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Regular Meeting of the Lakewood Liquor and Fermented Malt Beverage Licensing Authority was held on this date in the City Council Chambers.
ITEM 1. CALL TO ORDER
Chairman Taake called the meeting to order at 7:00 p.m.
ITEM 2. ROLL CALL Fred Taake - presiding
Kristina Hansson
Albert Williams
Stan Wisneski
Mark Wolfe
Also present: Paul Kennebeck, Deputy City Attorney
Richard Miller, Attorney at Law
Full and timely notice of this meeting had been given and a quorum was present.
ITEM 3. APPROVAL OF MINUTES
Regular Meeting September 11, 2003
Mr. Wolfe moved to approve the minutes of September 11, 2003. The motion was seconded and with the vote being 5 Ayes, 0 Nayes, and 1 Abstention (Mr. Williams), THE MOTION TO APPROVE THE MINUTES CARRIED.
ITEM 4. SHOW CAUSE HEARING
Hotel & Restaurant License
Wallabys Development Company, L.L.C.
d/b/a Wallaroos Fresh Grill
11353 W. Colfax Ave.
Due to a possible conflict of interest, Mr. Wolfe recused himself from this hearing and left the chambers.
Deputy City Attorney Kennebeck told the Authority that this complaint was
issued because Wallabys Development Company L.L.C. transferred its ownership
to Wallaroos Holdings, L.L.C. by an asset purchase agreement on approximately
July 12, 2003. This transfer occurred without any notice to the City.
In the meantime, Wallaroos Holdings, L.L.C. was serving alcohol without a license
but filed a transfer of ownership application after this complaint was issued.
The City is asking for revocation of the hotel & restaurant license held
by Wallaby Development Company, L.L.C. and allowing Wallaroos Holdings, L.L.C.
to amend their application from a transfer of ownership to a new application.
Stephen Oldham, 13701 W. Jewell Ave. #250, Lakewood, CO, appeared before the Authority and was sworn in.
Joseph Heeb, 13701 W. Jewell Ave. #250, Lakewood, CO, appeared before the Authority and was sworn in.
Mr. Heeb stated that he is one of the managing members of Wallaroos Holdings, L.L.C., and was a five percent shareholder of Wallabys Development Company, L.L.C. He testified that in November of 2002, the majority interest of Wallabys Development Company, L.L.C. changed hands from an individual to a company out of Utah. In April of 2003, Mr. Oldham and Mr. Heeb agreed to sell their interests in Wallabys Development Company, L.L.C. in exchange for a promissory note due in September of 2003. The note was secured by a 100% ownership in the company. Mr. Heeb stated that between April and July of 2003, it became apparent that there were significant vendor problems and the restaurant was not paying its bills. In July, Mr. Oldham and Mr. Heeb demanded full payment of the note. On July 12, 2003, an agreement was reached with the Wallabys Development Company, L.L.C. and a newly formed company, Wallaroos Holdings, L.L.C. of which Mr. Heeb and Mr. Oldham each hold 50% interest.
Mr. Heeb stated that they were unable to file the transfer of ownership application in July because of difficulties in obtaining the correct lease documentation for the licensed premises. On September 15, 2003, they received the correct lease documentation from the landlord and ceased selling alcohol at that time. Mr. Heeb testified to a conversation with Laura Bock of the City Clerk's Office in July in which she told him to stop selling alcohol until a transfer of ownership application and temporary permit application were filed with the City. He felt that since he held a five percent interest in the previous company, he could continue to sell alcohol.
Mr. Oldham testified that he and Mr. Heeb have not been actively involved with this restaurant since construction started in the fall of 2001. Being owners, they were concerned with the process and had not been notified of the sale of the majority interest until after the fact. Due to these concerns, they asked for the majority shareholder for the security interest to allow them to protect their position in the company.
After comments from the Authority, Mr. Miller advised that the underlying license held by Wallabys Development Company, L.L.C. is gone by virtue of their abandonment and surrender of the premises. He also told the Authority that Mr. Heeb and Mr. Oldham had a couple of legal options in obtaining the liquor license under the new business entity. Yet, when these gentlemen formed Wallaroos Holdings, L.L.C. but continued to operate under Wallabys Development Company, L.L.C.'s license, they were in fact, in violation of the law.
In response to questions from the Chairman, Secretary Laura Bock provided the Authority with information on the events and communication that occurred between her and Mr. Heeb from July 14, 2003, through September 17, 2003, when the transfer of ownership application was submitted.
Chairman Taake swore in Laura Bock, Liquor Licensing Specialist for the City of Lakewood. She testified to how the complaint was served upon the licensee.
Ms. Hansson moved to revoke the Hotel and Restaurant License of Wallabys Development Company, L.L.C., d/b/a Wallaroos Fresh Grill, located at 11353 W. Colfax Ave., be revoked. The motion was seconded and with those present voting Aye, THE MOTION TO REVOKE THE LICENSE CARRIED.
Chairman Taake called a five-minute recess at 8:10 p.m.
ITEM 5. SHOW CAUSE HEARING
Retail Liquor Store License
Yu Family Corp.
d/b/a China Imperial
11068 W. Jewell Ave. Units C-11 & C-12
Deputy City Attorney Kennebeck stated that this complaint was brought forward because the licensee's paperwork was not in order. The first issue was the lease agreement that had expired a year ago and was not in the name of the corporation. The second issue was that the corporate entity was not in compliance with the Colorado Secretary of State's Office. Since the complaint was issued, the licensee has come into compliance with all issues and the City is willing to dismiss their complaint.
Kent Hewett, 13101 E. Mississippi Ave. #240, Aurora, appeared before the Authority and was sworn in. He testified that the lease amendment was completed but for some reason never made it to the City Clerk's Office in a timely manner. Additionally, the corporation has now been renewed with the Colorado Secretary of State and has been reinstated.
Ms. Hansson moved to dismiss the complaint against Yu Family Corp., d/b/a China Imperial, located at 11068 W. Jewell Ave. Units C-11 & C-12. The motion was seconded and with those present voting Aye, THE MOTION TO DISMISS THE COMPLAINT CARRIED.
ITEM 6. SHOW CAUSE HEARING
Hotel & Restaurant License
FoodBrand Colorado, L.L.C.
d/b/a Chilis Too
14500 W. Colfax Ave. #349
Deputy City Attorney Kennebeck stated that this complaint is the result of the licensee's failure to pass a compliance check conducted by the City on May 22, 2003. This is the licensee's first offense and they are willing to stipulate to the offense.
Robert Dill, registration #5725, appeared on behalf of the licensee. He stated that the licensee will admit to the violation and would ask for permission to pay a fine in lieu of suspension.
Mr. Wisneski moved to accept the stipulation between the Deputy City Attorney
and
FoodBrand Colorado, d/b/a Chili Too, 14500 W. Colfax Ave. #349. The motion was
seconded and with those present voting Aye, THE MOTION TO ACCEPT THE STIPULATION
CARRIED.
Mr. Dill told the Authority that the employee who sold the alcohol to the minor had been trained in alcohol service by the company but was terminated after this incident.
Mr. Wisneski moved that the following penalty be imposed: a suspension of 10 days with five days held in abeyance for one year commencing October 10, 2003. The balance of the suspension is to begin at 7:00 a.m. on October 10, 2003, and end at 7:00 a.m. October 15, 2003. The motion was seconded and with those present voting Aye, THE MOTION TO ACCEPT THE PENALTY CARRIED.
Mr. Dill asked the Authority to allow his client to pay a fine in lieu of suspension.
Ms. Stevens moved that the Authority allow FoodBrand Colorado, L.L.C., d/b/a Chilis Too to pay a fine in lieu of suspension. The motion was seconded and with those present voting Aye, THE MOTION TO ACCEPT A FINE IN LIEU OF SUSPENSION CARRIED.
ITEM 7. NEW APPLICATION
Hotel & Restaurant License
J&D Ventures Mission Trace, L.L.C.
d/b/a Little King
3333 S. Wadsworth Blvd. #A121
Deputy City Attorney Kennebeck told the Authority that he had reviewed this application and everything appeared to be in order.
Heather Boulter, 3333 S. Wadsworth Blvd. #A121, appeared before the Authority and was sworn in.
Gerald Boulter, 3333 S. Wadsworth Blvd. #A121, appeared before the Authority and was sworn in.
Ms. Boulter testified that she is the operating partner of the restaurant. She explained the restaurant's concept and her experience in the sale and service of alcohol. She told the Authority that she has already attended the City's alcohol class.
Mr. Boulter testified that they will be sending all employees to the City's training program.
In response to questions from the Authority, Ms. Boulter provided details of where the alcohol will be stored and the control measures in place for alcohol service remaining inside and not on the patio.
Kelly Pietrs, 2792 S. Race St., Denver, CO, appeared before the Authority and was sworn in. She testified that she is the managing member of Esquire Petitioning Services who was hired to survey the neighborhood. She provided the Authority with a brief explanation on how the survey was conducted and the results of that survey.
Mr. Wolfe moved that the application for a hotel and restaurant license for J&D Ventures Mission Trace, L.L.C., d/b/a Little King, 3333 S. Wadsworth Blvd. Unit A121, be approved. The motion was seconded and with those present voting Aye, THE MOTION TO APPROVE THE APPLICATION CARRIED.
ITEM 8. GENERAL BUSINESS
(A) Issue Complaint and Order to Show Cause and set hearing date for the 3.2%
Off Premise Fermented Malt Beverage License of Sunrise International, Inc.,
d/b/a Circle S Mini Mart, 495 Wadsworth Blvd.
Deputy City Attorney Kennebeck told the Authority that this licensee has not stocked nor sold alcohol in the two years that they've held this license which is a violation of state statute. The City is asking to not renew this license.
Mr. Wisneski moved to hold to a date certain of November 13, 2003, the complaint
and order to show cause hearing for Sunrise International, Inc., d/b/a Circle
S Mini Mart,
495 Wadsworth Blvd. The motion was seconded and with those present voting Aye,
THE MOTION TO ISSUE A COMPLAINT CARRIED.
(B) Issue Complaint and Order to Show Cause and set hearing date for the
Hotel and Restaurant License of White Lodging Services, Corp., d/b/a Courtyard
by Marriott, 7180 Hampden Ave.
Deputy City Attorney Kennebeck told the Authority that this licensee is not meeting the 25% food service requirements of a Hotel and Restaurant License.
Mr. Wisneski moved to hold to a date certain of November 13, 2003, the complaint and order to show cause hearing for White Lodging Services, Corp., d/b/a Courtyard by Marriott, 7180 Hampden Ave. The motion was seconded and with those present voting Aye, THE MOTION TO ISSUE A COMPLAINT CARRIED.
ITEM 9. ADJOURNMENT
There being no further business to come before the Authority, Chairman Taake adjourned the meeting at 9:00 p.m.
Laura Bock, Liquor Licensing Clerk
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