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09-62Suspension 1/14/2009 ,'�7� Presented by Council File # ��/—��— Green Sheet # 3D(�$Z j�` RESOLUTION PAUL, MINNESOTA 1 WHEREAS, the Deputy Legislative Hearing Officer recommends that the application for (I.D. # 2 20080002567) Liquor On-Sale-181-290 seats, Liquor On-Sale-Sunday, Liquor On-Sale-2 AM Closing, 3 Entertainment (B), and Restaarant (5)-151 and Over licenses for Queen Asian Restaurant Corp, doing 4 business as Queen Asiau Restaurant, 1394 Jackson Street, be approved with the following condition: 6 1. The licensee shall provide security with appropriate staffing to ensure that the patrons leave the 7 premises and the parking lots without causing a disturbance in the surrounding neighborhoods. Patrons 8 shall be advised of the necessity of leaving in an orderly manner and shall not be permitted to loiter outside 9 the licensed premises or in the parking lots. A manager or security personnel will be present during all 10 scheduled events and when entertainment is provided. 11 12 THEREFORE, BE IT RESOLVED that the Council of the Ciry of Saint Paul hereby approves this license 13 application. Yeas ✓ ✓ ✓ ✓ ✓ ✓ Adopted by Council: Date Absent I Requested by Department oE Bv: Adoption Certif�ied by Co il Secretary BY _ //"/�7,.f/i.��%�4�ea _ Approved by May Date � ���_p�, y BY� �ug�; �J�.���rn Form Approved by City Attomey By: Form Approved by Mayor for Submission to Council By: � Green Sheet Green Sheet lJ�-� Green Sheet Green Sheet Green Sheet Green Sheet � DepartmenUOfficelCOUncil: Datelnitiated: /! CP.PiII S�P.P.� NO 3065798 CO —Council 08-JAN-09 V Contac[ Person 8 Phone- Department Sent 7o Person Initial/Date Nhia vanp y o oun�u 0 266-8566 1 ouncil De artmentDirector � 2 ' Clerk Ci C7erk Must Be on Council Agenda by (Date): Number 0 14-JAN-09 For 3 Routing 4 0 Doc.Type:RESOLUTION Order 5 �] E-Document Required: Y Document Contact: .1ean Birkholz Contact Phone: 266-8673 Total # of Signature Pages _(Clip All Locations for Signature) Action Requested: Approving the license application with a condition, per [he Deputy Legislative Hearing Officer, for Liquor On-Sale - 181-290 seats, Liquor On-Sale Sunday, Liquor On-Sale - 2 AM Closing, Entertainment (B) a�d Restaurant (5) - 151 and Over licenses for Queen Asian Restaurant Corp, doing business as Queen Asian Restaurant, 1394 Jackson Street. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Foliowing Questions: Planning Commission 1 Has this person/firm ever worked under a conVact for �his department? GIB Committee Yes No Givil Service Commission 2. Has this personlfirm 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 separete sheet and attach to green sheet. Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): AdvanWges If Approved: Disativantages If Approved: Disadvantages IF Not Approved: Total Amount of CosVRevenue Bud eted: 7ransaction: 9 Funding Source: Activity Number: Financial Information: (Explain) January 8, 2009 11:40 AM Page 1 0�1-1a� LICENSE HEAR.ING MINUTES Queen Asian Restaurant at 1394 Jackson Street Monday, December 8, 2008, 9:00 a.m. 330 City Hall, 15 Kellogg Boulevard West NhiaVang, Deputy Legislative Hearing Officer The hearing was called to order at 9:08 a.m. Staff Present: Larry Zangs, Department of Safety and Inspections (DSI); and Jean Birkholz, Council Research Others Present: Chager Xiong, new owner; Bouachao Yang, current owner and new manager; and Kerry Antrim, Community Organizer, District 6 Planning Council Request for License: Liquor On Sale –181-290 Seats, Liquor On Sale – Sunday, Liquor On Sale – 2 AM Closing, Entertainment (B), and Restaurant (5) – 151 and Over licenses Ms. Vang stated that this is an informal legislative hearing for a license application. This is a Class N notification which means that the neighborhood gets notified and has a chance to voice its concerns. If anyone has a concern, it automatically triggers a hearing. Other Class N Licenses include auto sales, auto repair, cabaret, tattoo parlor, etc.—things that have an immediate impact on the neighborhood. The City received one (1) letter of concern regarding the issuance of these licenses. The goal today is to develop a recommendation for the City Council to wnsider. Ultimately, there are three (3) possible outcomes of this hearing: 1) Ms. Vang may recommend to the City Council that they issue these licenses without any conditions; 2) she may recommend to the City Council that they issue these licenses with agreed upon conditions; or 3) she may recommend to the City Council that they not issue these licenses but refer them to an administrative law judge for a fiuther hearing and findings. Ms. Vang will make her recommendation in the form of a resolution that will go before the City Council for their approval. It will appear on the Consent Agenda at a City Council meeting. Ms. V ang 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 those people who are here in support of the issuance of this license and those with concerns about the issuance of this license; and, she will review the email Yhat was sent regarding this application. Mr. Zangs, DSI, provided the staff report. A 45-day notice was mailed out on September 25, 2008 which expired November 14, 2008. District 6 Planning Council submitted an objection. The applicant, Mr. Xiong, attended the District 6 Land Use Task Force meeting at which time he listed the foilowing closing times for his establishment: Monday: Closed Tuesday: close at 7 p.m. Wednesday: close at 7 p.m. Thursday: close at midnight Friday: close at 1 a.m. Saturday: close at 1 a.m. Sunday: close at midnight D 9� l� �- The District 6 Planning Council recommends denial based on these closing times. The council recommends a midnight closing for Saturday: with last call offered at 11:15 p.m. and a 10 p.m. closing on Sunday: with last call offered no later than 9:15 p.m. DSI staff recommends approval with a 1 a.m. closing time. Ms. Vang asked the applicant to go through his business plan. Mr. Bouachao Yang introduced himself as the current owner. He stated that the business has three (3) parts: 1) food; 2) entertainment: and 3) liquor. The restaurant business hours of operation for serving food are as follows: Monday to Wednesday, from 11 a.m. to 8 p.m.; Thursday, from 8 a.m. to midnight; Friday and Saturday, from 8 a.m. to 2 a.m. (liquor service with food to close at 1 a.m.); Sunday, from 5 p.m. to midnight. The restaurant business hours of operation for entertainment purposes are as follows: Monday to Wednesday, no entertainment services except for special reservations or occasions; Thursday, from 8 p.m. to midnight; Friday and Saturday, from 8 p.m. to 2 a.m. (with food and liquor closing at 1 a.m.); Sunday, from 8 p.m. to midnight. The restaurant business hours of operation for liquor services are as follows: for Thursday and Sunday's midnight closing, the last call for service of liquor would end at 11:30 p.m. with a half hour to allow patrons to finish their drinks by midnight (entertainment portion would end at midnight); Friday and Saturday's 2 am. closing, the last call for service of liquor would end at 1230 a.m. with drinking finished by 1 a.m. with entertainment ending at 2 am. Mr. Yang said that the Queen Asian Restaurant has been opened since 2004. The nightclub is different from any other nightclub because it is located in a different place from other nightclubs. It is very secure and so far, there is no record of any problems. Most of their patrons come after 11 p.m. which is the main reason why Mr. Xiong wants to retain the late hours on weekends and for special occasions. If the establishment is not allowed to stay open late, Mr. Xiong will not be interested in taking over the business. Ms. Vang asked Mr. Xiong if he intends to maintain the same business plan as Mr. Yang. Mr. Xiong responded that he does. She asked if Mr. Xiong had ever operated a business of this type before. Mr. Xiong answered that he had not; although he has operated a clothes mending and dry cleaning business. He intends to hire Mr. Yang as manager; Mr. Yang also owns the building. Mr. Yang will be training Mr. Xiong on a full time basis because Mr. Xiong wants to maintain the business as it is. Other staff will include a cook dwing regular business hours, and a security officer and two (2) servers during entertainment. Ms. Vang asked if they and their staff have been trained to serve alcohol by DSI. Mr. Yang replied that he has given Mr. Xiong the information but they have not been specially trained. Ms. Vang encouraged them to seek out that training. Ms. Vang asked if the establishment has a bartender. Mr. Yang responded that technically, they don't have mixed drinks or a bar. Mr. Zangs added that currently, they serve beer and wine but the ordinance has been changed, so with an entertainment license, they also need to have a full liquor license. Mr. Zangs said that DSI staff will go through the liquor manual with Mr. Yang and Mr. Xiong, which is a pre-requisite to actually acquiring the license. At that time, they will also be encouraged to go through the liquor training, as well. oy-� �- Ms. Vang asked the applicant what type of entertainment they have. Mr. Yang responded that during their four (4) years of operation, most of their customers have been older, professionals (between 30-50 years of age). The club excludes underage people from entering the entertainment azea during performances. Entertainment operates as a dance club and usually consists of a singer and keyboazd. Mr. Yang stated that they aze very strict about not allowing any gang members or underage people into the establishment especially in the evening and access to the entertainment area. Mr. Zangs asked whether entertainment would be confined to only one area. Mr. Yang responded that entertainment is confined to the lower section (4 feet lower than the dining room and kitchen) of the restaurant. The lower section measures about 60 x 30 feet. Ms. Vang requested a copy of the floor plan. Ms. Vang asked whether the space was sufficient for the number of seats (181-290) proposed. Mr. Yang responded that there are roughly 110 dining seats in the banquet / entertainment azea; the restaurant (upper room) alone has about 80 seats. Mr. Zangs inteqected that the posted occupancy is regulated by the Fire Code. He added that DSI is counting based on the seat count for the liquor on-sale license. He had understood that there were approximately 89 seats in the restaurant and 110 in the banquet (entertainment) room, so that equals 199. The liquor on-sale license is based on seat count because the fee is based on the number of seats. It's conceivable that there could be a higher occupancy count for the Fire Code because people aren't necessarily using the seats. Mr. Zangs thinks that there is no problem in terms of the total number of people in the building as long as they don't exceed the posted occupancy number established by the Fire Marshal. He will find out what that posted number is and let Ms. Vang know. Ms. Vang asked if there were sufficient floor space for dancing. Mr. Yang responded that the dance floor is approximately 28 feet x 18 feet = 504 square feet. Ms. Vang asked if parking were an issue. Mr. Zangs replied that parking has been worked out. Ms. Vang asked if the applicant had any problem getting 90% approval from the neighborhood with regards to entertainment and liquor at this location. Mr. Zangs replied that prior to the ordinance change when Mr. Yang applied for these licenses he needed to get the 90% consent petition, which he was able to obtain. Mr. Xiong did not need to get 90% because the licenses were already there; iYs a change in ownership. Ms. Vang asked about zoning. Mr. Yang responded that the establishment is in a Commercial Zone B. It is surrounded by businesses. Mr. Zangs added that the closest residences are the McDonough Public Housing north of Queen Asian at Arlington and Jackson; at least, over 600 feet away. He added that most of the land surrounding Queen Asian is zoned Industrial. Ms. Vang asked Mr. Zangs how it came about that DSI recommended a closing time of 1 a.m. instead of 2 a.m., given that the area surrounding Queen Asian is zoned Industrial. Mr. Zangs responded that it is his understanding that considering District 6's recommendation, DSI thought it would be more appropriate to recommend a 1 a.m. closing. It seemed to also fit into their plan. Ms. Vang asked Mr. Yang about District 6's recommendation. Mr. Yang responded that the districYs recommendation of closing at midnight on some nights and 10 p.m. on Sunday would not at all be good for their entertainment business. The majority of their patrons coming for entertainment arrive after 11 p.m. Mr. Zangs added that he sees a conflict with DSPs 1 a.m. recommendation and will need to get clarification. / � � � Mr. Yang stated that they can stop serving food and liquor at 1 a.m. but they want to continue entertainment until2 a.m. Mr. Zangs responded that technically, under a 2 a.m. closing, last call would be at 130 a.m.; patrons would need to be out by 2 a.m.; and staff out by 230 a.m. In a 1 a.m. closing, last call would be at 1230 a.m.; patrons would need to be out by 1 a.m.; staff out by 130 a.m. Ms. Vang took a recess at 9:47 a.m. The hearing reconvened at 10:02 a.m. Mr. Zangs provided some clarification. He stated that a normal liquor license allows no alcohol consumption after 1 a.m. A 2 a.m. closing allows no alcohol consumption after 2 a.m. Last call is given 15 minutes before closing. And, because there has never been any trouble at this establishment, DSI has no objection to a 2 a.m. closing for Queen Asian. Ms. Kerry Antrim, District 6 Planning Council, addressed the hearing. She wanted to go through their letter of objection to clarify. The district met in October and Mr. Xiong was there to present his proposal. The hours of operation listed in the letter are the hours that Mr. Xiong gave to the Land Use Task Force. The district actually recommended a midnight closing on the weekend instead of the 1 a.m. and also a closing time of 10 p.m. on Sunday. The Land Use Task Force came up with a 10 p.m. closing on Sunday because area sports bars generally close at 10 p.m. on Sunday. Also, they wanted to avoid having noise problems in the neighborhood when people leave the establishment at late hours. Since the hours for the establishment are different today than was presented at the district meeting, Ms. Antrim stated that she thinks the neighborhood would have an objection to a 2 a.m. closing. The committee is not even aware that they're asking for a 2 a.m. closing. She feels that the original times should stand. For the record, Ms. Antrim said that for as long as she has been with District 6, no complaints have been filed in their office about Queen Asian and there have been no calls for service. Mr. Bouachao Yang has run a very good business since the establishment has been opened. Mr. Yang wanted to clarify that after Mr. Xiong met with the district council, he and Mr. Xiong discussed the hours a little more. Apparently, Mr. Xiong forgot about the entertainment part. He also mentioned that entertainment is intended to be open only Thursday through Sunday. They discussed the other hours, too, and they have changed. Ms. Vang reiterated that at the time of the district meeting, Mr. Xiong hadn't taken into consideration the hours of closing for entertainment. And, since the Land Use Committee meeting, the hours for the establishment have changed entirely. Mr. Yang replied that was correct. Ms. Antrim commented that if Queen Asian is going to have a 1 a.m. or 2 a.m. closing, the district council would like to have more of a security plan, especially, an exit plan to accommodate large crowds and more servers to accommodate large crowds. Perhaps, the applicant can work with the Rice Street beat patrol or Commander John Vomastek to discuss a more formal security plan. The applicant responded that there would always be a manager and a security officer on duty at closing when there is entertainment. Ms. Antrim stated that is wonderful; however, the neighborhood would appreciate having some sort of a set-in-place security plan for exiting a large crowd. Ms. Antrim added that the district council would also like to include in the conditions that if, in the future, the club would become attractive to a younger clientele, there would need to be I.D. checks and security wanding, etc. Ms. Vang stated that she agrees that more than two (2) serves aze necessary to accommodate larger crowds. The applicant responded that they will do that. 0 �/� � Mr. Zangs stated that he had been able to get the occupant loads from the system I) the restaurant, 1245 square feet, has an occupant load of 83; and 2) the assembly (entertainment) area, 1730 square feet, has an occupant load of 120. He will verify these numbers with the Fire inspector and get back to Ms. Vang. He explained that the occupant load is the maximum number of people that aze allowed in a space determined by the Fire Code. The figure is a mathematical derivation concluded from the size of the space, the width of the exits, and the number of people that could get tiuough those exits given certain circumstances; it's unrelated to the number of seats available. Ms. Antrim stated that District 6 would be more than willing to coordinate a meeting with Police to plan an exit strategy. The meeting is to help insure that Queen Asian staff attends alcohol training, as well. Ms. Antrim added that if this meeting cannot take place before this license goes to the City Council, District 6 would be amenable to having a condition saying that it would be done by March 1, 2009 or to that effect at the early part of 2009 would be acceptable. Ms. Vang stated that she will hold off on her recommendation until she has a better understanding of the occupancy of the space. Mr. Zangs stated that he will craft a condition that talks about crowd control issues and the applicant's responsibility toward those. Ms. Vang reminded the applicant that he will need to sign an approved Conditions Affidavit after Mr. Zangs has crafted it and pending additional recommendation. Ms. Antrim asked Ms. Vang which closing time she is considering. Ms. Vang responded that she is leaning towards a 2 a.m. closing given that the establishment is in an Industrial Zone, has not had any complaints and the closest resident is more than 300 feet away. Mr. Yang informed Ms. Vang that the old license expired December 1, 2008; however, he talked with Christine Rozek and she said it was OK. He is concerned about how long the approval process will take and wants to make sure that the City knows that they currently don't have a license. Mr. Zangs responded that City staff is aware of that. Mr. Yang will need to purchase an interim license until this goes before City CounciL Ms. Vang thinks that it will appeaz before Council some time in January. The hearing was adjourned at 10:33 a.m. /jab Mr. Xiong signed the Conditions Affidavit on December 24, 2008. The following condition was agreed upon: 1. The licensee shall provide security with appropriate staffing to ensure that the patrons leave the premises and the parking lots without causing a disturbance in the surrounding neighbarhoods. Patrons shall be advised of the necessity of leaving in an orderly manner and shall not be permitted to loiter outside the licensed premises or in the pazking lots. A manager or security personnel will be present during all scheduled events and when entertainment is provided.