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04-1089Council File # � CITY Presented b} Referred To �.,���,r� RESOLUTION SAINT PAUL, MINNESOTA / Committee Date WI�REAS, the Legislative Hearing Officer recommends that the license appl' ation (ID # 20000005383) for a Cabazet Class A License by Thomas Terlizzo, owner, doing business as Ter ' ds, 821 Rayxnond Avenue, be referred to an Administrative Law Judge; THEREFORE, BE IT RESOLVED that the Council of the City of S' t Paul hereby refers this license application to an Administrative Law Judge. Requested by Department of. Benan Bostrom Harris Helgen Lan fry Montgomery Thune Green Sheet # 3024117 � ►5 � Form Approved by CiTy Attorney � Adopted by Adoprion C By: X Date by Council Secretary Mayor: Date Approved by Mayor for Submission to Council By: � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � l��.-i.(�R'�1 Department/officefcouncil: Date Initiated: `� � � co ��a�.� o�NO�-� Green Sheet NO: 3024117 Contact Person & Phone- Deoartrnent Sent To Pe'soa lnitialfDate Marcia Mcertnond � 0 ouncil I ! 266-8560 q 1 ouncil De artment Director Must Be on Council Agenda by (Date): Number z itv Clerk I For Routing 3 Order 4 5 Total # of Signature Pages _(Clip All Locations for Signature) Action Requested: Referring the Cabazet Class A License by Thomas Terlizzo, owner, DBA Terlizzo's, 821 Raymond Avenue, to an Administrative Law Judge. Recommeadatfons: Approve (A) or Rejed (R): Personal Service Contracts Must Answer the Following Questions: Planning Commission �. Has this person/firm ever worked under a contract for this department? CIB Committee Yes No Civil Service Commission 2. Has this person/firm ever been a city employee? 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): f AdvanWS�es IfApproved: . - ��un�6i I����arch �enter DisadvanW5les IfApproved: ��� � � ° ���r. Disadvantages If Not Approved: TotalAmountof CostlRevenue Budgeted: Trensaction: Funding Source: ActiviN Number: Fi nancial Information: (Explain) D�/ ios'g MINLJTES OF TF� LEGISLATIVE HEARING T'ERLIZZO RESTAURANT, 821 Raymond Avenue Thursday, September 23, 2004 Room 330 Courthouse Mazcia Moermond, I.egislative Hearing Officer The hearing was called to order at 2:00 p.m STAFF PRESENT: Christine Rozek and Kristina Schweinler, License, Inspecrions and Environmental Protection (LIEP) and Jean Birkholz, City Council Office. OTHERS PRESENT: Susan Thrash and Joseph Ring, co-owners of J. Ring Glass Studio Inc. Marcia Moermond explained that this hearing is not expecting the owner, Tom Terlizzo. He called the office this moming asking that the hearing today be cancelled because he may have pneumonia and his attomey also cannot attend. Ms. Moermond told him that if he cancelled today, he would need to agree to a time certain to have the hearing continue. Ms. Moermond stated that she would like to get the testimony of those present today, which might save them another trip to City Hall. The hearing will continue at 330 p.m, Tuesday, October 5, 2004, at which point Ms. Moermond does expect Mr. Terlizzo and his attorney to be in attendance. Ms. Moermond stated that the license that has been applied for is Class N which means the neighbors get notified about the application. Neighbors are invited to share their concerns, objections, etc., and a hearing is held to talk about those. Ms. Moermond continued to say that she conducts these hearings for the City Council. There are three (3) potential outcomes with license hearings: 1) she can recommend to the City Council that the Council send it to an adtmnistrative law judge (that would be for cases where she doesn't think there's any other alternative); 2) she can recommend that the license be issued without conditions; or 3) she can recommend that the license be issued with condirions that the applicant agrees to. In order to deny an application at this level, it needs to go to an administrative law judge for review. When it goes to the City Council, the Council will, typically not discuss it. It will be a resolution on their Consent Agenda; an item that they pass along with another twenty or thiriy items all in one motion. Christine Rozek (LIEP) provided a staff report. She stated that this is an application byTom Terlizzo for a Cabaret License at 821 Raymond Avenue. A Cabaret License pernuts an establishment that does not serve alcohol to have entertainment in the establishxnent. IYs not required for a Cabaret License that Environmental Health do an inspection. Fire has indicated that they will approve this license. Zoning also has approved this license. At this point, LIEP is not making a recommendation. Joseph Ring testified that he and his wife, Susan Thrash, own the building at 2408 Territorial Road, across the street from Terlizzo's. Ms. Moermond read a letter, dated August 3, 2004, from both Mr. Ring and Ms. Thrash, in which they objected to granting a Cabaret License to Mr. Terlizzo because he has provided entertainment at that location in the past without a license, demonstrating a disregard for the obligations and responsibilities that a holder of this license has to the public. Ms. Moermond inquired if that was the sum of their concerns. Mr. Ring replied that at the time they wrote this letter, they had no way D�1-i�8g LEGISLA'I`IVE HEAIZING - Terlizzo's at 821 Raymond Avenue Page 2 of being able to demonstrate that they had been served alcohol on the premises. He and Ms. Thrash had always assumed that Mr. Terlizzo was operating legally. They were aghast when they realized that he did not have a license to seroe alcohol. So, they sent another letter, dated, August 21, 2004, which included a copy of the invoice from Mr. Terlizzo for the celebrarion of Ms. Thrash's 50`� birthday party, at which they were served alcohol and subsequently, charged for it. In talkiug with his legal and insurance counsel, Mr. Ring leamed that Mr. Terlizzo had put them in a very bad situarion, potenrially. Mr. Ring noted that he and his wife have been very acrive within their communiries, business and home; and they aze very firm believers that owning a business is not just a right, it is also an obligation. An obligation to the community, to patrons and to the rules set by the state, the city and the community. Excuses like, `I didn't lrnow,' etc., just don't cut the ice. When one shows that they have a disregazd for their obligations, they put the public at risk. If Mr. Terlizzo wants to have entertauunent there, he has shown that he is willing to serve alcohol in the past and what would make anyone believe that he wouldn't do it again or hun a blind eye when he sees things that shouldn't be going on that would put the public at risk. If he wants to have entertainment, he should also have some type of license to be able to legally serve alcohol. He should have proper insurance and go through proper procedure so that the public is protected. Mr. Ring stated that he does not want to see Tom go out business or have things be difficult for him but he does not want to see the public come up with the short end of the stick by someone who uses the excuse that they didn't lmow or didn't understand. A business person is supposed to find those things out; that is their obligarion. Ms. Thrash agreed with Mr. Ring's comments. Many people have told them that he serves liquor at this business, but they can't prove it except for the time of her birthday. Mr. Terlizzo also has entertainment at his establishment on Thursdays, Fridays and Saturdays. He's been doing so for over a year. He caters to weddings, too. His traditional Italian family food is great. Ms. Moermond stated that she would recess the hearing now to be continued at 3:30 pm, Tuesday, October 5, 2004. The hearing was recessed at 2:15 p.m until 3:30 p.m October 5, 2004. jab /�/- ios9 MINL7TES OF THE CONTINLTATION LEGISLATIVE HEARING TERLIZZO RESTAiJRt1NT, 821 Raymond Avenue Tuesday, October 5, 2004 Room 330 Courthouse Mazcia Moermond, Legislative Hearing Officer The hearing was called to order at 2:00 p.m. STAFF PRESENT: Christine Rozek, License, Inspections and Environmental Protection (LIEP) and Virginia Palmer, City Attorney's Office OTHERS PRESENT: Joseph Ring, co-owner of J. Ring Glass Studio Inc., 2408 Territorial Road; Thomas Terlizzo, applicant; Richard Kadrie, applicanYs attorney, 1215 Hawthorne Avenue East. Marcia Moermond explained that this is a continuation legislative hearing. The applicant was unable to make the first hearing a few weeks ago. At the first hearing, Ms. Moermond took testimony from people who had written letters. This is a contested license issuance hearing. These are Class N licenses which means the surrounding properties have been notified that the owner has applied for these licenses. There are three possible outcomes from a normal legislative hearing: 1) approve the license application without conditions, 2) approve the license with conditions that the applicant agrees to, 3) send the matter to an Administrative Law Judge (AL�. There is not a denial at this level. The ALJ process is used if there are conditions that are necessary to make this a good use, but the applicant will not agree to them. There would be a public hearing with the ALJ process. That judge would send a recommendation back to the City Council about the lacense application. Ms. Moermond continued: letters that the owner received indicated they were selling liquor at this establishment. At the time of the first hearing, there was testimony to this effect and that entertainxnent had been going on without licenses. The liquor matter was referred to staff who said they were working on it. The police department had been contacted. That contact had been reinitiated based on what we heard at the hearing. Ms. Moerxnond's understanding is that a police officer went to the restaurant. There is discussion now with the City Attorney's Office about the adverse action on the license they hold. Ms. Moermond would like a recommendation from the staff on the Cabaret License. She will not be talking about the adverse action. She understands a letter has been received by the applicant. Staff withheld their recommendation at the last hearing pending the outcome of the police investigation. Christine Rozek reported the application is for a Cabaret License submitted by Tom Terlizzo for Terlizzo's at 821 Raymond. The Cabaret License allows an establishment that does not sell liquar to provide entertainment to its customers. At this point, Mr. Rozek's recommendation is that this is no longer the appropriate license to apply for and it should not be granted. Ms. Moermond asked does she mean that an entertainment license would be an appropriate license. Ms. Rozek responded that is correct. If there is alcohol on the premises and the alcohol is being legally provided, the entertainment license would be appropriate. o� �e�9 CONTINUATION LEGISLATIVE HEARING FOR TERLIZZO'S, 821 Raymond Avenue Page 2 Ms. Moermond stated the code for entertaimnent versus cabaret licenses speaks to whether or not a liquor license is held by the establishment. Ms. Rozek responded that is correct. Ms. Moermond stated it is two different things to serve liquor and to have a license to serve liquor. The ordinance for the entertainment license talks about having a license. Richard Kadrie, applicanYs attorney, 1215 Hawthorne Avenue East, asked is the liquor and beer/wine license the same under the statute for the enterta.imnent license. Ms. Rozek responded yes. In light of the report from LIEP, said Mr. Kadrie, they will withdraw the application. Ms. Moermond responded she would like to give them a few minutes to reflect. She understands they have agreed that violations have occurred, and the owner is in discussions with the City Attorney's Office on the penalties. Staff is making that recommendation, but that is not the same thing as saying the City Council has made that finding. (The attorney conferred with his client.) Mr. Kadrie said they will not withdraw and will proceed with this hearing. Ms. Moermond stated she will talk about the adverse action. Mr. Kadrie stated that the description of the facts of the matter concerning the adverse matter are correct: they agreed to the facts asserted by the letter received from Ms. Palmer, City Attorney's Office. When LIEP recommends denial of the application, said Ms. Palmer, it seems that Ms. Moermond is at her third option of sending this matter to an ALJ. The City Attomey's Office has juxnped one step ahead and sent the notice of violation with the recommendation of denial of the application. At this point, what is appropriate it to recommend denying the license application and sending it to an ALJ. That seems the easiest way to clear up the confusion. Ms. Moermond stated she wanted to make it clear to the owner that if they want to continue operaUon as a restaurant that provides music, they will need a Cabaret License. She does not want to make them go through that process again. Ms. Palmer responded it has already been recommended for denial in the norice of violation. There is an adverse action on the restaurant license and recommendation for denial of the cabaret license based on the illegal sale of alcohol. Also, it is not the appropriate license if the owner is going to apply for liquor, which they have indicated they aze going to do. As a practical matter, it can't be issued with conditions because the agency is recommending denial and it has to be sent to an ALJ. Ms. Moermond asked can the Council issue a license with a recommendation of denial from staff. Ms. Palmer responded they technically could, but it would strike her as unlikely if there is a recommendation for denial. O�!-ios'ti CONTINUATION LEGISLATIVE HEARING FOR TERLIZZO'S, 821 Raymond Avenue Page 3 Ms. Moexmond stated that procedurally it seems the City did not do things correctly to pre-empt the Council from making any detennination. Ms. Palmer responded this is exactly what would haue happened because the agency is now recommending denial. At that point, it goes to the City Council for a recommendation. She is not sure what conditions can make the Cabaret License appropriate. Ms. Moermond asked how they intend to operate the business. Thomas Terlizzo explained that they aze a small restaurant. They had music until someone told an employee they needed a license. They hired musicians. It is sophisticated vocal jazz. The music is virtually inaudible outside the windows. Their clientele is 45 to 80 years old. It is quiet dinner place, family run. There has never been a police call, disruption, or problem. The area is office buildings warehouses. They would need the jazz music to keep the business going. Without that attraction, they do not haue a business. There is no impact on the surrounding area and clientele. When one of the City employees menfioned the license, said Mr. Terlizzo, it was early in the spring. They stopped doing music immediately. After they applied for the license, they got a letter that they were reinstated for music after August 27. They went 130 days without music and then applied. This is a quiet little lunch and dinner place. Mr. Kadrie said the report should reflect that there have been no police calls nor any complaints about noise from the neighbors ar tenants of the building. Mr. Terlizzo stated they aze only open for dinner and music Thursday, Friday, and Saturday. After 5:00, there is no one in the area except the patrons. Joseph Ring, J. Ring Glass Studio, 2408 Temtorial Road, appeared and stated Mr. Terlizzo's description is true the way he operates the restaurant. There has been no adverse effect of noise and no trouble of any kind, but that does not address the original complaints. Ms. Moermond indicated she would issue her recommendation in writing in the near future. The hearing was adjourned at 3:54 p.m. rrn