PP’s Douglas Inn, formerly known as Louie’s, will be sold to highest bidder Aug. 21.
The Internal Revenue Service took over the property from owner Patrick M. Peterson for unpaid taxes.
Peterson was charged in September of last year for failing to pay city sales tax for nearly three years.
The city said he owed $20,937. He was sentenced to serve 80 days in jail and to pay $55,738 in restitution.
Reached at home, Peterson declined to comment.