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02-473,�., �-.� . ,.,, � �, n n ; Council File # O Q � �j� 3 �,�;ir.��.�.,�. Green Sheet # 113735 RESOLUTION , CITY O SAINT PAUL, MINNESOTA � Presented by � Referred To Commi ate WIIEREAS, the Legislative Hearing Officer recommends that license applicarion (ID # 0049441) for a Gambling Location License by Blues Saloon, Inc., dba Lucy's, 601 Western Avenue North, be approved; therefore, be it RESOLVED that the Council of the City of Saint Paul hereby approves this license application. Yeas Nays Absent Blakey � Coleman ,� Harris � Benana� �- Reiter ✓ Bostrom � Lantry �/ O O Adopted by Council: Date pp_�� Adoption By: Approved � Requested by Deparhnent of. � Form Approved by City Attorney � Approved by Mayor for Submission to Council DEPARTMINT,OFF�CFJC«,NC�� oA�EiNrtw�EO b �l - � ' 13 City Council Offices rra za, zooz GREEN SHEET No 113735 CONTACT PERSON & PIiONE �nmallDah mN9lDaee Gerr Strathman, 266 oa,,,a�,r,.,ar„� ancrouca MUST BE ON CWNCIL AGENOA BY (Q4'fq A531611 � WR pIYJilONEY CIIYCtHtK ROUiING �� n1I�11r�s1.aEnr�CFiOR fIiMICJ11liErtv/1fCCiC �YWRI�I�4WIFIlI) ❑ TOTAL # OF SIGNATURE PACES (CLJP ALL LOCATIONS FOR SIGNATURE) CTION RE�UESTm Approving application for a Gambling Location License by Blues Saloon, dba Lucy's, 601 Western Avenue North. RECAMMENDATION Approve (A) w Reject (R) GERSONAL SERVICE CON7RACf5 MUSTANSWER TXE FOLLOWING QUESiIONS: t. HasfhispersoMrmaverMarketluntleracrontrzctfortlusdepartmeM'1 PLANNINGCOMMISSION YES NO CIBCOMMITTEE 2. HasthispersaJfiimeverheenadtyempbyee4 CNILSERVICECAMMISSION vES NO 3. Does ihis pe�soNfiim possess a sldll not normaityposses.aetl bY arry curteM city emPloyee? YES NO 4. Is Nis persoNfi�m a tarpMetl ventloYt YES NO E�lain aU Yes answeis an seCerate she� and attach to Oreen sheM INITIATING PROBLEM ISSUE, OPPOR7UNITV (Who, WhaL Whe�. Where, Why) ADVANTAGESIFAPPROVED � @,�(�{,�.� y�t 4eI i ii� � � � s�� � �� ��� DISADVANTAGESIFAPPROVED DISADVANTAGESIFNOTAPPROVED TOTAL AMOUNT OF ZRANSACTION S CO3T/REVENUE BUDGETED (CIRCLE ON� YES NO FUNDING SOURCE ACTMTY NUMBER FlNANGqL INFORMA710N (EJ� W t� NffNUTES OF TIIE LEGISLATIVE HEARING LUCY'S - 601 Western Avenue North. Tuesday, May 21, 2002 Room 330 Courthouse Gerry Strathman, Legislative Hearing Officer v�u� �y . STAFF PRESENT: Kristine Schweinler, LIEP (License, Inspections, Environmental Protection) The meeting was called to order at 10:24 a.m. Gerry Straflunan stated this meeting is being held to hear objecfions to the issuance of a license to Blues Saloon, doing business as Lucy's, 601 Western Avenue North. Kristine Schweinier reported that Blues Saloon, Inc., doing business as Lucy's, is applying for a Gambling Location License. The Office of LEIP's recommendation is for approval based on the requirements having been met however, LIEP's opuuon is basically the same as the neighborhood's opinion: the business has not been cooperative. The business has not signed the conditions attached to the license, and LIEP has no Ciass N application for the Gambling Location License. Mr. Strathman asked what they would be able to do once they ha�e this license. Ms. Schweinler responded they would be allowed to have a chazitable gambling organization in the baz selling pull tabs and tip boards. Otherwise, they would be able to confinue business as usual. Mr. Sirathman stated the earlier application was Metro Youth Athletics. This is a little confusing in that Metro Youth Athletics has an application for gambling manager, but there is no approval for the gambling location. He asked is it usually done the other way around. Ms. Schweinler responded that is correct or it is done at the same time. Mr. Sirathman stated he has four letters objecting to this license. The first letter is from Harold Miller, 512 Blair Avenue, who raised the following concerns: the Blues Saloon has been nothing but a problem, the owner does not tell the truth, assaults, drinking after hours, shootings, fights, and the business is across from Jackson Elementary School. The second letter is from Matt Copper, 409 Lafond Avenue, who raised the following concerns: Lucy's is in proximity to two elementary schools and the unneeded influence on children in the azea. Leigh Rotenberry, 623 Virginia Street, wrote about the following concerns: difficulty pazking, patrons littering, noise at closing time, increase in traffic, and the gambling license is across from an elementary school. Tait Danielson, District 7 Plauning Council, 689 Dale Street North, wrote that the Planning Council is unwilling to support the application because the owner is unwilling to consider the proposed conditions for their liquor license. (No one appeared to object in person.) Paula Areanna Coale, owner, appeazed. Mr. Strathman stated she has heazd and has an opportunity to read the objections to the license application. He asked did she have any response to offer. a u� 3 LEGISLATIVE HEARING MINUTES, LUCY'S, May 21, 2002 Page 2 In addition to being an owner, stated Ms. Coale, she is a lawyer with the Ramsey County Public Defenders Office and she is also a private lawyer. She represents Lucy's in their matters. Ms. Coale stated there aze four reasons the pull tab license should be granted: Reason 1- This is a financial consideration. Bazs have the highest rates in terms of sales taxes. The baz is tased heavily to pay liquor fees. There aze Workers' Compensation fees, dram shop insurance, and a host of other fees and taxes. In the last ten yeazs, when it was decided that it was okay for Native Americans to have casinos, it took a certain amount of businesses out of the Frogtown azea. Because the DWI laws became so serious, people started drivking less, going to bazs later, and lea�ing eaziier. But there has not been anythiug to compensate the bazs or help them meet theu business expenses. One of the things Ms. Coale would get out of this license is $1,000 a month, which will help her to make her meet some of the expenses imposed on her bar. Reason 2- All the proceeds go to support youth athletics. They are giving something positive back to the community in her area, which does not have much in terms of financial resources other than the money the government pours into the area. Lucy's has at least 15 charitable fundraising events they sponsor each year. Peopie who do not come into her baz jump to conclusions about problems and they think the problems emanate from the building. No matter how many times Ms. Coale establishes that the problems do not come from Lucy's, they are unwilling to look at evidence. Reason 3- The third reason it is important to have this pull tab business is it provides an employxnent opportunity for single parents to supplement their income. Reason 4- It corrects an unfair competitive disadvantage. The other bars in the area have pull tabs. Lucy's is prominently a white, gay and lesbian bar, stated Ms. Coale. There are people that aze part of the gay and lesbian community that like to play pull tabs. When they get paid and decide to play pull tabs, they will not be in her business on Friday; they will go to one of the other places. Ms. Coale stated she would like to be treated as the other bars aze treated. Up until a couple of years ago, stated Ms. Coale, the bar was The Blues Saloon. They had a national and international reputation for bringing in the best in Rhytlun and Blues. They received more critics choices than any other club. The Blues Saloon was featured in local and national publications. They had a superb reputation and did not have problems. During the period they were Rhytlun and Blues, she does not recall a violation. They had a neighborhood bar downstairs and a room upstairs where they were national performers. There were so many rhythm and blues clubs, stated Ms. Coale, and she was bringing in eapensive entertainment. At the same time, the neighborhood had deteriorated, although a lot of that has turned around now. There was a lot of elements in the Frogtown azea that made it difficult for any business to survive or do well. Ms. Coa1e had to make a fmancial decision. She decided that she did not want the young, African American, straight people coming into her club because they haue a propensity for violence. A couple of words were exchanged and the whole room would erupt. She had Hip Hop music on Friday nights. There were two other establishments--Arnella's and Jazzville--that had an almost all black clientele. They were nuuiing into a11 kinds of problems with the City, and their licenses were suspended. Without oZ y�►3 LEGISLATIVE HEARING MINUT'ES, LUCY'S, May 21, 2002 Page 3 warniug, Ms. Coale stated, she was inundated with people from Arnella's and Jazzville. Ms. Coale states she added security, had dress codes, and used metal detectors. Unless a person caused a problem and met all of her rules, she could not keep people out. She had to wait until people did something uniess they were inappropriately dressed or had gang colors. Ms. Coale stated she put on the security and removed the people who were causing problems. Uitimately Arnella's reopened and Ms. Coale made it so uncomfortable for the people who were causing problems that they left. At the same time, Ms. Coale was trying to bring in the gay and lesbian clientele because they are the most peaceful, least violent, the best tipping, and she simply did not have problems with them. For a period of time, she could not get them to come to her bar because she had metal detectors and they were frightened. When objections aze made regazding trash and after hours drinking, it is not coming from her baz per se. They had a Legislative Hearing and that issue was brought up. The Legislative Hearing Officer determined conciusively that her baz was not causing the trash at Jackson School. Councilmember Blakey decided to add that word "inconclusive' ; however, he did not see the evidence Ms. Coale had. She kept telling them that the trash is there between the time her bar closes and when it opens the next day. She brought in samples of the trash; these were bottles and cans that are not soid in her club. One of the worse crack houses was closed down and suddenly the trash went away. Some of the people making objections aze not aware of what was going on. (Note: Ms. Coa1e is referring to a Administrative Law Judge Hearing in this pazagraph and not a Legislative Hearing.) Ms. Coale stated two of the objections are about the school. This establishment has been a baz for over 100 years, and it may predate Jackson School. There is not a problem with Jackson Elementary School for the following reasons: 1) Elementary children aze not allowed in the establishment so it cannot be a bad influence. 2) The money is going towards youth athlefics, which helps kids. 3) The location of the pull tab booth is in the southeast comer of the bar. A person cannot see the booth nor see the seating. There aze two doors to go through before a person enters the premises. 4) Pull tabs will be sold after the kids are out of school. Ms. Coale stated the conditions are unnecessary, inappropriate, and unconstitutional. Many of the condition were already being done. Also, the conditions could be open to interpretation and manipularion. (Ms. Coa1e reviewed the conditions individually.) Condition 1: Bar employees will daily police the perimeter of the property for trash and bottle pickup. - Ms. Coa1e stated when the neighborhood meeting was held, she told them that she hired two people to pick up trash and that the trash left around Jackson School did not come from Lucy's. They will continue to pick up the trash, but she does not feel it should be a restricfion on the license. Condition 2: The bar owner will consider the possibility of rezoning the parking Zot and of making improvements on the lot iffunds are available. - Ms. Coale stated she intends to go forwazd with the rezoning this summer. It is not something that should be a restriction. oZ��3 LEGISLATIVE HEARING MINUT'ES, LUCY'S, May 21, 2002 Page 4 Condition 3: The light in the backparking Zot must be repaired and maintained. - Ms. Coale stated there was a problem with the light, but it was repiaced before she was requested to do sa Condition 4: A metal detector sha11 be used by the establishment to prevent the introduction of weapons on the Zicensed premises. Every customer sha11 be checked prior to entry and reentry. There wiil be no exceptions. The presence of weapons in the establishment wi111ead to adverse action against the license. - Ms. Coale there aze several problems with this condition. She chose to install metal detectors last summer when the business was hauing problems with Jazzville and Arnellas. They felt it was in their interest to have a metal detector because they did not like who was coming in the door. Now, Lucy's has a predominantly white, gay and lesbian clientele that is the least violent of any group, and the City still wants Lucy's to haue a provision that every person will go through a metal detector. She is not going to put people through a metal detector because she have lrnown them for years. These aze professional and semi-professional people. However, Ms. Coale stated, she does have a metal detector and if she does see someone who she thinks might pose a danger, she will use it. Also, she is not going to agree to adverse action being taken against her if she is not doing anything wrong and it is the intentional act of another person. Condition 5: The license holder will employ properly trained security personnel who will be on duty everyday until closing. The security guards will adhere to the following guidelines.• a) the security guards will not socialize with patrons and will not be allowed to drink alcoholic beverages while on duty; b) the security guards will wear identifying clothing to be easily identified as security personnel for Lucy's, c) the security guards will conduct outside sweeps or walk-arounds at least twice an hour, while on duty and weather permitting, to disperse or discourage people from excessive loitering adjacent to the Zicensed establishment. - Ms. Coale stated she does haue properly trained security personnel, they do not driuk alcoholic beverages while on duty, they aze not suppose to socialize with patrons, they do wear identifying clothing, and they walk around the pernneter to make sure illegal acrivities are not going on. She has just reordered clothing with big letters that say "Security." All these things were done before the suggestions were ever made, and she will continue to do them because it is in their interest. Last summer, the people from Jazzville and Arnella's were a problem because the people that were not allowed in her club were congregating on the opposite street of the club. There is nothing she can do about tl�at. Condition 6: Criminal histories or background checks will be conducted on all securiry personnel to eliminate arzy candidates who have a criminal history from working as security personnel. - Ms. Coale stated she does a criminal history check on people hired. She does not have security personnel with felonies. Condition 7: Lucy's agrees to continue to enforce a dress code for customers designed specifzcally to prevent customers from concealing weapons or contraband inside their clothing or wearing of gang affiliated colors or clothing. - Ms. Coale stated she had a dress code in place before the City said anything about it. At the neighborhood meeting in June, she told them exactly what the dress code was. This condition is unconstitutionally vague. It does not define what aze gang colors and it is presupposing that Ms. Coa1e lmows as much or more than the police know. If an African American straight person comes in wearing baggy sagging pants, �Z ��3 LEGISLATIVE HEAI2ING MINUTES, LUCY'S, May 21, 2002 Page 5 dirty tennis shoes, a bandana on theu head, a baseball cap cocked to the side, a gold necklace with a machine gun ott it, it is clear that she does not want this person in the club and that person will not be allowed to come in. But, Lucy's has softball teams and their members weaz cotton bandanas or baseball caps. She is not going to put on a sign that people cannot wear baseball caps. She is also not going to say that people cannot weaz dirty tennis shoes because the softball team members wear tennis shoes. ff people aze wearing saggy pants and underwear is showing, she does not want them in her club. Ms. Coale stated she understands the goal and is doing the best she can to adhere to the goal, but she is not going to agree t� this condition. Condition 8: The Zicensee will lock the doors of the establishment at 12:30 a.m. No additional patrons wi11 be allowed entry or reentry after that time. However, with property ident�cation, police officers and inspection personnel will not be denied entry. - Ms. Coale staxed they voluntarily closes at 1230 a.m. because the people from Arnella's and Jazzville were coming in late at night. At the present time, she should not be put in a separate category than other establishments. People coming in at 1230 were sober drivers coming to pick up friends. They do not allow people to go out and come back in because of a concern with drugs. Condition 9: Lucy's shall maintain a last of all patrons who have been banned fi•om the establishment, and this list shall be strictly enforced by Lucy's. Such list shall include proper identification of that person, photographs, and a notice of trespass. The notice will be in duplicate with a copy to each of the following: 1) maintained by the establishment, and 2) the individual being banned. Once banned a person will remain banned for a minimum of one year. - Ms. Coa1e stated anyone violent in her club is banned for life. There are clubs that hold people and remove their license; however, she does not want her security people grabbing people. Ms. Coa1e stated they aze a very responsible club. They hy to maintain the same goals that the communiTy and LIEP has. Lucy's is one of the cleanest bazs. She is asking to be treated fairly in this situation and to a11ow the pull tab gambling license to be issued. Gerry Strathman asked did Ms. Coale get her licenses without the conditions added. Ms. Schweinler responded the licenses were issued, and the request for conditions came after some of the problems started appearing at the bar. Mr. Strathman stated the licenses listed were all issued, there were complaints, LIEP proposed conditions and Ms. Coale is unwilling to sign onto the conditions. Ms. Schweinler responded that is correct. The conditions have not been signed or agreed to. Ms. Coa1e stated she is not opposed to having some of these condition in a letter of understanding and goals. Mr. Strathman asked are the licenses currently active and in good standing. Ms. Schweinler responded they are currentiy active. Mr. Strathxnan asked if there are any adverse acrion in the process. Ms. Schweinler responded not at this time. Mr. Strathman stated he understands from the owner and from the letters received that there haue been concerns with how this establishment is operated; however, when he looks at the issues that OZ� ��3 LEGISLATIVE HEARING MINUTES, LL3CY'S, May 21, 2002 Page 6 haue been raised by the objections, he does not see how adding gambling is going to affect the elementary schools neazby. Also, he does not see how adding gambling will create addirional isash. People aze unlikely to take their pull tabs outside and throw them on the ground. It seems nnlik there will be any major difference in the traffic patterns because pull tabs aze going on inside except, as the owner said, there may be more people in the establishment on Friday nights than otherwise. None of the condifions speak to the issue of pull tabs. Mr. Strathmau asked did anyone else wish to speak on this issue. (No one came forward.) Gerry Strathman recoxnmended approval of the license application. He cannot find anything in the record to suggest the basis for denying the application for the Gambling Location License. Mr. Strathxnan suggested Ms. Coale attend the City Council meering on June 5 because it may be in her interest to do so, although it is unlikely she will be able to give testimony. The meeting was adjourned at 10:58 a.m. 0