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09-1313Council File # 09-1313 Green Sheet # �SS$�Ep y!p CITY. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Presented by RESOLUTION SAINT.�PA�JL, MINNESOTA WIIEREAS, the Legislative Hearing Officer recommends that the application to (I.D. 19990002357) Add a Gambling Location license for Grand American Restaurant Company, doing business as The Wild Onion, 788 Grand Avenue, be approved with the following existing conditions: 1. The management of the Wild Onion shall provide security in the pazking lots Tuesday through Saturday at bar closing to ensure that the patrons leave the premises and the parking lots without causing a disturbance in the surrounding neighborhoods. Pauons shall be advised of the necessity of leaving in an orderly manner and shall not be permitted to ]oiter outside the baz or in the parking lots. 2. Th alk cafe is an extension of the restaurant operation onto a part of the public sidewalk which immediately adjoins the �cen premises. 3. No si�ewal_� f�s�h�all be permitted in any portion of the public sidewalk where normal pedestrian Raffic flow is obstructed. A minimum clearance width of thirty-six (36) inches must be maintained on the public sidewalk at all times. 4. No tables, chairs or any other furnishings, except plant tubs, shall be placed in the azea used for theriiwr�.�f� during any period when the sidewalk cafe is not open and being operated. While such cafe is in operation, all tables and chairs shall be kept in a clean, sanitary condition. 5. The use of a portion of the public sidewalk as �'��-Ik oafP shall not be an exclusive use. All public improvements, including but not limited to trees, ]ight poles, traffic signals, pull boxes or manholes, or any publio- initiated maintenance procedures, shall take precedence over said use ofthe public sidewalk at all times. 6. It shall be the dury of the licensed food establishment to maintain each�*+* ^��.11 times i� a safe condition as its proper location and to inspect each such tub periodically in order that it may be properly maintained. Trees or plants and their tubs shall at all times be kept in a neat, clean and presentable condition. No advertising matter or sign or writing of any kind shall be displayed upon any tree or plant or its tub. 7. No liquor sales and/or service are allowed on a nnhliy��*,-ithout prior approval and additiona] ]icensing from DSI. 8. No outdoor food and/or beverage preparation is allowed on a p��b yc ����`W�thout prior approval and additional licensing from DSI. THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license application with the aforementioned agreed-upon conditions. Requested by Department of: � Form Approved by City Attorney By: Adoption Certifed by C m�cil Secretary By: o/r � / � � Approved or: Date 6 �/ !) By: 31 Form Approved by Mayor for Submission to Council By: 09-13 3 � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � DepartmentlOffice/Council: Date Initiated: �o-�°°°°�� „NOV2oo9 Green Sheet NO: 3088676 Contact Person & Phone: Deparfinent Sent To Person Initial/Date � Marcia Moermond y o 000�u 0 ( 266-8570 1 ouncil De artmen[ Director Assign 2 ,C� GtitvClerk Must 8e on Councit Agenda by (Date): Number � 25-NOV-09 For 3 Routing 4 0 Doc.7ype: RESOLUTION Order 5 � E•Document Required: Y Document Contact: .1ean Birkholz Contact Phone: 266-8673 ToWI # of Signature Pages _(Clip All Locations for Signature) Action Requested: Approving the license application with existing conditions, per the Legislative Hearing Officer, to Add a Gambling Location license for Grand American Restawant Company, doing business as The Wiid Onion, 788 Grand Avenue. Recommentlations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: Planning Commission 1. Has this person/frm 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/irm possess a skill not normally possessed by any current ciry employee� Yes No Expiain all yes answers on separate sheet and attach to green sheet. Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Ativantages If Approved: Disadvantages If Approved: Disadvantages IF Not Approved: Total Amount of Transaction: CosURevenue Budgeted: Funding Source: Activiry Number: Financiai Information: (Explain) November 17, 2009 3:42 PM Page 1 09-1313 LICENSE HEARING MINUTES The Wild Onion at 788 Grand Avenue Monday, November 2, 2009, 10:00 a.m. 330 City Hall, 15 Kellogg Boulevard West Mazcia Moermond, Legislative Hearing O�cer The hearing was called to order at 10:09 a.m. Staff Present: Christine Rozek and Peg Fuller, Department of Safety and Inspections (DSI); and Jean Birkholz, Council Research Others Present: Joe Schaefer and Jay Salmen, business partners; Bob DeBellis, neighbor; Mark Healy, Community Charities of Minnesota The Wild Onion: Add a Gambling License Location license to the existing Liquor On-Sale – 181- 290 Seats, Liquor On-Sale – Sunday, Liquor On-Sale – 2 AM Closing, Entertainment (B), Restaurant (5) –151 and Over, Restaurant (D) – Add-on (Bar Only), Sidewalk Cafe, and Cigarette/Tobacco licenses. Ms. Moermond stated that this is an informal legislative heazing for a license application. This is a Class N notification which means that the neighborhood is notified and people have a chance to voice their concerns. If any one has a concern, it automatically triggers a heazing. Other Class N Licenses include: tattoo parlors, entertainment, auto sales, auto repair, etc.—things that have an immediate impact on their neighbors. The City received twelve (12) letters of objection regarding the issuance of this license. Ultimately, there are three (3) possible outcomes from this hearing: 1) Ms. Moermond can recommend to the City Council that they issue this license without any conditions; 2) she can recommend to the City Council that they issue this license with agreed upon conditions; or 3) she can 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. Ms. Moermond will begin with a report from the Department of Safety and Inspections (DSI). Staff will be asked to explain their review of the application and will also explain their recommendation. Next, 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. At the end of the day, she will have a recommendation for the City Council. Ms. Christine Rozek, Deputy Director of the Department of Safety and Inspections (DSI), reported that DSI recommends that the license be approved. The licensee has met all of the requirements of the law. Ms. Rozek introduced Peg Fuller, Charitable Gambling Enforcement, DSI, who talked about the charity that will be operating at The Wild Onion. Ms. Fuller explained Community Charities of Minnesota would like to conduct charitable gambling at this location. They do a lot of charitable work throughout Minnesota. They started in the City of Saint Paul in 2006 with a location at a bowling a11ey which is no longer there. Currently, they are at Fabulous Fern's. Since they have been at Fabulous Fern's, they've donated to Trinity Catholic Schools, Saint Paul College Foundation, Blue Star Mothers of America, Commanding Edge, and an approved youth fund (18 and under). In 2008, they donated $567.84 to the youth fund; so far in 2009, $318.02. They are required to pay a 2`/2% tax to the City of Saint Paul. They will be using a dispensing machine, which is similar to a vending machine. Tickets will be redeemed by the bartenders. The staff will be trained by the gambling organization. Ms. Moermond asked whether a booth/machine were 09-1313 distinguishable from one another in practice. She asked if there were any different behaviors, etc. Ms. Fuller responded that people who like to buy pull tabs have very different tastes. Some places do not work well with machines because patrons want a real, live person to interact with, and other places work quite well with machines. Right now, there are about 25 machines in Saint Paul and they are doing very well. Ms. Moermond stated that she has a packet of materials that include a police call report for this address. She asked Ms. Rozek to summarize. Ms. Rozek said that over the past year, DSI has had some complaints but nothing unusual. There seems to be a significant number of police proactive visits to this establishment. There aze some disturbances, disorderly conduct and drunkenness type police calls. In her opinion, she finds if difficult to tie those sorts of things to charitable gambling. In DSI's experience with chazitable gambling, she doesn't think that it will draw a significant number of additional people to the establishment. Charitable gambling gives people an additional choice when they are in the establishment and maybe they will stay there a little longer. Ms. Moermond asked the applicants why they chose charitable gambling. Mr. Schaefer responded that they decided to do it for several reasons: 1) their competition is doing it; 2) it helps to keep patrons to stay longer (another activity); 3) it gives The Wild Onion a chance to donate more back to the community; and 4) it generates a small profit. Ms. Moermond asked staff if there were any regulations at the state level about the hours of the operation of a machine. According to state regulations, gambling can only be open when the bar is open. Ms. Fuller replied that the machine tells you when it has been turned on and turned off. Ms. Moermond went back to asking about the lazge number of police proactive calls. Mr. Salmen explained that they encourage the proactive police calls. They think that their managers have a good relationship with the street patrol officers. The other night they had a noise complaint that came in. An officer was in at the time; he went outside and declared that there was no noise. Mr. Salmen added that The Wild Onion has had a history of active neighborhood involvement. There have been a number of calls that they think are unwarranted. There were a couple of police calls labeled disorderly or drunkenness and Cmdr. Luna followed up on those. They were calls that were made because The Wild Onion would not let potential patrons into the bar because of their demeanor, dress or intoxication. It's not unusual to turn away anywhere from twenty (20) — thirty (30) people on a Friday or Saturday night. Their goal is to keep the potential trouble makers from coming in. Ms. Moermond asked if The Wild Onion is open unti12:00 a.m. every night. Mr. Schaefer responded that it is. At 2:00 a.m., the lights come on, the music is off and everyone is encouraged to leave the establishment. Mr. Robert DeBellis, neighbor, testified that his main concern is that he doesn't think that 3ay and Joe control their establishment very well. Over the decade that they have been there, there have been numerous meetings, summer after summer by the Summit Hill Association riying to get them to act as a better neighbor. This was culminated in their refusal to even talk with the Summit Hill Association some time back. Apparently, they don't want anyone's input anymore. Trash collection begins at 6:15 a.m. In the alley, he often needs to either pick-up glass or beer bottles ar sweep-up broken glass thaYs been thrown over the fence. Once or twice a yeaz, he needs to go over and ask them to flush out the alley because the person who comes in to do the degreasing of the filters, etc., has let the water run down the alley leaving a grease layer that eventually begins to smell when iYs hot. Over the years, he's 2 09-1313 needed to ask them to keep the tops of the trash dumpsters closed because there have been big rats in the alley, especially noted in the back of their establishment. During the day, everything seems to be fine; the clientele doesn't seem to present any challenges. After 9:00 p.m., the personality of the clientele changes. There are a lot more people smoking on the back porch. There are people who scream and yell; juxnp up and down. People walk through the neighborhood causing havoc; vandalism has been done to his property. He has had an over-intoxicated person knock at his front door during the wee hours of the moming asking to see Fred. He asked him where he had been and the answer was, "The Wild Onion." He has had flags torn down in front of his house and his gazage door has been kicked-in. He can't be sure that these people had been at The Wild Onion but these things have always happened after 2:00 a.m. Mr. DeBellis stated that it's a huge challenge living behind The Wild Onion and iYs been difficult trying to get Mr. Schaefer and Mr. Salmen to appreciate that the establishment is located in a residential azea. He has invested a lot of money in his home. He wants to see everyone on Grand Avenue succeed but not at his expense. In his research, he has found that there are numerous police calls to this address. At one point, he thinks it was two (2) years ago, they had close to 700 police calls within one (1) year compared to other establishments on Grand Avenue that didn't even have half of those and in some cases, didn't have any. Recently, he believes, there have been two (2) sanctions against their license plus a third one that was not enforced but investigated for over-serving, underage drinking and the inability to control their pazking lot. Ms. Moermond said that she noticed that on the subject line of Mr. DeBellis' email that he was talking about a patio liquor license. Today's business is abput a gambling license; she asked if there were an impending patio liquor license application. Mr. Schaefer replied that there is not. Mr. DeBellis added that this was when they were serving food on the patio but were not allowed to serve liquor; however, they did serve liquor fox a while and were warned not to about two (2) yeazs ago. There has been kind of an attitude of trying to get away with things and not really caring about what the neighbors think ar have to go through because of their lack of consideration. Ms. Moermond reviewed the letters of objection and noted the following concerns: - the weekend crowd being distinctly different from the week day crowd - neighborhood traffic increasing - the Wild Onion is a chronic nuisance business - patrons hooting, hollering and urinating after bar closing - increase in vandalism - this license is not a good thing for the neighborhood - there are violations of the existing license conditions - this license would encourage further raucous behavior - over service - owners only meet with the neighbors when they are looking for something; otherwise, there's no on-going relationship _ Ms. Moermond noted that there was information in some of the correspondence about previous adverse actions on the license conditions. She asked Ms. Rozek to explain. Mr. Rozek stated that the first adverse action was regarding a disturbance in the parking lot that happened approximately two (2) years. That issue went to an administrative law judge and the City prevailed, resulting in a$500 fine. This past year, there was an adverse action for sale to an underage person on a typicai compliance check which resulted in a$1,000 penalty. No additional conditions were placed on the license because of these adverse actions. Ms. Rozek continued to say that the first violation has dropped-off or is close to it. If there is a second violation, there would be another $1,000 penalty. 09-1313 Ms. Moermond asked Ms. Rosek what types of calls necessitated DSI's investigation. Ms. Rozek explained that DSI has a complaint line in their office that takes in complaints for the whole City. Complaints called in for The Wild Onion include: 1) noise; 2) health violation complaints; 3) graffiti; etc. Ms. Moermond noted that the police call record is substantial even though a large proportion of them are proactive. Ms. Rosek continued to say that she gets a copy of each police report that is written and DSI investigates each one to determine if there is any sort of a violation. Ms. Moermond asked if there are any other establishments in the area whose problems could be intermixed with The Wild Onion's problems. Ms. Rosek responded there is probably some intermixture. She added that Billy's probably has the most similar patrons and would have the most similaz type of complaints. She rarely sees complaints for BonFire. Ms. Moermond pointed out that she counted twenty-three (23) complaints in this past yeaz that were disturbances or obstructing legal process type calls where reports were written or they were advised. Probably half of the twenty-three (23) had reports written. Most activity occurred after 12 midnight. Ms. Moermond stated that she is not aware of any study or other kind of information that would connect the sale of pull tabs or a gambling license to exacerbating this set of problems. Ms. Fuller responded that she is also unaware of any information and/or study that might connect the two. She added that charitable gambling can be distinguished from casino gambling. If it is a concern, the machine(s) can be switched off after midnight or whenever. Ms. Fuller stated that there are between sixty (60) — sia-ty-five (65) gambling locations within the city but there are about twenty-five (25) gambling machines. The locations are found in all types of bars from the lazge bar, restaurant types to the small neighborhood bars. Ms. Moermond asked how many on-sale liquor license establishments also have charitable gambling licenses. Ms. Fuller responded that about a third of the bars in Saint Paul have charitable gambling licenses. Ms. Rozek added that charitable gambling has declined within the city. It just doesn't thrive the way it once did. Ms. Moermond asked the applicants to talk about their attempts to address the problems that have come up in the past. Mr. Salmen responded that they have met with the neighbors a number of times, contrary to Mr. DeBellis' comments. To be proactive, he, personally, contacted Ms. Rozek. Between DSI anct Summit Hill Association, meetings have been arranged. He said that as a result, they erected a higher fence, put in more security, organized a litter pick-up schedule, etc. No one can access the back of the alley or the property of any of the neighbors from the back of their premises. A group of neighbors, organized by Mr. DeBellis, has fought any attempt to address problems. Mr. Schaefer added that this is Grand Avenue. There are many young people living in the neighborhood. There are young people living in the building right next to The Wild �nion, who aze up late and outside partying. The Wild Onion doesn't allow trouble makers into the establishment; they are not encouraged. Ms. Moermond stated that she cannot connect the problems listed in the letters and the discussion with a gambling license. It may help to make the crowd stay a little longer at the establishment. Ms. Moermond encouraged the applicants to review future police calls, particulazly the after 2:00 a.m. situations. 0 09-1313 Ms. Moermond will recommend approval with the following existing conditions: 1. The management of the Wild Onion shali provide securit � sday hrough Saturday at bar closing to ensure a eave the premises d th ar} lots without causing a disturbance � e surro a ing neighborhoods. Patrons hall b advised of the necessity of le � g in an erly manner and shall not be pe tted to 1 outside the baz or in the mg lots. 2. The sidewalk cafe is extension of the restaurant operation onto a part of the public sidewalk which i ediately adjoins the licensed premises. 3. No sidewalk c shall be permitted in any porkion of the public sidewalk where normal pedestrian tr ic flow is obstructed. A minimum clearance width of thirty-six (36) inct must be m tained on the public sidewalk at all times. 4. No table chairs or any other fumishings, except plant tubs, shall be placed in the area i for the dewalk cafe during any period when the sidewalk cafe is not open and being oper d. While such cafe is in operation, all tables and chairs shall be kept in a clean,� sari y condition. 5. T use of a portion of the public sidewalk as a sidewalk cafe shall not be an e public improvements, including but not limited to trees, light poles, traffic oxes or manholes, or any public-initiated maintenance procedures, shall take ver said use of the public sidewalk at all times. 6. It shall be the duty of the licensed food establishment to maintain each plant tti in a safe condition as its proper location and to inspect each such tub periodi that it may be properly maintained. Trees or plants and their tubs shall at ti a neat, clean and presentable condition. No advertising matter or sign o iti: shall be displayed upon any tree or plant or its tub. use. pull �t all times in order ;s be kept in of any kind No liquor sales and/or service are allowed on a public sidewalk � out prior approval and �dditional licensing from DSI. 8. 1Rp outdoor food and/or beverage preparation is ap�val and additional licensing from DSI. The hearing was 1:02 /jab a public sidewalk without prior � 1 ' f , i ( / �' � , ` ,