90-622 0 R I G! NA L Councit File # ��
Green Sheet �
RESOLUTION
CITY OF S T PAUL, MINNESOTA ,!�13
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Presented By
Referred To Camiittee: Date
RESOLVED, that the Sunday On Sale Liquor, Entertainment, Restaurant and all other licenses
held by Scanlon's Ace Box Bar & Bar, for the premises at 2162 West University Avenue in Saint
Paul are hereby suspended for a period of two (2) consecutive days, commencing on Sunday
following publication of this resolution, but said suspension is hereby stayed for a period of one
year.
This resolution is based upon the record of the proceedings before the Administrative Law
Judge, including the hearing held on January 12, 1990, the documents and e�ibits introduced
therein, the testimony offered by and on behalf of the licensee and the city license division at that
hearing and at the Council hearing on March 29, 1990, and the deliberations of the Council in open
session. The Council adopted the findings and fact and conclusions of law of the Administrative
Law Judge as contained in her Report dated February 10, 1990, but deviated from the
recommended sanction as noted above.
A copy of this resolution, as adopted, shall be sent by first class mail to the Administrative Law
Judge, and to the licenseholder.
--------------- ------- ------ ---------
Yeas Na s Absent Requested by Department of:
Dtmon
Goswitz l
Lon
Macca e
Rettman
T une
Wi son BY�
___________________ _____�___—_________
Adopted by Council: Date
APR 1 7 1990 Form Approved by City Attorney
Adoption Certified by Council Secretary By. /.--s�j O
BY' �"���� �'�6. ''�"«�� Approved by Mayor for Submission to
.
Approved by Mayor: Date pR � 8 19 90 �°�"�;�
By:
�r_✓���?YL" By:
���4SNED fi�,� 2 � 1990
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STATE OF MINNESOTA
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OFFICE OF ADMINiSTRATIVE HEARINGS
FIFTH FLOOR,FLOUR EXCHANGE BUILDING
Ri��lVED
310 FOURTH AVENUE SOUTH ��w�"�_
MINNEAPOLIS,MINNESOTA 55415 v ���
,6,2,�,-�soo �ITY Cl.ERK
February 15, 1990
Albert B. Olson
City Clerk
St. Paul City Council
386 City Hall
St. Paul , Minnesota 55102
RP: In the Matter of the City of St. Paul vs . Scanlon' s Ace Box Bar & Pub,
Inc. ; OAH Docket No. 52-21U1-�28i-6.
Dear Mr. Olson:
Enclosed is the duplicate tape of the hearing in the above-referenced
matter which was heard on January 12, 1990. The official record was retur�ned
to you on February 14.
Sincerely,
/
��C'��7C�1,C�-) � . `�`�a.;1,�'i��
SANDRA A. HAVEN
Office Services Supervisor
Telephone: 612/341-7642
sh
Enc.
AN EQUAL OPPORTUNITY EMPLOYER
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Patrick J. Costello Ltd. 3�
,
Professional Association
ATTORNEYS AT LAW
Patrick J.Costello* 139 South Tyler ftoad, Red Wing, MN 55066
F.Joseph Taylor Red Wing:(612)388-7138
*Also Admitted in Wisconsin March 8� 19 9 0 Twin Cities:(612)224-8572
17ECEIVED
Albert Olson "°'�����0
city Clerk Cl��i' CLE.RK
City Hall
St. Paul, MN 55102
Re: City of St. Paul v. Scanlon' s Ace Box Bar and Pub, Inc.
Dear Mr. Olson:
This matter is presently scheduled for the City Council on Nfarch
29, 1990 , at 9 a.m. I expect to appear with, and on behalf of,
Mr. Scanlon, the licensee.
I enclose a response to the submission submitted to the Council
by Assistant City Attorney Weyandt.
Sincerely yours,
PATRICK J. COSTELLO, LTD.
� / � � - �
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tri . Costello
Attorn at Law
PJC/mjp
encl.
cc: Thomas Scanlon
Thomas J. Weyandt
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� 9, 52-2101-4281-6
STATE OF MINNESOTA
OFFICE OF ADMINISTRATIVE HEARINGS R�CF�����
FOR THE CITY OF ST. PAUL �g121990
���,;, C�Ek'rt
City of St. Paul vs.
Scanlon's Ace Box Bar&Pub, Inc. FINDINGS OF FACT.
CONCLUSIONS AND
RECOIVIlVIENDATIONS
T1iIS Iiiaii�I'Cari18 6i1 fGi riearr�g �efo;e Ad.iuiliSGauVE iaLJ.�li�g:,dazics I�. �iaiikIiiail OI'i
Friday, January 12, 1990, in the Commerce Building, 8 East Fourth Street, St. Paul, Minnesota.
The record closed on the date of the hearing.
Thomas J. Weyandt, Assistant City Attorney, 647 City Hall, St. Paul, Minnesota 55102,
appeazed on behalf of the City of St. Paul ("City"). Patrick Costello, Esq., 139 Tyler Road, Red
Wing, Minnesota 55066, appeazed on behalf of Scanlon's Ace Box Bar&Pub, Inc. ("licensee").
Notice is hereby given that, pursuant to Minn. Stat. § 14.61, the final decision of the St.
Paul City Council shall not be made until this Report has been made available to the parries to the
proceeding for at least ten days and an opportunity has been afforded to each party adversely
affected to file exceptions and present argument to the Council. Exceptions to the Report, if any,
shall be filed with the St. Paul City Council, Attn: Albert B. Olson, City Clerk, 386 City Hall, St.
Paul, Minnesota 55102.
STATEMENT OF ISSUE
Whether and to what extent it is appropriate to suspend the "on sale" Intoxicating Liquors
License issued on February 9, 1989, to Scanlon's Ace Box Bar & Pub, Inc. pursuant to Minn.
Stat. §§ 340A.415 and 340A.502 and Sections 310.06, 409.08(13) and (16), and 409.26 of the
St. Paul legislative code.
nased upon all di i ie �'iivCcZull'i�S i1�r�IR, iiZ i��IillIIiSulTiVi, LaW �Uu�� Ii2�:CS .:1�
following:
FINDINGS OF FACT
1. Scanlon's Ace Box Bar & Pub, Inc. dces business as the Ace Box Bar at 2162 West
University Avenue, St. Paul, Minnesota. Thomas Scanlon is the principal owner of the
corporation. He applied for and was granted an on sale liquor license. Mr. Scanlon has owned the
business for about five (5) years. He has not been cited for any other liquor law violation. See,
Scanlon testimony and City Exhibits 1 and 2.
2. Mr. Scanlon leases the space on University Avenue. Other tenants in the building
include the owners of Bonnie's Cafe adjacent to the Ace Box Bar. The cafe is a truck stop type
2
establishment. The bar and the cafe share a common wall and there is a door between them. The
restrooms in the bar are used by the cafe employees and patrons. The configuration of the bar and
cafe with the interior door connecting them has existed since 1939.
Although the Ace Box Bar liquor license defines the service area as "bar area only", it does
not make reference to or expressly restrict the use of the door between the bar and the cafe. In his
license application, Mr. Scanlon stated that liquor was served in the "bar, (one room) only". S�g,
Scanlon and Van Horn testimony, City Exhibits 1,2 and 3 and licensee Exhibit A.
3a. On October 20, 1989,Officer Richard Klein went to the Ace Box Bar in plain clothes
on a vice unit assignment. Officer Klein was in the bar from 4:30 P.M. to about 6:00 P.M.
b. While he was seated at the bar, Officer HIein observed a male, dressed in a cook's
uniform, pass through the door from Bonnie's Cafe on at least two occasions and order and pay
for two mixed drinks and a bottle of beer. Officer Klein did not observe the man after he left the
bar. He, consequently, does not know whether the drinks and beer were purchased for him or for
others.
c. The man in the cook's uniform, (identified by Mr. Scanlon and one of his bartenders
who testified at the hearing as "Steve," a cook at Bonnie's) was disheveled, his speech was slurred
and his eyes were red and watery. Officer Klein was seated at the bar within five (5)feet of where
Steve stood as he purchased the drinks and conversed with the bartender.
d. During his 13 years on the St. Paul Police force, Officer Klein has observed and
arrested many obviously intoxicated persons. He concluded that Steve was intoxicated and made a
report of the incident after he returned to his office.
e. Although Bonnie's Cafe was open until 5:00 P.M. on the evening of the incident, its
current working hours are 4:30 A.M. to 3:00 P.M. S�, Klein, Scanlon and Cameron testimony.
4. Mr. Scanlon has never been warned that the door connecdng the bar and the cafe could
cause a problem. He believed that he was complying with the law as long as liquor did not leave
the building. S�e , Scanlon testimony.
5. By Notice of Hearing dated December 7, 1989,directed to its attorney, the licensee was
notified of the date, time,place and purpose of this hearing.
Based on the foregoing Findings of Fact, the Administrative Law Judge makes the
foll�win�:
CONCLUSIONS
1. The Administrarive Law Judge and the St. Paul City Council have jurisdiction over
this matter pursuant to Minn. Stat. §§ 14.50 and 340A.415 and St. Paul Legislative Code Section
310.05. The Notice of Hearing issued by the City Attorney was proper in all respects and the City
has complied with all substanrive and procedural requirements of law and rule.
2. Minn. Stat. § 340A.415 and Section 409.12 of the St. Paul legislative code provide
for suspension or revocarion of liquor licenses or imposition of a fine against the licensee where
the license or permit holder has failed to comply with an applicable statute, rule or ordinance
reladng to alcoholic beverages.
_ , .
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,
3
3. Minn. Stat.§ 340A.502 and Section 409.08(13) of the St. Paul Legislative Code
prohibit the sale of alcoholic beverages to a person "for the use of an obviously intoxicated
person." While the record supports a conclusion that the cook, whom O�cer Klein observed, was
obviously intoxicated, there is litde support for a conclusion that the alcoholic beverages which he
bought were used by him.
4. Minn. Stat. §§ 340A.410, subd. 7 and 340A.101, subd. 15 prescribe that alcoholic
beverages must be sold in a specifically defined and identified "compact and contiguous" area
which is otherwise defined as the "licensed premises".
Secdon 409.09(16)provides as follows:
(16) Each on-sale licensee shall have the responsibility of taking
reasonable and adequate steps to prevent persons from
leaving the licensed premises with a botde, can or glass
containing any alcoholic beverage, and the failure to do so
may subject such licensee to adverse action against his or her
license.
5. The licensee has freely and opened pemritted alcoholic beverages sold in the baz to be
taken from the licensed premises to the adjoining cafe contrary to Secdon 409.09 (16). It is,
therefore, appropriate to subject the licensee to adverse action against its on-sale liquor license.
6. Secdon 409.26 of the St Paul Legislative Code sets forth standards and presumpdve
penalties where a licensee has been found to have violated the law. It also pernuts deviation from
the prescribed penalties "where the council finds and determines that there exist substantial and
compelling reasons making it more appropriate to do so."
With respect to failing to take steps to stop a person from leaving the licensed premises
with an alcoholic beverage, Section 409.26(b)(9)prescribes a two (2) day suspension for the first
violation. In this case, it is appropriate to impose a $500 fine and to expressly restrict, on the
licensee's license, the sale of alcoholic beverages to or for patrons or employees of Bonnie's Cafe
(or any successor business in the same location) for consumption only on the licensed premises
which is the bar.
7. These conclusions are made for the reasons set out in the Memorandum which is
attached hereto and hereby made a part of these Conclusions.
Based upon the foregoing Conclusions the Administrarive Law Judge makes the following:
RECOMMENDATTON
The Administrative Law Judge respectfully recommends that a fine in the amount of
$500.00 be imposed against Scanlon's Ace Box Bar&Pub, Inc. and that its Intoxicating Liquors
"On Sale" license No. 15999 be expressly restricted with respect to the sale of alcoholic beverages
for consumption only on the licensed premises consistent with the foregoing Conclusion paragraph
6.
Dated: February �d , 1990.
,
,'�.-C__ ,'` � 'l a� ��-
Janice K. Frankma� �
Administrative Law Judge
, . .
+
4
NOTTCE
Pursuant to Minn. Stat. § 14.62, subd. 1, the agency is required to serve its final decision
upon each parry and the Administrative Law Judge by first class mail.
Recorded: taped
MEMORANDUM
This matter arises from an under cover police officer's observation of the sale of alcoholic
beverages for consumg;i4n off. th? 1'zc�nsed premises. While Mr: Sc�nlen agn�arec� ��n�id in
testifying that he did not know that such sales violated the law, it is inappropriate to excuse the
licensee from some penalty. Consequently, a moderate fine together with expressly restrictive
language on the license has been recommended.
As a chartered and licensed business person, Mr. Scanlon is charged with knowledge of
the law which applies to his business. Moreover, the diagram which is Licensee's Exhibit A in
this matter expressly identifies the "risk" area (the bar area) which underscores the importance of
confining the sale and consumption of alcoholic beverages to the licensed premises. Presumably,
the licensee's dram shop and liquor liability insurance would not cover losses arising from the
consumption of alcohol in Bonnie's Cafe.
While the circumstances could support a conclusion that the cook drank at least some of
what he purchased, Officer Klein admitted that he did not witness Steve consume the beverages
nor did he know whether he may have been purchasing and serving them to cafe customers. The
evidence consequendy,does not support a conclusion that the law was violated with respect to sale
of alcohol for the use of obviously intoxicated persons.
JKF
� � -� ��
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4�•'LT7 G1
�� � CITY OF SAINT PAUL
� ;,;';;;'; o OFFICE OF THE CITY ATTORNEY
. �
....
JANE MC PEAK, CITY ATTORNEY
,;,,,,, 647 City Hall,Saint Paul, Minnesota 55102
R���►��� 612-298-5121
JAMES SCHEIBEL �
MAYOR ����,�^O
February 27, 1990 `�
C1TY CLERK
Mr. Patrick Costello
Attorney At Law AMENDED NOTICE OF HEARING
139 South Tyler Road
Red Wing, Minnesota 55066
RE: City of St. Paul vs Scanlon's Ace Box Bar and Pub Inc.
Dear Mr. Costello:
Please take notice that a hearing on the report of the
Administrative Law Judge concerning the above- t-ion�d
establishment has been scheduled for 9: 00 o'clock a.m. , h 29, �
1990, in the City Council Chambers, Third Floor, Saint Pa 1 City
Hall and Ramsey County Courthouse. This notice replaces the
notice, dated February 16, 1990, previously mailed to you.
You have the opportunity to file exceptions to the report with the
City Clerk at any time during normal business hours. You may also
present oral or written argument to the Council at the this
hearing. The Council will base its decision on the record of the
proceedings before the Administrative Law Judge and on the
arguments made and exceptions filed, but may depart form the �
recommendations of such Judge as permitted by law in the exercise
of its judgment and discretion.
Sincerely,
THOMAS J. WEYANDT
Assistant City Attorney
cc: Robert Kessler
Acting License Inspector
Lt. Daryl Olson
Vice Unit
Albert Olson
City Clerk
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�R�` :* CITY OF SAINT PAUL
� �� �„���� o� OFFICE OF THE CITY ATTORNEY
m h
'"� JANE MC PEAK, CITY ATTORNEY
647 City Hall,Saint Paul,Minnesota 55102
612-298-5121
JAMES SCHEIBEL
MAYOR
February 16, 1990 ����(V�D
To: Albert B. Ol son �201�0
city clerk CITY CLERK
From: Thomas J. Weyandt
Assistant City Att ney
RE: Scanlon's Ace Box Bar
Please accept for filing as part of your record and files on the
above matter the attached Exceptions to the Findings, Conclusions
and Recommendations of the Administrative LAw Judge. I understand
this is presently scheduled for argument by the parties on the
March 15, 1990 Council agenda. I will appear for the City License
Inspector.
I enclosed an original and seven copies, and ask that they be
distributed to the Council members in the same manner as the report
of the Administrative LAw Judge.
Enc.
Cc. Patrick Costello
Attorney for Licensee
, . 9� -�a�
STATE OF MINNESOTA
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE CITY OF SAINT PAUL
DOCKET NO. 52-2101-4281-6
----------------------------------
City of St. Paul CITY LICENSE INSPECTOR
EXCEPTIONS TO FINDINGS,
v. CONCLUSIONS AND
RECOMMENDATIONS
Scanlon's Ace Box bar & Pub. Inc.
-----------------------------------
The City of Saint Paul, acting through its License INspector,
files the following exceptions pursuant to Minn. Stat. 14 . 61, to
the report of the Administrative Law Judge (hereafter ALJ) in the
above matter, which was dated February 10, 1990, and filed with the
City Clerk thereafter.
EXCEPTIONS
A. In Conclusion 3 the ALJ indicates that Minn. Stat.
340A.502 and Section 409.08 (13) of the Saint Paul Legislative
Code prohibit the sale of alcoholic beverages to a person "for
the use of an obviously intoxicated person". She also finds
there is "little support for a conclusion that the alcoholic
beverages which he bought were used by him. "
Minn. Stat. 340A.502 reads "No person may sell, give, furnish,
or in any way procure for another alcoholic beverages for the
use of an obviously intoxicated person. " Legislative Code
409. 08 (13) reads "No person shall give, sell, procure or
purchase intoxicating liquor to or for the use of any person
to whom the sale of intoxicating liquor is forbidden by law. "
The ALJ has read the statute and the ordinance too
restrictively by injecting a requirement that there be proof
that the person to whom the sale was made also used the
alcoholic beverages.
The Conclusion should be amended to read:
3 . Minn. Stat. 340A.502 prohibits the sale, giving,
furnishing, or in any way procuring the for another alcoholic
beverages for the use of an obviously intoxicated person.
Legislative Code 409. 08 (13) prohibits the giving, sale,
procurement or purchase to or for any person to whom the sale
of intoxicating liquor is forbidden by law. The record is
sufficient to support a conclusion that the cook, whom Sgt.
Klein observed, was intoxicated when alcoholic beverages were
sold to him by Scanlon's Ace Box Bar on October 20, 1949 .
B. The Council should amended the sanction portion of the
ALJ report to indicate that there was a violation of the
provision concerning the sale of alcoholic beverages to an
obviously intoxicated person. The Council should also
consider imposing a sanction for that violation pursuant to
Legislative Code 409.26 (b4) which calls for a 3 day
suspension.
ARGUMENT
The public purpose behind the statute and the ordinance is to stop
obviously intoxicated persons from having access to alcohol. The
Legislature was very broad in defining the prohibition as to the
method the obviously intoxicated person obtained the alcoholic
beverage - they used prohibitions for the (1) sale, (2) gift,
(3) furnishing, (4) or in any way procure.
The portion of the statute that includes the language "for the use"
must be looked at in the context of the legislative goal, and with
an eye towards the practical impact the magnification of those
words would have if given the meaning suggested by the ALT. Minn.
Stat. 340A.502 is part of the law regulating retail sales of
alcohol, and is closely related to the part of the statute commonly
referred to as the "Dram Shop Act. " The prohibition concerning
sales to obviously intoxicated persons within this subsection is
one of the common areas of liability created by the statute. The
cases available for review under this section deal with the issue
of whether or not the person was obviously intoxicated, not whether
or not the sale was made knowing the person is going to use the
alcoholic beverage. Society has placed the duty on the bar to
control the continued access to alcohol by persons who are drunk.
A myopic interpretation of the sort urged by the ALJ would allow
a bar to escape liability simply by asserting a belief that a
person who made a retail purchase wasn't going to drink the drinks.
In this case Sgt. Klein testified that he saw this person purchase
several drinks and carry them through a door into another business.
Sgt. Klein saw this happen at least twice. The owner and his
employee testified that the business next door was having an
~ �G� � ��
employee party and they knew this. It is foolish to think that the
observed person simply was acting as a waiter and not consuming any
of the drinks himself. It would also be against public policy to
formulate a scenario wherein a drunk waiter could continue to serve
others, as the ability of the bar to control the sales to drunk
people would be hampered by having to be controlled by a drunk
employee.
Such an interpretation flies in the face of common sense.
If the goal of the Legislature was to prevent only the use of
alcoholic beverages the section could have read "no person shall
allow an obviously intoxicated person to consume alcoholic
beverages. "
As an alternative the Council can and should find that the acts
violated the Legislative Code 409. 08 (13) which does not contain the
"for the use of" language.
The undersigned urges that the Council adopt all the Findings and
Conclusions of the ALJ except those for which an amended position
is proposed.
Submitted this 16th day of February, 1990.
��
Thomas J. andt
Assistant ty Attorney
Attorney for the City of St. Paul
License Inspector
647 City Hall
Saint Paul, MN 55102
(612) 298-5121
Attorney Reg. No. 116336
4
9� -�� �
STATE OF MINNESOTA )
) AFFIDAVIT OF SERVICE BY MAIL
COUNTY OF HENNEPIN )
Janice K. Frankman of the City of Hopkins. County of Henne�in, in the State of
Minnesota, being duly sworn, says that on the ��'�' "' day of FebruarX, 1990, she
served the annexed FINDINGS OF FACT CONCLUSION OF LAW AND
ORDER, 52-2101-4281-6 on the following:
Thomas J. Weyandt
Assistant City Attorney
647 City Hall
St. Paul, Minnesota 55102
Patcik Costello, Esq.
139 Tyler Road
Red Wing, Minnesota 55066
St. Paul City Council
Albert B. Olson, City Clerk
386 City Hall
St. Paul, Minnesota 55102
by mailing to them a copy thereof, enclosed in an envelope, postage prepaid, and by
depositing same in the post office at: 33 Tenth Avenue South. Hopkins, Minnesota,
directed to said persons at the above stated a^sidress(es��the last known address(es)
of said persons.
Subscribed and sworn to before me � ----__ _._ �'�- '� �� �r u c�.
this /�� day of Feb� 1990. �
C C.C—Y—,
Notary Public
�n v�l aECC3AN
�;. NOTARY PUBLICr-MM��A
%.E�'� �dY C01AML3310N El�A1RE8 9594
. _ �� - � �a
1
52-2101-4281-6
STATE OF MINNESOTA
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE CITY OF ST. PAUL
City of St. Paul vs.
Scanlon's Ace Box Baz&Pub, Inc. FINDINGS OF FACT,
CONCLUSIONS AND
RECOIVIlVIENDATIONS
This matter came on for hearing before Administrative Law Judge Janice K. Frankman on
Friday, January 12, 1990, in the Commerce Building, 8 East Fourth Street, St. Paul, Minnesota.
The record closed on the da.te of the hearing.
Thomas J. Weyandt, Assistant City Attorney, 647 City Hall, St. Paul, Minnesota 55102,
appeared on behalf of the City of St. Paul ("City"). Patrick Costello,Esq., 139 Tyler Road, Red
Wing, Minnesota 55066, appeazed on behalf of Scanlon's Ace Box Bar&Pub, Inc. ("licensee").
Notice is hereby given that, pursuant to Minn. Stat. § 14.61, the final decision of the St.
Paul City Council shall not be made until this Report has been made available to the parties to the
proceeding for at least ten days and an opportunity has been afforded to each party adversely
affected to file exceptions and present argument to the Council. Exceptions to the Report, if any,
shall be filed with the St. Paul City Council,Atm: Albert B. Olson, City Clerk, 386 City Hall, St.
Paul, Minnesota 55102.
STATEMENT OF ISSUE
Whether and to what extent it is appropriate to suspend the "on sale" Intoxicating Liquors
License issued on February 9, 1989, to Scanlon's Ace Box Baz & Pub, Inc. pursuant to Minn.
Stat. §§ 340A.415 and 340A.502 and Sections 310.06, 409.08(13) and (16), and 409.26 of the
St. Paul legislative code.
Based upon all of the proceedings herein, the Administrative Law Judge makes the
following:
FINDINGS OF FACT
1. Scanlon's Ace Box Baz & Pub, Inc. does business as the Ace Box Bar at 2162 West
University Avenue, St. Paul, Minnesota. Thomas Scanlon is the principal owner of the
corporation. He applied for and was granted an on sale liquor license. Mr. Scanlon has owned the
business for about five (5) years. He has not been cited for any other liquor law violation. See,
Scanlon testimony and City Exhibits 1 and 2.
2. Mr. Scanlon leases the space on University Avenue. Other tenants in the building
include the owners of Bonnie's Cafe adjacent to the Ace Box Baz. The cafe is a truck stop type
- . 9 � - � ��
2
establishment. The baz and the cafe share a common wall and there is a door between them. The
restrooms in the baz are used by the cafe employees and patrons. The configuration of the baz and
cafe with the interior door connecting them has existed since 1939.
Although the Ace Box Baz liquor license defines the service area as "bar area only",it does
not make reference to or expressly restrict the use of the door between the bar and the cafe. In his
license application, Mr. Scanlon stated that liquor was served in the "baz, (one room) only". See,
Scanlon and Van Horn testimony, City Exhibits 1,2 and 3 and licensee Exhibit A.
3a. On October 20, 1989,Officer Richazd Klein went to the Ace Box Bar in plain clothes
on a vice unit assignment. Off'icer HIein was in the baz from 4:30 P.M. to about 6:00 P.M. -
b. While he was seated at the bar, Officer Klein observed a male, dressed in a cook's
uniform, pass through the door from Bonnie's Cafe on at least two occasions and order and pay
for two mixed drinks and a bottle of beer. Off'icer Klein did not observe the man after he left the
bar. He, consequently, does not know whether the drinks and beer were purchased for him or for
others.
c. The man in the cook's uniform, (identified by Mr. Scanlon and one of his bartenders
who testified at the hearing as "Steve," a cook at Bonnie's)was disheveled,his speech was slurred
and his eyes were red and watery. Officer Klein was seated at the bar within five (5)feet of where
Steve stood as he purchased the drinks and conversed with the bartender.
d. During his 13 years on the St. Paul Police force, Officer Klein has observed and
arrested many obviously intoxicated persons. He concluded that Steve was intoxicated and made a
report of the incident after he returned to his office.
e. Although Bonnie's Cafe was open until 8:00 P.M. on the evening of the incident, its
current working hours are 4:30 A.M. to 3:00 P.M. See, Klein, Scanlon and Cameron testimony.
4. Mr. Scanlon has never been warned that the door connecting the baz and the cafe could
cause a problem. He believed that he was complying with the law as long as liquor did not leave
the building. ,�gg, Scanlon testimony.
5. By Notice of Hearing dated December 7, 1989,directed to its attorney,the licensee was
notified of the date, time,place and purpose of this hearing.
Based on the foregoing Findings of Fact, the Administrative Law Judge makes the
following:
CONCLUSIONS
1. The Administrative Law Judge and the St. Paul City Council have jurisdiction over
this matter pursuant to Minn. Stat. §§ 14.50 and 340A.415 and St. Paul Legislative Code Section
310.05. The Notice of Hearing issued by the City Attorney was proper in all respects and the Ciry
has complied with all substantive and procedural requirements of law and rule.
2. Minn. Stat. § 340A.415 and Section 409.12 of the St. Paul legisladve code provide
for suspension or revocation of liquor licenses or imposition of a fine against the licensee where
the license or permit holder has failed to comply with an applicable statute, rule or ordinance
relating to alcoholic beverages.
3
3. Minn. Stat.§ 340A.502 and Section 409.08(13) of the St. Paul Legislative Code
prohibit the sale of alcoholic beverages to a person "for the use of an obviously intoxicated
person." While the record supports a conclusion that the cook, whom Officer Klein observed, was
obviously intoxicated, there is little support for a conclusion that the alcoholic beverages which he
bought were used by him.
4. Minn. Stat. §§ 340A.410, subd. 7 and 340A.101, subd. 15 prescribe that alcoholic
beverages must be sold in a specifically defined and identified "compact and contiguous" area
which is otherwise defined as the "licensed premises".
Section 409.09(16)provides as follows:
(16) Each on-sale licensee shall have the responsibility of taking
reasonable and adequate steps to prevent persons from
leaving the licensed premises with a botde, can or glass
containing any alcoholic beverage, and the failure to do so
may subject such licensee to adverse action against his or her
license.
5. The licensee has freely and opened permitted alcoholic beverages sold in the baz to be
taken from the licensed premises to the adjoining cafe contrary to Section 409.09 (16). It is,
therefore,appropriate to subject the licensee to adverse acdon against its on-sale liquor license.
6. Section 409.26 of the S� Paul Legislative Code sets forth standards and presumptive
penalties where a licensee has been found to have violated the law. It also pernuts deviation from
the prescribed penalties "where the council finds and determines that there exist substantial and
compelling reasons making it more appropriate to do so."
With respect to failing to take steps to stop a person from leaving the licensed premises
with an alcoholic beverage, Section 409.26 (b)(9)prescribes a two (2) day suspension for the first
violation. In this case, it is appropriate to impose a $500 fine and to expressly restrict, on the
licensee's license, the sale of alcoholic beverages to or for patrons or employees of Bonnie's Cafe
(or any successor business in the same location) for consumption only on the licensed premises
which is the bar.
7. These conclusions are made for the reasons set out in the Memorandum which is
attached hereto and hereby ma.de a part of these Conclusions.
Based upon the foregoing Conclusions the Administrarive Law Judge makes the following:
RECOMMENDATTON
The Administrative Law Judge respectfully recommends that a fine in the amount of
$500.00 be imposed against Scanlon's Ace Box Bar&Pub, Inc. and that its Intoxicating Liquors
"On Sale" license No. 15999 be expressly restricted with respect to the sale of alcoholic beverages
for consumption only on the licensed premises consistent with the foregoing Conclusion paragraph
6.
Dated: February�, 1990. (��
\, � ' �
__, _ �.,� � r.�.. �_
Janice K.Frankman
Administrarive La Judge
. . 9� - ca�
4
NOTICE
Pursuant to Minn. Stat. § 14.62, subd. 1, the agency is required to serve its final decision
upon each party and the Administrative La.w Judge by first class mail.
Recorded: taped
MEMORANDUM
This matter arises from an under cover police officer's observation of the sale of alcoholic
beverages for consumption off the licensed premises. While Mr. Scanlon appeazed candid in
testifying that he did not know that such sales violated the law, it is inappropriate to excuse the
licensee from some penalty. Consequently, a moderate fine together with expressly restrictive
language on the license has been recommended.
As a chartered and licensed business person, Mr. Scanlon is charged with knowledge of
the law which applies to his business. Moreover, the diagram which is Licensee's Exhibit A in
this matter expressly identifies the "risk" area (the baz azea) which underscores the importance of
confining the sale and consumption of alcoholic beverages to the licensed premises. Presumably,
the licensee's dram shop and liquor liability insurance would not cover losses arising from the
consumption of alcohol in Bonnie's Cafe.
While the circumstances could support a conclusion that the cook drank at least some of
what he purchased, Officer Klein admitted that he did not witness Steve consume the beverages
nor did he know whether he may have been purchasing and serving them to cafe customers. The
evidence consequently,dces not support a conclusion that the law was violated with respect to sale
of alcohol for the use of obviously intoxicated persons.
JKF
�
LICEN3EN0. CITY�'F'�S _ JT PAUL FEE $3554.25
15999 LICENSE 8c PERhfIT DIVISION /�� ���
LICENSE 7
INTOXICATING LIQU4RS "ON SALE"
1ST HALF:$1777.13
2ND HALF:$
THIS CERTIFIES THAT SCANLON'S ACE BOX BAR & PUB INC
HAVING PAID THE ABOVE FEE AND HAVING COMPLIED WITH OTHER ORDINANCE REQUIREMENTS IS HEREBY
AUTHORIZED TO SELL INTOXICATING LIQUORS "ON SALE"
IN ACCOR.DANCE WITH THE PROVISION3 OF OR.DINANCE NO.7b37,APPftOVED JANUAR.Y 18,1934,BUT SUBJECT TO ANY
AMENDMENT OA AMENDMENTS OF SAID ORDINANCE NO.7b37,IN THE FOLLOWING DESCRIBED PORTIONS ONLY OF TIiE
BUILDING 3TRUCTURE KNOWN AS ACE BOX BAR
LOCATED AT 2162 W UNIVERSITY AVE
ST PAUL MN 55114
THIS LICENSE MUST BE KEPT POSTED IN A CONSPICUOUS PART OF
THE ABOVE PLACE OF BUSINESS
NOT TRANSFERABLE FROM PERSON TO PERSON OR PLACE TD PLACE
THI3 LICENSE IS I3SUED 3UBJECT TO THE
PROVISION3 OF ALL OR.DINANCES OF THE CITY
OF ST.PAUL,MINNESOTA,AND MAY BE REVOKED
AT ANY TIME IF SAID PROVI3ION3 AR.E VIOLATED.
THI3 LICEN3E EXPIR.E3 01/31/9 0
DATE OF ISSUANCE 02/09/89 LICENSE INSPECTOR
SIItVICE ARPJ�1: BAR ARFA �II.Y
December 20, 1989
I hereby certify that this is a true and exact capy of the records of the License
and Permit Division of the City of St. Paul for 6can�on's Ace Box Bar & Pub, Inc.
DBA Ace Box Bar at 2162 W. University Avenue.
.�,a �G.,...� `�rn �
Kris Van Horn
License Enforcement Auditor
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LICEN3E NO. CPTY�G•'s SAt.`�;� PAIlL FEE COLLECTED
15999 LICENSE A;�D PERMIT DIVISION $795.00
LICENSE
POST LICENSE IN A CONSPICUOUS PLACE
TNIS IS TO
CERTIFY THAT SCANLON'S ACE BOX BAR & PUB INC
DOING BUSINESS AS ACE BOX BAR
PLACE OF BUSINESS 2162 UNIVERSITY AVE W
ST PAUL, MN 55114
HAVING PAID THE ABOVE FEE AND COMPLIED WITB OTEiER OR.DINANCE REQUTAEMENT3 APPLICABLE THERETO,IS
HEREBY AUTHOR.IZED TO CONDUCT THE BUSINESS OF:
SUNDAY ON SALE LIQUOR (1) — $200.00 NOTTRANSFERABLE
OFF SALE MALT (1� — $75.75 FROM PERSON TO PERSON
ENTERTAINMENT—CLASS 2 (1) — $291.50 OR PLACE TO PLACE
RESTAURANT 14HRS TO 99 SEATS—B (1) — $227.75
Tffi3 LICEN3E IS ISSUED SUBJECT TO
THE PBOVISION3 OF ALL ORDINANCES
OF THE CITY OF ST.PAUL,MINNESOTA
AND MAY BE REVOKED.
THIS LICEN3E EXPIRE3 O 1/31/9 0
DATE OF ISSUANCE 02/09/89 LICEN3E IN3PECTOR
12/19/89
I hereby certify that this is a true and exact copy of the records of the License
and Permit Division of the City of St. Paul for Scanlon's Ace Box Bar & Pub, Inc.
DBA Ace Box Bar at 2162 W. University Avenue.
__ . _ _ �� `� �..� r C�t..,� �R-�r3�-
Kri Van Horn,
License Enforcement Auditor
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I hereby certify that these are the true and accurate
copies of records of the License and Permit Division
of the City of St. Paul for Scanlon's Ace Box Bar F�
Pub, Inc. dba Ace Box Bar at 2162 University Avenue.
'
J et Odalen, Office Manager
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i � � Room 20�3, City Hall
` Saint Paul, Minnesota 55102
' APPLICATION FOR RENEWAL OF ON SALE INTOXICATING LIQUOR LICENSE
PLEASE COMPLETE ALL ITEMS LISTED BELOW
1. Appl icant/Company Name _�Q �,,�, ���,,,�� p �� '� ��� � c�b `ss S/
�. Business Name _ ,Q � (', �� � �� Telephone No.
3. Business Address STREET: � �6 p� (�N J V�Q R, J '! y /-�v `� � T- (�/�-�t, l�
Number Name Direction Type
4. Mail to Address STREET: � �U p� l��y,yYlticft�� �iL,�. �� `e
Number N e Direction Type
�- �✓�-�,, �- ��7 /�/� s 51 i�
City State Zip Code
5. Name of Applicant __ - / f1 e'YYJ�-5 � � �;JCp� Telephone b�Z - ���j `Jj f�D
Individua3./Partner/Officer Area Code/Number
6. Applicant Address _ STREET: /�� �� � �ON � N���,h ��
Number Name Direction Type
��.z �,�,� l-� �-5 �ir� � ss � 0 3
City State Zip Code
7. Type of Business: Res�an�ant Club Hotel/Motel
v 8. Manager in Charge � � � N � � '"
� -T � �l 5
First Name Middle Last Date of Birth
9. Manager Home Address STREET:
Number Name Direction Type
�
City State Zip Code �
Telephone - �
Area Code Number Orig. Date of F�ployment �
10. Are any of the following taxes or charges for the licensed premises unpaid or delinquent? ►
;k
Real Estate Taxes Yes No � Personal Propertq Taxes Yes No _� `
Special Assessments Yes No _p� Citq Utility Bills Yes No �_
J11. If there have been any changes in interests in premises or finances, or contracts between �
applicant and any persons, corporatio , partnerships, or any new loans since license was ''�
last issued, explain in detail: � j;
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12. Liquor is served in the following areas (rooms) ,Qi� �./J �,.
_ �0 (� fC 00 �l
13. Seating Capacity: x 100 seats or less over 100 seats over 200 seats
White copy - return to License & Permit Division �I Q
Pink copy - retain for your records �• ��II�v�NI Ci �l
Signature of Applicant
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`¢ �` CITY OF SAINT PAUL
v ilt�lil�i o
OFFICE OF THE CITY ATTORNEY
. �
,...
EDWARD P. STARR, CITY ATTORNEY -
647 City Hall,Saint Paul,lvlinnesota 55102
612-29&5121
GEORGE LATIMER
�Y°R RECEIVE[�
December 7, 1989 �E� � � 198�
Mr. Patrick costello �MINISTRAT�VE
Attorney At Law HEARINGS
139 South Tyler Road NOTICE OF IiEAR�G
Red Wing, MN 55066
RE: City of St. Paul vs. Scanlon's Ace Box Bar & Pub Inc.
d/b/a Ace Box Bar
Dear Mr. Costello:
This is to notify you that the hearing will be held concerning all
the licenses held at the premises stated above at the following
time, date and place:
Date: January 10, 1990
Time: 9 a.m.
Place: Room 1504A
City xall Annex
25 West Fourth Street
- St. Paul, MN 55102
The judge will be an Administrative Law Judge from the State of
Minnesota Office of Administrative Hearings:
Name: Ms. Janice Franklin
Office of Administrative Hearings
Fifth Floor, Flour Exchange Buildinq
310 Fourth Avenue South
Minneapolis, MN 55415
Telephone: 933-0070 �
The Council of the City of Saint Paul has the authority to provide
for hearings concerning licensed premises, and for adverse action
against such licenses, under Chapter 310, including sections 310. 05
and 310. 06, of the Saint Paul Legislative Code. In the case of
licenses for intoxicating and non-intoxicating liquor, authority
is also conveyed by section 340A.415 of the Minnesota Statutes.
Adverse action may include revocation, suspension, fines and other
penalties or conditions.
,
.�.v:,*tc:�3 ...� "'�o-+�.'�'�:z.�"" ^ - . ..._ _ .,.
..r,:.�,�..��v£;��5z%7.:u.�L�'..°£s,.'^?u.,�-��3F.�'�u,33s�T�'�tY�:a;a �.v.:.-a: _.
wa,s:..�... ,_�.... �.6-,.,.y._...:��'S�Y.Sa'�w .,......,,,3�"Lz:&:'3S.m."r^��'x=.�.-, _... .. . . - �'c.�;r",���+,F�::
.r !�`y..�-
Mr. Costello ��-� � ��
December 7, 1989
Page 2
Evidence will be presented to the judge which may lead to adverse -
action against all the licenses you hold at the above premises as
follows:
On October 20, 1989 an undercover Vice Officer was on the
licensed premises and observed the sale of alcoholic beveraqes
to an obviously intoxicated person, who left the licensed
premises with the beverages. Failure to take reasonable steps
to prevent the removal of alcoholic beverages from the
licensed premises is a violation of section 409.08 (16) of the
Saint Paul Legislative Code, and the sale of alcohol to an
obviously intoxicated person is a violation of section
409.08 (13) of the Saint Legislative Code and Minnesota
Statute Section 340.502.
You have the right to be represented by an attorney before and
during the hearing if you so choose, or you can represent yourself.
You may also have a person of you choice represent you, to the
extent not prohibited as unauthorized practice of law.
The hearing will be conducted accordance with the requirements of
sections 14 .57 to 14 . 62 of the Minnesota Statutes, and such parts
of the procedures under section 310. 05 of the Saint Paul
Legislative Code as may be applicable.
At the hearing, the Administrative Law Judge will have all parties
identify themselves for the record. Then the City will present its
witnesses and evidence, each of whom the license or attorney may
cross-examine. The licensee may then offer in rebuttal any
witnesses or evidence it may wish to present, each of whom the City
attorney may cross-examine. The Administrative Law Judge may in
addition hear relevant and material testimony from persons not
presented as witnesses who have substantial interest in the outcome
of the proceeding; for example, the owners or occupants of property
located in close proximity tot he licensed premises may have
substantial interest int he outcome of the proceeding. Concluding
arguments may be made by the parties. Following the hearing, the
Judge will prepare Findings of Fact, Conclusions of Law, and a
specific recommendation for action to be taken.
You should bring to the hearing all documents, records and
witnesses you will or may need to support your position. Subpoenas
may be available to compel the attendance of witnesses or the
production of documents in conformity with Minnesota Rules, part
1400.7000.
If you think that this matter can be resolved or settled without
a formal hearing, please contact or have your attorney contact the
undersigned. If a stipulation or agreement can be reached as to
the facts, that stipulation will be presented to the Administrative
Law Judge for incorporation into his or her recommendation for
Council action.
-xb.,. . ....n::�.'�i�`?r�::t.:�n,�cti:i.�,4"so�'`�s.=�m:e:ds�`��,:3%��' '�.�''�°i . , , . ir."s," i3.�'� °`�`�i�"t�.'��''�-4�rae�a,�»�4`���
y Mr. Costello
December 7, 1989
Page 3
If you fail to appear at the hearing, the allegations against you -
which have been stated earlier in this notice may be taken as true
and your ability to challenge them forfeited. If non-public data
is received into evidence at the hearing, it may become public
unless objection is made and relief requested under Minnesota
Statutes, section 14 . 60, subdivision 2 .
Sincerely,
�;v�u� 7v��.'...��,/
THOMAS J. Vd'EYANDT
Assistant City Attorney
cc: Joseph F. Carchedi
License Inspector
Albert B. Olson
City Clerk
Paige Purcell
Office of Administrative Hearings
Kris Van Horn
License Enforcement Auditor
Lt. Daryl Olson
Vice Unit
Susan Marschalk
District 11 Planning Council
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CITY OF SAINT PAUL
� ����,�;�,�� ; OFFICE OF THE CITY ATTORNEY
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�••• EDWARD P. STARR, CITY ATTORNEY
647 City Hall,Saint Paul,Minnesota 55102
�E 612_298_5121
GEORGE LATIMER ���V�D
MAYOR
December 14, �9s9 DEC � � ����
��MINI��-�,�r�vE
Mr. Patrick J. Costello, Ltd. H�A����S
Attorney at Law AMENDED
139 South Tyler Road NOTICE OF HEARING
Red Wing, MN 55066
RE: City of Saint Paul vs Scanlon's Ace Box Bar & Pub, Inc.
d/b/a Ace Box Bar, 2162 University Avenue West
Dear Mr. Costello:
At your request we have rescheduled the hearing in the above
referenced matter to January 12 , 1990, 9: 30 a.m. in the 9th floor
conference room of the Commerce Building, 8 East Fourth Street.
The Judge will remain the same.
Please call me at 298-5121, if you have any questions.
Sincerely,
THOMAS J. WEYANDT
Assistant City Attorney
cc: Joseph F. Carchedi
License Inspector
Albert B. Olson
City Clerk
Lt. Daryl Olson
Vice Unit
Paige Purcell
Office of Administrative Hearings
Kris Van Horn
License Enforcement Auditor
Susan Marschalk
District 11 Planning Council
Janice Franklin
Office of Administrative Hearings
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R� % CITY OF SAINT PAUL
a a
; ,_;��;;;►; ; OFFICE OF THE CITY ATTORNEY
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JANE MC PEAK, CITY ATTORNEY
647 City Hall,Saint Paul,Minnesota 55102
612-298-5121
JAMES SCHEIBEL
MAYOR
February 16, 1990 RECFivFn
Mr. Patrick Costello �201�0
Attorney At Law -
139 South Tyler Road CITY CLERK
Red Wing, Minnesota 55066
RE: City of St. Paul vs Scanlon's Ace Box Bar and Pub Inc.
Dear Mr. Costello:
Please take notice that a hearing on the report of the
Administrative Law Judge concerning the above-mentioned
establishment has been scheduled for 9: 00 o'clock a.m. , March 15,
1990, in the City Council Chambers, Third Floor, Saint Paul City
Hall and Ramsey County Courthouse.
You have the opportunity to file exceptions to the report with the
City Clerk at any time during normal business hours. You may also
present oral or written argument to the Council at the this
hearing. The Council will base its decision on the record of the
proceedings before the Administrative Law Judge and on the
arguments made and exceptions filed, but may depart form the
recommendations of such Judge as permitted by law in the exercise
of its judgment and discretion.
Sincerely,
THOMAS J. WEYANDT
Assistant City Attorney
cc: Robert Kessler
Acting License Inspector
Lt. Daryl Olson
Vice Unit
Albert Olson
City Clerk