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08-187SUSPENSIQN 2f27/08 Council File # D8-187 Green Sheet # 3050533 RESOLUTION SAINT PAUL, MiNNESOTA Presented by 1 WHEREAS, the Legi�ive Hearing Officer recommends that the application for (I.D. # 30070004714) 2 Liquor Off-Sale, Retail Food (D) Cnocery 3001-6000 sq, ft., and Cigarette/Tobacco Licenses for MCM, 3 Ina (Ker Vou) doing business as Dannecker's Grocery & Liquors, be approved with the following 4 conditions: 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1) No more than 30% of the windows can be covered with any sort of obstruction (advertisements, etc). 2) Trash must be picked up twice per week wiihin a 1/2 block radius of the establishment. 3) No sale of rolling papers, individual cigars, or individual cigarettes is permitted. 4) All staff must take alcohol awareness training annually from a vendor under contract with the City of St. Paul. 5) The licensee must contract for weekly trash/garbage pickup for refuse generated by the business. 6) Licensee must post no loitering signs on the exterior of the building or in windows facing the outside ofthe building. 7) The licensee must contact SPPD for recommendations regarding lighting and cameras for the exterior of the building. Lighting and camecas must be installed in conformance with the SPPD recommendations. Cameras must be kept in good working order. Video recordings must be maintained for 30 days and must be made immediately available to DSI or SPPD upon request, 8) Licensee must be in compliance with requirements 1-7 within 6 weeks of the issuance of this license. 9) Licensee will obtain recommendations from SPPD for providing a secure separation between the grocery portion of the store and the alcohol sales area. The separation must be completed within 1 year of the issuance of this license. 25 THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license 26 Application. Bostrom Carter Harris Thune � ✓ ✓ Adopted by CounciC Date ? Absent Requested by Department of: Adoption Certified by Council Secretary By: /1"/%r i �/ Approved a or Date 7� By: Form Approved by City Attomey By: Form Approved by Mayor for Submission to Council By: df�=/f�7 � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � CO ��� Confad Person & Phone: Marcia Moertnond 266-8570 Must Be on Council Agend 27-FEB-0S Doc. Type: RESOLUTION E-DOCUment Required: Y Document Contact: Contact Phone: 27-FEB-08 I Green Sheet NO: 3050533 y � o omd � Assign 1 ooncil De arlment Director Number 1 'ryClerk For Routing 3 Order 4 5 Total # of Signature Pages _(Clip All Locations for Signature) Approving the application, with conditions per the Legislative Hearing Officer, by MCM Inc, dlbla Dannecker's Grocery & Liquors, for Liquor Off-Sale, Retail Food (D) Grocery 3001-6000 sq, ft., and Cigarette/Tobacco licenses. idaGOns: Approve (A) or Reject (RJ: Personal servlce contracts must wnswer tne rouowing ctuesnons: Planning Commission 1, Has this persoNfirm everworked undera contractforthis departmenl? CIB Committee Yes No Civil Servics Commission 2. Has this personffvm ever been a city employee? Yes No 3. Does this persoNfirm possess a skill not normally possessed by any current city employee? Yes No Exptain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Advantages If Approved: Disativantages If Approved: DisativAnWges If Not Approved: Transaction: Funtling Source: Financial Informalion: (Explain) CostlRevenue Budgeted: Activity Number: FebYuary 27, 2008 2:48 PM Page 1 /; , LICENSE HEARING MINUTBS Dannecker's Grocery and Liquors at 793 Randolph Avenue Thursday, February 7, 2008, 2:00 p.m. 330 City Hall, 15 Kellogg Boulevard West Marcia Moermond, Legislative Hearing Officer The hearing was called to order at 2:10 p.m. Staff Present: Christine Rozek, Department of Safety and Inspections (DSI); and Jean Birkholz, Council Research Others Present: Ker Vue, business owner; Kou Vang, her Husband; Mai Vang, their daughter; Peggy Scheeler, business broker; Betty Moran, West Seveuth/Fort Road Federation; and the following neighbors: Nadja and Sean Berneche; Lindsey Michon; Kevin Skerrett; and Becca Hines Dannecker's Grocerv & Liauors: Liquor Off-Sale, Retail Food (D) Grocery 3001-6000 sq. ft., and Cigarette/"I'obacco Licenses Ms. Moermond stated that this is a legislative hearing for a license application. The liquor license is a Class N license which means that the neighborhood gets notified and has a chance to voice its concems. If any one has a concern and puts it in writing, a hearing is triggered. Other Class N Licenses include: entertainment, auto body, auto sales, eta—things that have an immediate impact on their neighbors. The City received several letters of concern to the issuance of this license. Ms. Moermond will begin with a staff report. Staff will be asked to explain their review of the application and will also explain their recommendation. Then, she will ask the applicant to talk about the business plan. Next, she will hear from people who are here in support of the issuance of the license and those with concerns about the issuance of the license and, she will ta�k about how to deal with some of those concerns. There are three (3) possible outcomes from this hearing: 1) Ms. Moermond would recommend to the City Council that they issue this license without any conditions; 2) she would recommend to the City Council that they issue this license with agreed upon conditions; 3) she would recommend to the City Council that they not issue this license but refer it to an administrative law judge for a further hearing and findings. (Time was made available throughout the hearing for Mr. Kou Vang to translate for Ms. Ker Vue.) Ms. Rozek, Department of Safety and Inspections (DSI), provided the staff report. She noted that this establishment is kind of an anomaly for the City of Saint Paul and the State of Minnesota because it was established at a time when grocery and liquor were allowed to be sold together in the same establishment. The laws now prohibit this but this is an establishment that had been grandfathered-in by the State of Minnesota. This establishment has been at this location since 1982. At this time, DSI is not recommending any conditions be placed on this license; although, traditionally, there are common conditions that are placed on off-sale liquor license applications. The neighbors' concerns will be heazd before the conditions are actually established. The district council has submitted a letter recommending that the license be approved with some conditions. Inspection requirements have all been met. The applicants are working with Diane Olson, Environmental Health Inspector, while they are re-configuring the grocery store, in particular. At this time, DSI is recommending approval of the license. d�-r�'7 Ms. Moermond asked the applicant if she had been in this business before. Ms. Vue responded that she had owned an Asian grocery store for 1'/� years (1999-2000), operated a day car business and worked in a factory. She has not had experience where liquor has been sold. Ms. Vue will quit her current job and operate the store as a full time manager. The grocery store will be open from 8 am to 10 pm, Monday through Sunday; the liquor store will be open from 8 am to 8 pm, Monday through Thursday; 8 am to 10 pm, Friday and Saturday; and closed on Sunday. Ms. Vue explained that she likes having a store where she can get to know the neighbors. Ms. Peggy Scheeler, business broker, expressed that she has been in this business for eighteen (18) years. She works for a company called Opportunities in Business; she sells a lot of liquor stores, perhaps 10-12 per yeaz. She actually represents Tom Wang, the seller, in this transaction. Mr. Wang has lost interest in the business; he hasn't kept the store clean; and he hasn't put anything back into the store to make it better. The business needs new blood; someone who cares; someone who wants to make a living from the store. The new buyers plan to clean up the store; they already have bought new coolers. Sean and Nadja Berneche, 783 Randolph Avenue, raised concerns, particularly, about the liquor store. Mr. Berneche noted that they live directly across the street from the store. He stated that the store is quite dirty. The store generates a lot of traffic and a lot of noise. There is no barrier between the grocery store and the liquor store. People use the alley behind the business as their own private bathroom. They have called the police each time they see it. The store sells rolling tobacco paper and they see people conduct drug transactions alongside their house quite frequently - they roll the drugs right up in the tobacco paper. Ms. Berneche said that the liquor license is primarily their concern. People sit outside on the curb and drink. They litter beer cans and beer bottles. Because the door to the liquor store is in the alley is very problematic because there is no lighting back there making it very easy for people to conduct illegal activity, especially, selling to minors. Often, they watch groups of kids sYand out in the alley asking adults to go in and buy them liquor. The alley is dazk at night and the windows of the store are covered with signs and ads. People loiter in the back alley, litter and create an unpleasant environment. Mr. Berneche added that he thinks if there were security lighting and maybe a security camera or two, all of this illegal and unpleasant activity may completely disappear. People would know they are being watched. Additionally, Ms. Berneche stated that because there isn't a barrier between the grocery store and the liquor store, they do see people who have been sold liquor after hours and on Sundays. They see people come out with their brown bags, dispose of the bag and walk off with the bottle in hand. Kevin Skerrett and Lindsey Michon, 757 Randolph Avenue, had concerns about the liquor store, too. They moved into their home on Memorial Day 2007. He concurs with all the things that Sean and Nadja have said. He told about an experience he had with some kids. At about 9 p.m. during a September 2007 night, he went to the corner post office box, kiddy-corner from the store, to return some Netflex DVDs. A group of kids, around 18 — 19 years old, came up to him and asked him to go into the store and buy them liquor. Mr. Skerrett told them he would not and they would need to find someone else. As he was returning to his home, one of the kids struck him across the nose and eye and ran back to the group. As he looked back at them, they began to chase him. Fortunately, he was able to out-run them. These kids apparently know that this is a place they can go to and find someone to buy liquor for them. It's not uncommon to see groups of kids at the corner. He thinks the grocery store is fine far the neighborhood; and the liquor store is an old relic. He would like to see that azea cleaned-up; no more urinating in the alleys, no more broken bottles, no more drugs being sold on the corner. He thinks that 2 �� o�� removing the liquor store would help tremendously to clean-up that corner and get rid of the bad element in the neighborhood. Ms. Michon stated that after Mr. Skerrett's assault, he did file a police report. A day or two later, she went into the store to see if perhaps someone had witnessed the assault so that the kids might be identified. Returning home from law school one day with her car at 2:30 p.m., she witnessed two (2) guys in the alley, fully intoxicated. They shouted obscenities to her as she drove by and proceeded to throw their two (2) liquor bottles at her car. Luckily, they missed her car. This was not the only time that drunken individuals in the alley had shouted obscenities to her. The neighborhood is working to revitalize itself; however, she doesn't see it continuing if liquor will continue to be sold at this site. She is afraid and so are her friends who come to visit her. She urged that the liquor license not be granted. Ms. Becca Hine, 757 Armstrong Avenue, testified that she walks her dog a lot. The current owner of this store allows things to happen that should not be happening in their neighborhood. She thinks that very strict conditions on the liquor license might help. She thinks that getting rid of the liquor is not the answer, but getting rid of the clientele is. Providing proper lighting, security cameras, better staffing, exterior clean-up along with interior clean-up and clearing off the windows so the street can be seen all could help improve things. Ms. Hine thinks that the back entrance to the liquor store needs to be moved to the front and there should be a barrier between the two services. She feels that the new owners need to be very aware that they are coming into a real problem property, and the neighbors see this as an opportunity to make a change and are welcoming the change; but, it will take a non-stop effort from the new owners. Ms. Moermond asked the neighbors if the faces were familiar/repeaters when they see the teens and the older adults providing alcohol to the teens. One of the neighbors replied that when the teens see certain people walk up, they immediately approach them. Ms. Betty Moran, West Seventh Federation, reported that their January 2008 board meeting, the following recommendations were made for the store: - improve the lighting - paper must be removed from the windows - security cameras must be installed, especially in the rear and on the View Street side - the interior and exterior of the building must be maintained with a regular schedule of maintenance, and - that they take advantage of Police Protection Through Environmental Design. Ms. Moran also said that currently, cigars are being sold singly from a pack. The kids hollow them out and use them as blunts. Ms. Rozek commented that she is sure that if the cigars come in packs, they cannot, legally, be broken down and sold separately. Ms. Moran said that kids aze hanging out at the store all of the time. She urged the new owners to put up a sign saying that no more than three (3) kids at a time are allowed in the store or they will all come in at once and rip them off. The new owners will need to make changes and the neighborhood will need to help police the kids. It will be a lot of work. Ms. Moermond asked if the boazd discussed closing the alley entrance to the liquor store. Mr. Moran replied that they did not and she wonders whether code would allow just one entrance. Ms. Rozek responded that she thinks that's an issue. (Ms. Moermond paused for a few minutes to organize the letters of concern.) Ms. Moermond noted that some of the letters talk about vehicle/pedestrian traffic associated with the business, particularly because of the presence of the liquor store component of the business. Also, there �� i�� was some brief inention of proximity to schools and day caze. She asked Ms. Rozek to comment on the proximity elements. Ms. Rozek responded that if this were a new license application, it would not meet the distance requirements. The current regulations require a 300-foot sepazation from a church, school or daycare center. The license would not be granted today if it were new; however, because iY s grand- fathered-in and iYs been a continuous use since the 1980s, those requirements don't kick-in. Ms. Moermond stated that something needs to be done about the alley. One (1) of the options has to do with security cameras and lighting; and in lieu of security cameras and lighting, the City could prohibit entrance from that door and alarm it, so no one could sneak out that door and go into the alley. According to the Fire Code, all three (3) exits from the building need to remain. She thinks that the main door should remain an entrance/exit door; the other two (2), exit only doors with the exception of deliveries. The windows of the store need to be free from window signs, perhaps a certain percentage can have signs. People need to be able to see in and out. Trash seems to be prevalent azound the building. Ms. Moermond is asking that the business operator take responsibility and provide a decent looking garbage can outside the business; and for going out to pick-up trash that may relate to their business. Leaving your business to take a positive role in the community will go a long way to help foster a positive relationship in tbe neighborhood. Ms. Ker Vue responded that she would be happy to remove the signs in the windows and clean-up the rest of the store. She will try to keep the store as clean as possible and maintain it. Already, she has ordered refrigerators and coolers to replace the old ones. She will pick-up trash and provide a trash can in the store and in the alley. She is willing to change the floar plan of the store to improve it, provide security cameras both inside and outside the store and improve the lighting in the alley. Ms. Moermond asked if a fire inspector had been to the store. Mr. Vang responded that he met Diane Olson at the store on November 10, 2007. He spoke with her about the fire marshal and she said that the fire marshal would be coming. He spoke with Jeffrey at the DSI office who said that all the inspectors had already signed-off on the stare. Ms. Moermond added that if they change the way the doors are being used, the fire marshal will need to re-inspect. Ms. Moermond asked Ms. Rozek to describe the licensed premises in terms of the responsibility of the owner. Ms. Rozek replied that the licensed premises would essentially be the store and the parking azea, if there were a parking area here. Ms. Moermond asked how enforcement handles the sidewalk. Ms. Rozek noted thaYs a difficult issue. DSI encourages the store owners to discourage loitering. Once the customer leaves the store; however, there aren't a lot of enforcement responsibilities of the store owner. Ms. Moermond took some time to look at the police calls. She noted that there are a lot of calls related to drugs and narwtics activity, but by the time the police get there, it's gone. At other times, the police got there in time; however, the incident does not rise to the level of requiring a police report or they got called away from the scene. Several police reports have been written. Some incidences have been transports to detox centers, which indicates that excessive consumption is going on. Ms. Moermond stated that the "blunts" are a concern and there will be a condition to prohibit the sale of single cigars. Within the store, Ms. Moermond said that it would be a good idea to divide the spaces of grocery and liquor stores. It would be good to get advice from the Police and Fire Departments about this. Ms. Moermond added that she is very concerned about the fact that Ker Vue has not operated a business in many years, and that she has never operated a business that sells liquor. In addition, this particulaz 4 Dfi' /�9 liquor license is a troubled liquor license. The whole situation makes her very nervous. It is not cleaz to Ms. Moermond that Ms. Vue has the necessary skills to deal with youth who are causing problems and to deal with alcoholic people with attitudes. She asked Ms. Vue to explain how she is preparing for this new experience. Ms. Vue admitted that her experience managing a grocery store was quite a while agq but her daughter, Mai, has had more recent experience working at Sam's Club as a cashier in the liquor store. Ms. Vue also is spending a couple hours per day at her friend's liquor store to learn how she manages the liquor store. Ms. Vue is also planning to ask her friend for help as she takes over the new responsibility. Ms. Vue's two (2) daughters as well as her husband, Kou Vang, will also be helping out in the store. Ms. Moermond asked Ms. Rozek is there were any requirements for alcohol awareness education with a ]iquor store license. Ms. Rozek responded that there is not a specific requirement; however, there is a discount on the liquor license fee if alcohol awareness training is taken. It is not unusual, however, for the City to require annual training. Ms. Vue and her family sat down with DSI staff to review the liquor code book. Ms. Moermond commented that she would like to have an on-going condition on this license requiring alcohol awareness training. There will be people coming into the store who are already drunk and store staff will need to make decisions about selling to them, and the more training staff has, the better equipped they will be to deal with these situations. Ms. Rozek added that she can provide them with the necessary resources to connect with alcohol awareness training. There will be a 7% rebate on the license fee after the training has been completed. The following conditions were discussed: Alcohol awareness training No single sale of tobacco products No sale of cigarette rolling papers Security cameras (30 days) / alarm door Ms. Moermond said that if it turns out to be more expensive to put those cameras in place than Yo change the door to be an exit only door with an alarm, the owner will have the option. You can completely close off the alley exit as long as people can still get out in the case of an emergency and the door has an alann on it. No more than 30% window coverage Pick-up trash in area twice/week, %z block radius Weekly garbage service for business "No Loitering" signs Ms. Moermond continued to say that next, Ms. Rozek will draft the conditions and the City will ask Ms. Vue to sign the conditions to indicate that they have been discussed here today, are understood and that she will abide by them. Then, the application and Ms. Moermond's recommendation will be forwarded to the City Council. They will then adopt the resolution granting the license. If there is any problem at all, Ms. Moermond will discuss it with Ms. Vue. Ms. Rozek brought up the sepazation between the groceries and the liquor. Ms. Vue's liquor license would be in jeopardy if someone obtains liquor on Sunday or after hours. Ms. Moermond suggested that the new owners get a cost estimate; she will not require it right now, but there will be a separation installed that is acceptable to DSI within one (1) year of the granting of the license. C �� /�7 Ms. Vue took time to thank everyone, including all the neighbors who took time out to come to this hearing to express their concems. One of the neighbors asked how the neighbors would be able to follow-up on a violation. Ms. Moermond answered that if there is an alleged violation of a license condition, it will be investigated by DSI. If the departrnent is satisfied that a violation did occur, they will bring an adverse action against that license. At that juncture, the license holder can admit to the violation and accept the penalty or they can contest it and go to an administrative law judge. The main thing is to get documentation. If iYs a police concem, the neighbors need to call the police and encourage them to write a report. If the neighbors call the licensing staff, they will by definition, write a report. Ms. Moermond recommended approval with the following conditions: 1) No more than 30% of the windows can be covered with any sort of obstruction (advertisements, etc). 2) Trash must be picked up twice per week within a 1/2 block radius of the establishment. 3) No sale of rolling papers, individual cigars, or individual cigarettes is permitted. 4) All staff must take alcohol awazeness training annually from a vendor under contract with the City of St. Paul. 5) The licensee must contract for weekly trash/garbage pickup for refuse generated by the business. 6) Licensee must post no loitering signs on the exterior of the building or in windows facing the outside of the building. 7) The licensee must contact SPPD for recommendations regarding lighting and cameras for the exterior of the building. Lighting and cameras must be installed in conformance with the SPPD recommendations. Cameras must be kept in good working order. Video recardings must be maintained for 30 days and must be made immediately available to DSI or SPPD upon request. 8) Licensee must be in compliance with requirements 1-7 within 6 weeks of the issuance of this license. 9) Licensee will obtain recommendations from SPPD for providing a secure separation between the grocery portion of the store and the alcohol sales area. The separation must be completed within 1 year of the issuance of this license. The hearing was adjourned at 3:50 p.m. /jab WAITING FOR CONDITIONS FROM CHRISTINE ROZEK.