LICENSES COMMITTEE

City Hall City of Milwaukee 200 East Wells Street Milwaukee, WI 53202 Meeting Minutes LICENSES COMMITTEE ALD. T. ANTHONY ZIELINSKI, CHAIR Ald. Milele A. Coggs, Vice-Chair Ald. Nik Kovac, Ald. Joseph Dudzik, and Ald. Jose Perez Staff Assistant, Linda Elmer, 286-2231 Fax: 286-3456, lelmer@milwaukee.gov Legislative Liaison, Teodros Medhin, 286-8681, tmedhi@milwaukee.gov Wednesday, November 6, 2013 9:00 AM City Hall, Room 301-B Special 1. 130768 Motion relating to the recommendations of the Licenses Committee relative to licenses. Sponsors: THE CHAIR Meeting convened: 9:12 A.M. Ald. Kovac arrived at 9:16 A.M. Ald. Coggs arrived at 9:23 A.M. KRAHN, Scott A, Agent for "Six Star Holdings, LLC", Class B Tavern, Food Dealer, and Public Entertainment Premises License Applications Requesting Disc Jockey , Dancing by Performers, Adult Entertainment/Strippers/Erotic Dance, Patron Contests, and Patrons Dancing for "Silk Exotic" at 730 N Old World Third St. Atty. Michael Whitcomb for the applicant Atty. Jeff Scott Olson also present for the applicant Sarah Crandall - legal expert John Ferraro - appearing on behalf of the applicant and is a principal in the operations. Ald. Bauman also at the table - this hearing was very similar to the previous hearings, except with the addition of the human trafficking concerns. He has never had as many citizen opponents from one building as occurred today for 720 N. Old World Third St. He thinks that the land-use is not compatible with the development plans for the Wisconsin Avenue corridor and he again recommends against granting this license. He does not think if this establishment were there it would create no adverse secondary effects, but would have an adverse real estate impact. He would have no objection at a different location in downtown Milwaukee. Atty. Whitcomb is concerned that letters objecting to this application were included as part of the notice and are part of the record and the fact that these letters are anonymous because of staff redaction. Reggie Belanger - 252 E. Highland Ave. - agent and management company of the building adjacent to the proposed site at 720 Old World Third St ( Grand Avenue Apartments). He testified that an employee did post the flyer noting that a $100 rent credit would be applied for any tenants who appeared and testified. The flyer, noted Ald. Dudzik, does specifiy what the tenants should be testifying to. Mr. Belanger said that any testimony, either pro or con, as irrelevant - the rent credit would be applied for any testimony to compensate the testifier for lost work time. Make flyer provided City of Milwaukee Page 1 LICENSES COMMITTEE Meeting Minutes November 6, 2013 by Mr. Belanger part of the record, by Ald. Coggs. Prevailed. 5-0 (Exhibit 1) Opponents: Taylor Imm - 720 N. Old World Third St. Tyler Leverington - 720 N. Old World Third St. - foot traffic, previously lived by a similar venue. Steve Chernof - Shorewood - works at 780 N. Water St. - would be detrimental to efforts to attract families and retailers to the area. He' s a member of a Wisconsin Avenue area development group. He was asked to make this objection on behalf of this group (WAMDC) Clayton Davis - 720 N. Old World Third St. - agrees with previous speakers, concerned about noise, his fiancee works late hours and he's concerned about her safety and will probably have to move out. Ald. Kovac moves to amend the plan of operation to provide escort service to any occupant of 720 N. Old World Third Street who parks within 1-2 blocks of the establishment and requests this service. Prevailed. 5-0 Greg Schram - 720 N. Old World St. - agrees with previous testimony and had friends who lived near a strip club and the elderly people whom he works with won't be comfortable around a strip club. Reggie Belanger - will be hard to retain tenants, particularly women and impede revitalization and he engaged an appraiser to give his opinion on how real estate values would be affected by the addition of a strip club. Make report provided by Mr. Belanger part of the record, by Ald. Perez. Prevailed. 5-0 (Exhibit 2) Make study on same topic provided by Atty. Whitcomb part of the record, by Ald. Perez. Prevailed. 5-0 (Exhibit 3) Megan Westra - 2528 N. 45th St. - believes it will add to human trafficking. Steve Looft - 600 E Wells St. - Economic Development Director for BID 5 - young people are moving downtown and feel that this would impede development Steve Miracle - 720 N. Old World Third St. - thinks the notice in the building (Exhibit 1) is 100% true and concerned about noise on the weekends. Scott McIntosh - 5717 W. Wells St. in Wauwatosa - fears increased human trafficking Joe Weirick - part of the Wisconsin Avenue business group with Mr. Chernof - the main entrance to the parking garage that he owns is directly opposite the main entrance to the proposed strip club. Hard to find office tenants willing to have a strip club across the street. Ben Westra - 2528 N. 45th St. - children's pastor at a local church, he's concerned that a lot of kids like to go downtown and he brings children downtown. Cordelia Bryant - 3385 N. 45th St. - was executive director of African World Festival and works a couple blocks away from the proposed site. Agrees with the previous speakers and concerned about overconcentration (13 strip clubs in the Milwaukee area or greater Milwaukee area - 7 of them 5 miles away from the current site). Allison Eggers - 720 N. Old World Third St. - agrees with previous speakers and her windows face directly into the alleyway between the two buildings, so she's concerned about noise and taking her dog out through that alleyway. She also comes home late in the evening and would probably move if the strip club were to open at this location. Debby Tomczyk - 1000 N. Water St. - attorney and the legal counsel for BID 21 - asked to address legal issues and the committee is free to reject this application and consider the secondary effects of the proposed establishment. RECESS: 11:02 A.M. RECONVENE: 11:13 A.M. Angela Deumani - 235 W. Wisconsin Ave. - also a member of WAMDC, would add to City of Milwaukee Page 2 LICENSES COMMITTEE Meeting Minutes November 6, 2013 the perception that this area isn't safe. Chuck Allisen - 720 N. Old World Third St. - agrees with previous speakers relating to safety, parking and loitering. Mark Hollaar - 720 N. Old World Third St. - agrees with his fellow apartment residents, but also concerned about safety for the late hours he has to take out his dog. Joseph Laur, Jr. - 1243 N. 10th St. - represents office property in the downtown area and the proposed establishment would decrease real estate values. Stacy Callies - Westown Association is opposed to this application as negatively impact the nearby property values. DJ Berry - 720 N. Old World Third St. - he's a student at Marquette who doesn't want to live next to a strip club. Martha Love - 1846 W. Cherry St. - member of the Human Trafficking Task Force of Greater Milwaukee and survivors of human trafficking and domestic violence victims note that sex clubs serve as gateways to human trafficking. Chinwe "Chi Chi" Oraka - 720 N. Old World Third St. - agrees with previous speakers and she has gone to Silk in the past and it's very loud with a lot of people spilling into the street. Janet Miller - 720 N. Old World Third St. - opposed to any business that exploits women and fears increased traffic and illegal parking and there are also two treatment centers for women involved in prostitution within a few blocks of the proposed site. Dana World-Patterson - 356 N. 47th St. - Chair of Human Trafficking Task Force of Greater Milwaukee and opposes another entertainment on the backs of our women and our girls being opened in the city of Milwaukee. Beth Weirick - 600 E. Wells St. - Executive Director of BID 21 - here for the third time to propose this application downtown as it's in conflict with the downtown plan. The secondary impacts will diminish the downtown area. John Hennessy - 831 W. Wisconsin Ave. (owns that building) - fears the establishment doesn't fit in with the neighborhood they are trying to create Emily Krause - 720 N. Old World Third St. - would move out if the establishment becomes a reality next door. Sara Beth Lewis - speaking on her behalf, but her testimony may draw upon her experience as an Assistant District Attorney, concerned about increased littering, congestion and decreasing property value and people who are prostituted may be illegally dancing in these clubs as well as pimping activities occurring as well. Mary Jane Jorgensen - 1260 N. Prospect, #706 - concerned about what happens in strip clubs, volunteers at the Riverside Theatre and concerned about her personal safety Alexander Valley - 720 N. Old World Third St. - agrees with the previous speakers Katie Gerth - 720 N. Old World Third St. - concerned as a young female and a young professional and would be moving if the proposed establishment came into existence. Casey Hasenstein - 720 N. Old World Third St. - agrees with the previous speakers and is concerned about potential additional noise and personal safety. Lindsey Wicker - 720 N. Old World Third St. - agrees with previous speaker and also a dog owner concerned about her safety. Eva Epperson - 1129 N. Jackson St. - shops downtown frequently, takes away the focus of the family as the husband frequents these places and ignores his family. RECESS: 12:20 P.M. RECONVENE: 1:01 P.M. Supporters: Chaz Hastings -- 11310 Silver Spring Rd. - owner of Milwaukee Harley Davidson, which shares a parking lot with Silk and he's had a great experience working with Silk and he's seen no financial repercussions to his business based upon its proximity to City of Milwaukee Page 3 LICENSES COMMITTEE Meeting Minutes November 6, 2013 Silk. Make letter from Charles Hastings part of the record, by Ald. Perez. Prevailed. 5-0 (Exhibit 4) Rick Grainger - 10532 W. Rae Ave. - Silk patron for the last 10 years and has lived within a half-mile of Silk for the past 20 years. Establishment is always clean and the business is contained within Silk. Many employees use Silk as a stepping stone to finance other careers. Craig Ploetz - W168N11062 Ashbury Circle, #3, Germantown - co-owner of Silk Exotic - the business is respectably run and protects its female employees and 30% of their business is bachlorette parties. They have 75 cameras in the establishment, including outside, security personnel on the floor and bathroom attendants to ensure the girls are not being touched inappropriately. Brandon Keirns - 106 Seeboth - supports the application and he supported Satin when it was proposed, which would have been two blocks from hs house. Mark Hoppe - 100 Main Street, Waukesha - the establishment owners have a great track record of operation. Brian Ward - 543 Frasier St., Fredonia - he owns Ward's House of Prime and John Hawks Pub - would provide adult entertainment for his customers following visiting his establishments. 98% of his establishments' customers are family-oriented while 2% are young, singles out for a good time. Nicole O'Leary - 212 S. Barclay - bartender on Milwaukee Street and a steak house (Carnivore), many customers ask her where a good strip club is and she would send them to Silk as the high-end club. She has been to Silk and she feels safer at Silk than at many downtown bars. Alberto Gonzalez - 222 S. 3rd St. - employed as security by Silk. There are high standards for the security staff and they turn away a lot of customers who are in suits because of their poor attitutudes. There's a 16-week training course before a person works the floor alone. Leland Guk - 133 W. Oregon St. - they treat their license as a privilege rather than a right and an operating business at this location is better than an empty building and it increases employment. He worked for the applicant six years ago. He owns multiple taverns and properties. Joel Harris - 4029 N. Newhall, Shorewood - agrees with the previous speaker, he has owned and managed bars downtown over the past 10 years. He also does not want to refer his customers to the existing downtown gentlemen's clubs, so he refers them to Silk. Shane Kowal - 734 N. Old World Third St. - a benefit to the community and the area where he lives as there will be additional security and they will spend $1 milllon on renovating the building. Ashley Torn - 222 S. 3rd St. - worked at Silk as a cocktail waitress and feels very safe, likes her bosses and is treated with respect. David Weir - 2602 E. Newberry Blvd. - agrees with the previous speakers and also thinks that Silk will be a good tenant. He thinks it will increase business in the area. Jessica Chakris - 2129 S. 111th St., West Allis - employed by Silk and finds it a high-clas establishment. She has worked at other strip clubs and finds this establishment safer and better than others. Ronnie Green - 1101 N. Market St. - agrees with the previous speakers; he runs a business incubator program in downtown Milwaukee. Mr. Ferraro is a good business operator and he would suggest that he act as a mentor for those wishing to get into the bar/nightclub/strip club operation. Michael Parker, II - 133 W. Oregon - he works for the applicant as a DJ and bartender and working for the applicants was a complete and utter pleasure and led to the career he currently has as a DJ. Anna Slaber - 1444 S. 70th St. - a customer at Silk who goes there regularly Drew Roberts - 734 Old World Third St. - resident and former business owner on Wisconsin Avenue until this summer. He thinks everyone should have a chance to start a business. City of Milwaukee Page 4 LICENSES COMMITTEE Meeting Minutes November 6, 2013 Make sign-in sheets part of the record, by Ald. Perez. Prevailed. 5-0 (Exhibit 5) RECESS: 2:40 P.M. RECONVENE: 2:50 P.M. Make proposed plan and business proposal provided by Mr. Ferraro part of the record, by Ald. Kovac. Prevailed. 5-0 (Exhibit 6) Make letter from Ricky Lea, owner of Luxury Valet part of the record relating to parking lots to be used by Silk, by Ald. Kovac. Prevailed. 5-0 (Exhibit 7) Deny, based on neighborhood and aldermanic testimony, by Ald. Kovac. Prevailed. 5-0 Total hearing time: 6 hours. Meeting adjourned: 3:32 P.M. Linda M. Elmer Staff Assistant A motion was made by ALD. COGGS that this Motion be HELD TO CALL OF THE CHAIR. This motion PREVAILED by the following vote: Aye 5- Zielinski, Coggs, Kovac, Dudzik and Perez No 0 This meeting will be webcast live at www.milwaukee.gov/channel25. Common Council members who are not members of this committee may attend this meeting to participate or to gather information. This meeting may constitute a meeting of the Common Council or any of its standing committees although no formal action will be taken at this meeting. 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