Liquor Control Board - June 29, 2021 Special Meeting Minutes

LIQUOR CONTROL BOARD
SPECIAL MEETING
June 29, 2021 2:00 P.M.

Present: Commissioner Piepkorn, Kay Schwarzwalter, John Stibbe, Lydia Tackett, Robert Nelson
Absent: None
Others Present: Police Chief David Zibolski, City Auditor Sprague, Grant Larson, Environmental Health, Rick Carik, Rick’s; Duane Litton, Duffy’s; Dave Erickson, Bulldog Tap; Dustin Mitzel, Happy Harry’s, Dave Glessner, Sidestreet, and other interested parties.

Meeting was called to order at 2:00 P.M.

1. Sprague introduced Ellen Wall, Crown By Ellen Events, to speak about her request for an event center license that would allow both on and off sale, the space would only be open on days of events Ellen commented the space is the old VIP room in the lower level of the Block 6 building. The space would be used for educational opportunities as well as open to private rentals. While they will have a kitchen space, all food will be catered. Existing licenses won’t work for this space and this concept, this is a venue license and will only operate when there is an event, it would have both on and off sale and would be wine only. Piepkorn asked if she has reached out to others in the industry, Wall responded she has spoken to Happy Harry’s. Nelson asked how the on/off sale has working in West Fargo and if the ownership would be the same. Wall responded that the on and off sale license in West Fargo has worked well for them and the ownership structure would be very similar to the other location. Nelson commented about transferring inventory, Wall responded they would maintain their own inventory. Stibbe asked about catering, wall said they would work with a couple different caterers, excluding Maxwell’s. Nelson asked if they would cater wine sales to home parties, Wall responded they are most concerned with bringing people to the space they are working on. Sprague commented Wall has been advised there would be no license creep, if the business is not what she anticipated, we will not add to the license. Commissioner Piepkorn questioned the process, Sprague responded we would seek Commission direction to draft the license then bring it back to Liquor Board to review and finally to City Commission for 1st reading, 2nd reading etc.

Moved by Stibbe, seconded by Tackett to bring the item back to the agenda and forward the request to the City Commission for consideration to create a new license class that would allow an event center license selling only wine both on and off sale. Motion carried.

2. Chief Zibolski detailed an incident from Cactus Jacks where a minor was served and later was involved in a fatal vehicle crash. Video evidence showed the underage person entering the facility and the video shows the minor was served without being carded. Police recommendation is to follow the established penalty matrix, which calls for a $500 penalty. The business is current on server training and has purchased an ID scanner.
Moved by Schwarzwalter, seconded by Tackett to follow the penalty matrix . Motion passed.

Chief Zibolski reviewed the interactions with the African Nightclub, including details of the months of April and May. Chief met with Francis Brown to discuss calls for service, ID scanners and prevention of underage drinking. Chief Zibolski reviewed many calls for service during the months of April and May, he also reviewed incidents from a homicide with a power point presentation. There were a number of inconsistencies in the testimony from the security personnel. The presence of firearms in a liquor establishment by persons not employed by the bar is a violation of law.
Chief Zibolski continued Fargo Municipal code 25-1512 B6 allows that the Commission may in its discretion suspend or revoke any license issued under the provisions of this article. The grounds for suspension or revocation shall include #6 The licensee conducts his business in a manner which results in, encourages or is conducive to the creation of disturbances of the peace, disorderly conduct or any other violations of federal, state or city laws. In addition subsection C states the commission for any other reason deemed by the commission to be sufficient in order to promote and protect the public health, safety, morals and general welfare of the people of the city of Fargo may suspend or revoke the license.

Due to significant concerns the Chief has about public safety he is recommending a suspension of the license

Nelson commented typically bars with the biggest problems are a function of volume but in this case it appears more of a negligent manner of operation. Tackett remarked the rules we have in place are to protect patrons as well as employees.

Stephan Baird, attorney assisting the club, every time there has been an issue it has been dealt with retroactively. Anyone who has had an issue is added to the ban list, not allowed in the club going forward. His understanding is that there are multiple pat downs to check for weapons, anyone found with a weapon is turned away. Only a few people work on security at the club and in his opinion people not involved in security should not be commenting on security issues at the club. After the homicide, the policy was changed to not allow any guns in the facility. It is unclear how minors got into the bar. Mr. Baird indicated he doesn’t know who the security is but he does know Mr. Brown.

Moved by Stibbe, seconded by Nelson to recommend to the Board of City Commissioners to suspend the license for up to 60 days. Motion passed.

3. Auditors compliance discussion, Brewtus Clubhouse proper notice has been sent regarding food sales percentage failure. Moved by Tackett, seconded by Schwarzwalter to follow the penalty matrix. Motion passed.
Avalon Events Center and Chipotle failure to attend the annual meeting, penalty is $500 following the matrix. Moved by Schwarzwalter, seconded by Tackett to follow the penalty matrix.

There being no further business to come before the Liquor Control Board, the meeting was adjourned at 3:17 p.m.