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09-720CouncilFile# (}�–�]a-Q Green Sheet # �p'� y �/o 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Presented by RESOLUTION CITY OF SAI�NT PAUL. MINNESOTA l3 WHEREAS, the Deputy Legislative Heazing Officer recommends that the request to modify the existing license condition(s) to add a Liquor On Sale-2AM Closing License (I.D. #20030004659) to the existing license conditions for Liquor On Sale-100 seats or fewer, Liquor On Sale—Sunday, Restaurant (4) 51-I50 seats, Entertainment (A) and Gambling Location licenses for JSR Inc a Minnesota Corporation, doing business as Lonetti's Lounge, 1091 Rice Street, be approved and subject to a six (6) month review. The license conditions are as follows: I. The outdoor patio shall not be used for food or beverage consumption with payment of the Metropolitan Council Avai]ability Charge and without prior approval of the use by the City License Inspector. 2. Licensee must provide working video surveillance cameras and recorders on the premise to provide documentation of activities on the interior and exterior of the establishment. This equipment must be in operation during all business hours. Tapes must be maintained for thirty (30) days and be immediately available to the Saint Paul Police Department and the Department of Safety and Inspections upon request. 3. Uniformed and clearly identifiable securiTy personnel shall be assigned to each entrance starting at 9:00 p.m. every day and shall remain until all patrons have left the licensed premises. Security personnel shall "wand" (using a metal detector) each patron and check all handbags and packages carcied by patrons. Securiry personnel shall verify the age of patrons by checking state or federally issued identification cards (No picture I.D. no entrance). Customers re-entering the establishment shall be subject to the same securiTy measures as customers entering the establishment for the first time. 4. The security personnel shall not fraternize with the patrons. 5. (Revision stipulated by Council Resolution 08-1006 on 9/10/2008.) If licensee obtains a 2:00 a.m. license, the license holder shall not allow new patrons to enter the establishment afrer 1:30 a.m. Last call will be no later than 130 a.m. The establishment will be closed with all patrons and staff gone by 230 a.m. 6. The license holder, security staff and employees of the establishment shall cooperate with the police by calling for assistance when there is a threat of violence or other criminal behavior. THEREFORE, BE IT RESOLVED, that the Council of the City of Saint Paul hereby approves this license application with the aforementioned agreed-upon conditions. Bastrom Yeas Requested by Department of: � Stark Thune Adopted by Councii: Date 7 �1��i�� Form Approved by City Attorney By: Form Approved by Mayor for Submission to Council Adoption Certified by Council cretary By: BY �/ Approve,d by�Aa o� 7 1 ��/ 30 B Y � �' � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet ��1-�7 2D � DepartmentlOffice/Council: Datelnitiated: GCeeCI Slleel. NO 3071945 � C � _Council ?6-JUN-09 Contact Person 8 Phone: Department Sent To Person InitiaVDate Nhia Vanp y o 000ca � 266-8566 1 ounc� De artmentDirector Assign Z - Clerk C7rvClerk Must Be on Council Agenda by (Date): Number 3 0 I 08-JUN-09 For a 0 Routing Doc.Type:RESOLUTION Order 5 0 E-Document Required: Y Uocument Contact: Jean Birkholz ConWCt Phone: 266-8673 Tofal # of Signature Pages _(Ctip Afi Locations for Signature) Action Requested: Approving the ]icense application with conditions, per the Legislative Hearing Officer, for modifying the existing license conditions to add a Liquor On Sale-2 AM Closing License for JSR Inc a Minnesota Corporation, doing business as Lonetti s Lounge, 1091 Rice Street. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: Planning Commission 1. Has this persoNfirm ever worked under a contract for this department? CIB Commiriee Yes No Crvil Service Commission 2. Has this person/firm ever been a city employee? Yes No 3. Does this person/firm possess a skill nol 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): Advantages If Approved: Disadvantages If Approved: Disadvantages It Not Approved: 7otal Amount of Cost/Revenue Budgeted: Transaction: Funding Source: Activity Number: Fi nancial Information: (Explain) June 26, 2009 1:29 PM Page 1 09-720 LICENSE HEARING MINUTES Lonetti's Lounge,1091 Rice Street Thursday, May 28, 2009, 10:00 a.m. 330 City Hall, 15 Kellogg Boulevard West Nhia Vang, Deputy Legislative Hearing Officer The hearing was called to order at 10:03 a.m. Staff Present: Kristina Schweinler, Senior Inspector, Department of Safety and Inspections (DSI); and Jean Birkhoiz, Council Research Others Present: Janet and Ron Lonetti, Owners Lonetti's LounQe: Modification of existing license condition(s) and add a Liquor On Sale— 2 AM Closing license to the existing Liquor On Sale-100 seats or fewer, Liquor On Sale— Sunday, Restaurant (4) 51-150 Seats, Entertainment (A) and Gambling Location licenses Ms. Vang stated that this is an informal legislative hearing for a license application. This is a Class N license 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: entertainment, tattoo parlors, auto repair, auto sales, etc.—things that have an immediate impact on their neighbors. The City received three (3) letters of concem regarding this application. Ultimately, there are three (3) possible outcomes from this hearing: 1) Ms. Vang may recommend to the City Council that they approve this license with no conditions; 2) she may recommend to the City Council that they approve this license with agreed upon conditions; or 3) she may recommend to the City Council that they not approve the requested license but refer it to an administrative law judge for a further 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. The City Council is the final authority on whether the license application is approved or denied. Ms. Vang 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 explain their business plan. Next, she will hear from people who are here in support and those with concerns, and she will review the letters that were sent regarding this request. Ms. Schweinler, Senior Inspector, Department of Safety and Inspections (DSI), reparted that the Liquor On Sale--2 AM Closing license is issued by the state with the City's approval. DSI recommends that the license for a 2 AM Closing be granted for a period of six (6) months, not to exceed the expiration of the applicants' liquor license which is December 3, 2009. At that time, another 45-day notice will be required to the neighbors and the district councii. 09-720 Inspection Requirements: Building: N/A EnvironmenEal Health: N/A License: Granting the 2AM license until December 3, 2009 Zoning: N/A Ms. Vang asked the applicants to explain their request to add the 2 AM Closing license. Ms. Lonetti explained that when they had their hearing last year, they needed to close the business for five (5) days and it was to be six (6) months before they would get their 2 AM Closing license back. The six (6) months would have been in March 2009. Now, iYs June and lhey are still trying to get back their 2 AM Closing license. The Lonetti's thought that every thing was settled last fall; they cari t understand why they are still in the process of getting back their license. In March, they applied and paid $750 and they still haveri t received final approval. They are confused about that. Mr. Lonetti further explained that at the hearing last year, they had a 10-day suspension reduced to 5-days; a year and a half was dropped down to six (6) months. He reiterated that at the end of the six (6) months, their penalty would have been over and they'd be getting back their 2 AM license. He called Christine Rozek to make sure and she told him that his time was up, so he went down to pay the $750. Ms. Schweinler called him three (3) days later and explained that they had to go through the notice to the neighborhood again, the District 6 council meeting. He said that they were led to believe that they would automatically get the 2 AM Closing license back after six (6) months. Ms. Vang interjected that it was her understanding that back in September there was adverse action brought against Lonetti's for consumption after 2 AM, and according to the police report, there have been many proactive police visits. Ms. Vang asked Ms. Schweinler to explain the City's re-notification process. Ms. Schweinler explained that a re-notification of the neighborhood and district council is required for changing the conditions of any license; and a liquor license requires a 45-day notice. The suspension of the 2 AM license was up in March and re-notification was done shortly thereafter. Mr. Lonetti stated that during the 6-month suspension, they had absolutely no problems whatsoever. Because they had no problems, he didn t think that the business should be suspended another six (6) months more just to see whether it will have a different type of clientele during the summer months. Ms. Vang responded that there is not a question of suspension in today's hearing. The purpose is to address the concerns of the residents of Saint Paul, inciuding businesses in the area and also to ensure that the business does not have the same issues that it had prior to September 2008. 2 09-720 Ms. Kerry Antrun, District 6 Planning Council, addressed the hearing. Ms. Antrim stated that the neighborhood and Mr. and Mrs. Lonetti were invited to the Land Use Task Force meeting to discuss this. She commented that it is really unfortunate that Lonetti's is requesting this modification just at a time when Rice Street is experiencing a lot of difficulties. Most recently, twenty-five gang members (e.g., the Bang Out Boys; the Rice Street Boys; the Hoover Boys; the Selby Siders;.and the East Side Boys) were arrested on Geranium and Rice at 7:00 p.m., in close proximity to Lonetti's. IYs a very tough neighborhood. T'he community thinks that Lonetti is a great business. It's a great lunch spot with the best hamburgers. IYs a great place to go after a meeting, to get a cup of coffee, pop and beer. The neighborhood wants Lonetti back. Their clientele has changed which demands a greater responsibility of the bar owners. It had been, primarily, an eating establishment and neighborhood bar. Then, it became a club-type atmosphere — more of a destination bar with a younger crowd — more of a hip-hop, rap crowd, which trickled down when two (2) other establishments closed on Rice Street. Now, Lonetti is holding the bag. The community thinks that a summer time 2 AM Closing might not work on Rice Street right now because of the difficulties in that area. Two (2) people have been mugged on Rice Street during the light of day. Because of the seriousness of the current problems, a bar will need better security, better exit plans, etc, if a 2 AM Closing is allowed. Ms. Vang asked Mr. and Mrs. Lonetti if they had a chance to talk with District 6 about creating some type of an exit plan/security. Janet Lonetti replied that they have already done several things that have warked well such as: 1) requiring a valid picture I.D. before entry into the establishment; 2) creating a restriction list; 3) requiring that patrons be wand before entry; 4) installing twelve (12) surveillance cameras that are recording 24 hours a day; the information is stored for almost two (2) months; 5) hiring good security and 6) spending $800 on lighting the parking lot. Ron Lonetti added that since Tin Cups closed, they have picked up a very nice clientele during the day. Their night sales show that they have very little business at night. Before, it was just the opposite. Normally, they lock up at midnight during the week. Janet Lonetti added that during the week when clientele is low, they may choose to close at 11:00 p.m. Their employees are suffering because working at Lonetti is perhaps their staff's only source of income. They relied on the longer work hours and are also concern because they can earn more when the establishment can have the option to stay open unti12:00 a.m. Private parties have also diminished because they have last call at midnight. Many people then go to a bar that is open unti12:00 a.m. Ms. Vang asked about staffing at Lonetti's. Ms. Lonetti responded that they have kitchen staff, two (2) bartenders, a waitress, and two (2) security people. Right now, they dori t have the clientele to support all of those employees. Ms. Vang stated that she can understand why a 2:00 a.m. closing would be troubling for any business in that location at this time. She reiterated that the six (6) months is a trial period, and they will need to re-notify the neighborhood after that time but as the climate changes, the conditions can be changed depending on whether or not Rice Street changes. Ms. Lonetti 09-720 stated that the business won't be able to survive. They have nothing left to sell; they don't have one (1) more bank account to take from. She added that she doesn't really understand because crime can happen before 1:00 a.m. Why is that extra hour too much to ask? The bars down the road have it. Ms. Vang asked Ms. Schweinler how many bars in the area are open unti12:00 a.m. Ms. Schweinler responded that she didri t have that information in front of her. Mr. Lonetti interjected that Born's has a 2 AM Closing, and many of their customers leave shortly before 12:00 a.m. to get down to Born's for the last hour. Mr. Lonetti stated that their security guard, on his own, went around and got signarizres from all of the neighbors saying that they approved of the 2 AM Closing. Ms. Vang stated that she understands the support but reiterated that currently, the neighborhood has experienced some distress and while she understand that it does not have anything to do with Lonetti's business, she wanted to understand more how Lonetti's can help create a safer community. Ms. Vang read the letters of concern. Reasons for concern listed: too much violence, gambling in the alley, rowdiness, littering, patrons running through residents' yards, noisiness and milling around behind Lonetti's, no efforts made to exit quickly from the parking lot, witnessing someone being served after 2:00 a.m., and property damage. Ms. Lonetti stated that she wished the people who wrote the first letter would have come to the hearing because they cannot see the bar from the 3�d driveway over. She believes someone used a neighbor's name to write the letter, with or without permission. The letter writer contends that he has been served after 2:00 a.m. and that is not true. He is also the person who has been harassing Ms. Lonetti at other locations saying that he holds the key to her business. He seems to hold a grudge because he is not allowed in the bar. Ms. Vang took a recess at 10:35 a.m. to look over the petition and re-read the letters of concern. The hearing reconvened at 10:49 a.m. Ms. Vang will recommend approval of the request to modify the license conditions and remove condition #7 which reads: 7. (Added by Council Resolution OS-1006 on 9/10/2008) The establishment shall close at 1:00 a.m. and shall not remain open unti12:00 a.m. Licensee can petition to have this license condition lifted through the procedure established by the Department of Safety and Inspections six (6) months after the passage and approval of this resolution. Ms. Vang recommends that the license for a 2 AM Closing be granted for a period of six (6) months, not to exceed the expiration of the applicants' liquor license which is December 3, 2009, as recommended by DSI staff. The regular renewal process will take place at that time 09-720 and thereafter. DSI will report any violations of the conditions associated with the license to City Council. (No neighborhood notification will be necessary at that time.) The License Conditions are: 1. The outdoor patio shall not be used for food or beverage consumption with payment of the Metropolitan Council Availability Charge and without prior approval of the use by the City License Inspectar. 2. Licensee must provide warking video surveillance cameras and recorders on the premise to provide documentation of activities on the interior and exterior of the establishment. This equipment must be in operation during all business hours. Tapes must be maintained for thirty (30) days and be immediately available to the Saint Paul Police Department and the Department of Safety and Inspections upon request. 3. Uniformed and clearly identifiable security personnel shall be assigned to each entrance starting at 9:00 p.m. every day and shall remain until all patrons have left the licensed premises. Security personnel shall "wand" (using a metal detector) each patron and check all handbags and packages carried by patrons. Security personnel shall verify the age of patrons by checking state or federally issued identification cards (No picture I.D. no entrance). Customers re-entering the establishment shall be subject to the same security measures as customers entering the establishment for the first time. 4. The security personnel shall not fraternize with the patrons. 5. (Revision stipulated by Council Resolution 08-1006 on 9/10/2008.) If licensee obtains a 2:00 a.m. license, the license holder shall not allow new patrons to enter the establishment after 1:30 a.m. Last call will be no later than 1:30 a.m. The establishment will be closed with all patrons and staff gone by 2:30 a.m. 6. The license holder, security staff and employees of the establishment shall cooperate with the police by calling for assistance when there is a threat of violence or other criminal behavior. The hearing was adjourned at 10:53 a.m. /jab