US News

CITY CALLS FAULT ON CENTRAL PK. TENNI$

The operator of the Central Park tennis concession owes the city $110,347 because it underreported its income over a six-year period, according to an audit by Comptroller Bill Thompson.

Thompson said Central Park Tennis LLC categorized its instructors as independent contractors so their income wasn’t reported to the Parks Department, which was supposed to get 10 percent of revenues under a deal that concluded Nov. 15, 2007.

The comptroller suggested the agency seek restitution of $110,347, which includes license fees and penalties.

But Parks officials accepted a settlement of only $22,390, saying the concessionaire acted in good faith until being notified in 2005 by the state Labor Department that the instructors had to be classified as employees.