Liquor Commission

City of Naperville 400 S. Eagle Street Naperville, IL 60540 Meeting Minutes - Final Thursday, November 3, 2022 3:00 PM Council Chambers Liquor Commission Liquor Commission Meeting Minutes - Final November 3, 2022 A. CALL TO ORDER: Mayor Chirico called the meeting to order at 3:00 p.m. B. ROLL CALL: Present 7- Mayor Steve Chirico, Karyn Charvat, Kelly Douglas, Charles Maher, Mitch Stauffer, Scott Wehrli, and Kimberly White Absent 3- John Koranda, Anthony Signorella, and Joe Vozar Staff Present: Rachel Pruneda, Assistant to the Mayor, Sgt. Scott Thorsen, Jennifer Lutzke Bonner, Senior Assistant City Attorney C. PUBLIC FORUM: None. D. OLD BUSINESS: None. E. NEW BUSINESS: Consider The Lantern Tavern, LLC request for a Class C license Terry addressed the Commissioners stating she is the current manager and the family has been in business for 57 years. Staff will remain the same, as well as the business. The Lantern has holiday traditions where they open early and close early. They would like to keep the business as a tavern. Mayor stated that he likes the way The Lantern is operating. Feldott family has been operating it for 57 years under a Class C Tavern License. I have concerns because I don’t want this to change into a straight up tavern. There’s a certain amount of comfort if this business under a Class C License, is going to operate as it always operated. I don’t want this to change to a straight up tavern, by right, it’s been operating as a Class B Restaurant with a late-night permit. This would be my preference. Douglas stated that she wants to understand the request for a Class C License. Mayor answered stating that it is a Class C and they’re not requesting a change. Mayor Chirico asked why do we need a Class C if you are operating the same way? Terry addressed this question stating that the cooks do not work holidays and kitchen is not open on Thanksgiving Day. We have packaged sales just as a convenience. It’s only .24 percent of total sales, less than .5% City of Naperville Page 1 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 Mayor Chirico addressed the potential new owner stating that he knows the current owners and that brings him comfort. A Commissioner asked the potential new owner for his background. Lococo stated he has owned a lot of businesses beginning at the age of 20. He’s an entrepreneur. He plans on keeping everything the same, retaining all the employees. It’s a turnkey business. He commented that he will be overseeing things, as well as enhancing a few things, changing the menu, but nothing serious. Making it a little better. Mike said he has not operated a bar, but he has been in the automotive industry and he understand there are a lot of laws to obey. Mayor Chirico stated that in the liquor business it’s nice to have some history. Operationally, we contact the police department to see if there are violations or fines. Lococo restated that he is keeping all of the staff and that they have been fingerprinted. He will not be changing the dynamics. Stauffer stated that staying away from taverns in the downtown is very intentional. The downtown area got into a little further than we wanted it to in terms of late-night trouble. Once we issue license, things can evolve and you can do what you want. Stauffer asked Wehrli for the history on downtown taverns Wehrli stated that there has always been a premium on tavern licenses. Tavern licenses have been reduced as businesses have gone away. Stauffer is concerned whether this will become more of a bar adding that we want to be careful. Lococo stated that he was able to get insurance and there have not been any incidents ever adding that he would not take a risk and jeopardize his life and future. Douglas asked if Lococo if he retains the Class C, are there plans to change the business model? Lococo stated that they have a full kitchen and they use it daily, adding that it’s not a typical tavern. He also said that changing the license may force them to change staffing. John addressed the Commissioners stating that going to Class B changes the whole business model adding that the they would have to close on Thanksgiving Day and it would not allow for the sale of packaged liquor. Packed liquor is not advertised, but it is a convenience adding that they are open on Thanksgiving Day, Memorial Day and Labor Day. Class B would change our model and they may not be able to staff the kitchen. White asked Lococo if he is keeping Terry and would she continue on as the manager. Lococo said it would be crucial to keep her and also adding that there are 5 managers. There are currently 30-35 employees. Mayor asked if there was contract (to keep employees). Is there an employment agreement? Lococo stated it was a verbal agreement, adding that he keeps his word. Wehrli stated that there has been a precedent going back a long time and asked what would be the differences. Lococo stated that everything will be exactly the same adding that he can put that in writing. He City of Naperville Page 2 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 said he has other properties in Naperville. Maher asked Lococo, how did you come across the Lantern? Mike: We stumbled across it and we asked the owner if he’d like to sell. Adding that he has a small dealership in Naperville and he has grown up in the auto industry. He also added that he has residential properties in Lisle, Downers Grove. Chicago Ave (residential). I sold property behind Bakers Square on Ogden. I used to own taco bell on Ogden Ave. I started with Naf Naf Grill. In recession in 2008. They did not do well in first couple of months. Took a liking to them and they are super successful. Stauffer: I’m assuming in 57 years. Tavern probably got their license before there was a Class B license. If you came today, we would not entertain the idea. In the spirit of what Naperville is trying to do. Effectively not issue Class C to anyone. There’s a reason we do not make them transferable. We want to apply the current laws and ordinances to them. When you say, it changes your business model. It’s Thanksgiving Day and 2 other holidays. How does that change your business model? John: We can open early and close early. Stauffer: When you say it changes your business, it doesn’t Terry: It’s not often, but it’s nice to know we can open early for a marathon at 8 or 9 am and my kitchen will still open at 11. It makes me sad, that something has to change. It sounds like it’s nothing, but if you have been there on Memorial Day or Labor, we serve drinks without worrying about food and it’s a great time. Stauffer: I struggle with 2 days out of the year, but you are asking for a license to accommodate a couple of holidays. My view right now doesn’t feel like it’s necessary Lococo: What do I have to do to keep it? Stauffer: We don’t want bars downtown with straight up Class C licenses. We don’t issue Class C licenses. Maher: Tradition is important. The town has grown so big, but we want it to have a small home town feel. I hope you look at this as a turnkey. You invested in Naperville. I see it as a business model that has been offered flexibility. Lantern has done a nice job. Douglas: Is there a way to create a work around for those few days? Has this transaction already happened or is it contingent on maintaining the City of Naperville Page 3 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 class C? Mayor Chirico asked Lutzke to address this. Lutzke: There is a way to write restrictions into the license that will allow them to operate on certain days without a kitchen based. There is a package sale issue. Do you wish to continue packaged sales? Lococo: It’s a ¼ percent of our business. It’s not our bread and butter It’s not a profit center. Chirico: Would that be a compromise? Class B with a late night permit and allow certain days where you don’t have to keep the kitchen open? Lococo: I know what I’m buying. If I’m not buying a tavern, I’d go back to management. It’s a whole new dynamic. Terry: Kitchen is open until 10 every night, Sundays until 8 and there are times we close the kitchen an hour early. That’s what I worry about. Kitchen is open at 11. It does allow for flexibility and we have not abused that. Package license is not a big deal, we don’t advertise it, but the flexibility is a bigger deal. Commissioner: Listening to presentation and comments, I understand a lot of this discussion. I’m drawn to the fact that the family is standing behind the new ownership. The family really knows this business the best. White: I feel the same way. For me, it's knowing that you are keeping Terry in place. Commissioner: If there is a problem later on down the line can we address it? Mayor Chirico: To be clear every year we do compliance checks. We do have tools in place that would allow us to re-look at this. Commissioner Maher made a motion to approve the request for a Class C License for The Lantern Tavern, LLC, seconded by Charvat and carried by the following vote: Aye: 4- Charvat, Maher, Wehrli, and White Nay: 2- Douglas, and Stauffer Excused: 1- Mayor Chirico Absent: 3- Koranda, Signorella, and Vozar City of Naperville Page 4 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 F. REPORTS: This was approved. Approve the regular Liquor Commission meeting minutes of July 7, 2022 Commissioner Maher made a motion to approve the regular Liquor Commission meeting minutes of July 7, 2022, seconded by White. Motion carries by unanimous voice vote. Approve the regular Liquor Commission meeting dates for 2023 Commissioner Maher made a motion to approve the regular Liquor Commission meeting dates for 2023, seconded by White. Motion passed unanimously by voice vote. 1. Restaurant Association Report - Jeffries Christine Jeffries was not present to provide a report. 2. BASSET- Employee Training Statistics - Creighton Thorsen reported that in July 23 online renewing individuals and no in-person, August, there were 142 in-person individuals who completed their BASSETT training and 38 renewing individuals. In September, there were 90 in-person attendees and 26 renewing individuals. In October, there were 81 individuals who in-person attendees and 37 renewing individuals. Mayor Chirico asked if we have any information on the number of no-shows and is there a charge for no-shows? Mayor also asked what is the current fee for BASSETT training? Thorsen did not have the information readily available. Mayor asked if Marty could report back on this information at the next meeting. 3. Tobacco Enforcement Review - Creighton Thorsen reported that there will is a tobacco compliance check in the next couple of weeks, Lutzke reported as a follow-up to compliance checks from last year stating that there were three businesses cited (Jewel/Osco, 1227 S Naper, CBD, 4003 Plainfiled/Naperville Rd & Smoke XL, 1003 Ogden) and not the individuals that sold. Each of those businesses stipulated to the violation & the Mayor as the Liquor Commission entered the order imposing a $500 fine. All the fines have been paid. There are two outstanding from the last compliance check. Those violations have been issued against the business, but have not been adjudicated yet. City of Naperville Page 5 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 4. Liquor Report - Creighton Thorsen reported that there were 10 DUI's in August, 2022 compared to 7 DUI's in August, 2021. He also reported that there were 18 DUI's in September, 2022 compared to 9 DUI's in September, 2021. Mayor Chirico asked Thorsen about the violation that was recently issued to Peanuts for over service. Thorsen reported that they have been cited for the violation. 5. Liquor Concept Committee Update - Barfuss Pruneda reported that since the last Liquor Commission meeting, the Liquor Concept Committee held three meetings on July 21, August 18 and October 21, 2022. The following concepts were discussed: The Lantern Tavern, LLC, 9 S 211 Skylane Dr New owner seeking a Class C Liquor License. The Lantern has been referred to the Liquor Commission meeting being held today for further review. Naper Pride Fest - Pride on the Prairie, event scheduled for September 10 at Naper Settlement Chicago Events Management is the 3rd party organizer. The charity license holder is the Naperville Jaycees. Euclid Beverage is providing the alcohol. They will be serving beer, wine, seltzer and canned cocktails. Gordon Ramsay Hell’s Kitchen, 39 W Jefferson Ave. New business seeking a Class B Liquor License with a late -night permit. Anticipated opening date of January 2023 and their liquor application is in process. Naperville Hispanic Heritage Fest, event scheduled for Sept 17, 2022 at the Naperville Community Concert Center Sister Cities Foundation is organizing this event. They will be using Belgio’s Catering to serve beer and wine. Naperville Irish Fest, event schedule for August 5-6, 2022 at Frontier Sports Complex West Suburban Irish is seeking a Special Event permit with a third-party City of Naperville Page 6 Printed on 4/10/2023 Liquor Commission Meeting Minutes - Final November 3, 2022 promoter. The will be serving beer, seltzers, Irish Coffee with whiskey. Their application is in process. G. EXECUTIVE SESSION: H. ADJOURNMENT: /S/ Rachel Pruneda Rachel Pruneda Assistant to the Mayor City of Naperville Page 7 Printed on 4/10/2023