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199905_ ORIGINA L,TO CITY CLERK ISCENSE CON TTME PRESENTED BY COMMISSIONS 004 CITY OF ST. PAUL FILE NO. NO. OFFICE OF THE CITY CLERK COUNCIL RESr�)OLU�%TION — GENERAL FORM J. & "', DATE November 15, 1960 REWLWDs That Application F -12321 for the'Transfer of On Sale Liquor License No. 57579 expiring January 31. 1961, issued to Lauer's Inc. at 20 East Fourth Streets be and the same is hereby transferred to C. Donald Rieck at 20 East Fourth Stree#1 TRANSFER(Licensees) Informally approved by Council November 109 2.960 NAILING ADDRESS: C. Donald Rieck 1461 University Ave. St. Paul 4, Minnesota -I,. 1 ' COUNCILMEN Yeas Nays DeCourcy Holland Loss Mortinson Peterson Rosen -'Mr. President, Vavoulis , 5M 5.60 2 r �4 • 0 Ir 0 Council File No. 199905 — Resolved, That Application F -12321 for the Transfer of On Sale Liquor License No. 5757, expiring January 31, 1961, issued to Lauer's Inc at 20 East Fourth Street, be and the same is hereby transferred to C. Donald Rieck at 20 East Fourth Street. 'Adopted by the Council December 6, 1960. Approved December 6, 1960. (December 10, 1960) �e , g 06 Adopted by the Council 19- s 19�© Approvne d 19— Mayor HYAM SEGELL DONALD L. LAIS RAYMOND L. FLADER ROBERT E. FARICY JOHN J. MC NEIL ASSISTANTS NEIL P. CONVERY INVESTIGATOR CITY OF SAINT PAUL LEGAL DEPARTMENT ROBERT J. SWORDS CORPORATION COUNSEL -ONjOD2 Commissioner Peterson LOUIS P. SHEAHAN DIRECTOR OF LAW ROBERT E. O'CONNELL SPECIAL ASSISTANT November 21, 1960 _199 nn" To the License Committee of the Council of the City of Saint Paul In re: Lauer's Inc. In considering the above matter, it is apparent that the legal problem .before this committee is in connection with determining who is the,.-proper owner of the stock,of Lauer's Inc. If Chris Laue�,and his sister are the proper owners, then a request for transfer by Donald Rieck of the license from Lauer's Inc. to the said Donald Rieck is an improper request and should not be honored by the City Council. On the other hand, if the proper owner of the stock is Donald Rieck, then the Counciliwould be within its legal right in honoring the request for transfer to the said Donald Rieck. We point out that if the Council does not transfer the license, they are in no legal jeopardy but have a perfect right to refuse to transfer the license to anyone. We advise you that if there is a consent to the transfer of this license to Donald Rieck by Chris Lauer or an acknowledgment'by Chris Lauer that Donald Rieck is the owner of the stock of Lauer's Inc., the Council would not be taking any risk in transferring the license. We do feel, however, that it would be necessary for the Council to make a determination of ownership bi the stock in the absence of the foregoing consents or acknowledg- ment, and we feel that the evidence as presented to date has been inconclusive and is not sufficient upon which to base such a decision. In the event that further evidence is pre- sented, we would be happy to assist the-Council in evaluating the additional evidence so as to determine the actual owner- ship of the stock of Lauer's Inc. Very truly yours, J Donald L. Lais Assistant Corporation Counsel DLL:bl Honorable Mayor and City Council City of Saint Paul St. Paul, Minnesota Attention: License Committee 'Re: Lauerts Inc. Gentlemen 'In the above matter, the following consideration should be given with respect to the existing-Agreement between Lauerts Inc., as purchaser, and .Court's ;cocktail Lounge, Inc. as "Seller. 1. The down,payment given equalled only 20.7. of the total purchase price. 2. The seller, desiring security in the premises, insisted upon and received.a pledge ofall the stock of Lauer's Inc. against the occurrence of a default in the Agreement, in a separate instrument incorporated by reference in the Purchase Agreement. 3. The contract, on its face, has forfeiture provisions upon default which are in the.nature of security on the fixtures and stock of the purchaser. From the face of this transaction then_, we .conclude from the language used and from the apparent intention of the parties, that the Agreement is in fact a mortgage of an egtiitable.nature. which- cannot be foreclosed in the manner attempted by the seller. Foreclosure of the present Agreement should be by action and not informally as has been attempted. As the Council is already familiar with the steps taken by the seller, we will not recite them herein. We.wish your, Committee to clearly understand that our intention at this time is to protect all creditors and that if', upon a proper foreclosure and sale, which we believe is required, there is any - equity remaining in the corporation, we.want to be certain that such equities will be available for distribution to the creditors. It is our feeling that the alleged proceedings to.date would deprive the corporation ;of'all assets and equities, to the injury of creditors. This is the reason for the position being taken and the only reason for the position being.taken by-Chris Lauer and Lauerts Inc. We, therefore, feel that no other interpretation of this contract is possible. It is a mortgage of an- equitable nature and a serious legal problem might arise if the Council should authorize the transfer of the license at this time. * i ,L - L 0 • . ' JANES AND ELLIOTT ATTORNEYS AND COUNSELLORS AT LAW '• W -1252 FIRST NATIONAL BANK BUILDING ST. PAUL 1. MINNESOTA • ALEX LESLIE JANES.JR. ST. PAUL ROBERT ELLIOTT.JR. O November 18, 1960 CAPITAL 4.7405 HARRISON P. DILWORTH. 111 ROBERT A. NICKLAUS MINNEAPOLIS CAPITAL 47405 Honorable Mayor and City Council City of Saint Paul St. Paul, Minnesota Attention: License Committee 'Re: Lauerts Inc. Gentlemen 'In the above matter, the following consideration should be given with respect to the existing-Agreement between Lauerts Inc., as purchaser, and .Court's ;cocktail Lounge, Inc. as "Seller. 1. The down,payment given equalled only 20.7. of the total purchase price. 2. The seller, desiring security in the premises, insisted upon and received.a pledge ofall the stock of Lauer's Inc. against the occurrence of a default in the Agreement, in a separate instrument incorporated by reference in the Purchase Agreement. 3. The contract, on its face, has forfeiture provisions upon default which are in the.nature of security on the fixtures and stock of the purchaser. From the face of this transaction then_, we .conclude from the language used and from the apparent intention of the parties, that the Agreement is in fact a mortgage of an egtiitable.nature. which- cannot be foreclosed in the manner attempted by the seller. Foreclosure of the present Agreement should be by action and not informally as has been attempted. As the Council is already familiar with the steps taken by the seller, we will not recite them herein. We.wish your, Committee to clearly understand that our intention at this time is to protect all creditors and that if', upon a proper foreclosure and sale, which we believe is required, there is any - equity remaining in the corporation, we.want to be certain that such equities will be available for distribution to the creditors. It is our feeling that the alleged proceedings to.date would deprive the corporation ;of'all assets and equities, to the injury of creditors. This is the reason for the position being taken and the only reason for the position being.taken by-Chris Lauer and Lauerts Inc. We, therefore, feel that no other interpretation of this contract is possible. It is a mortgage of an- equitable nature and a serious legal problem might arise if the Council should authorize the transfer of the license at this time. * i ,L - L 0 -2- Honorable Mayor and City Council St. Paul,'Minnesota Attention: License Committee For these reasons, we have presented the above to this Committee for its consideration. Yours very truly, '"JANES AND ELLIOTT ALI:mc 6A. a es, Jr. cc: Commissioner Peterson Commissioner Rosen Commissioner DeCourcy Corporation Counsel I OFFICE -OF CITY CLERK BUREAU OF RECORDS 386 City Hall and Court House St. Paul 2, Minnesota Hon. Robert F. Peterson Comsr. of Public Safety Public Safety Building Dear Sir ,,:, MRS. AGNES H. O'CONNELL City Clerk HAROLD J. RIORDAN Council Recorder December 1, 1960 Attention: Mr. Robert W. Dunning The City C @until today laid over from day to day resolution transferring On Sale Liquor license from Lauerb, Inc. at 20 E. Fourth St. to C. Donald Rieck, and letters pertaining thereto. Very truly yo�u/rs, City Clerk MINNESOTA E ALEX LESLIE JANES. JR ROBERT ELLIOTT. JR HARRISON P. DILWORTH. 111 ROBERT A. NICKLAUS JANES AND ELLIOTT APTORNEYS AND COUNbELLORS Al LAN W 12.52 FIRST N..TIL-N.L 6ANK SUI.111NA ST PAUL 1 MINNESOTA November 18, 1960 Honorable Mayor and City Council City of Saint Paul St. Paul, Minnesota Attention: License Committee Re: Lauer's Inc. Gentlemen: 999o.f ST PAUL CAPITAL 4.7405 MINNEAPOLIS CAPITAL 4 -7405 In the above matter, the following consideration should be given with respect to the existing Agreement between Lauer's Inc., as purchaser, and Court's Cocktail Lounge, Inc. as Seller. 1. The down payment given equalled only 20% of the total purchase price. 2. The seller, desiring security in the premises, insisted upon and received a pledge of all the stock of Lauer's Inc. against the occurrence of a default in the Agreement, in a separate instrument incorporated by reference in the Purchase Agreement. 3. The contract, on its face, has forfeiture provisions upon default which are in the nature of security on the fixtures and stock of the purchaser. From the face of this transaction then, we conclude from the language used and from the apparent intention of the parties, that the Agreement is in fact a mortgage of an equitable nature which cannot be foreclosed in the manner attempted by the seller. Foreclosure of the present Agreement should be by action and not informally as has been attempted. As the Council is already familiar with the steps taken by the seller, we will not recite them herein. We wish your Committee to clearly understand that our intention at this time is to protect all creditors and that if, upon a proper foreclosure and sale, which we believe is required, there is any equity remaining in the corporation, we want to be certain that such equities will be available for distribution to the creditors. It is our feeling that the alleged proceedings to date would deprive the corporation of all assets and equities, to the injury of creditors. This is the reason for the position being taken and the only reason for the position being taken by Chris Lauer and Lauer's Inc. We, therefore, feel that no other interpretation of this contract is possible. It is a mortgage of an equitable nature and a serious legal problem might arise if the Council should authorize the transfer of the license at this time. -2- Honorable Mayor and City Council St. Paul, Minnesota Attention: License Committee For these reasons, we have presented the above to this Committee for its consideration. ALJ:mc cc: Commissioner Peterson Commissioner Rosen Commissioner DeCourcy Corporation Counsel Yours very truly, JANES AND ELLIOTT A P�• ya . °fb APPLICATION CITY AF ST_ PAt1L fqq9�� v FOR "ON SALE" LIQUOR LICENSE Name of Applicant ` ,Z 6e, Residence Address_.__. Are you a citizen of the United States? Have you evenpegn engaged in operating a When and whl Application .__ ___ No. Age. ._...._.___._.... _ _ _ Telephone No. cafe, soft drink parlor, or business of similar nature? If corporation, 'give name and general, purpose of corporation..._.__..._ ._w..__......._ When incorporated? _ If club, how long has corporation owned or leased quarters for club members ?.._._..._..___.__. _.r How many members?-.-- Names and addresses of president and secretary of corporation, and name and address of general manager Names and addresses of Stockholders: Give name of surety company which will write bond, -if known Number Street Side Between What Cross Streets Ward How many feet from an academy, college or university (measured alon� _streets) How many feet from a church (measured along streets) ? �'? t How many feet from closes ublic or pro_ - 'al ade or high school (measured, along streets) Name of closest school~' How are premises classified and of 'g- Ordinance ?­_. On what floor loeated?z A Are premises owned by yo r leased? /� 1f leased give name of own - If a restaurant give seating capacity ?. If hotel, seating capacity, of main dining room? Givetrade name -------- . ...... .. ..............•.............--••--.....--•--...........------- •-- •---- --•- ---- ---- --• - - - - -- ........... .---- •------- •---- •...... -• - -•- Give below the name, or number, or other description of each additional room in which liquor sales are intended: � (Thexiidormation above must be given for hotels and restaurants. which use more than, one room for liquor sales). How - many -guest rooms in hotel ?_._... ,Name off resident proprietor or manager (restaurant or hotel)_ Give,ran r d es d- address of t ee bus' ss references:...._.. THIS APPLIGATION MUST BE VERIFIED BY THE AP ICANT, AND IF CORPORATION, BY / AN OFFICER OF-�THE CORPORATION DULY AUTHORIZED TO MAKE THIS 'APPLICATION; AND r` THE SEAL OF THE CORPORATION BE ATTACHED: SEE OTHER SIDE