Protection and Welfare Committee

Protection & Welfare Committee Meeting Minutes February 7, 2017 Chairman Rosek called the meeting to order at 6:15 PM. Members Present: Aldermen Rosek, Schmidt and Strey Staff Present: Mayor Nold, Kitsembel, Gallo, Frye, Pickart, Buerger, Leidel, Sullivan, Duffy and Coenen Others Present: Alds. Zwart, Shaw, Gross and Miller; and Atty. Riffle 2. Consider/recommend Granting New “Class B” Intoxicating Liquor/Fermented Malt Beverage License to:  VIP Sushi Hibachi Oconomowoc, LLC, 1288 Summit Dr.  Dimitri Glavas, New Restaurant 515 E. Wisconsin Ave. Coenen reported the City received two applications for the available “Class B” alcohol license that was surrendered on 1/3/17 by the owner of Fong’s Restaurant as part of the sale agreement for the building purchased by the City. They are from VIP Sushi Hibachi (VIP) located at 1288 Summit Dr and Dimitri Glavas for a new restaurant to be located in the vacant building at 515 E. Wisconsin Ave (former BUCA restaurant.) VIP was issued beer and wine licenses in November, however when they originally applied they requested a full liquor license but the City did not have any available. They owe no delinquent claims to the City. Dimitri Glavas currently operates Maxim’s restaurant and he plans to open a second restaurant in the former BUCA site. Potentially he is looking to open in June however because repairs need to take place the date is not certain. He is looking to secure the license to be able to move the purchase and repairs forward. He owes no delinquent claims to the City. Coenen noted that the Committee has several options which include recommending approval of the license for one of the applicants; placing the license on “hold” to allow Glavas time to purchase, repair and open the restaurant; which Council has done in the past and once the business is ready to open, then Council would take action to issue the license; postpone action until the Committee determines best use criteria for issuing a new “Class B” license; or denying both applications. The Committee recognized Jerry Erdmann, who owns the building VIP operates from. Erdmann stated the City has created an artificial shortage by issuing licenses to businesses that do not exist. He has invested $13M in his center and it’s finally filled. VIP has done well since they opened with lines out the door on Friday/Saturday nights as well as invested money in their space. The Committee discussed the BUCA license was issued to another location which leaves that building without a license, VIP being operational, not issuing every license available but holding some for future economic development, denying the applications and postponing until best use criteria can be determined and unused license issues resolved. Riffle stated determining a policy is a reason for denial. Motion by Strey to postpone action for the short term to allow the Committee time to determine best use criteria; second by Schmidt. Motion carried 3-0. S:\Committees - Commissions\Protection & Welfare Committee\Minutes\2017\PWMin2-7-17.doc 3. Discussion on “Class B” Liquor Licensing: As a continuation of the last several meetings the Committee has had on licensing issues, Coenen passed out a “draft” Best and Highest “Class B” License Use Criteria sheet and stated the list is a starting point and criteria can be added or removed as well as a point system could be developed and used to help determine if the use is the best use for the license. Coenen noted that governing bodies have broad direction whether to issue a license for a particular location and if they deny, they must conduct a review of the application and consider public sentiment, local concerns, economic development, etc. If denied, the applicant can reapply or file a claim in circuit court, but per the alcohol licensing manual, the courts generally do not reverse decisions of denial for a new license. The Committee discussed taking time to review the “draft” best use sheet and will let Coenen know of changes they want before the next meeting. The Committee next discussed revocation, non-renewal and non-use or minimal use of a license. Discussion included following our code in terms of revocation, factors to consider as part of revocation such as economic investment by a license holder, finalizing best use license criteria, holding licenses rather than issuing for applicants without an operating business with review after a set timeframe, amending our code to allow more than 90 days once a business ceases to allow the building owner time to sell or lease the building/business, case-by-case circumstances may need to be considered, automatic review by Protection & Welfare after a set number of days of non-use, considering sales percentage of intoxicating liquor in determining renewal and setting what that percentage should be. Coenen commented that our code does include specific criteria to allow revocation for failure to commence, cease operation and for inspection compliance but up to this point Council has chosen not to invoke. Riffle recommended the criteria should include “the Committee shall consider the following” and to not use a point system. The Committee directed Coenen to make amendments to the code allowing more time for commencing and cessation, and incorporating other comments for discussion purposes. Motion by Strey to adjourn; second by Schmidt. Motion carried 3-0. The meeting adjourned at 7:05 PM. Minutes taken by Diane Coenen, City Clerk Ald. Strey, Secretary S:\Committees - Commissions\Protection & Welfare Committee\Minutes\2017\PWMin2-7-17.doc 2