3 days Ago By Keith Kohn
ELKO — An Elko motel off Interstate 80 is just weeks away from possibly being forced to close if its owners don't pay tens of thousands of dollars in back taxes to the city of Elko. Deputy City Attorney Michael Q. Hanley told City Council members on Tuesday Larry Chank, chief executive of Shilo Management Corp.
of Vancouver, Washington, had reached out seeking a payment plan for the city's transient lodging taxes owed to Elko. City officials declined the suggestion because his proposed $5,000 a month would still have pushed the company further into back taxes, as the motel generates about $12,000 a month in the tourist tax. City Council members discuss with Deputy City Attorney Michael Q.
Hanley, far left, the steps taken to collect back taxes from the Shilo Inn motel. According to city records, the motel owes the city $87,759.70.
Chank did not return a call on Tuesday from the Elko Daily Free Press. Nor did he attend the City Council meeting in person or online. Mayor Reece Keener said when hotels and motels do not pay the transient lodging tax, it trickles down to money that cannot be provided to groups that promote tourism in Elko.
The Shilo Inn's logo. "You know, some of them had their disbursements cut from the previous year and when we don't collect those transient lodging taxes, there's no money for that. So it's really unfortunate, because it's not like as if they don't have it.
They've collected that tax from the public that stays there, and they're keeping it so ...
." Hanley said since the company's repayment proposal was declined in February, he and other city officials have been unable to reach Chank. "I was expecting to hear from him regarding a proposal that he was going to send me, but I didn't hear back," Hanley told council members on Tuesday.
"So I followed up by email on March 10th and let him know that the city would not take a payment plan." He said he also mentioned "the notice of tax lien was filed on Jan. 20th or Jan.
24th of this year for delinquent taxes from September through December of last year." Hanley said he also warned Chank "it's likely that further notices of tax lien would also be filed in the future until it's cleared up or the City Council decides to foreclose on the lien." The rear of the Shilo Inn faces Interstate 80.
Its location in the Elko Junction plaza is convenient for truckers and other business travelers. The attorney also sent a "notice of suspension" of the motel's business license to Chank and hand delivered it to the motel's manager on Friday. He said city code allows the city clerk to propose a suspension, revocation, or termination of the business license when the lodging taxes are 70 days delinquent or more past the 15th day of the month when they're due.
"Which is what we did," Hanley said. "And that notice stated that the suspension would be effective April 18, 2025, unless the payment was made in full." As of Tuesday, the city had received no payment from the company.
Hanley said the motel can request a hearing before City Manager Jan Baum, who would make the decision about whether to revoke, suspend, or terminate the business license. The motel could then request a hearing before the City Council. Keith Kohn is editor of the Elko Daily Free Press.
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