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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 02/22/1982M LIQUOR LICENSING AUTHORITY Special Meeting - February 22, 1982 1:00 P. M. A special meeting of the Liquor Licensing Authority was held on Monday, February 22, 1982, in the Council Chambers of the City of Fort Collins Municipal Building. Roll call was answered by the following members: Bujack, Long, Oldham, Seegmiller, and Wilson. Staff Members Present: Debbie Caster, City Clerk's Office Gregory Denton, City Attorney's Office The following four motions were filed with the City Clerk's Office which the Authority considered and acted on: Motion to Continue Show Cause Hearing, Motion for Disqualification, Request for Production of Documents, and Motion to Continue Show Cause Hearing. Motion for Disqualification: Mr. Ramsey Myatt, attorney representing Ace Liquors, stated he would defer to the Authority's decision on the disqualification of Mr. Long. Mr. Pat Long made a statement to clarify the quote in the Fort Collins Coloradoan on February 8, 1982. Mr. Long then disqualified himself from participating in the hearing. Motion to Continue Show Cause Hearing: Mr. Ramsey Myatt stated the primary reasons for filing the motion for continuance are as follows: there is an economic factor of $250,000 if the license is revoked; additional time is needed to gather data for the show cause hearing; and there is an existing contract to sell the business. Authority member Bujack made a motion, seconded by Authority member Wilson, to deny the Motion to Continue Show Cause Hearing. The Chairman put the motion which was unanimously adopted. Motion to Continue Show Cause Hearing: Mr. Timothy Hasler, attorney representing Mr. and Mrs. Namtu Kim, appli- cants for transfer of the liquor license currently held by Vincent Chung. Mr. Hasler stated the reason for filing the motion is due to the fact that a contract for sale has been entered into and that this sale could be jeopardized if the business is ordered to shut down. -2- February 22, 1982 Mr. John Duvall, attorney representing the Kim's application for transfer, stated the contract states that the closing is to be held on February 28, 1982, which is a Sunday. Mr. Duvall stated the closing will be held upon Mr. Kim's return from South Korea (where he is trying to obtain finan- cing), which will be approximately the first week in March. Mr. Ramsey Myatt added that Mr. Chung would be willing to voluntarily close down the liquor store until the closing takes place. Authority member Wilson made a motion, seconded by Authority member Oldham, to deny the Motion to Continue Show Cause Hearing. The motion was put with the following votes: Yeas: Oldham, Seegmiller and Wilson. Nays: Bujack. Assistant City Attorney Greg Denton called Troy Krenning, who was sworn, and testified that he is a cadet with the Fort Collins Police Department. Mr. Krenning stated his date of birth is 2-4-62. Mr. Krenning then des- cribed what happened on Thursday, February 4, 1982, at approximately 9:40 a.m. He stated Officer Kirchhoff requested that he accompany him on a spot check at Ace Liquors, 200 E. Mountain Avenue. He stated upon entering the store, he went to the cooler and removed a six-pack of Coors lite beer. Mr. Krenning stated Mr. Vincent Chung, the owner of the business, rang up the sale. He went on to explain that after purchasing the beer he went outside to the car where Officer Kirchoff was waiting. The two of them then entered the store together and identified themselves before issuing a summons to Mr. Chung. He stated they also removed from the cash register the three $1 bills that were marked. He added that the six-pack was marked and entered into evidence at the Fort Collins Police Department. City's Exhibit 1 was admitted into evidence and identified as the six-pack of Coors lite beer that Troy Krenning, age 20, purchased at Ace Liquors, 200 E. Mountain Avenue. The Chairman ruled that the evidence be admitted into evidence. Mr. Krenning stated he was not asked for any identification. He added that when he and Officer Kirchhoff entered the store together to issue Mr. Chung a summons, Mr. Chung asked for a pardon. Mr. Ramsey Myatt made a motion that insufficient evidence has been shown. He stated there has been no proof of alcoholic content of the beer. After some discussion regarding the content of the beer, Authority member Bujack made a motion, seconded by Authority member Wilson, to deny the motion that there is insufficient evidence. The Chairman put the motion with the following votes: Yeas: Bujack. Seegmiller and Wilson. Nays: Oldham. -3- February 22, 1982 Authority member Bujack made a motion, seconded by Authority member Wilson, to determine that a violation did occur at Ace Liquors, 200 E. Mountain Avenue, on February 4, 1982. Mr. Richard Gast, attorney representing Vincent Chung, called Mr. Chung to give testimony. Mr. Vincent Chung, 732 Parkwood Drive, Fort Collins, CO, was sworn, and stated he is the owner of Ace Liquors, 200 E. Mountain Avenue. He stated he has owned the business since December, 1978. Mr. Chung stated he has been before the Authority for violations committed by his employees, whom he named, and pointed out no longer work for him. He explained that this is his first violation. In reference to the violation on February 4, 1982, Mr. Chung stated he had been shoveling snow outside the front door when Mr. Krenning came to the store. When he entered the store, Mr. Chung explained that his glasses fogged up. He went on to say that he thought Mr. Krenning was a regular customer, Mike White, who is 24 years old. He then gave a brief descrip- tion of Mr. White. Mr. Chung stated he frequently sees repeat customers in the store. He explained that once he is familiar with customers he does not card them each time they make a purchase. Mr. Chung stated since their last violation, he and his wife have been handling all purchases and sales because they cannot trust their employees. Mr. Chung then spoke of all of his efforts to sell the liquor store since December, 1981. In addition, Mr. Chung stated their landlord has sued him in an attempt to terminate his lease. Respondents Exhibit A was submitted into evidence and identified as the contract entered into between Vincent Chung and Namtu Kim. Respondents Exhibit B was also submitted and identified as the Purchase and Sale Agreement for Ace Liquors, dated February 19, 1982. It was noted that the business has not been sold due to the problems with the lease. Mr. Chung also explained that Mr. Kim has returned to South Korea to obtain financing for the purchase of the store and has not yet returned. He stated the purchase price is listed at $260,000 and the inventory listed at $60,000. Mr. Chung stated this sale is contingent upon the transfer of the license. He stated if the license is revoked, the contract is void. He added that if the license is revoked, he will lose approximately $300,000 or more. Mr. Chung stated he has started to train the Kim's on how to run the store, how to ring up sales, and check for ID's. He then stated this business has been very stressful and that he desires to get out of the liquor business. He explained that he would like to continue his education and possibly go back to Korea to teach. In closing, Mr. Chung stated that he did not knowingly sell to a minor. -4- February 22, 1982 Mr. Ramsey Myatt called Wellington Ferrell. Mr. Wellington Ferrell, 1841 Grenoble Court, Fort Collins, CO, was sworn and stated he is the manager of the Fort Collins Elks Club. He stated he is a former owner of the Campus West Liquors. Prior to that, Mr. Ferrell stated he was the Enforcement Officer for the Colorado State Liquor Control Division in Denver and responsible for the Fort Collins -Boulder area. Mr. Ferrell stated that he feels it is not necessary to set up "sting" operations. He stated a Liquor Enforcement Officer can catch someone violating the law by staking an establishment and not by sending someone in. He stated he feels the penalty before Mr. Chung is unjustified since he has a contract for sale and because this is the second time the Police Department has set him up. Mr. Richard Gast called Mr. John Duvall, attorney representing the Kim's for the transfer of ownership. Mr. John Duvall, 1705 Heatheridge Court C205, Fort Collins, CO, was sworn. He 'stated an application for transfer of the license was filed with the City Clerk's Office on Friday, February 19, 1982. Respondents Exhibits C and D were identified as individual history record forms and references on Mr. and Mrs. Kim. These exhibits were not admitted into evidence since the qualifications and references of the Kim's was determined not to be a proper consideration at this time. Mr. Duvall stated that if the license is revoked or suspended the store will lose its good will and be a hardship to the Kims's. Mr. Ramsey Myatt stated once again that Mr. Chung would be willing to close down voluntarily until the actual closing takes place. Authority member Bujack made a motion to suspend the license until March 10, 1982. If the business is not closed by March 10, 1982, the license is revoked. Assistant City Attorney Greg Denton suggested that a motion be made to table the matter to the next regular meeting of March 3 with the stipula- tion that Mr. Chung be closed until the 3rd and a final sanction determined at that meeting. Authority member Bujack made a motion, seconded by Authority member Oldham, to table the matter to March 3 and ordered Mr. Chung to close the liquor store by 4:00 p.m., February 22, 1982, until March 3, when a final sanction is determined. He stated posting the premises would not be necessary. Authority member Wilson stated she is uncomfortable with the motion mainly because there is nothing to keep Mr. Chung from opening prior to the loth of March. Because the Kim's are stated he will have to approval to close down -5- actually operating check with the Kim's until March 10. February 22, 1982 the store, Mr. Vincent Chung to see if it will meet their On that basis, the Authority decided to determine the penalty at this hearing. The previous motion made by Authority members Bujack and Oldham died. Authority member Bujack made a motion, seconded by Authority member Oldham, to suspend the license of Vincent Chung for Ace Liquors, 200 E. Mountain Avenue, as of 4:00 p.m., February 22, 1982, to March 10, 1982 (the date of revocation). The motion was put with the following votes: Yeas: Bujack, Seegmiller, and Wilson. Nays: Oldham. Adjournment Authority member Bujack made a motion, seconded by Authority member Oldham, to adjourn. The meeting was adjourned at approximately 2:55 p.m. ojv� " Chairman 11t,A_�_Vr� \\►a_ �_