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271500 WMITE - CiT} CLERK ;-�� PINK-� - FIN/CNCE CO�111C1I � � CANARV - DEPARTMENT GITY OF SAINT PAUL File NO. � BLUE - MAVQR � s 1��V • • C un l Resolution Presented By , Referred To Committee: Date Out of Committee By Date WHEREAS, the 1201 Jackson Street Corporation, Mrs. Mary C. Marcum, President, is the holder of various licenses, including an on-sale intoxicating liquor license, for the premises at 1201 Jackson Street in the City of Saint Paul; and WHEREAS, John T. Crea has claimed to be the real owner of said licenses, including the intoxicating liquor license, and made application to transfer said license to James R. Bell and George N. C,roft; and WHEREAS, the License Inspector, Joseph F. Carchedi, notified both Marcum and Crea that a hearing would be held to consider revo- cation or suspension of said licenses on July 10, 1978, and indi- cated that evidence of misconduct would be presented to t�e License Committee as follows : "1. In June and July of 1976, the licensee committed fraud in the application for the liquor license, which fraud consisted of false statements concerning financing, ownership, operation and interest in the license premises. 2. From June of 1976 to present, the licensee and John Crea have engaged in a conspiracy to commit perjury with respect to the licensed premises and license. 3. From June 1976 to present, the licensee and John Crea have engaged in a conspiracy to violate state and local liquor laws to the end of allowing someone who may be disqualif ied from owning a liquor license under Saint Paul Legislative Code 308.07 and Minn. Stat. 340.13, Subd. 12, to actually own and operate an on-sale liquor establishment. COUNCILMEIV Requested by Department of: +,; _Yeas Nays Butler In Favor Hozza Hunt Levine _ __ Against BY Maddox Showalter Tedesco 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 _ y !y • ��.",_��t,l Page 3. that after the second conviction, the license was required to be sold to any purchaser not in or related to the Crea family under pain of revocation; that John Crea admitted the violations, but argued that revocation was too harsh a penalty; that Crea and Marcum both pled guilty to conspiracy to commit perjury on June 30, 1978 ; that Marcum was given a $300 fine; that Crea still awaits sentencing; and that Crea would willingly and voluntarily accept, in addition to a 60 day suspension of this license (so long as his application for transfer of the license to James Bell and George Croft was approved) three conditions: a fine of $10,000 to be paid prior to final approval of the transfer, that Crea would never again be involved in the liquor business in the City of Saint Paul; and that Crea would waive any right to appeal this ma.tter to District Court; and WHEREAS, a motion to revoke the licenses for the premises at 1201 Jackson Street was defeated 3-4; and WHEREAS, a motion to approve the proposed transfer of the on- sale intoxicat�ng liquor license from John Crea to James R. Bell and George N. Croft upon four conditions: one, that there be a 60 day suspension; two, that Crea pay to the City of Saint Paul a fine of $10,000; three, that Crea never again Znvolve himself in the liquor business in the City of Saint Paul ; and four, that Crea waive any right to appeal this ma.tter to District Court; was passed by a vote of 4-3; and WHEREAS, John Crea stated that the conditions involving the fine, no future involvement in the liquor business, and waiving right of appeal were acceptable to him; now, therefore, be it RESOLVED, that the transfer of the on-sale intoxicating liquor license for the premises at 1201 Jackson Street currently held by the 1201 Jackson Street Corporation, to James R. Bell and �eorge N. Croft is approved, subject to the conditions hereinafter set forth; and, be it FURTHER RESOLVED, that all operations of any licenses or business at 1201 Jackson Street shall be suspended for a period of sixty (60) days, commencing at 12;01 A.M. of the day following publication of this resolution; and, be it FURTHER RESOLVED, that the said transfer shall be effective at 12;01 A.M. of the day following the publication of this reso- lution, and shall be subject to the 60 day suspension; and, be it . ► �'��_�� Page 2. 4. The licensee Mary Marcum transferred the licensed premise and license to John Crea without the knowledge and consent of the City Council, in violation of St. Paul Legislative Code 308. 16 and Minn. Stat. 340�13, Subd. 9 . S. The licensee Ma.ry Marcum has been convicted of the crime of conspiracy to commit perjury." ; and WHEREAS, a hearing was held before the License Committee, sitting as a Committee of the Whole, on July 10, 1978, and July 13, 1978, at which both Marcum and Crea were represented by James Mile�r, Attorney, at which hearing testimony was taken under oath, before a court reporter; and WHEREAS, the Committee heard testimony from Sgt. Richard Simmons, St. Paul Police Department; John Da.ubney, Attorney; James R. Bell, Attorney; Roger S. Bottum, Investigator, Office of Investi- gations, U.S. Department of Agriculture; Joseph F. Carchedi, License Inspector; Raymond J. Perron, Agent, Bureau of Criminal Apprehension; John T. Crea; and received documents and copies of documents as Exhibits A through BB (except X, Z, and AA) , and Licensee Exhibits 1 to 3 (the Committee was also furnished copies of three items not offered by either party) ; and WHEREAS, the evidence established that John Crea, following t sale of a previous liquor license in his mother' s name under th�eat of revocation by the Council in January of 1976, conspired a�.d un- lawfully procured Mary Ma.rcum in June 1976 and after to pretend that she was seeking a liquor license in her own name; that Crea conspired with Ma.rcum to submit a false and perjured application for an on-sale intoxicating liquor license; that Marcum did in fact submit under oath a false application; that John Crea thereupon assumed full and complete control of the operation of the Ja Ma.r Bar with the license so unlawfully obtained; that Crea knew or suspected that he could not have obtained the license in his own r�.me if he had applied honestly; that Crea' s previous criminal convictions would not have automatically disqualified him from holding an on-sale license, but that such convictions and the underlying misconduct could have been used against him in a forma.l hearing on ownership of a license; that John Crea on two previous occasions has committed criminal violations on premises licensed for off-sale of intoxicating liquor, receiving stolen goods, and the unlawful sale and purchase of federal food stamps ; that after the first such conviction in 1974, the license for which John Crea was the manager was given a 60 day suspension by the City Council; WHI�TE - G�'�YV CLERK �y►q.� �� PINK - FINANCE COUnCII �. 1 CANARV - DEPARTMEN T G I TY OF SA I NT PA U L f� � �� BLUE - MAVOf� File NO. ` f" Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Page 4. FURTHER RESOLVED, that John Crea shall by certified check or cashier' s check pay to the order of the City of Saint Paul the sum of $10,000 as a fine, and that the City Clerk is directed not to publish this resolution until notified by the Director of Finance and Management Services that the City of Saint Paul has received that sum as herein provided; and, be it FURTHER RESOLVED, that John Crea shall at no time in the future become in any way involved in any phase of the business of selling at on-sale or off-sale any alcoholic beverages in the City of Saint Paul, whether as owner, ma.nager, employee, operator, or in any other way. COUIVC[LMEN Requested by Department of: Yeas Nays � Butler ! In Favor Hozza — Hunt--� \�_L,-evine __ Against BY �Nladdox �howalter �Tedesco �UL 2�� 9� Form Approved by City Attorney Adopted b ncil: Date Cert ed Passe Council Secretar}� BY By, tapproved by iNavor: Date Approv WithOUt the 3igri u�proved by Mayor for Submission to Council gy hart�yor pursuant to Section 6.08 of th BY PUBLISHED AUG �J �� '�� CITY OF SA�NT PAUL F!N�':.�1GE T�E��I.�t'.i Li�VIJi.ritY RECEIPT DEPT. OF ��) 15526 RECEIPTS FOR � CASH DEPOSITED IN CITY TREASUR`f j -- � .�7� ; _19��I NOTE: ALL RECEIPTS MUST BE DEPOSITED DAILY DATE RECEIVED FROM ANALYSIS OF RECEIPT ACCOUNT AMOUNT �/ � (Ch ckreference,etc.) (Showcompletedetails,usingseverallinesifpecessary) CREDITED r i ✓ � � � O4 . � � J , . - � 0� .,� �z.�� 0 C� - � � j .; l' � � i ', � �.. � .5"L'� 9 �- ; TOTAL �� OEPOSIT THE ABOVE AMOUNT RECEIVEO T ABOVE AMGUNi Prepared By i � gY � �i1/�-��-E� Cashier Title