279143 M�H17E - CITV CLERK - COUflCll �'791�3
PINK - FINANCE GITY OF SAINT PAUL
CANARV DEPARTMENT
�l.UE - MAVOR File NO.
E 'l sol tion
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS , The Lost & Found, Inc. (Lawrence O'Connell, President)
is the holder of an On-5ale Liquor, 5unday On-Sale Liquor, Entertainment,
and Off-Sale Malt Beverage Licenses for the premises at 351-353
University Avenue in 5aint Paul;
WHEREAS , Lawrence O'Connell and Frederick Sande made application
for transfer of all licenses from The Lost & Found, Inc. to 353 Inc.
(Frederick Sande , President) ;
WHEREAS, On July 27, 1982 , the License Inspector withdrew his
recommendation for approval and requested a layover for the purpose
of conducting a further investigation into the particulars of certain
questions and allegations relating to ownership interests in the
licenses;
WHEREAS, The applicants appeared together with applicant
5ande's attorney , Earl Gray , who agreed to the layover;
Cn7HEREAS , Applicants were advised that the public hearing would
be continued until 7 :00 p.m. on August 5, 1982 for the License
Inspector to conduct a further investigatian and to prevent interested
citizens from having to take off work;
WHEREAS, The License Inspector reinstated his recommendation for
approval after having interviewed applicants O 'Connell and Sande and
Elijah Barker and examined applicant Sande 's financial records;
WHEREAS, On August 5 , 1982 , applicants again appeared together
with applicant Sande 's attorney, Earl Gray, who was permitted to
cross-examine witnesses, present evidence and witnesses in applicant
5ande 's behalf and to make a final argument to the City Council and
all evidence was under oath and taken by a court reporter;
COUNCILMEN
Yeas Nays Requested by Department of:
Fletcher
�evine [n Favor
Masanz
Nicosia
scheibe� _ __ Against BY —
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date —
Certified Passed by Council Secretary BY v�'e' /� I���
B;�
t#pproved by 17avor: Date _ Approved by Mayor for Submission to Council
BY - – — BY
' • , ��V�.`7�'�
WHEREAS, The City Council heard testimony from Joseph F. Carchedi,
applicants O'Connell and Sande, Elijah Barker, and interested citizens
who both supported and opposed said transfer;
WHEREAS , The City Council in addition received exhibits
numbered 1 through 7;
WHEREAS , The evidence established:
1 . Elijah Barker is barred by statute from holding a
liquor license for at least another year;
2 . Fredrick Sande borrowed $15,000 from Elijah Barker
at a l0o interest rate and without any written
agreement between himself and Elijah Barker at the
time of the transfer of funds ;
3. The promisory note with security between Fredrick
Sande and Elijah Barker was not executed until some
period of time after the transfer of funds;
4 . Fredrick Sande admitted that some of the games and
vending equipment used as security for the $15 ,000
loan had been given to Elijah Barker in the past
and that their value was included in a $5 ,000 loan
repayment by Elijah Barker to Fredrick Sande;
5. Elijah Barker stated he had not filed his security
interest and did not know whether it had been filed;
6 . At a meeting with community leaders on Thursday ,
July 22 , 1982 Fredrick Sande was unable to answer
management questions dealing with the opening and
closing hours of The Lost & Found, the amount of
sales and receipts for the past week during which
he had been manager, and the number of hours per
week he would be working;
7 . Elijah Barker was to be the manager of The Lost &
Found once the license transferred;
-2-
VMH17E - Ci7v CLERK �����
PINK - FINANCE GITY OF SAINT PAUL COUIICII
CANA,RV= DEPARTMENT
GLUE - MAVOR File NO.
Counci sol ti
Presented By •� �
Referred To C ittee: Date
Out of Committee By Date
WHEREAS , After lengthy discussion the City Council found
reasonable ground5to determine that Elijah Barker's interest in
The Lost & Found extended to a previously undisclosed ownership
interest, they voted 7-0 to deny the transfer;
WHEREAS , A copy of this resolution has been mailed to the
attorney for the applicant Sande prior to the date it was considered
by full council with a letter advising as to the date on which it
would be considered; now, therefore be it
RESOLVED, That the license transfer for The Lost & Found, Inc.
from Lawrence O'Connell, President to 353, Inc. Fredrick Sande,
President is hereby denied; and, be it
FURTHER RESOLVED, That such denial. is effective upon the
publication of this resolution; anc� be it
FURTHER RESOLVED, That the City Clerk is hereby directed to
publish this resolution after its approval by the Mayor as required
by the Charter.
-3-
COUNCILMEN Requested by Department of:
Yeas Nays �
Fletcher
�ev�ne [n Favor
Masanz
Nicosia
scheibel _�___ Against BY —
�""
�^�
AUC� 2 6 1982 Form Approved by City Attorney
Adopted by Council: Date
Certified ssed by ounc Secre ry , BY ���� , v`
r
By
Approve b Mavor: Date UG 3 1��2 Approved by Mayor for Submission to Council
By BY
Pf�BtiSNED S E P 4 1982
J� ` � ��
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�°'°��T, ���.�,, CITY OF SAINT PAUL
Y RP� ''�`� DEPARTMENT OF FINANCE AND MANAGEMENT SERVICES
�_ ��;
;� nwinm ,`
'��� 1O �i°° ,:= DIVISION OF LICENSE AND PERMIT ADMINISTRATION
, � -
,.,. ,` Room 203, City Hall
J�� ����� ��� Saint Paul,Minnesota 55102
GEORGE LATIMER
MAYOR
July 13, 1982
�?�`�
'�/�-��.
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Mr. President and Honorable M�mbers
of the City Council
Saint Paul, Minnesota
Mr. President and Honorable Members:
The Lost and Found, Inc. and 353, Inc. request that the
� Sale Liquor, Sunday On Sa1e Liquor, Entertainment and Off Sa1e
Malt Heverage Licenses presently issued to The Lost and Found, Inc.
at 351-3 University Avenue be transferred to 353, Inc. and The Lost
and Found, Inc. at the same address.
The sole stockholder and officer of 353, Inc. is Frederick
R. Sande, holding the offices of President, Secretary and Treasurer.
Mr. Sande will operate this business personally and it will continue
to be known as the Lost and Found.
This application has been reviewed by the License and Per-
mit Division and the City Attorney's office. The recommendation is
for approval.
Very truly yours�
�� � .
Joseph F. Carchedi
License Inspector
O
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Ju�y 8, .];96� �
" Mr. Fred Sande ^ , �.
696 James Avenu+q .; ; ' .
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. st.. �g,�., r�1 55102
Dear Sirs .
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-- _ �79/�.�
WNITE - CITV CLERK
PINK - FINANCE G I TY OF SA I NT PALT L Council
CANARV - DEPARTMENT File NO.
BLUE - MAVOR
Council Resolution
Presented By �CENSE CONIl++IITTEE
Referred To Committee: Date
Out of Committee By Date
RFSOLVED: That Appl3.cat3.on R 3681 for the transfer of On Sale Liquor� Sunday On Sale Liquor�
Entertainment and Off Sale Malt Beverage Iri.censes, expiring January 31, 1983, all
issued to The �ost and Found� Inc. at 351-3 University Avenus, be and the same are
hereby transferred to 353, Inc. (Fred Sande, President) AND The Lost and Found, Inc.
at the same address, to do business as the Lost and Found.
COUNCILMEN Requested by Department of:
Yeas Nays
Fletcher
�ev�ne [n Favor
Masanz
NiCOSia
scheibel _ __ Against BY —
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
B}°
Approved by Mavor: Date _ Approved by Mayor for Submission to Council
By _ _ BY
, ��9��3
We the undersigned residents of the area surrounding the location of
the LOST AND FOUND BAR ( 351 University Avenue) are concerned about the
quality of life in our neighborhood . We do not want the intrusion of
disord�rly patrons at this bar , and are concerned about the new owner
and the clientele he wi71 bring with him . Please refuse the transfer of ,�
this license.
NAME ADDRESS PHONE
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tJe the undersigned residents of the area surrounding the locatt�����3
the LOST AND FOUND BAR (351 University Avenue) are concerned about the
quality af life� in our neighborhood . We do not �vant the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he wfll bring with him , Piease refuse the transfer of }
this license.
P�AP1E ADDRESS PHONE
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iJe the undersigned r. esidents of the area surrounding the location o��f� `,�`3
the LOST AND FOUND BAR (351 University Avenue) are concPrned about the
qua] ity of life� in our neighborhood . We do not want the intrusion o;
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he wf11 bring with him . Please refuse the transfer of
this 1 �cense. �
P�APtE ADDRESS PHONE
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l�le the undersigned residents of the area surrounding the locatton of
the LOST AND FOUND BAR (351 University Avenue) are concerned about the
quality of life in our neighborhood . We do not 4vant the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he will bring with him . Please refuse the transfer of �
this license.
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�aA��F ADDRESS PHOPJE
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tde the undersigned residents of the area surrounding the locatio�"of ��`3
the LOST AND FOU��D BAR (351 Univ�rsity Avenue) are concerned about the
quality of life �in our neighborhood . We do not want the intrusion of
disorderly patrons at this bar , and are concerned about the near o�,rner
and the clientele he will bring with him , P] ease refuse the transfer of }
this license.
PJAME ADDRESS PHONE
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tde the undersign�d residents of the area surrounding the location ofR���
the LOST AND FOUP�D BAR (�51 Univ�rsity Avenue) are concerned about the N
quaiity of life in our neighborhood . We do not �vant the fntrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he will bring with him . Please refuse the transfer af
this license. �
P� P1E AD SS PHOP�E
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tde the undersigned r.esidents of the area surrounding the location�f g��3
the LOST AND FOUND BAR ( 351 Un�versity Avenue) are concerned about the
quaiity of life � fn our neighborhood . We do not ��rant the intrusion of
disorderly patrons at �his bar , and are concerned about the new owner
and the clientele he will bring with him . Please refuse the transfer of }
this license.
��AP1E ADDRESS PHOP�E
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. t�te the undersigned r.esidents of the area surrounding the ..locati�o�F/�3
the L O S T AND FOU N D B A R (3 5 1 Un jversity Avenue) are concerned about the
quallty of life �in our neighborhood . 4Je do not vrant the intrusion of
disorderly patrons at this bar , and are concerned about the nea� owner
and the clientele t�e v��ill bring with him . Please refuse the transfer of
this license . �
P�AP1E ADDRESS PHONE
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We the undersigiied residents of the area surrounding the location of
the LOST A��D FOUND BAR ( 351 Untversity Avenue) are concerned about the ---
quality of life in our neighborhood . We do not want the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he will bring with him . Please refuse the transfer of }
this license.
PJAPiE ADDRESS PHONE
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tde the undersigned r-esidents of the area surrounding the location of9��3
the LOST AND FOUND BAR (351 University Avenue) are concerned about the
quality of life in our neighborhood . We do not want the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he wi11 bring with him . Please refu the transfer of }
this license. * fc �
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t�e the undersigned r�sidQnts of the area surrounding the location of,gf�3
the LOST AND FOUND BAR (351 University Avenue) are concerned about the
quality of life in our neighborhood . We da not want the intrusion of
disorderiy patrons at this bar , and are concerned about the ne�r owner
and the clientele he �;ill bring with him . Please refuse the transfer of )
this license.
PtAME � � ADDRESSc�/ o t PHOP�E�/��
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C�e the undersigned residents of the area surrounding the location of
the LOST AND FOUlVD BAR (351 University Avenue) are concerned about the
quaiity of life in our neighbarhood . We do not want the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he wi11 bring with im . Please refuse the transfer of
t h i s 1 i c e n s e. ,/��,��-�t��� ,l�� 0��� `� �
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[Je the undersigned residents of the area surrounding the location �f yl��
the LOST AND FOUND BAR (351 University Avenue) are concerned about the
quality of life fn our neighborhood . We do not vrant the intrusion of
disorderly patrons at this bar , and are concerned about the new owner
and the clientele he wi11 bring with him . Please refuse the transfer of
this licen e. ,` �
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F�AP1E ADDRESS PHONE
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OFFICERS '�, ��'�
Pres. • Mike West ► . DIRECTORS
Vice Pres. - Marvin Anderson � �`� �'' Gary Gray
Q V k
Sec. - Beverly Long
'=" ' Rodney Lewis
Treas.- Phii Archer . � , „ .` , , James Clark
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July 26, 1982
�r;illiam Wilsori
Councilman - First 4,'ard
Saint Paul City Council
Roam 7 City Hall
S�int Faul, t�iinnesota, 55101
I)ear Councilman h'ilson,
It has been brou�ht to our attention that the �=�tter
of the transfer oi the liquor licen�� for the Lost and Found
Saloon, 345 UniversityAvenue ,fron the preserit o,rrier to �red
�andi is under con::ideration by the City Council.
This letter is sent to regi�ter the opposition of the
under�i�ned citizens to this pro�osed transfer and to e�press
our combined shock and outra�e th«t the matter has proceeded
this iar in the approval process .
Our opposition is based on the fo�lowing grounds:
1 . the undenied allegations that the real party
in interest is E.J . Y�rker, the former ok�ner
of �. J . Loun�e, one of the most notorious
cri�inal ridcien, and violent establishments
ever to h��ve been licen�:�ed to do business
in the �ity of Saint Paul;
2 . the atte::�pt to relocate E .J . ' s Zounge, albeit
und�r z c:ifferent bu:iness name, to the pro-
posed loca.tion qualfies �� �n a.bhorrent and
unc:qual ciu�l �tandard ���intained by the City
Council to permit , in the minority or less
�T f 1.U;.'r_Y. C O:':::::11T?l t;l°:". � 2. C�'„l S 1 Ti e S S '��"1-'.±t. k O�,11 C�
be univers�::lly conc'er�.;ried if the same request
to trGr.�'er to � more �ifluent or non-^:ir.ority
co_u�unity was m�.de ;
r�'�:r ; �uiy co, i �c ` ^ . o� 7��5�3
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OFFICERS � ���"= I-'�- '
Pres.- Mike West • . DIRECTORS
Vice Pres.- Marvin Anderson � Gary Gray
Sec. - Beverly Long � ' � � � Rodney Lewis
..�T�,.
Treas. - Phii Archer � l L '��;„ . L� , James Clark
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3. the transfer to the Sandi—Barker interests would
establish a physicalconnection between the bar and
an after—hours recreational bar—gambling den a
short distance a�ray on University Avenue thereby
increasing the potential h�.rn the surrounding
community mi�;ht suffer from the influx of criminal
elements attracted by the �.�andi—Barker operation.
• Our oppocition is not , as it has been suggested, racially
�notivated . Indeed, the m�jority of the si�ner•s to this letter
a�e� �!fro—�mericans . On �he contrary, our aversion to this repel—
lent transaction is due to -�he fact that the real party in
interest, E .J . Earker, will be in control of the enterprise .
A review of hi.s record discloses �n upp.-.11ing in�bility or
unkillingness to ��intain eontroll over his p�.trons , t.�ereby
indirectly per;ni-'tting the flourshing of cri�e a.nd violence .
E.J. ' s Lounge served �s a �a�net for persons who had �ittle
regard for the Zc�t'7� hu-�an life , or the �.tte�npt of other per.sons
to build �nd live in a la��� abiding community.
Central Village is only a part of the area th�.t z�rill be
af=ected by this enterprise. The City of Saint Paul in con—
junction with many other concerned citizens and individuals
have invested tiT�e , money, and a tremendous a�ount of effort
in developin� this part o.i the city.i��akin�; it a desir�ble
place to live. So why are you now destroyin� all of our efforts?
Is it because less affluent whites, Bla.c'_.s , a.nd other ;�zinorities
live in this area �
,.,..... , _ _. _ . _ _._ . _.. , w. . :.
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Pa�e � July 26, 1982 ���f��
��S " "
OFFICERS �
Pres.- Mike West � � . DIRECTORS
Vice Pres.- Marvin Anderson � � Gary Gray
Sec.- Beverly Long Rodney Lewis
Treas.- Phil Archer , ,�, . � � James Clark
r
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�
By approving this transfer the City Council would callously
disregard the wishes of the many families who h�.ve signed this
letter. '�le are asking you to prevent this obnoxious and repre—
hensible a.ction from occuring.
Very Sincerely Yours, �
The �' 'lies o t�� Vill�age�' �
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t-�.��E, � i).�y' 7,-.� ; �._ j
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OFFICERS ''`; . "��L�:� ; '-<'s
� � _ DIRECTORS
Pres. - Mike West � , ' Gary Gray
Vice Pres. - Marvin Anderson � ; ° . Rodney Lewis
4.'.
Sec. - Beverly Long James Ciark
Treas. - Phil Archer " � ' ' `
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By ap�roving this transfer the City Council would callously
disregard the wishes af the r�any f�.nilies trho have si�ned this
letter. ►�+e are asking you to prevent this obnoxious and repre-
hensible �ction from occuring.
Very Sincerely Yours,
The �'amilies of Central Village
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__�'�"��?����,-,;, y� CITY OF SAINT PAUL
>o '"" �; DEPARTMENT OF FINANCE AND MANAGEMENT SERVICES
�^� uii�iiiii! �_�
, , DIVISION OF LICENSE AND PERMIT ADMINISTRATION
,,.. ,< Room 203, City Hall
GEORGE LATIMER Saint Paul, Minnesota 55102
MAYOR
July 28, 1982
T0: Councilman Victor Tedesco Councilman Hu�o i"jasanz
President, �ity Council Councilman Chris Nicosia
Councilman Robert Fletcher Councilman James Scheibel
Councilman Leonard Levine Councilman Bill Wilson
FROM: Joseph F. Carchedi, License Inspector
On August 5, 1982, at 7:00 P.M., the following license matter
will be considered by the St. �'au1 City Council. This meeting will
be held in the Council Chambers, third floor City Hall and Court
I?ouse.
1. r Public hearing on the application for the transfer of the On Sale
' Liquor, Sunday On Sale Liquor, Entertainment and Off Sale I'lalt
Beverage Licenses from The Lost and Found, Inc. (Lawrence 0'Connell,
President) at 351-53 University Avenue to 353, Inc. (Fred Sande)
and The Lost and Found, Inc. at the same address.� (Fred Sande
notified to attend. This matter was previously considered on July
13, and Ju1y 27, 1982.)
cc: Mayor George Latimer
i4r. Peter Aames, Director �
Department of Finance and Mana�ement Services
Attorney Edward Starr
Attorney Jane McPeak /
Air. A1 Olson, City Clerk✓
Chief of Police, William W. McCutcheon
Dr. Paul Cox, Division of Public Health
Ms. Linda Kohl� St. Paul Dispatch
Mr. Dane Smith, St. Paul Pioneer �'ress
Ms. Jerry Jenkins
Vice �nit
Ms. Caroline Lowe, WCCO
Ms. Jeanette r'arrison, 47TCN
rlr. Gary Hill, KSTP
ileighborhood Contact, 13i.strict 7
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Transcript of Conversation between Mr. Larry 0'Connell and Mr. Joseph Carchedi .
Date: July 29, 1982 at 10:00 a.m.
Room 203, Court House
Mr. 0'Connell is the Licensee of the On Sale Liquor License, No. 10156 doing
business as the Lost and Found Bar located at 351-53 University Avenue.
Mr. Joseph F. Carchedi is the License Inspector for the City of St. Paul .
Mr. Carchedi : You are in the process of transferring the On Sale Liquor License
at the Lost and Found Bar to Fred Sande. I would like to know
your relationship with Fred Sande.
Mr. 0'Connell : I have the Lost and Found Bar and the Clover Club and Mr. Sande
has the machines in those places. We are also friends, of course.
He also works for me occasionally -- he is an entertainer and
stands in now and then for someone who is sick or something.
Mr.� Carchedi : � Specifically, I would like to know your relationship with him --
when he became the applicant to buy the Lost and Found Bar.
Mr. 0'Connell : We have had business dealings on occasion because he came in to
service the machines and fixes them. We developed a friendship
through the years of doing business with each other. He knew I
was interested in selling the place. I don't know exactly how
we discussed it, if he mentioned it first or l did but he asked
what I wanted and I said $30,000 down. He didn't even know .if he
could get the money, but said if he could get $20,000, which he
thought he coul,d, would I be intereste'd?I said get the $20,000
and you've got a deal .
Mr. Carchedi : Did he mention where he would get the money?
Mr. 0'Connell : No.
Mr. Carchedi : During your dealings with Fred Sande, had Elijah Barker known as
E.J. 's name come up as being a prospective employee or an owner?
i�1r. 0'Connel 1 : No
Mr. Carchedi : Had you ever been approached by Elijah Barker as to purchasing
the Lost and Found?
Mr. 0'Connell : No.
Mr. Carchedi : When did you become aware of Elijah Barker as possibly being an
owner of the Lost and Found?
Mr. 0'Connell : I was never aware of it until rumors started flying around as to
E.J. being involved. I never had any reason for this other than
rumors.
. ��q/y�
. .
1 . .
Transcript/Mr. Larry 0'Connell & Mr. Joe Carchedi
July 29, 1982 page 2
Mr. Carchedi : Since this controversy about Elijah Barker becoming a possible
owner/and or manager, have you discussed it with Fred Sande?
Mr. D'Connell : After I made Fred, the manager down there, E.J. was hanging
around like a lo� of other blacks. I met him but didn't pay
any special attention to him. But after the rumors, I made
it a point to meet him one day with Fred Sande. That was the
first fi me I paid any special attention. I meet guys all the time,
shake their hand4 and that's the end of it.
Mr. Carchedi : Elijah Barker or E.J. , I understand is now working as a bartender/
manager?
P1r. 0'Connell : Kind of a working manager and that was suggested by Bill Wilson
(St. Paul Councilman) rfght in his office -- suggested that it
would be kind of good for �.J. being involved (not sure of his
exact words) on a 6 months' trial and if it worked out - might be
good.
Mr. Carchedi : The contract submitted with Fred Sande's application - between Fred .
Sande and you, is that the only contract?
Mr. 0'Connell : Absolutely, and there are no other deals except between I and Fred,
period. I suppose if Fred says he is going to turn it into a
minority bar, and if they had some other black guy. around in an �
after hours bar, people would then involve them too -- like E.J. --
I think the main objective is that it will cater to blacks. There�
were never any black people at this District Council meeting -- only
whites. I guess I got this feeling because they kept referring �o
the blacksas the other element.
�---�
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Transcript of conversation between Fred Sande and Joseph Carchedi.
August 2, 1982 at 10:00 a.m. in Room 203 City Hall .
Also present was Mrs. Patricia, Bookkeeper for the bar known as the Lost and Found.
Mr. Carchedi : Before we start this conversation, Fred, do you mind if I zerox your
ledger so that I can talk to the City Attorney regarding this and
review it with the City Attorney after this statement?
Mr. Sande: Yes, that is all right.
Mr. Carchedi : Fred, in your own words, I would like to know how it came about that
you are purchasing the bar known as the Lost and Found Bar at 351-53
University Avenue?
Mr. Sande: I knew that Mr. 0'Connell had the bar up for sale - I knew that he .
wanted to sell it. I asked him how much he wanted down and he said
$30,OOQ. I asked him if I came up with $20,000 would he be interested.
I talked with .Mr. E. J. Barker who owed me $5,000 and asked him if he
could lend me another $15,000 on top of the $5,000 he owed me. I went
back and told Mr. 0'Connell that I had the $20,000 down and he agreed
to it.
Mr. Carchedi : How did you know that E.J. had the money?
Mr. Sande: I knew that he sold his building down on Selby and that he had gotten
some money for it.
Mr. Carchedi : In your answer, you stated that E. J. owed you $5,000, for what?
Mr. Sande: I had given him some cash and some old machines off my route.
Mr. Carchedi : What kind of business are you in? �
Mr. Sande: Coin machine :service - I put them out and take care of them? �
Mr. Carchedi : Do you have any in St. Paul?
Mr. Sande: Yes.
Mr. Carchedi : Do you have any in other places?
Mr. Sande: Yes, I have some in Minneapolis, Rosemount and Eagan.
Mr. Carchedi ; How many machines do you have out all together & how many in S't. Paul?
Mr Sande: I have 63 in St. Paul and I have about a dozen outside of St. Paul .
Mr. Carchedi : When did you officially take over the management of the bar known
as the Lost and Found at 351-53 University Avenue?
Mr. Sande: On June 16, 1982.
Mr. Carchedi : ' It appears from this ledger that you deposited $3,000?
Mr. Sande: Yes.
Mr. Carchedi : Where did this money come from?
Mr. Sande: I took my operating money from my machine business.
L . , ` , •w ��I /��
Transcript of Conversation between Fred Sande and Joseph Carchedi page 2
August 2, 1982 at 10:00 a.m. in Room 203, City Hall
Mr. Carchedi : Was this cash?
Mr. Sande: Yes.
Mr. Carchedi : Are you spending any��time working at the bar?
Mr. Sande: Yes.
Mr. Carchedi : How many hours a day? _
Mr. Sande: From two to seven hours a day.
Mr. Carchedi : Who is in charge when you are not there?
Mr. Sande: Mr. E. J. Barker is working manager - he is there - also John Funke.
Mr. Carchedi : Who hired E. J.?
Mr. Sande: I did. Mr. 0'Connell came to me one day - he had had a conversation
with Mr. 6i11 Wilson who suggested I hire E. J. for a manager. Mr.
0'Connell and �I talked it over and since E. J. is a friend of mine,
we asked E. J. if he was interested and agreed to hire him.
Mr. Carchedi : Who is John Funke?
Mr. Sande: John Funke is a close associate of Mr. 0'Connells and he is also
a friend of mine. I would say he is looking out for Mr. 0'Connell 's
interests at the bar until the license is transferred.
�� � '
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Fred Sande
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PROMISSORY NOTE WITH SECURITY
$15,000. 00
St. Paul , Minnesota ,
June16 , 1982
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On June 16, 1982 , f.or v$lue received, 353 , Inc. , a corpora-
tion , promises ,to pay E. J. (Elijah) Barker , at 834 Charles ,
in the City of St. Paul , State of Minnesota , Fifteen Thousand
and no/100ths ($15 ,000. 00) Dollars with interest from June 16 ,
1982 , at the rate of ten percent (10$) per year until paid, pay-
able annually in principle� amount of Five Thousand and no/100ths
($5 , 000. 00) Dollars plus ten percent (10$) interest until paid.
This note is secured by the following games and vending
equipment owned free and,,clear of any other liens by Fred Sande ,
President and sole shareholder of 353 , Inc, and located at
508 Sherburne , St. Paul , Minnesota.
1 Baby Pool Table
1 N. Rowe Phonograph
1 A1Tech Poo1 Table
1 Supper Soccer
1 Space M3,ssion Pinball
1 Rowe Phonoqraph TI2
1 Gremlin Trapshoot
1 Smoke Shop Ciqarette Machine
2 Knockout Cocktail Tables
1 Wheels Video Game
� 1 Drag Race Game
1 Rowe Diplomat Phonograph
1 Unscramble Game
1 Skill Parade Game �
If Sefault is made in the payment when due of any part
1 or installment of interest, ` then the entire amount of principal
� and interest shall become immediately due and payable at the
� option of the holder of this note , without notice.
` .
iIn the event of commencement of su;��t to enforce payment
I _ � � ��;,
of this note , I agree t,o pay such addi: r�al sum as attorney ' s
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� fees as the court may adjudge �easonable.
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IN WITNESS WHEREOF, 353 , Inc. has caused this note to be
executed by its duly authorized officers .
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By � ) �' <, - �' - �, `
Secretary • •
B y '" r�- c 1 ( � .r �C�2 _
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President
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Form UCG 12C:.Security Aqreement—Equipmrat aad Consumer Goocs '' MiUer-Dcvis Co..Minneapolia
.". . SECURITY AGREEMENTR w. �
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State o!Minnesota, (hereinalter arllsd "Debaotr �ehrlh�r`ons or mo»)doet'be» � "�y J�,•.,•(��,��'�••,g��+,kQ,r
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logother wlth all tncreasea. parts,.(ittinqa, occessoriea, equipment, renewals and replaeements of all or any part thereot.and'o'ltier�gooda of Ihe same
dasa whether no�r ownod ot herea!!er acquired b,y:Debtor (aU hereSnattsr eatlad "Collateral"�,.:and aq proceeda o�..the Colkste;a�, lo secµre.prompt
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paytr:ent when due oi a note o� notes daled� . lf.y�p�.,�...���j,Z. ......,. .... ...,'enecuted and deli'Y�rod by Debtoi�o Secured ParEy in
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t6e sum.o!5.....,j,.S rOtlOv��•t.................�r.......�with dnte�a�t as therlln prov�ded.,and ony and Q�1 oxleasSoris aad renewala lhereot;and ony and
all future advances made by Secured Party<to Deblor at Securad Party's optton, togelher wtth all.othe� Iiabil[lias,ot:each Debtor to Secured Pariy
(primarily. secoifdarily,d'ueet, rnntinqent, sols, fotnt, or several) due or to become due or wh(ch may be hetecfter eontracted or acquired cnd the
performance byiDebtor o1 aU o!ihe ternu aad conditlons o( Ihis Security Agreement (herelnafter telerred to as '•'QblCgalions ). • ,;.
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DEBTOR �ARAANTS: (a) DebtoY ia or~wtll bc 1he owner of the Collateral clear ot all Iiens encumbrancee and aecurlty inlerests. except thr.
security interesUgranted hereby; (b) Debtor haa the riqht to make this agreomenU (c) the CoUateral is uaed ot�bbuqht !or use and wiil ba.used pri�
mar[lp !or the purposs or purposss checksd betOw: - � ` a ,'+'", : ,
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❑ Personal lamily or household purposes and that the location speci$ed abpve Is Debtor a reafdence unless.a dtHerent addreas la shown in
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the [ollow[nq space.................... . ... ... ..................................... ....................... .. .. ....... ..................... ...: . ..............
❑ Farm purposes and that ths loeatton specilied above !s Debtoi s residence unless a diHerent addrass is sbown !n the lollowtng spaee....:...........
.................................................................................................................................................:..............................................................................................
and the purchase price o! the Collateral (ineludtnq credit for trade•In, li aay) waa 5......................�..............::,.
� Busineas purposes and that the locat[on specilied above b Debtor's only place ot buslaeu with the exceptton oi................................................
............:.......... ...................................:...... .................. ................................................ ...............�.........................................................................
(d) and il the tollowing la checked
❑ Some or all o! the Collateral is beleg acqulred by Debtor with the proceeds o! the notets), which wtll be used for no other purpoae. Debtor
hereby authorizea Securad Party to disburae wid proceeds to the aeller oi the CoUatetal as shown on Secured Party'a recorda.
Debtor turther warranb fhat If tbe Collateral &as beea ot L to be attached to raal estats, Ihe aame ot lhe zetord owner o! such roal estate is
........................................ ....................... ............... .....................................................................................and said real estate fs deacribed as lollows:
THLS AGAEEMENT IS SUBJECT i0 THE TERMS PRINTED ON THE AEVERSE SIDE FiEREOF, WHICH ARE MADE A PART THEREOF.
na�ea....................................................................................................:..:... 353, Iaa.
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. . lTo b�slqe�d if aqre�m�nl is to b�,fil�d{n lieu o!Flnancinp Stot�m�nt) . (D�btot)
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/
� � � RECEIVED -�79�`��
TRANSCRIPT - Conversation ��w�e� �,�,j,jah Barker also known as E.J.
and Joseph F:� rt'h` d �;S�City of St. Paul License Inspector
July 30, 1��tAl��t��n Room 203 of City Hall .
11G
Mr. Carchedi : Tell me your involvement with Fred Sande and the liquor license
known as the Lost and Found Bar at 351-53 University Avenue?
Mr. Barker: 'None.
Mr. Carchedi : Are you lending or paying back any monies to Fred Sande?
Mr. Barker: Yes, I owed Fred Sande some money and lent him the rest at 10�
interest.
Mr. Carchedi : How much did you pay back and how much. did you lend Mr. Sande?
Mr. Barker: I paid back $5,000 and lent him $15,000.
Mr. Carchedi : Do you have any papers giving you security for the $15,000
you are lendinc� him? . �
Mr. Barker: Yes, I do.
Mr. Carchedi : What do you have?
Mr. Barker: I have a promissary note and a security agreement. (attached)
Mr. Carchedi : How about the $5,000?
Mr. Barker: I owed him the $5,000.
Mr. Carci�edi : Was it a note between you and Fred Sande?
Mr. Barker: No. :
Mr. Carchedi : Why did Fred Sande lend you the money?
Mr. Barker: He was the coin machine operator and I met him that way and from:
time to time he borrowed me money.
Mr. Carchedi : Did you do business with any other coin machine operator?
Mr. Barker: Yes, Northern Coin.
Mr. Carchedi : Did you ever borrow money from Northern Coin?
Mr. Barker: Yes.
Mr, Carchedi : Did you pay it back?
Mr. Barker: Yes. ,
Mr. Carchedi : You are now employed at the Lost and Found Bar. Who hired you and
why?
Mr. Barker: Mr. 0'Connell had been to a meeting and he came in and I was hanging
around. Mr. Wilson (City Councilman) said why didn't he give me a
job and him and Fred Sande talked it over and he gave me a job.
� Mr. Carchedi : What is your .job there? :
, Mr. Barker: Kind of a manager.
Mr. Carchedi : How long have you been employed there?
� ��9/�3
.. � � �ranscript/Mr. Joseph Carchedi and Elijah Barker page 2
Room 203, City Hall on 7-30-82 at 10:00 a.m.
Mr. Barker: Well , a week maybe?
Mr. Carchedi : How many hours do you work?
Mr. Barker: Well , maybe say 4 or 5 hours a day.
Mr. Carchedi : You are not working there full time then?
��r. Barker: Not right now. Starting out they gave me 4 or 5 hours - probably
more hours later.
Mr. Carchedi : How do you think the rumors that Fred Sande is fronting for you and
that you are the actual owner of the Lost and Found Bar started?
Mr. Barker: I think that Mr. Sansby at the Western State Bank found out that
Fred Sande was buying the bar and he knew that Fred Sande and I
were close friends -- he just figured that Fred Sande was buying it
for me.
Mr. Carchedi : You understand that if there is any hidden ownership and the city
eventually finds out that you have hidden ownership in the Lost &
Found Bar, that you will lose your investment and the license will
be revoked?
Mr. Barker: Yes, I do.
Mr. Carchedi : Are you still claimirg that you have no hidden ownership there?
Mr. Barker: No, I do not.
Mr. Carchedi : Who drew up this Promissory Note and Security Agreement?
Mr. Barker: I don't know I think it was Fred Sande's lawyer.
Mr. Carchedi : When was it drawn up? Before or after you lent Mr. Sande the .
money? -
Mr. Barker: It was after the money was lent - what happened was I lent him
the money and a few weeks ago, after Fred Sande changed lawyers,
there were a few things. that we didn't know about that he explained
should be done.
Mr. Carchedi : What do you mean should be done?
Mr. Barker: Drawing up the Promissory Note and the Security Agreement.
Mr. Carchedi : Why did he say that, to make it legal or what?
Mr. Barker: So that I would have legal papers.
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Eli�a Barker