Liquor Control Board - March 24, 2021 Minutes
LIQUOR CONTROL BOARD
March 24, 2021 1:30 P.M.
Present: Commissioner Piepkorn, Commissioner Gehrig, Police Chief David Zibolski, City Auditor Sprague, Aaron Johnson, Environmental Health
Absent: Grant Larson, Environmental Health
Others Present: Rick Carik, Rick’s; Duane Litton, Duffy’s; Jim Swanick, Empire; Dustin Mitzel, Happy Harry’s, Mark Bjornstad, Drekker, Marty Johnson, Jasper Hotel, Dan Labernik, Labby’s, Dave Erickson, Bulldog Tap, Brent Edison, Vogel Law and other interested parties.
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 February 17, 2021. There were no additions or corrections to the minutes of February 17, 2021. Moved by Gehrig, seconded by Johnson to approve the minutes of the February 17, 2021 meeting of the Liquor Control Board all voted in favor, motion passed unanimously.
2. A. Application for a Class ABH alcoholic beverage license from Aparium Hotel Group d/b/a Jasper Hotel to be located at 215 Broadway. The hotel will have 125 guest rooms , there is a banquet room that seats 300, the restaurant capacity will be 150, they are hiring now with a tentative opening of June 10, 2021. No issues or concerns were raised in the background checks.
Moved by Gehrig, seconded by Johnson to approve the application for a Class ABH alcoholic beverage license from Aparium Hotel Group d/b/a Jasper Hotel. Motion carried.
B. Application to transfer a Class “FA-Golf” alcoholic beverage license from Big Irv’s Bar & Grill LLC d/b/a Big Irv’s at Rose Creek to Living the Dream LLC d/b/a Legends to be located at 1500 E Rose Creek Parkway South.
No issues or concerns were raised. Moved by Gehrig, seconded by Johnson to approve the transfer of a Class “FA-Golf” alcoholic beverage license from Big Irv’s Bar & Grill LLC d/b/a Big Irv’s at Rose Creek to Living the Dream LLC d/b/a Legends to be located at 1500 E Rose Creek Parkway South. Motion Carried.
C. Application to transfer a class “H” alcoholic beverage license from Pizza Ranch 45 St, Inc. d/b/a Pizza Ranch located at 4480 23rd Street South. This is a stock ownership change with no corporate name change.
No issues or concerns were raised. Moved by Sprague, seconded by Gehrig to approve the to transfer a class “H” alcoholic beverage license from Pizza Ranch 45 St, Inc. d/b/a Pizza Ranch located at 4480 23rd Street South. Motion Carried.
D. Application to transfer a class “GH” alcoholic beverage license from Harihar LLC d/b/a Himalayan Yak to 4 Stars Group LLC d/b/a Himalayan Yak to be located at 1450 25th Street South, Suite 160.
No issues or concerns were raised. Moved by Sprague, seconded by Gehrig to approve the transfer of a class “GH” alcoholic beverage license from Harihar LLC d/b/a Himalayan Yak to 4 Stars Group LLC d/b/a Himalayan Yak to be located at 1450 25th Street South, Suite 160. Motion carried.
E. Application for a transfer of a class “FA’ alcoholic beverage license from Lucky U, LLC d/b/a Lucky’s 13 Pub to Eclectic Culinary Concepts, Inc. d/b/a Lucky’s 13 Pub to be located at 4301 17th Ave South, 5% ownership change.
No issues or concerns were raised. Moved by Gehrig, seconded by Johnson to approve the transfer of a class “FA’ alcoholic beverage license from Lucky U, LLC d/b/a Lucky’s 13 Pub to Eclectic Culinary Concepts, Inc. d/b/a Lucky’s 13 Pub to be located at 4301 17th Ave South, 5% ownership change. Motion carried.
3. Sprague updated the committee on the status of the Ivy & Rose application. The building needs to have a sprinkler system installed, there are landscaping requirements that need to be addressed and the approved sink needs to be installed. Once everything is complete we will re advertise the public hearing.
4. Brent Edison of Vogel Law firm was present to request to amend the food sales requirements for the FA and FA-RZ licenses so that $50,000 in monthly food sales would meet the definition of a restaurant. Mr. Edison commented the measurement of a restaurant under the current ordinance structure in antiquated. Changes in dining habits, the cost of craft beer and high end cocktails has skewed the 50% ratios. His client runs a high volume restaurant. They are proposing to amend the 50/50 ratio to also allow a fixed amount, $50,000 per month in food sales. Having alcohol sales adjunct to the food sales is too inflexible; a better measure would be the volume of food sales.
Commissioner Piepkorn commented it is important for bars and restaurants to survive. He questioned if they purchased the correct license for their operation. Any changes need to be fair to those who have already purchased their license. Mr. Edison said he appreciated the concern, however, his clients lease requires him to have an FA license. Commissioner Gehrig asked if most restaurants did $50,000, Sprague responded that we do not track restaurant food sales in that manner.
Sprague mentioned that the FA was created when Chili’s and Friday’s came to town, at that time the food percentage was set at 65%, then there was no doubt the business was a restaurant and that alcohol sales were adjunct to the food. The concern is that by setting a dollar amount of $50,000 then the business could sell as much alcohol as it wanted, say $150,000, by no definition would someone consider that a restaurant. The FA is a restaurant license that sells alcohol, not a bar license that sells food. The key word is “adjunct” if alcohol sales exceed food sales; the alcohol sales are no longer supplementary to the food sales. The 50% is a tie to State law where minors can be present where alcohol is sold.
Commissioner Piepkorn said he would like to have a meeting with their clients to see if there is a compromise that can be reached. He suggested we continue this topic until a future meeting.
5. Sprague presented a request from Chef’s Table to relocate the FA license to the Boiler Room location. Additionally, the owner is requesting a waiver from the requirements of 25-1512 regarding the requirement to have continuous sales for the FA-RZ license currently located at the Boiler Room. The owner indicated this change would simplify his bookkeeping and provide for an ease of operations. Moved by Gehrig, seconded by Johnson to approve the request to transfer the Chef’s Table license to the Boiler Room and extend the FA-RZ license. Motion carried.
6. Sprague reported the liquor audit was complete, there is one area of concern with the liquor license at Osgood, Brewtus Clubhouse, Sprague commented that the FA-Golf license requires 50% food sales during the non-golf season and 25% food sales during the golf season; he needs to review the audit to make sure the proper percentages were followed. Moved to receive and file by Sprague, seconded by Gehrig. Motion carried
7. Chief Zibolski reported he and Commissioner Piepkorn met with owners and managers of The Empire, Bismarck and International African night cub. The discussed improving public safety, improving Police relationships and operations. The discussed installing ID scanners and standards. Chief stated that the Empire and Bismarck have installed ID scanners and made some operational changes that should help improve conditions. Commissioner Piepkorn said if you are willing to work with the City and PD to improve public safety we are less likely to pursue penalties. He said even though there were different problems the solutions were similar, install cameras, install ID readers and work with the PD. We are looking for pro-active changes. The issues are not just the bars; the citizens need to assist in making Fargo safe. Downtown needs to be safe. Commissioner Gehrig asked if there was a plan to recheck, to make sure the changes are working and are still in place. Piepkorn said if you see something say something, it is not just the bars; it is all of us.
Chief Zibolski said body worn cameras will be able to receive images from public, they images cannot be anonymous, the PD needs to know who sent the video to make sure they are not doctored and in case there are further questions. The old camera systems are not as clear as today’s technology; lighting can make a big difference in how useable the video is. PD will be making and documenting more walk through in the future. There will be more proactive contacts. If a bar has a problem the PD wants them to call, it is not a negative to call for assistance. The downtown will see an increased presence. Commissioner Piepkorn wanted to clarify if there is an issue inside the bar do you want the bars to move that activity outside then call the PD, moving it outside is not the end of the situation. Chief said it is not a negative to call for service or to move the issue outside.
8. Commissioner Gehrig questioned if police could be hired by bars when they are off duty and be wearing their uniforms to give a more secure feeling to the bars. Chief Zibolski responded they would not allow them to work in this capacity; the officers are public safety professionals, even if they were off duty, and it would be a potential conflict of interest. Certainly, bars can hire private security.
Commissioner Gehrig said the City commission pushed the question of the 100 foot rule back to the Liquor Control Board, he would like an up or down vote on the question. Commissioner Gehrig asked Sprague to state what the 100-foot rule is. Sprague commented the 100-foot rule prohibits an off sale from being within 100 feet of a grocery store gas station or drug store.
Gehrig moved to end the 100-foot rule; there was no second so the motion died for lack of a second.
Aaron Johnson indicated the Health Department did not have a strong opinion either way on the 100-foot rule but encouraged the Commission to make sure State rules are followed regarding a separate entrance and separate check out. There are studies that indicate having those barriers between the alcohol and children helps to decrease alcohol use by minors.
Sprague commented on the 100 foot rule that Fargo did not lose Costco because of this rule, he was present in the meetings and saw the site plans to know Costco has quite a bit of experience conforming to local rules and they were able to meet and accommodate Fargo’s ordinances. If we see another large retailer that wants to come to Fargo, we can address the issue at that time. The concern is that everyone that has an off sale has met the rules as they currently exist, including not only the local but also the big box stores like Target and Coburns.
9. Sprague mentioned some upcoming changes that are taking place are to restructure the Liquor Control Board; the new Board will be comprised of one City Commissioner and four members at large. He said there are times when the Auditor’s office has worked with a business and developed a relationship but something happens and then the business needs to be sanctioned and that can be an uncomfortable position, to be an enforcer of the ordinances when you’ve developed a relationship with the business. There will be a vetting of the applications in the near future, once applicants are chosen at large, there will be an education element that will occur. Commissioner Piepkorn said this is an at large appointment; we need people to apply that have a passion for this appointment.
There being no further business to come before the Liquor Control Board, the meeting was adjourned at 2:19 p.m. The next regular meeting will be held Wednesday, April 21 2021 at 1:30 p.m. in the City Commission Room.
NOTICE: The MANDATORY Annual Meeting will be held Tuesday May 4 at 10 am, 1 pm and 6 pm.