legal action over delinquent Tiki Bar water bills and taxes

The Walled Lake City Council unanimously authorized the city attorney to begin legal proceedings to recover unpaid water bills and delinquent taxes from a downtown business known locally as the Tiki Bar, which the city said is currently operating under the name Walled Lake Tavern.

City staff and council described a history of late payments and a prior settlement about three to four years ago. City staff said the business has again fallen behind; the amount cited during the meeting was "over $44,000 and more." The council voted to give the city attorney authority to pursue collection, including preparing notices that could lead to water service shutoff if the debt is not cured.

At the meeting, a staff speaker described meetings with the Oakland County treasurer and the finance director, and urged the council to authorize litigation and other remedies. The city attorney recounted the prior litigation and settlement and said the city could again pursue all available legal remedies. "We can definitely go forward with legal action and pursue all available legal remedies to collect on what's owed," the city attorney said.

Finance Director Pesta provided the approximate amount owed to the city and explained that overdue taxes can be placed on a county tax roll and that the county treasurer is conducting foreclosure-prevention outreach with a March 31 deadline for 2022 and earlier tax years.

The council discussion also referenced an enforcement action by the Michigan Liquor Control Commission for the business's failure to pay or otherwise comply; suspension of the liquor license is possible through the state process and would be enforced locally by the police department.

Motion and vote: Council member Lublin moved to authorize the city attorney to pursue legal action and collection efforts related to water bills and taxes for the Tiki Bar/Walled Lake Tavern; Council member Ambrose supported the motion. The motion passed by recorded roll call; the meeting transcript records affirmative votes from Lublin, Osenic, Woods, Ambrose, Fernandez and Ackley (Locke was excused). The council directed staff to start the formal notice process that would enable shutoff of water service if the business does not pay.

City staff said the Oakland County treasurer has the property on a watch list and has been working with taxpayers to avoid foreclosure. The treasurer's office notice read into the record reminded property owners that March 31, 2025 is the county's tax foreclosure deadline for 2022 and prior delinquent taxes.

No civil judgment amount or final collection mechanism was specified at the meeting; staff said the city attorney would proceed with the remedies available under law and any negotiated settlement would be reported back to council.