Liquor Control Board - September 15, 2021 Minutes

LIQUOR CONTROL BOARD
SPECIAL MEETING
September 15, 2021 2:00 P.M.

Present: Commissioner Piepkorn, Kay Schwarzwalter, John Stibbe, Lydia Tackett (via phone), Robert Nelson
Absent: None
Others Present: Police Chief David Zibolski, City Auditor Sprague, Grant Larson, Environmental Health, Nancy Morris, Asst. City Attorney; Mballu Brown, Francis Brown, Adam Richard, Bredvig Law, and other interested parties.

Commissioner Piepkorn called the meeting to order at 2:05 P.M.

City Auditor Steve Sprague reviewed the timeline of events starting with the special meeting of the Liquor Control Board on June 29th in which a 60 day suspension was recommended, followed by a special City Commission meeting on July 1 where an immediate suspension of the license was recommended until a hearing could be held. During July numerous meeting and conversations were held with the Club representatives. On July 27th the City Commission held a hearing and finding of facts with the recommendation of holding the license in suspension until a re-application is submitted and processed and acted on by the Liquor Board and the City Commission, those are the steps and actions that bring us here today. After the City Commission meeting on July 27, a blank application was provided to the Club along with a copy of the 2019 application. On July 29, re-application #1 was received, this application was reviewed by the Police Chief and City Auditor and a number of omissions and discrepancies were highlighted, the Club was asked to address. On July 30 re-application #2 was received and that is the one used for the background checks. August 11 the Police report becomes available, on August 12 City Attorney Johnson and Asst. City Administrator Redlinger meet with representatives of the Club to review the findings. On August 16 the City receives an email notification that Mr. Omane and Mr. Schultz would both be removed from the application. On August 20 the City receives Application #3 in which Mr. Omane’s name is removed. August 24 Mr. Omane directs me to sign that we have received the application, on August 30 he requests I get the Police Chief to sign that the application, which I couldn’t not fulfill. On August 31 an attorney is engaged and requests a delay in the special meeting that had been scheduled. Beginning in July the City had suggested the Club seek legal representation. On September 10 we received re-application #4 which is the application we are requested to consider. Before we move on let’s review the 2019 application, on that application Mr. Schultz and Francis Brown are listed on the application. Due to a felony conviction, Mr. Brown is unable to hold a liquor license in the City of Fargo. A request was made at that time to remove Mr. Brown and insert his wife Mballu Brown as owner and manager. During the past year on most calls for service, Francis Brown identifies himself as the owner or manager, additionally, on the renewal application received in May 2021, Francis Browqn is listed as manager. It is important to note that in 2019 the Liquor board and Police Chief recommended denial of the liquor license, the City Commission approved the application.

Adam Richard, Bredvig Law, representing Club Africa along with Brent Bredvig joining remotely. Businesses should be measured not by previous deficiencies but by the willingness to address and resolve those deficiencies. Great strides have been made since the previous hearing. Brudvig Law was hired to represent Club Africa on August 31 and requested a continuance of the scheduled hearing to address the deficiencies in the applications submitted previously. They have worked with the Club to provide the City with a complete, thorough and accurate application to consider for the liquor license application. Some individuals named in previous applications are no longer involved in Club Africa. Brent Brudvig remarked they got involved late and requested the July 29th application not be considered because it was inaccurate and that the Sept 10th application be considered as it is complete and accurate. They are requesting the 4th application be the one to be considered as it was professionally prepared and is accurate. They are trying to get the management structure in place that will allow them to operate and be good neighbors and run a good business operation. Mr. Richard continued, Mr. Omane no longer has any affiliation with Club Africa, the representatives of the Club took it upon themselves to address the concern and Mr. Omane is no longer involved. Mrs. Brown’s credit was also a concern and as documents show the past due, balances have been addressed. Mrs. Brown is ready to take over the management of the business. The concern with Mr. Schultz was the nondisclosure of the disorderly conduct in 2020. Mr. Schultz thought the charge had been deferred for 6 months, he believed it was deferred and would have been cleared from his records. Finally, the changes to the restaurant operation have been addressed in the application, some employees listed do not have server training but have their training scheduled. Changes to business operations have been made to ensure safety of the patrons. The Club is a unique and exciting business asset for the City of Fargo. Goal is to stand as an exemplary business in Fargo.
Lydia Tackett asked how many security personnel have been hired. The Club responded there have been five hired to date.

Chief Zibolski commented he recognized the Law firm was brought on recently, however, his communication with the Club representatives on August 12 listing concerns about the management team and the false information contained on the application. So the application did not need to be fixed any subsequent applications are entwined with the earlier application. Reviewing the newest application. It is important to note Mr. Schultz and Mrs. Brown have been the listed owners of the establishment since its inception; they were the owners when all of the incidents that led up to the suspension occurred. In terms of false information, Mr. Schultz failed to disclose the arrest in West Fargo, it is the conduct displayed during the arrest that is of concern; Mr. Schultz fled officers on foot, he was chased out into the parking lot where he eventually stopped and was apprehended. He was uncooperative with officers refusing to identify himself, when handcuffed he became aggressive and pushed against officers, During the ride to jail he directed ethnic and gender derogatory epitaphs and expletives at the female officer, once at the jail he continued to struggle with jail staff. This is behavior that is consistent over time. The behavior is also consistent with the operations of the Club when interacting with law enforcement. The new application adds the incident but the conduct is the issue.
In terms of Mrs. Brown, when the license was issued Mrs. Brown states she will be the manager but in fact Mr. Brown became the manager and remained in that capacity until license suspension. Mrs. Brown’s email is exactly the same as Mr. Brown’s. I question the veracity of the information are we truly separating from Francis’ role as manager? On Page 5 of the application Mrs. Brown’s date of birth is different from the July 29th application where it is handwritten, two different birthdates on two different applications. Mrs. Brown’s driver’s license is listed in her maiden name, by law you have 10 days to make the change after marriage. On page 6, the question asks you to list any licenses you have an interest in and whether any licenses have been suspended, she has mark NO but in fact is the owner on record for the African International Restaurant and Nightclub whose license is under suspension. Mr. Schultz answered the same questions correctly. Page 7 asks are you going to manage this business and if not who is the manager, they checked yes they are going to manage, then filled in that Mballu Brown would be the manager, so the page was not completed correctly. On page 9 under the operational and financial issues, the second paragraph second sentence states “this is s continuance of the Liberian Merry go Round that I operated”. The Liberian Merry Go Round was owned and operated by Francis Brown; this appears to be a false statement. Page 10 for the question of financial indebtedness the application lists a NDCC section claiming they do not need to complete this section, the City Attorney says this is not correct and there is no legal reason not to complete this section. On the roster on page 17 Mrs. Brown is listed with a date of hire of 8/31/21 although she has supposedly been the owner and manager based on the prior application, in addition on her application she lists she is a full time CNA, goes to school and works at the bar. On the roster listing who is server trained, checking with the Health Department, discovered only Zolay has been trained. Health does not have record of the other individuals they listed as server trained, again this is false information. Mr. Schultz has very large amounts of outstanding credit card debt, this is concerning.
The August 11th recommendation of denial was based on the false information supplied in the application. As of September 15th the recommendation remains to deny this liquor license based on false information provided.
Mrs. Brown responded she has made a payment plan to address her credit issues. She also indicated if the City would like another email address, she could create a separate email.
Mr. Richard commented the two birthdates one was just miswritten. As to Mrs. Brown’s hire date of August 31, that was her date she became the General Manager, prior to that she was an employee, she continues to work as a CNA, if the license is approved, she will resign that position and work full time at the bar. As to the roster, Mr. Andrews should have been listed as Mr. Abraham. Mr. Brudvig said even though things are not perfect they are trying to do it right. Mr. Brudvig stated the Chief’s comments we really nit-picky and questions if everyone goes under the same scrutiny. As to the application, there is a difference between a false statement and a mistake.
Lydia Tackett asked is this was a transfer or a reissue or renewal of this license, if the owners are removed, is it a transfer. Attorney Morris replied the owners on the reapplication are the same as the original application, so there is no transfer. Commissioner Piepkorn commented he was on the Liquor Board and the City Commission when this license was first approved for issuance. The thought was this business could be an asset for the community, but it has to be a safe professionally run business. He was hoping to see a change in management. Mr. Richard indicated Mr. Schultz is a quiet partner; he has his own business outside the bar. The big change is that Mrs. Brown is going to be fully involved in the business.
Lydia Tackett asked if the license could be issued provisionally, Attorney Morris commented you either have a license or you do not, she was not aware of a provisional status. Kay Schwarzwalter said her concern was for Mrs. Brown to step in to a business with serious infractions and run it with no experience. Robert Nelson said the nightclub business requires more than striving to run a good business. They have had difficulty getting a correct application, how can we move forward? Weapons, fighting, over serving, no experience, it is hard to change the culture.
Mrs. Brown pleaded that she can do better. Mr. Richard said they are motivated to do better.
Attorney Morris said this re-application could go to City Commission without a recommendation from the Liquor Board.

Moved by Stibbe, Seconded by Piepkorn to revoke the license, voting aye, Stibbe, Piepkorn, voting nay, Tackett, Schwarzwalter, Nelson. Motion defeated.

Schwarzwalter said she is not ready to revoke; she would like to see a longer suspension to allow them to get a management team in place and to get education and server training. Tackett said she is not ready to revoke, they need to learn how to manage, to make structural changes and get a GM that has experience. Stibbe said they have had 4 applications and yet they end up with the same people, he has no confidence, they have no experience. Piepkorn said this could be a valuable asset to the City but is has to be safe and professionally managed.
Attorney Bredvig asked for more time to allow them to do it right.

Moved by Schwarzwalter, seconded by Tackett to continue the suspension for 30 days to allow them to get a management team in place. Voting aye, Schwarzwalter, Tackett, Nelson, Stibbe. Voting nay, Piepkorn.

There being no further business to come before the Liquor Control Board, the meeting was adjourned at 3:18 p.m.