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03-478�.���'�IN�L Presented Refesed To Committee Date r� WI�REAS, the Legislarive Hearing Officer recommends that the license applicarion (ID # 20030000682) for Malt On Sale (Strong), Wine On Sale, Enteitainntent (B), and Restaurant (B) Licenses by Mai Yia Lee, dba Samosone Restaurant, 1177 Clazence Street, be refened to an Administrative Law Judge; THEREFORE, BE IT RESOLVEA that the Council of the City of Saint Paul hereby refers this license application to an Administrative Law Judge. Yeas Nays Absent Benanav � Blakey �, Bostrom �, Coleman ,i Harris ,� Lantry ,i Reiter � 6 O Adopted by Council: Date [ Adoption By: Approved � Council File # � 3- 1g Green Sheet # 3000181 RESOLUTION CITY OF SAINT PAUL, MINNESOTA Requested by Department of: � Form Approved by City Attomey � Approved by Mayor for Submission to Council ��:: 03 -�t�18' , `4 n � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � �� - Cp - Council Cor�ct person 8 Phone: Marda Mcertnond 266-8560 Must Be on Cauncil Agenda by (Date): 28-MAY-03 ,�Y� Green Sheet NO: 3000181 � Assign Number Por Routing Order 0 1 2 3 4 Total # of SignaW re Pages _(Clip All Locations for Signature) woon neques[ea: � Referring the Malt On Sale (Strong), Wine On Sale, Entertainment (B), and Restaurant Licenses by Mai Yia Lee, dba Samosone Restaurant, 1177 Clarence Street, to an Administrative Law Judge. Recommendations: Approve (A) or Reject (R): Planning Commission CIB Committee Civil Service Commission Personal Service ConVacts Must Answer the Foilowing Questions: 1. Has this persoNfirtn ever worked under a contrad for this department? Yes No 2. Has this perso�Rn ever been a city emR�oyee? Yes No 3. Does this person/firm possess a skill not normally possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): AdvantageslfApproved: DisadvarrtagesifApproved: 4�� 1 � 20�33 DisadvantaqeslfNotApproved: � 'otal Amount of Transaction: Fundins� Source: CosURevenue Budgeted: Activity Num6er. Financial Information: (Explain) 01� ��g NIINUTES OF TIIE LEGISLATIVE HEARING SAMOSONE RESTAURANT - 1177 CLARENCE STREET Thursday, May 8, 2003 Room 330 Courthouse Mazcia Moermond, Legislative Hearing Officer The meeting was called to order at 10:07 a.m. STAFF PRESENT: Pat Fish, Fire Prevenrion; Jeff Hawkins, License, Inspections, Environmental Protection (LIEP); Racquel Naylor, City Council Offices; Steve Roy, LIEP; Kristine Schweinler, LIEP. Mazcia Moermond stated this is not an appeal, but an objection to the issuance of a license application. At the end of this hearing, she will make one of three recommendations to the City Council: 1) grant the license application with no conditions, 2) grant the license application with conditions, which have to be accepted by the applicant, 3) send this license application to an Administrative Law Judge (AL�. If agreement cannot be found or there are other kinds of problems that cannot be dealt with at this Legislative Heazing, she will recommend that this is sent to an ALJ. When the City Council looks at it, they will be accepring her recommendation or placing their own recommendation into the record. They will not be conducting a public hearing. Krisfine Schweinler, Senior License Tnspector, reported that this is an application for Restaurant, On Sale Wine, On Sale Strong Beer, and Entertainment Licenses at 1177 Clarence Street by Mai Yia Lee. At this time, Licensing has not received Environmental Health, Fire, Licensing, nar Zoning approval. They haue discovered there is a lack of pazking. The pazking has substantially changed from its prior use. Ms. Schweinler is recommending that this license application is sent to an ALJ. Ms. Moermond asked has anyone approved this application. Ms. Schweinler responded no. Ms. Moermond asked did Fire not sign off on this because there was no certificate of occupancy. Ms. Schweinler responded the Certificate of Occupancy has not been issued. Also, there are other issues with the health requirements. Jeff Hawkins, Zoning, stated that this spot had to supply 83 pazking spaces in 1995 and 1996, which they did. In 1995, there was a variance for 16 spaces. Now, there are 2'7 spaces out of the 83 requested; therefore, there is a shortfall of 56 spaces that the business would have to provide with either a shazed parking agreement or a variance. To explain further, in 1999 when Dinner Club 2000 took over, the HRA (Housing and Redevelopment Authority) bought out Mangini's Banquet Aa11 and the surrounding property, which included a substantial amount of the parking far 1177 Clarence. LIEP was just informed of the resulring parking shortfall recently. Steve Roy, Food Inspections, reported that this building has been sold many times. There has been little invesrinent over the yeazs; therefore, it is an old building wiYh old equipment. A few yeazs ago, the basement was flooded with about three feet of water that affected the walk-in cooler. Over the years, somebody has painted the approved wall covering, which negates the b � _ ��� LEGISLATIVE HEAItiNG MINUTES - SAMOSONE RESTAi.JRANT - May 8, 2003 Page 2 approval of that material. The kitchen was built for two spaces: a pizza kitchen and a dining facility kitchen. They aze both there, but the e�aust hoods have been altered illegally and improperly. One of the back kitchen's e�aust vents has a big hole with insulation coming out of it. There has been plumbing that appeazs to be illegai; it is not properly vented or ea�tensive runs before vents. There is a bar in the back section that was approved and functioning, but it was removed. A few weeks ago, someone moved the baz into a portion of the building where there was not a bar, and they did not accomxnodate for plumbing, lighting, nor floor-wall repairs. That bar will have to be removed or brought up to code. The coving—the azea azound the baseboard—is not attached and is improper. Some equipment is not properly installed under the hood. It has been so long since the FRP—fiberglass reinforced panel wall covering materials—has been installed, the adhesive is no longer holding. It peels off the wa11 from a touch. The basement bar is not up to code. The bathrooms also need work. Pat Fish reported there are five pages of outstanding orders on the building that were previously appealed by the owner. These violations have to be signed off under permit by LIEP prior to occupying. The major violation is to add a sprinkler system to the basement, and to add a sprinkler system or a fire alann system in the upstairs area. There is a problem with the hood system and a lot of pluxnbing issues with the building. These still have to be addressed before her office can sign off on it. Ms. Moermond stated she has not seen license applications where none of the areas have been signed off before. She asked what is done typically in these cases. Ms. Schweinler responded normally they would recommend a two week layover, but there appears to be a significant amount of pazking that needs to be required and those variances take a few weeks to obtain. She is not sure the owner can obtain that. The amount of work required is extensive. With these issues, the neighborhood concerns, and the concerns of the inspection process, Ms. Schweiner is asking that this matter is denied. The following appeared: Mai Yia Lee, owner, 2050 Hyacinth Avenue East; and Yang Yang, 762 Case Avenue East. Ms. Lee stated they are still in the process of doing all of these things. The first priority is waiting to see if they would get the liquor license. They have done a lot of things already. The sprinkler system design has been finished. The fire alarm system is set up already. There are a few minar things. When they are complete, they will call the Fire Department to look at it. They want to find additional parking and will possibly talk to owners of private property for parking spaces. To her understanding, the former owner used this building. Ms. Schweinler responded the pazking has been reduced since Dinner Club 2000. They used to pazk all the way back to the woods, but that area is no longer available. Ms. Lee stated the land adjacent to the building front and back belongs to the former owner. The area that is not fenced off is their parking, responded Ms. Schweinler, but it is less then what they require. That needs to be addressed. Shazed pazking has to be within 300 feet of their establisl�ment. o�-��� LEGISLATIVE HEARING MINIIT'ES - SAMOSONE RESTAURANT - May 8, 2003 Page 3 Ms. Lee stated she has written a letter to the owner of the pazking lot to the west of the building. (Ms. Lee and Mr. Yang showed Mr. Hawkins where their pazking would be located.) Mr. Hawkins stated the City bought out some property and the agreements went away. Mr. Yang responded there aze 3.9 acres. Mr. Hawkins responded that may be okay if it can be developed as parking. Ms. Schweinler stated that the pazking requirement would have to be met before a variance is obtained. Also, this is not a liquor license. The wine, beer, and entertainment licenses aze only an accompaniment to the restaurant; the wine or beer has to be served in conjunction with the meal. The entertainment is only used as an enhancement for the restaurant. This cannot be a nightclub. This cannot be a liquor establishment that continues to serve alcohol after someone has finished their meal. Ms. Schweinler is not sure the owner understands that. Ms. Lee responded she understands this and that is exactly what they want. Ms. Lee gave Ms. Moermond three packets: Packet 1 contains letters from Hmong organizarions, Packet 2 contains petitions from individuals in support of Samosone Restaurant, Packet 3 contains letters from individuals in support. (Note: there are 189 names on the petition, there aze 321etters from businesses, there are 9 letters from Hmong organizations, and an e-mail from Minnesota State Senator Mee Moua.) Ms. Moermond stated she received one letter of objection to the issuance of a license. Chuck Repke, District 2 Community Council, 1961 Sherwood Avenue, appeazed and stated they object to the license on several grounds. He asked would this establishment be able to apply for a liquor license. Ms. Schweinler responded the On Sale Liquor License was revoked. The ordinance reads that if the license is revoked, another liquor license cannot be issued to that property. The individual that held the license cannot apply for another one for at least a year, and the property can never have another liquor license. Mr. Repke stated it is the District 2 Community CounciPs posifion that all the licenses were revoked including the restaurant and entertainxnent licenses. It is their position tl�at all the licenses should be treated as new licenses. With them being new licenses, all the parking requirements should come into effect. Failing that argument, the Community Council would also argue that sirong beer and wine would meet the state's definition of an intoxicating beverage. Strong beer and wine is allowed as an accompaniinent of food service in another statute that allows this to occur. Since the building has had its liquor license revoked and strong beer and wine meets the defuution of a intoxicating beverage, then the building should have lost its privilege of adding strong beer and wine as an accompaniment to dinner. The ALJ should make a ruling to the City Council because LIEP is holding Samosone Restaurant to a lesser standard then Mr. Repke believes is the City Council's intent in the ordinance. If these things were considered new licenses, the parking shorifall is more dramatic. He thinks they are short 100 parking spaces. 03•4�� LEGISLATIVE HEARING MINUTES - SAMOSONE RESTAtJRANT - May 8, 2003 Page 4 Ms. Moermond stated they did a calculation of floor azeas as part of the Certificate of Occupancy appeal. Mr. Hawkins responded it is almost 13,000 square feet; therefore, it would need 173 pazking spaces with Entertainment B. Mr. Repke went on to say it would be the Community CounciPs contention that they would need more pazking spaces and they only have 27. The notice of revocation is to perxnanenfly revoke. The net effect of a revocation is to permanently remove those licenses from the facility and anyone coming in new would be applying for new license. He is not implying or suggesting that there is any relationship between the current applicant and past owners, but one could make the case that the owner could relicense this establishment and have a food and entertainment license if LIEP's position is held. They could have not served liquor and reopened the restaurant the neat day and have a relative come in and apply for those other licenses. The impact on the property owner would have been zero. It may appear the Community Council is causing damage to the new applicant, but that is not their intent. These are the consequences that should fall on the old owner. The reason the owners are able to get the price they are getting is because they are still interpreting that these licenses will be re-established. Otherwise, the City is protecting the value of the properry for the person who committed crimes against the City of Saint Paul. The building is worth half or a third of what they are selling it for. It was not the liquor license that was revoked, but all the licenses. Ms. Moerxnond stated his letter indicates a neighborhood meeting. Mr. Repke responded the neighborhood voted to deny the license. The biggest concern is a clear sense that the intention of having an entertainxnent license would be so that people would dance between 9:00 p.m. and 1:00 a.m., Friday through Sunday nights. This is not the intent of the strong beer and wine and entertainment licenses. If there is a buffet table and people walk up to the buffet table at 1230 a.m. on a meal they purchased at 7:00 p.m., then they could continue to drink alcohol a11 night long. The Samosone layout includes warming tables. Also, there was a concern about compliance with the percentage of the sales versus percentage for liquor. As with frat parties, a plate of food could be sold for $20 and the beers for 25¢; therefore, the food and beer sales would show the business is in compliance because it all depends on what key is rung on the cash register. Mr. Repke went on to say he is stunned that Senator Moua would send a letter in support of a restaurant in that location after the experience with the previous business. The Community Council brought in Dinner Club 2000 under the assurances of the Hmong community and Senator Moua that this was going to be working successfully. Six to nine months later, people had to be wanded to enter. The Community Council's fears aze that the situation could mimic itsel£ The owners are paying an extremely high price for a rundown building. Chao Lee, District 2 Community Council's former Hmong outreach person and staff person to Coungressman Betty McCollum, spoke about the impact to the Hmong in the community. There were 16 to 17 year old guls hanging out in the club and 25 year old gang bangers. Ms. Lee stated they aze the new owner and not Dinner Club 2000. Only those three nights out of the seven days they will have entertainment. This is primarily a restaurant. It is for a11 ages. The days they will be open are Monday through Thursday, 10:00 am. to 9:00 pm. and Friday through 03 - y'18' LEGISLATIVE HEARING MINLJTES - SAMOSONE RESTAi.TRANT - May 8, 2003 Page 5 Sunday, 10:00 a.m. to 6:00 p.m. There will be soft drinks, juices, and beer for people over 21 yeazs of age. The entertainement will be from 8:00 p.m. to 1:00 a.m. There will be live music. This type of music will not attract youngsters. Almost all of the problems at Dinner Club 2000 were from the youngsters. Samosone will not have youngsters in their restaurant. Also, Dinner Club 2000 was a club and not restaurant. Samosone will have tight security. They will have four officers to make sure they have a safe environment for the business people to come and enjoy. They will enforce a dress code, which would be semi-formal. They will enforce that people will wear suits and ties. These aze people who have doctors, master, and bachelors degrees. They are responsible adults. It is a nonsmoking environment with people over 21. Dinner Club 2000 had a dress code posted, but they did not enforce it. Beer and wine will be served at Samosone with dinner only. Club 2000 had people hanging out and drinking outside. This is not allowed at Samosone. There are a lot of things they have eliminated. There are a lot of American Clubs around. The people that are Americanized can go to those. For those people in between, there are no nightciubs. A lot of people are for this restaurant. There is no one that will provide entertainment like Samosone. Mr. Repke stated the neighborhood would like to see a successful Hmong Restaurant. The Community Council was in agreement with Dinner Club 2000 coming into the neighborhood. District 2 Community Council has a Hmong outreach warker. They do ESL (English as a Second Language), they run a Hmong garden, Mr. Repke has a Hmong kids soccer program. This has been done for over ten yeazs. District 2 is trying to entice and draw the Hmong middle class to the East Side of Saint Paul. Seventeen percent of their population is Hmong. He is embarrassed the Senator Moua would send a letter without communicating with the Community Council. She was one of the advocates of Dinner Club 2000, even to the end with the exploitation of young kids going on. When the City accepts an application, Ms. Mcermond asked, has the City made a determination when it is accepted ar does the City accept and process regardless. Ms. Schweinler responded they accept the application regazdless, although Mr. Repke brings up a good point. The wine and beer falls under Chapter 409, which is the same ordinance the on-sale liquor falls under. She will immediately ask the City Attorney for an opinion as to whether the wine and beer would be included in that revocation process. That may be a point for an ALJ to make. Ms. Moermond stated none of the staff have signed off on this application. Usually, Ms. Moermond is looking at a list of conditions and haggling over a parking spot here and there. Ms. Lee responded they aze in the middle of remodeling. It is chaos bringing the neighborhood into this. She is the new owner of this place. They have a new target population. They are working on the zoning, health, and fire issues. Ms. Moermond asked how long it takes for an issue to come before an ALJ. Ms. Schweinler responded 30 days for a decision. It goes to the City Council for their recommendation to an ALJ. If the Council accepts her recommendation, a hearing date has to be set within a reasonable amount of time. The City Attorney sets the ALJ hearing. Ms. Moermond stated the owner may need an attorney to help them with this process. Ms. 03-��� LEGISLATIVE HEAItING NIINUTES - SAMOSONE RESTAIJRANT - May 8, 2003 Page 6 Moermond will recommend to the City Council that this go to an ALJ. She has no conditions to consider. The professional determination is that the owner is so far from getting approval, they cannot see how they will get there. Concerning whether the properry is eligible for a wine and beer license, it is not clear to her that they aze; however, she cannot make that determination. The City accepted the application, but that is pazt of the process. She anticipates this will be on the City Council agenda for May 21. The owner can call the City Council Front Desk at 266- 8560 or Racquel Naylor, Secretary to the Legislative Hearings, at 266-8573. The ALJ has 30 days to send a decision back to the City Councii. Ms. Lee asked does she recommend that they go ahead with the codes for the fire deparUnent. Ms. Mcermond responded she cannot make that deternunation. She can say that at the legislative hearings, she looks at how much progress people have made in bringing a building into compliance, goodwill, effort, etc. Dr. Sou Yang, 762 Case Avenue East, appeazed and stated the owner is paying a lot of expenses for the properly right now. They are spending about $5,000 to $6,000 a month for this business. He asked is there a faster way to proceed. Ms. Schweinler responded as soon as the City Council recommends sending this to an ALJ, she is sure the City Attorney will work as quickly as possible to schedule an AL7 hearing. Ms. Moermond responded it sounds like the second or third week in June there would be an ALJ hearing in this matter. Mr. Yang stated they will use one floar and not two floors. The spots will be cut in half. They will contact the owners today or tomorrow and talk about purchasing the additional parking, which will accommodate about 80 cars. Since they will be using half the building, the pazking spots will be cut in ha1f. Ms. Moermond responded the ALJ will need to see any purchase agreements and use agreements to indicate that the owner will be able to use that space for parking. That brings the owner closer to meeting the requirement. The owner needs to consult her own attorney. Ms. Schweinler added that those requirements for leases and parking will be required for LIEP to sign off on it. Ms. Moermond recommends referring this license application to an Admnustrative Law Judge. The meeting was adjourned at 11:00 a.m. E��il