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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 12/09/1981LIQUOR LICENSING AUTHORITY Regular Meeting December 9, 1981 - 6:30 p.m. A regular meeting of the Liquor Licensing Authority was held on Wednesday, December 9, 1981, in the Council Chambers of the City of Fort Collins Municipal Building, 300 Laporte Avenue, Fort Collins, Colorado. Roll call was answered by the following members: Bujack, Long, Oldham, Seegmiller, and Wilson. Staff Members Present: Debbie Caster, City Clerk's Office Greg Denton, City Attorney's Office Ken Kirchhoff, Police Department Minutes of the Regular Meeting of November 12, 1981, Approved as Published Authority member Long made a motion, seconded by Authority member Bujack, to approve the minutes of the regular meeting of November 12, 1981, as published. The Chairman put the motion which was unanimously adopted. Minutes of the Special Meeting of December 2, 1981, Approved as Published Authority member Bujack made a motion, seconded by Authority member Long, to approve the minutes of the special meeting of December 2, 1981, as published. The Chairman put the motion which was unanimously adopted. The following renewals were placed on the agenda for approval by the Authority because they have had a violation occur within the last licensing year. Renewal Application for Shop N Go, 1330 West Elizabeth Authority member Bujack made a motion, seconded by Authority member Long, to approve the renewal application for Shop N Go, 1330 West Eliza- beth. The Chairman put the motion which was unanimously adopted. -2- December 9, 1981 Preliminary Hearing for a Hotel -Restaurant License for Jefferson Street Station. 200 Jefferson The boundaries as proposed by the administration were as follows: North from the subject premises to Hickory Street extended East to Conifer Street West from the subject premises -to Shields Street South from the subject premises to University Avenue extended East to Garfield East from the subject premises to the city limits and Lemay Avenue. Mr. Rick Zier, attorney representing the applicant, stated the boundaries are acceptable. Authority member Long made a motion, seconded by Authority member Bujack, to accept the boundaries as proposed for Jefferson Street Station, 200 Jefferson. The Chairman put the motion which was unanimously adopted. Preliminary Hearing for a Hotel -Restaurant License for Denny's Restaurant, 2143 South College Avenue The boundaries as proposed by the administration were as follows: North from the subject premises to Prospect Road West from the subject premises to Shields Street South from the subject premises to Horsetooth Road East from the subject premises to Lemay Avenue Mr. Harry Simon, attorney representing the applicant, stated the boundaries are acceptable. Authority member Long made a motion, seconded by Authority member Bujack, to accept the boundaries as proposed for Denny's Restaurant, 2143 South College Avenue. The Chairman put the motion which was unanimously adopted. Change in Corporate Structure Approved for Big Cheese Pizza, 2635 South College Avenue Mr. John Bennie, 1301 Village Lane, Fort Collins, was sworn and stated he is the Vice -President and Secretary of the corporation. He explained that the corporation has two new corporate officers each having more than 50 ownership. -3- December 9, 1981 Officer Ken Kirchhoff stated no fingerprints have been submitted. Mr. Bennie stated the new corporate officers will have their fingerprints taken in Wichita, Kansas and forwarded to the Police Department . Authority member Long made a motion, seconded by Authority member Bujack, to approve the change in corporate structure for Big Cheese Pizza, 2635 South College Avenue, contingent upon fingerprints being submitted and a favorable police report from the Colorado Bureau of Investigations. The Chairman put the motion which was unanimously adopted. Transfer of Ownership Approved for ckory House North. 1005 Lemav Avenue (Secretary's note: Authority member Wilson abstained from voting by leaving the meeting room.) Mr. Warren Baxter, 1213 Village Lane, Fort Collins, Colorado, was sworn and spoke briefly of his background. He stated he purchased the business on October 20, 1981, and has been operating the Hickory House North under a management agreement. Mr. Baxter stated he has had no prior experience with a liquor license. However, Mr. Baxter explained his ID checking policy and briefly went over his training program. The Authority stressed to Mr. Baxter the importance of training his em- ployees and pointed out that a violation could cause him to have his license suspended or even revoked. They stated re-training would be beneficial to him and his employees. Mr. Baxter stated the restaurant is open from 6 a.m. to 8 p.m. Monday through Thursday and from 6 a.m. to 9 p.m. Friday and Saturday. The restaurant is closed on Sundays. Authority member Bujack made a motion, seconded by Authority member Long, to approve the transfer of ownership for the Hickory House North, 1005 Lemay Avenue, from Stephen and Laura Powell to Warren P. Baxter, Jr. The Chairman put the motion with the following votes: Yeas: Bujack, Long, Seegmiller and Oldham. Abstain: Wilson. The Chairman requested that Ace Liquors be the next item considered on the agenda. -4- December 9, 1981 Show/Cause Hearing for Ace Liquors, 200 E. Mountain Avenue Mr. Dick Gast, attorney representing Vincent and Mary Chung, stated because there is an obvious language barrier, he will be making a presentation to the Authority. Mr. Gast spoke of the vigorous efforts made to sell the business within the last week and stated that no contact has been made. He stressed the fact that the Chung's are eager to sell the business but at the same time being very cautious since they want to find the right buyer with the right financial arrangements. Mr. Gast pointed out that Mr. Chung is now working at the store 15 hours, 6 days a week since an obvious problem has existed with his employees. Mr. Gast asked the Authority to issue punishment suited for the prescribed act. He suggested a revocation of the license, with the revocation to be held in abeyance for 3 months and to take effect if the business is not sold within that period of time. In addition, should any violation occur within the next 3 months, immediate revocation would be in order. Assistant City Attorney Gregory Denton stated that revocation of the license would not be viewed as abuse of discretion should the matter go to District Court. He added that the revocation to be held in abeyance for a certain amount of time would be appropriate action by the Board. Authority member Long stated that licenses of other establishments, when deemed necessary, have been suspended from one to three days. He went on to say that he does not feel it would be fair to allow Ace Liquors to continue to be open for business without some kind of suspension. Chairman Seegmiller stated he feels even though several violations have occurred at Ace Liquors, he does not want to punish the Chungs to the extent that they lose their business. Authority member Wilson stated it is her opinion that the Chung's are ill -suited to run the liquor store. Authority member Long made a motion, seconded by Authority member Bujack, to revoke the license as of March 10, 1982, with the condition that if the business has not sold prior to that date or a violation is received, the license will be summarily revoked. In addition, Mr. Long ordered Ace Liquors a two consecutive week suspension to be served within the next 30 days and that the premises be posted. Assistant City Attorney Greg Denton stated that if a violation does occur within 3 months, the license could not be summarily suspended and that a hearing would have to be held in order to determine such action. Greg went on to say that if the business is sold within the next 14 days, the two week suspension would not apply. Greg suggested the motion be reworded as follows: -5- December 9, 1981 The license of Ace Liquors (under the ownership of Vincent Chung) be revoked as of March 10, 1982, but during the 3-month interim period the licensee is free to operate the establishment with the exception of a two consecutive week period, to be served within the next 30 days and that the premises be posted. If the business is sold within 14 days, the two -week suspension would not apply. The motion as amended by Assistant City Attorney Greg Denton was agreeable to Authority members Long and Bujack. The motion was put with the following vote: Yeas: Bujack, Long, Oldham and Wilson. Nays: Seegmiller. Final Hearing for a Retail Liquor Store License for Downtown Liquor Mart, 102 West Olive Street Assistant City Attorney Greg Denton stated a petition was received earlier today that brings action against City Council and the Liquor Licensing Authority to be heard in District Court. Greg informed the Authority that although City Council referred this matter back to the Authority at its November 17th meeting, the petition does not allow the hearing to be held on Downtown Liquor Mart. Authority member Bujack made a motion, seconded by Authority member Oldham, to table the hearing on Downtown Liquor Mart in the event District Court allows further consideration by the Authority. Final Hearing for a Hotel -Restaurant License for E1 Burrito, 404 Linden Street The Resolution outlining the results of the preliminary hearing was read by title only. Authority member Long made a motion, seconded by Authority member Bujack, to adopt the Resolution as presented. The Chairman put the motion which was unanimously adopted. Mr. Jesse Godinez, 3000 Conestoga Court, Fort Collins, was sworn and stated he is the owner of E1 Burrito. He explained that he currently holds a 3.2'A beer license and is applying for a full liquor license in order to better the business. He added that his customers have requested that he get a full liquor license. Mr. Godinez explained that once he gets the license he will operate from 11 a. m. to 10 p. m. , seven days a week. He stated the approximate amount to be invested to build the service bar. - 0 • 0 -6- Decenber 9, 1981 Mr. Godinez stated a wall has been installed to divide the existing build- ing. He stated he will be renting the other half of the building. With the additional wall, Mr. Godinez stated the seating has been reduced to 97, a reduction of one-fourth. In 21 years of business with a beer license, Mr. Godinez stated he has never had a violation. He spoke of his ID checking procedure and assured the Authority that his employees will comply with the laws. He stated three new -employees will be added to his staff when the new license is obtained. Applicants Exhibit 1 and 2 were submitted and identified as petitions which were circulated on behalf of the application. Approximately 255 signa- tures were obtained. Mr. Godinez stated signatures were obtained from both residents of the neighborhood and employees who signed the petition at the restaurant. He added that the majority of the people contacted were in favor of the license. Authority member Bujack made a motion, seconded by Authority member Oldham, to approve the granting of a Hotel -Restaurant license for E1 Burrito, 404 Linden Street. The Chairman put the motion to vote which was unanimously adopted. Final Hearing for a Hotel -Restaurant License for ShowBiz Pizza, 105 West Prospect The Resolution outlining the results of the preliminary hearing was read by title only. Authority member Long made a motion, seconded by Authority member Bujack, to adopt the Resolution as presented. The Chairman put the motion which was unanimously adopted. The applicants presented a tape explaining the operations of ShowBiz Pizza. Mr. Brian McMahill, attorney representing the applicant, explained that the application for registration of manager will be submitted and scheduled for hearing in January. Mr. McMahill called his first witness, Donald Smith, 2885 W. 128th #1547, Denver, Colorado, who was sworn and stated he is currently the assistant manager of ShowBiz Pizza Place in Aurora, Colorado. Mr. Smith spoke of his responsibilities as assistant manager. He added that all ShowBiz Pizza employees receive training which covers liquor laws -7- December 9, 1981 and ID checking procedures. He stated that only beer and wine will be served since it is a family -oriented establishment. He added that emp- loyees keep careful watch to assure that minors do not receive any beer or wine from adults. Mr. Smith went on to say that the restaurant will seat approximately 220 people. The hours of operation are from 11 a.m. to 11 p.m. Sunday through Thursday and from 11 a.m. to midnight Friday and Saturday. Mr. Brian McMahill called Ms. Alice Winters, who was sworn and stated she resides at 4120 Twilight Drive, Topeka, Kansas. She stated she is the Director of Development Administration and the Secretary/Treasurer for ShowBiz Pizza. Ms. Winters stated ShowBiz Pizza is a subsidiary of Brock Hotel Corporation, which operates 55 Holiday Inns. Ms. Winters went on to explain in detail the financing for ShowBiz Pizza. She spoke of the different entertainment ShowBiz Pizza provides for all ages. Ms. Winters stated a liquor license helps draw the parents to the restaurant and that each establishment which holds a liquor license is quite successful. Ms. Christa Fremgen, 3765 Martin Drive, Boulder, Colorado, was sworn. She stated she works for Oedipus, Inc., which is a petitioning firm who con- ducts liquor licensing petition surveys. Ms. Fremgen explained how the survey was conducted which was conducted under her direct supervision. Applicants Exhibit 2 was submitted and identified as 7 sets of petitions circulated by Oedipus. Applicants Exhibit 1 was submitted and identified as the report containing the results of the petition survey. She stated the results of the survey indicate .that 93.5% of the people contacted were in favor of the application for ShowBiz Pizza. She stated those refusing to sign felt the needs and desires of the neighborhood have been met or had religious reasons for not signing. Ms. Fremgen stated it is her opinion that the needs of the neighborhood are not being met. Authority member Bujack made a motion, seconded by Authority member Long, to approve the granting of a Hotel -Restaurant license for ShowBiz Pizza, 105 W. Prospect. Assistant City Attorney Greg Denton suggested that the Authority table their decision to approve the license until the January meeting so that fingerprints for each individual can be submitted and processed. Authority member Bujack made a motion, seconded by Authority member Oldham, to table their decision for approval of the license until January 6, 1982. The Chairman put the motion which was unanimoulsy adopted. Show/Cause Hearing for Lemay Liquors, 1045 Garfield Mr. Rock Sorenson, attorney representing the applicant, stipulated to the fact that the beverage sold was a fermented malt beverage and that the individual who purchased the liquor was under the age of 18. -8- December 9, 1981 Assistant City Attorney Greg Denton called Officer Edward Swartz who was sworn and stated he is an officer employed by the fort Collins Police Department. Officer Swartz stated that on June 26, 1981, at approximately 8:19 he observed a minor enter Lemay Liquors, 1045 Garfield, who purchased a 6-pack of beer. He stated he approached the minor and asked for an ID which indicated that the minor was 16 years old. The birthdate of the individual -is 10-8-64 Officer Swartz stated. Mr. Daugaard was the employee he observed selling the beer. Officer Swartz stated Mr. Daugaard said he did not ask for an ID because he has seen the individual in the store before. Mr. Rock Sorenson called Mr. Wayne Daugaard who was sworn and stated his address is 2914 Wakonda Drive. He also stated he is the owner of Lemay Liquors, 1045 Garfield. Mr. Daugaard stated he has had no violations since he has operated the store. He stated he has seen the minor in the store before and has previously carded the individual. Mr. Daugaard stated he remembers people who he has carded in the store and does not ask for an ID each time they purchase something. He went on to explain his ID checking policy, which includes that anyone looking under 30 years of age be carded. He added that his policies have not changed. Mr. Daugaard spoke in refer- ence to the September 11 incident in which several establishments received violations. He pointed out that minors made an unsuccessful attempt to purchase liquor at his store on that date. Mr. Daugaard stated that he met with Officer Bob Mason of the Police Department on several different occasions regarding ID policies when he first received his license. Authority member Bujack made a motion, seconded by Authority member Oldham, that a violation did occur on June 26, 1981, at Lemay Liquors, 1045 Gar- field. The Chairman put the motion to vote which was unanimously adopted. Assistant City Attorney Greg Denton stated he has no recommendation. Authority member Wilson made a motion, seconded by Authority member Bujack, to direct the City Attorney's Office to write a letter of reprimand to Lemay Liquors, 1045 Garfield, in regard to the June 26, 1981 violation. Show/Cause Hearing for Spring Creek Runoff, 1006 Spring Creek Lane Mr. Otis Beach, attorney representing the applicant, stipulated to the fact that two violations occurred on September 11, 1981. Specifically, two employees of Spring Creek Runoff sold liquor to minors on two separate occasions the evening of September 11, 1981. In addition, Mr. Beach stipulated that an ID was asked for in the first incident. -9- December 9, 1981 Authority member Bujack made a motion, seconded by Authority member Oldham, to determine that two violations occurred at Spring Creek Runoff, 1006 Spring Creek Lane, on September 11, 1981. Mr. Beach called Sgt. Bob Mason, 2933 Wakonda Drive, Fort Collins, who was sworn, and stated he is currently employed by the City of Fort Collins Police Department. He explained that he was the Liquor Enforcement Officer prior to Officer Kirchhoff. He stated he frequently conducted training classes regarding liquor and beer laws. Sgt. Mason stated he recalls meeting with employees of Spring Creek Runoff on two different occasions. He briefly explained what was covered in these training classes. In closing, Sgt. Mason stated he does not recall any violations which occurred at Spring Creek Runoff while he was the Liquor Enforcement Officer. Mr. Beach called Officer David Mickelson, who was sworn and stated he is a policeman for the City of Fort Collins. He stated he has observed Spring Creek Runoff on various occasions in which he has never observed a viola- tion of the liquor code. He stated, however, that juveniles have ap- proached adults in the parking lot in an attempt to get them to purchase liquor for them. Mr. Beach called Ms. Karen Finney, who was sworn, and stated she is a bartender at Spring Creek Runoff. She stated she had instructed the employee who sold the liquor to card the individuals requesting to purchase liquor. Ms. Finney spoke of the training policies at Spring Creek Runoff, which she stated was mostly verbal. Since September 11, she stated the policies have been made into written form. She added that the employee who sold the liquor has been terminated, which is the policy at Spring Creek Runoff. She stated she talked to the employee after she was terminated and an ID was asked for but the individuals purchasing liquor said they did not have any with them. Mr. Beach called Mr. Bill Hadden, who was sworn and stated he is a part- time bartender at Spring Creek Runoff. Mr. Hadden stated after the first violation occurred, the owner of Spring Creek Runoff told his employees to card anyone who looked under the age of 35. He spoke of his prior exper- ience in bartendering in Colorado and Texas. He stated the policies of Spring Creek Runoff are much stricter than anywhere he has worked. He spoke of the training he received when he first started working at Spring Creek Runoff and also explained the new policies which have been imple- mented since September 11, 1981. He stated meetings have been held regard- ing ID checking policies, etc., in which all employees are required to attend. Mr. Beach called Ms. Miriam Flood, who was sworn, and stated she is cur- rently employed at Laughing Dog Saloon as a bartender. She stated she was employed at Spring Creek Runoff prior to her termination after the Septem- ber 11 police operation. She stated she sold the liquor to the individuals who attempted to purchase liquor at Spring Creek Runoff the second time the -10- December 9, 1981 evening of September 11. Ms. Flood stated that when she came to work on September 11 she was instructed to card each person. She stated she was quite busy that night but that she was carding everyone. She explained that one of the three individuals ordered a bloody mary and became upset when she told him that they do not serve celery with bloody marys. Because this frustrated her, she stated she forgot to card him and just served his drink. In Ms. Flood's opinion, she stated she thought the individival was 25 years old. In closing, Ms. Flood stated she is more aware of the enforcement and spot checks that take place and that she now cards everyone looking under 40 years of age. Mr. Beach called Robert Benzel, who was sworn and stated he is part owner of the Spring Creek Runoff. Mr. Benzel stated there has never been a violation at Spring Creek Runoff. Mr. Benzel then spoke of the policies prior to September 11, 1981, which were mainly verbal policies. He spoke of the training given by Sgt. Bob Mason. He showed the Authority the amount of confiscated ID's which have been collected over the years. Mr. Benzel went on to explain that since the September 11 incident their policies are now in written form. Licensee's Exhibit 1 was submitted into evidence which was identified as Rules and Regulations at Spring Creek Runoff. Mr. Benzel stated these rules went into effect September 24, 1981. He stated it is his policy to terminate any employee who does not follow these policies. He stated he feels that this rule will make the employees more aware of the laws and avoid any possible violations. In addition, he stated it is a new policy to have an employee stationed at both doors during the busy hours. Assistant City Attorney Greg Denton stated that the Police Department is recommending a suspension and the duration of suspension to be determined by the Authority. Authority member Wilson made a motion, seconded by Authority member Oldham, to suspend the license for one day to be held in abeyance for one year (until December 9, 1982) and any further violations received within in one year be dealt with in addition to the one -day suspension. The motion was put to vote as follows Bujack, Long and Seegmiller. The motion failed. Yeas: Oldham and Wilson. Nays: Chairman Seegmiller stated he feels two violations in one night is serious and stated he would be in favor of a stronger penalty. Authority member Bujack concurred. Authority member Bujack made a motion, seconded by Authority member Long, to suspend the license at Spring Creek Runoff, 1006 Spring Creek Lane, for one business day, within the next 30 days and that the premises be posted. The motion was put to vote as follows: Yeas: Bujack, Long, Seegmiller and Oldham. Nays: Wilson. -11- — December 9, 1981 Show/Cause Hearing for Country Store, 1517 Lemay Avenue Mr. Don Johnson, part owner of the store, stated he will stipulate to the fact that fermented malt beverage was sold. Assistant City Attorney Greg Denton called Amy Creager, who was sworn, and stated her date of birth is 4-1-66. Amy explained that she was instructed by Officer McKibben to enter Country Store,-1517 Lemay Avenue, and attempt to purchase some beer and then to describe the employee who sells the beer. She stated she accompanied Officer McKibben back into the store and pointed out the employee who sold the beer. For the record, it was noted that Amy was dressed in blue jeans, a plaid blouse and tennis shoes. Amy added that the employee had some friends in the store talking to him while she purchased the beer. Assistant City Attorney Greg Denton called Officer Robert McKibben, who was sworn and stated he is a police officer for the City of Fort Collins. He stated Amy Creager was the person who identified the employee at Country Store, 1517 Lemay Avenue, who sold her the beer. He stated he did not actually observe the purchase made by Amy Creager. Mr. Don Johnson called Mark Herrick, 2300 W Horsetooth, Lot 272, who was sworn, and stated he is an employee at Country Store, 1517 Lemay Avenue. Mark stated Amy entered the store with another person. He described the person with Amy as male, approximately 5'8", straight sandy blonde hair, and a moustache. He stated he thought the male person placed the beer on the counter and looked at least 23 years old. Therefore, he thought he was buying the beer so he did not card him. He stated Amy gave him the money for the beer and he gave her the change. Mark stated Officer McKibben then entered alone and gave him a summons. Mark stated he generally cards people since quite a few minors attempt to purchase beer at the Country Store. Mark then explained the training that is given to all employees. He stated there is a written policy on the premises that is available for employees to refer to. Mr. Don Johnson called Jeffrey Brooks, 1705 Azalea Drive #4, Fort Collins. He stated he is part owner and general manager of the Country Store, 1517 Lemay Avenue. Mr. Brooks talked with Officer McKibben a few days after the violation occurred and stated the officer has indicated that an 18-year-old male accompanied Amy Creager into the store. He then spoke, of his training procedures. Mr. Brooks stated the beer laws are stressed to all employees. He also stated ID checking procedures are gone over thoroughly. Mr. Brooks stated there was a violation approximately 1 1/2 years ago at the store for selling to a minor. Assistant City Attorney Greg Denton called Officer McKibben once again. Officer McKibben described the other people who were in the vehicle with him, none of which fit the description given by Mark Herrick. He also 0 -12- December 9, 1981 stated he recalls a conversation with Mr. Brooks but stated he does not remember what was said in the conversation. After some questioning, Officer McKibben stated he did not have the police report mixed up with the other Country Store or any other establishment checked on September 11. Authority member Wilson stated she feels no other person was involved in the police _operation but stated the person described by Mark could have been at the counter at the same time Amy was making a separate purchase. Authority member Wilson made a motion, seconded by Authority member Oldham, that a violation did occur at the Country Store, 1517 Lemay Avenue, on September 11, 1981. Assistant City Attorney Greg Denton stated the recommendaiton by the Police Department is for suspension with the duration of the suspension to be determined by the Authority. Authority member Bujack made a motion, seconded by Authority member Long, to suspend the license at Country Store, 1517 Lemay Avenue, for one day within the next 30 days, not to be a holiday, and that the premises be posted. The motion was put to vote as follows: Yeas Nays: Seegmiller and Wilson. Other Business Bujack, Long and Oldham. In reference to David Miller of Upper Crust, Assistant City Attorney Greg Denton suggested that Officer Kirchhoff talk with David Miller and then present the information to the Authority. At that time the Authority can hold a formal hearing to determine what action should be taken. Adjournment Authority member Wilson made a motion, seconded by Authority member Oldham, to adjourn. The meeting was adjourned at approximately 12:15 a.m. rman Secretary