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Liquor Control Board

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Liquor Control Board - June 19, 2019 Minutes

LIQUOR CONTROL COMMITTEE MEETING
June 19, 2019 1:30 P.M.

Present: Commissioner Piepkorn, Commissioner Gehrig, Police Chief Todd, City Auditor Sprague, Grant Larson, Environmental Health
Absent: None
Others Present: Assistant City Attorney Nancy Morris; Rick Carik, Rick’s; Dustin Mitzel, Happy Harry’s, Duane Litton, Duffy’s; Sam Corr, Drumconrath; Lisa Meyer, Wurst; Francis Brown & Corey Schultz, International African Restaurant & Nightclub; Jared Hardy, Fargo Brewing; Lisa Meyer, Wurst; Carol Schlossman, Josi Danz, Arlette Preston Downtown Neighborhood Association, Other members of the media, concerned citizens and other members of the industry.

Meeting was called to order at 1:30 P.M.

1. Commissioner Piepkorn called the meeting to order and asked if there were any additions or corrections to the minutes of May 15, 2019. There were no additions or corrections to the minutes of May 15, 2019. Moved by Gehrig, seconded by Larson to approve the minutes of the May 15, 2019 meeting of the Liquor Control Board all voted in favor, motion passed unanimously.

2. A. The first application to consider today is the issuance of a Class “C-W” alcoholic beverage license to Hoffberger Escape LLC d/b/a Rough Cut Social located at 1100 NP Ave. Commissioner Gehrig asked the number of CW licenses available and the cost of each.

Moved by Larson, seconded by Todd to approve the issuance of a Class “C-W” alcoholic beverage license to Hoffberger Escape LLC d/b/a Rough Cut Social located at 1100 NP Ave on the condition proper building permits are acquired. Motion approved unanimously.

B. The second application to consider today is the issuance of a Class “Y” alcoholic beverage license to Drumconrath Brewing Company LLC d/b/a Drumconrath Brewing Company located at 630 1st Avenue North #6. Sprague commented this business is moving into the space formerly occupied by Drekker.

Moved by Todd, seconded by Larson to approve the issuance of a Class “Y” alcoholic beverage license to Drumconrath Brewing Company LLC d/b/a Drumconrath Brewing Company located at 630 1st Avenue North #6. Motion approved unanimously.

C. The third application to be considered today is for the transfer of a Class A alcoholic beverage license from Firebox, LLC d/b/a Firebox to International African Restaurant & Nightclub, LLC d/b/a International African Restaurant & Nightclub to be located at 4554 7th Avenue South. Sprague commented this license was acquired from Olive Garden by Firebox and Firebox never used the license, this transfer would get the license back in circulation. The location is the former JT Cigaro building which has sat empty since that business closed.

Chief Todd explained there were some issues with the credit history but most of the financial issues have been resolved. A larger concern was the criminal history; Mr. Brown has two felonies, one in 2007 for Felony Theft by Deception in Pennsylvania, the other in 2015 for Theft over $10,000 in Iowa. Mr. Schultz has a felony for Delivery of a Controlled Substance. Chief Todd said he cannot recommend approval based on our guidelines.

Stephan Baird an attorney representing the applicants said the applicants have used the events leading to the felonies as learning tools, since that time they have been upstanding businessmen and family men. Mr. Brown’s most recent felony was a result of being in business with some bad business partners. Mr. Baird commented this past legislative session the State passed laws relating to the rights of criminals. He said it was the State’s intent to allow rehabilitated criminals to fully participate in society. Mr. Schultz said his felony was 15 years ago, since then he has successfully run a business and been an upstanding member of the community. Mr. Brown commented he has been doing business in Fargo for a long time, he is a peaceful man.

Commissioner Gehrig questioned if we had guidelines for these situations. Sprague said the Fargo Municipal code at 25-1512 speaks to times when the Commission can revoke a license, one of those times is when the licensee is convicted of a felony. Chief Todd said he thought we adopted guidelines where a Class B misdemeanor is 1 to 3 years, a Class A misdemeanor is 3 to 5 years and a felony is longer. The guidelines were not readily available to the Board.

It was decided to send this item to the City Commission but to include the guidelines.

Moved by Gehrig, seconded by Sprague to approve the transfer of a Class A alcoholic beverage license from Firebox, LLC d/b/a Firebox to International African Restaurant & Nightclub, LLC d/b/a International African Restaurant & Nightclub to be located at 4554 7th Avenue South. Voting Yea, Gehrig, Larson & Piepkorn; voting Ney Todd & Sprague.

3. Sprague updated the Liquor Control Board regarding the Air Show. After further review it was determined there doesn’t need to be an amendment to the ordinances to allow patrons of the airshow to carry beer throughout the exhibit since this is not in the public right of way. The Airshow only needs to obtain an E permit as they have been doing for many years. After discussing with the Air Show, it is agreed they should use wrist bands so security will know who is authorized to be drinking the alcohol. The City is working to get the volunteers server trained.

4. The final item on the agenda is discussion regarding the penalty matrix. Chief Todd reviewed the work of the subcommittee and how the matrix was derived. Attorney Morris explained her office determined the best way to compare existing ordinance with the proposed was to create a matrix of the existing ordinances.

Commissioner Piepkorn asked what the penalty was for a minor trying to purchase since there is a penalty to the business owner if they sell to a minor. Chief Todd explained the difference is between an administrative penalty and a criminal penalty, he said the ability to sell alcohol is a privilege not a right. Licensees need to conduct business appropriately. Morris said the structure may need more discussion as some of the existing ordinances have greater penalties than what is proposed. We need to make sure we have a rolling time period for penalties to reset.
Commissioner Gehrig suggested we have a brown bag so we ask commissioners what changes they can support. Chief Todd and Sprague will work on an agenda for a brown bag.

There being no further business to come before the Liquor Control Board, the meeting was adjourned at 2:04 p.m. The next regular meeting will be held Wednesday, July 17, 2019 at 1:30 p.m. in the City Commission Room.