Board of City Commissioners - September 20, 2021 - Special Meeting

Agreeable with a call for a Special Meeting issued by Mayor Mahoney, the Board of City Commissioners of the City of Fargo, North Dakota, convened in a Special Meeting in the City Commission Chambers at City Hall at 4 o'clock p.m., September 20, 2021.
The Commissioners present or absent were as shown following:
Present: Gehrig, Piepkorn, Preston, Strand, Mahoney.
Mayor Mahoney presiding.

Hearing to Consider the Reapplication of the Liquor License Held by the International African Restaurant and Nightclub, LLC:
Mayor Mahoney said the Special Meeting is to consider the reapplication of the Liquor License held by the International African Restaurant and Nightclub pursuant to the City Commission Findings, Conclusion and Order suspending said license, in accordance with Fargo Municipal Code §25-1513.

Commissioner Piepkorn said the Liquor Control Board met September 15, 2021 and recommended a 30-day extension.

City Auditor Steve Sprague said his understanding is that the extension allows time for the manager, Mbaullu Brown, to learn to successfully run a nightclub and bar. He said the owner and management has not changed from the 2019 application to and the 2021 application to be considered is the fourth application. He said there are concerns about false statements and questions about character, fitness and reputation.

Police Captain Chris Helmick reported on an interaction when co-owner Corey Schultz was combative and derogatory to officers when arrested by the West Fargo Police Department in February for disorderly conduct and resisting arrest. The nature of his behavior calls into question his suitability to hold a liquor license, he stated.

Brett Brudvik, Brudvik Law Office (via conference call), said Mr. Schultz is a silent partner. He asked for consideration of the Liquor Control Board’s recommendation allowing 30 days and to give the business an opportunity to implement changes.

Attorney Adam Richard asked that the suspension be lifted due to the strides being made by his client. He said they have engaged a qualified individual, Trevor Young, to consult with Ms. Brown.

In response to a question from Mayor Mahoney asking whether the consultant would be onsite or intermittent, Mr. Brudvik said the amount of time Mr. Young would be able to provide has not been established.

Commissioner Preston said falsification of an application is enough for a revocation. She said the intent is to protect public safety, not ensure the success of a business.

Commissioner Piepkorn said the bottom line is to revoke the license or give them 30 days. He said the loss of the license would be significant financially to the holder and would be a significant penalty.

In response to a question from Commissioner Strand asking what would happen to the license if revoked, Mr. Sprague said the license would come back to the City and the City Commission would decide what to do with it.

Mr. Brudvik asked for 30 days and said, if required, a permanent manager could be found and a more complete business plan submitted. He said if this were to go from a suspension to a revocation, he asks the City to allow them to market the license so it can be transferred rather than returned to the City.

Commissioner Piepkorn said the roster appears to be the same as before and he feels there needs to be a clean slate. He said he would support giving them time to move the license.

Commissioner Gehrig said granting 30 or even 60 days will not turn things around. He said if this goes further with suspension or revocation, it must also be done with other establishments with bad behavior. A Class “A” Alcoholic Beverage License is a controlled product, he said, and not a commodity to be bought and sold by the owners. The City needs to fix the system and stand stern, he said, and the license should be revoked.

Commissioner Gehrig moved the Class “A” Alcoholic Beverage License held by the International African Restaurant and Nightclub, LLC be revoked.
Second by Preston.

Ms. Brown said they are working towards getting good management. She said the roster may look bad; however, she did not take part in any bad things that happened and she asked for a chance to prove herself.

Mr. Brudvik said it has only been four business days since the Liquor Control Board’s recommendation so a solution is not expected immediately. He said his client is willing to remove Ms. Brown on the application as manager and replace her with a permanent manager if that is what the Commission wants to see; however, they need time to do it. The license was purchased from Firebox with money still owed on it, he said, and if the decision is revocation they will not be able to pay that money back. He said he would ask for 30 days to market the license, which is a valuable asset.

Commissioner Gehrig said Ms. Brown has been part owner since the beginning and she has not been active in managing the business so she has had her opportunity.

Commissioner Strand moved to amend the motion to allow 30 days for the owners to develop a business plan or to sell the asset, with the license remaining in suspended status.
Second by Preston. On call of the roll Commissioners Strand and Mahoney voted aye.
Commissioners Piepkorn, Preston and Gehrig voted nay.
The motion was declared lost for a lack of majority.

Commissioner Piepkorn moved to amend the motion to allow the owners 30 days to sell the license and if that is not done, the license would be revoked.
Second by Preston. On call of the roll Commissioners Piepkorn and Mahoney voted aye.
Commissioners Strand, Preston and Gehrig voted nay.
The motion was declared lost for a lack of majority.

Commissioner Gehrig moved to amend the motion to allow the owners 30 days for the sale of the license under contract and if that is not done, the license would be revoked.
Second by Strand. On call of the roll Commissioners Strand, Piepkorn, Preston and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

City Attorney Erik Johnson said if there were a binding purchase agreement in writing with someone other than the current ownership group, the amendment allows time for the processing of an application and it would be treated as a transfer of a going concern. It would not all happen in 30 days, he said; however, they could meet the 30-day threshold with a written agreement.

In response to a question from Commissioner Preston asking if the revocation would be immediate should a buyer not meet the City’s background criteria, Mr. Johnson said yes. He said the intent of the motion is that it is subject to having a viable purchaser that can ultimately receive the transfer.

On call of the roll on the original motion, as amended, Commissioners Preston, Piepkorn, Strand and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

The time at adjournment was 5:05 p.m.