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HomeMy WebLinkAbout10A Releasing On-Sale Liquor License for Sassy'sPRIp UU \INNfi50�� 4646 Dakota Street SE Prior Lake_ MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: June 6, 2011 AGENDA #: 10A PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Frank Boyles AGENDA ITEM: Consider Approval of a Resolution Releasing an On -sale Liquor License for Sassy's Inc. dba Memories on Main from Jessica Farnsworth and Transferring the License to Eldon Marier. DISCUSSION: Introduction The purpose of this agenda report is to have the City Council consider the re- lease of an on -sale liquor license for Sassy's Inc., dba Memories on Main, from Jessica Farnsworth. If the Council approves the Release the Council is then asked to approve transferring the liquor license issued for the business premise at 16211 Main to Eldon Marier, the owner of Sassy's dba Memories on Main. History Some years ago, Shelby Armit, the owner of property at 16211 Main Avenue and the business O'Malley's on Main sold the business to Paul Yao on a con- tract for deed. Mr. Yao defaulted on the contract for deed and Ms. Armit retook possession of the building and business. The business was closed for a period of time during which renovations were made to its interior. Ms. Armit appeared before the City Council on February 22, 2011 to describe the renovations to the space and a new family oriented restaurant — Memories on Main - opening in the building. Ms. Armit asked the City Council to approve a liquor license in the new space. The liquor license applicant was Jessica Farnsworth, Ms. Armit's daugh- ter, and Manager of Memories on Main. The Council approved a liquor license in Ms. Farnsworth's name for Memories on Main located at 16211 Main Avenue. While Ms. Farnsworth holds the liquor license in her name the business, Sassy's Inc. dba Memories on Main, is owned by Eldon Marier and the business premise is owned by Shelby Armit. Memories on Main opened in March. Police records indicate they have re- sponded to parking complaints, lock outs, and two fights — one on April 16 and one on April 17 at Memories on Main. The second fight resulted in the victims being hospitalized. Jessica Farnsworth has asked to be removed from the liquor license (see at- tached letter.) We have advised the interested parties (Farnsworth, Armit and Marier) that the Council must approve the "Release" of the liquor license, since the Council issued the license. I am not aware of any reason why the Council should not accept Ms. Farnsworth's request to "Release" the license. Once the Council approves the Release of the license the Council may consider transfer- ring the license issued for Memories on Main at 16211 Main Avenue. "Licenses are valid only on the business premise for which the license was is- sued and only to whom the license was issued." City Code Section 301.900. The business premise for which the license was issued is 16211 Main Avenue. While Ms. Armit owns the premises she does not appear to have an ownership interest in Sassy's dba Memories on Main. Records filed in the office of the Minnesota Secretary of State list Mr. Eldon Marier as the sole incorporator of Sassy's Inc. dba Memories on Main. Mr. Eldon Marier has applied for a liquor license in order for Memories on Main to continue to be able to serve alcohol after the Council accepts Jessica Farnsworth Release of the liquor license. A police check has been conducted on Mr. Marier. The police report is attached. Ms. Armit has indicated she fully supports Sassy's Inc. dba Memories on Main continuing in the building on 16211 Main Avenue and has asked the Council to approve Mr. Mader's liquor license application. Conclusion The Council should determine if it wishes to accept Ms. Farnsworth's Release of the liquor license. If the Council approves the Release it can then consider whether to transfer the liquor license for the business premise at 16211 Main to Eldon Marier to operate Sassy's Inc. dba as Memories on Main for the period June 7 through June 31, 2011. ISSUES: There appears to be something amiss with the working relationship between the parties which has motivated these requests. The Council may also wish to ask the applicant about the police calls to the premises; and in particular to describe what actions are being taken to reduce the number of police calls in the future and how the business plans to work with the Police Department. The Council may also want to inquire about the steps which have or are being taken to make the business appropriate for families as they indicated it would be in February when the license was originally applied for. The City Council may place conditions on the license. Perhaps the most effec- tive approach would be to ask the Police Chief for his opinion on what type of working relationship and interaction he recommends between the Police De- partment and Memories on Main employees. FINANCIAL The City charges both an investigation and license fee for liquor. The applica- IMPACT: tion fee covers the costs of the background checks. The license fee does not cover the costs of day -to -day liquor enforcement actions. ALTERNATIVES: 1. Approve Release of the license issued to Jessica Farnsworth. 2. Deny Release of the license issued to Jessica Farnsworth and direct staff to prepare a resolution with findings setting out the basis for the decision to deny the Release. 3. Approve transfer of the license issued for the business premise at 16211 Main Avenue to Eldon Marier, as licensee. This action would allow Memories on Main to continue to operate without interruption to its business. 4. Deny transfer of the liquor license issued for the business premise at 16211 Main Avenue, and direct staff to prepare a resolution with findings of fact set- ting out the basis for the denial. This action would leave Memories on Main without a liquor license. 5. Deny Ms. Farnsworth's request to release the license which would terminate the Memories on Main license on June 30, 2011. RECOMMENDED As determined by the Council. MOTION: PRIO U tr1 4646 Dakota Street SE �I1vxES0*� Prior Lake, MN 55372 RESOLUTION 11 -xxx A RESOLUTION RELEASING THE ON -SALE LIQUOR LICENSES FOR SASSY'S INC, DBA MEMORIES ON MAIN, FROM JESSICA FARNSWORTH AND TRANSFERRING IT TO ELDON MARIER. Motion By: Second By: WHEREAS, The City Council issued an on -sale liquor and Sunday liquor license to Jessica Farnsworth on behalf of Sassy's Inc., dba Memories on Main; and WHEREAS, Ms Farnsworth has requested the release of said license; and WHEREAS, An application to transfer the license has been submitted by Eldon Marier; and WHEREAS, A background check of Mr. Marier was conducted by the Police Department; and WHEREAS The investigation reveals that Mr. Marier has no record which would disqualify him for the liquor license; and WHEREAS Mr. Marier is the sole incorporator of Sassy's Inc, dba Memories on Main; and WHEREAS The owner of 16211 Main, Shelby Armit, has granted permission for a liquor license to be issued for this building; and WHEREAS The Police Chief recommends that the liquor license be issued subject to continued cooperation of Memories on Main employees with the Prior Lake Police Department. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows; 1. The recitals set forth above are incorporated herein. 2. The request for release of the liquor licenses under the Name Jessica Farnsworth is hereby approved. 3. The transfer of the liquor licenses to Eldon Marier for the period June 7, 2011 to June 31, 2011 is hereby approved subject to the continuing cooperation of Memories on Main with the City of Prior Lake Police Department PASSED AND ADOPTED THIS 6th DAY OF JUNE 2011. YES NO M ser M ser Erickson Erickson Hedber — Hedberg Keeney Keene Soukup Souku Frank Boyles, City Manager CADocuments and Settings \cgreen \My Documents \SharePoint Drafts \Sassy's Liquor License Transfer Resolution.doc 05 -24 -11 Janet Ringberg, City of Prior Lake, I do not wish to hold the liquor license for Memories on Main effective immediately. I feel that it is in my best interest to remove the liquor license from my name and I don't wish to be liable anymore. Memories on Main (Shelby Armit) has not had my best interest in this whole thing so I'm done doing favors for them. Thank you, Jessica Farnsworth A 1 PRIOR LAKE POLICE DEPARTMENT SUPPLEMENTAL REPORT DATE & TIME REPORTED: CASE FILE NUMBER: OFFICER ASSIGNED: DATE & TIME OF REPORT: 5/2/11 at 0843 hours /8:43 a.m. 11002898 D. White #22 5/2/11 On 5/2/111 was assigned a background check for a liquor license renewal by City Clerk Janet Ringberg. The application was submitted by: Eldon Louis Marier DOB 6/19/56 4660 Barbato Court Inver Grove Heights, MN On Behalf of. Sassy's Inc. DBA: Memories on Main 16211 Main Ave SE Prior Lake, MN 952- 447 -6667 This is a renewal for the liquor license for Memories on Main, which was issued in February 2011 under the name of Jessica Farnsworth. The attached paperwork shows Memories on Main as a corporation, however, there is only one owner, Eldon Marier, listed as the president. The license needs to be transferred per the paperwork, page 2, where it is stated "changes of corporate officers, home addresses or phone numbers ". Per the Minnesota DPS Alcohol and Gambling Enforcement board, the type license code is "ONSS ", referring to On -sale Sunday only. The City of Prior lake License questionnaire form stated "On/off', which is incorrect according to the state licensing division. I checked with the Minnesota Secretary of State and obtained a copy of the certificate of incorporation for " Sassy's Inc ". The articles list only Eldon Marier as the sole incorporator of the business. (A copy of the articles are attached) According to recent correspondence between the current licensee Farnsworth and the city clerk, Farnsworth removed her name from the current liquor license, per her request, at the City offices. The paperwork was dropped off at the city offices by Shelby Armit, the prior owner of the same location which operated under a different name. From reviewing the prior application and the current application, in addition to using various public internet searches, it appears as if Marier is a Certified Public accountant who works for Armit. GA201 1\1 1002898\DW 22 supp.doc Prior Lake Police Department Case File # Report of A copy of the roster for the alcohol training program is also attached with the listed sixteen employees. The alcohol training program was attested to by Jessica Farnsworth on 3/29/11, after the training led by Robert Pomplun from Plymouth, MN. The 2 am optional liquor license was also applied for. During the course of business for Memories on Main, since March 2011, the Prior Lake Police Department has responded to several calls for service at the address. Parking complaints, lockouts, and an alarm and an alcohol compliance check were reported. There have been two reported fights at the location, one on April 16 and one on April 17, 2011. On April 16 PLPD officers broke up a large group pushing and shoving on Main in front of the bar, but no victims or injuries were reported to police. On April 17, 2011, PLPD officers responded to a "someone laying in the street ". Two victims went to the hospital with moderate to severe facial injuries after that incident which was a "fight" and the case investigation continues. At that time, Shelby Armit also gave officers a new phone number for the bar as well as her cell phone number for reference. COPIES OF THE PLPD ICR'S ARE ATTACHED. Scott County Property information was checked for the address of 16211 Main avenue and it is recorded 4aving the taxes paid by 16211 Main LLC, PO Box 831, Prior Lake, MN. Also according to the City Clerk, 16211 Main is owned by O'Malleys on Main Inc. Copies of property information are also attached. A background check was done on Marier for the license and he did not have any criminal history. A copy of this report will be forwarded to Chief O'Rourke for review. By: Detective D. White #22 Prior Lake Police Department cc: 2 City Of Prior Lake 4649 Dakota Street, S. E. Prior Lake, Mn. 55372 Memories On Main P. 0. Box 393 Prior Lake, Mn. 55372 TO WHOM IT MAY CONCERN: O'Malley's On Main, Inc. has granted Sassy's, Inc. dba Memories On Main permission to have a liquor liscense on premise. Location 16211 Main AVENUE S. E. Prior Lake, Mn. 55372 J , Thank you, % � Pres. O'Malley's On Main, Inc.