Garibaldi's in Arlington Hts. closes for failure to pay taxes

The Illinois Department of Revenue has shut down Garibaldi's Restaurant in Arlington Heights for failure to remit sales taxes to the state.

A sticker on the window of the restaurant at 132 E. Golf Road in the International Plaza Shopping Center announces the state's revocation of the business certification.

Garibaldi's owner Gary Mednicov, who owns a second restaurant at 2346 W. Higgins Road in Hoffman Estates that is open, could not be reached for comment Wednesday.

Illinois Department of Revenue spokeswoman Sue Hofer would not divulge how much in sales taxes Garibaldi's owes the state.

"It's not our goal to shut down a business," Hofer said. "Our goal is to keep businesses open and generating income for their employees and taxes for the state. We work with businesses if they are having financial difficulties. Closing a business is very near to the last resort."

Hofer said the number of businesses that fail to remit sales taxes to the state is not higher than when the economy was better off.

Arlington Heights Business and Development Coordinator John Melaniphy said village staff regularly met with Garibaldi's owner, as well as other businesses in town, as part of an ongoing effort to keep businesses in town.

Though officials did not know that the restaurant was in trouble, "I'm not surprised," Melaniphy said.

"I have heard many businesses can get behind on their sales tax payments given the current and past economy," he said.

Melaniphy said International Plaza has had a high turnover rate in recent years. "They really need an anchor like a Jewel or Dominick's grocery store," he said.

Restaurant sales in the Chicago metropolitan area declined by $660 million in 2009, Melaniphy said.

"We are in unprecedented times," Melaniphy said. "Certainly many of our restaurants and retailers are under pressure."

Arlington Heights has 200 restaurants, 40 in the downtown area alone.

"We have had some restaurants close in the last year" including Pamela's Parkside Grill, Brown's Chicken & Pasta, Grand Station, and Carlos & Carlos, Melaniphy said.

"We are hopeful that they (Garibaldi's) will be able to rectify the situation and reopen," he added. "The good news is retail sales appear to be rebounding slightly."

Whether Garibaldi's' certification is reinstated depends on a number of factors, including the owner's level of cooperation with the state, the dollar amount owed, and the financial health of the business, Hofer said.

"If the company is healthy, then they certainly can come back," Hofer said.