City of Northville Liquor License Review Committee May 18, 2009 Call to Order The meeting of the Liquor License Review Committee was called to order at 6:30 p.m. at the City of Northville Municipal Building, City Council Chambers, 215 West Main Street, Northville, Michigan, 48167. Present: Mayor Pro Tem James Allen, Councilmember Michele Fecht, and Committee Member John Buckland. Also Present: City Manager Patrick Sullivan, Police Chief Gary Goss, City Clerk Dianne Massa, representatives from BacMar LLC (Dino s), Lussier Investments (Table 5), Center Wine LLC (Simply Wine), and approximately 28 citizens. Public Comments None Approval of Minutes Motion Fecht, seconded by Buckland to approve the minutes from January 26, 2009 as presented. Motion carried unanimously. Public Hearing Dino s Sports Grill, 133 W. Main Street BacMar L.L.C. requests to transfer ownership of 2008 Class C and SDM licensed business with Dance-Entertainment permit and outdoor service located at 133 W. Main St. Suite 102. The stockholders of BacMar L.L.C. are Teri C. Martinez and Adam Lee Mason. The business will be managed by Philip Martinez. According to the plan of operation, the business will be operated as a full service restaurant and bar for a maximum of 174 patrons with an outdoor seating area that can accommodate 60 patrons. They plan live entertainment with a D. J. or live band on Saturdays. The applicants have been advised on the hours of operation for outdoor seating and the specific noise requirements for this seating. The Chase Bar and Grill was allowed outdoor seating under the condition that noise would not be heard from the south side of Cady. This was for the benefit of the surrounding residential neighborhood including the Main Center apartments. The Police Department has submitted one violation involving Dino s to the Michigan Liquor Control Commission (MLCC) stemming from an incident that occurred on Sunday, April 12, 2009, and involved the serving of alcohol to an intoxicated individual. This violation has not yet been heard by the Commission. Other than the previously mentioned incident, the Department s investigation did not uncover any negative contacts with the police or MLCC involving either of the applicants or the manager.
Page 2 Proper notice, as required by the ordinance, has been posted and mailed. The Department has no objection to the transfer of the ownership of this liquor license and accompanying permits. It was also noted that Dino s is changing its name to Northville Sports Den. The change of name will not affect the license transfer as the ownership is being transferred to BacMar L.L.C. The name of the business is not relevant if the business ownership does not change. Public hearing opened at 6:34 p.m. No comments. Public hearing closed at 6:34 p.m. Motion Fecht, seconded by Buckland that City Council recommend that the request to transfer ownership on 2008 Class C licensed business with Dance-Entertainment permit located at 133 W. Main, Suite 102, Northville from the Chase Bar & Grill, L.L.C. to BacMar L.L.C. be considered for approval by the Michigan Liquor Control Commission. Motion carried unanimously. Public Hearing Table 5, 126 E. Main Street In August 2008, Lussier Investments L.L.C. transferred a Class C liquor license from Detroit to 126-130 E. Main St. (Table 5). At the time of the transfer, the owner requested outdoor seating. However, the plan that was submitted on behalf of the business did not conform to the City of Northville s Ordinance section 74-174 Standards. Since the season for outdoor seating was closing, the applicant decided to postpone the request. A new request for outdoor seating has been submitted. MLCC Rule R 436.1419 requires prior written approval by the Commission. This rule requires the area to be well defined and clearly marked and the on-premise license shall not sell or allow the consumption of alcoholic liquor outdoors except in the defined area. Also, the outdoor seating must conform to the City of Northville s standards that include the following: - The designated area must be adjacent to the establishment which it is associated. - There shall be a minimum of 42 inches of sidewalk, exclusive of the area occupied by the outdoor seating, designed to allow adequate pedestrian movement. - The area must be continuously supervised, furnishings must be readily removable, may not interfere with any public service facility, such as benches located on the sidewalk, and may not adversely impact nearby commercial establishments, etc. The Sidewalk Café or Outdoor Seating Permit Application was reviewed and approved by the Building Department, Public Works Department, Fire Department and the Downtown Development Authority. The MLCC requires local government approval for this permit. The City of Northville s Liquor Management Ordinance requires a public hearing for the establishment of a new permit for an on-premise license. Proper notice, as required by the ordinance, has been posted and mailed. The City of Northville has two other liquor license establishments with outdoor seating that use public property. However, these establishments, Poole s and Dino s, do not encroach on a public sidewalk. The outdoor seating area proposed by Table 5 reduces a pedestrian sidewalk
Page 3 of more than fourteen feet in width to five feet. Also, this area is adjacent to Town Square, which is the highest pedestrian use area in the City. If approved, this application will need to be renewed on an annual basis. Public hearing opened at 6:37 p.m. The applicant provided further clarification on the proposed seating arrangements and the railing height (the height is 42 inches and is regulated by the MLCC). It was requested that the applicant amend the City of Northville Sidewalk Café Application to reflect the actual dimensions of the sidewalk café area as shown on the Table 5 Restaurant Outdoor Seating Plan dated 4-14-09 from Presley Architecture to reflect an area that is 9 feet by 20.6 feet. Being no further comments, the public hearing was closed at 6:42 p.m. Motion Fecht, seconded by Buckland that City Council recommends to approve the temporary outdoor seating permit for Table Five as described in the City of Northville s Sidewalk Café or Outdoor Seating Application to the Michigan Liquor Control Commission. Further, that Table 5 revise its City of Northville Application for Sidewalk Café to reflect the actual dimensions of the sidewalk café area as shown on the Table 5 Restaurant Outdoor Seating Plan dated 4-14-09 from Presley Architecture to reflect an area that is 9 feet by 20.6 feet. Motion carried unanimously. Public Hearing Simply Wine/Center Wine LLC, 109 N. Center Street The owners of Center Wine, L.L.C. (Simply Wine) are seeking a Tavern License to allow them to sell samples of their wine before a buyer purchase a bottle. A Tavern License is an on-premise license and if granted the City of Northville would no longer have a quota-license available. The City of Northville s Liquor Management Ordinance provides the City with specific review factors, which include: - Conserve the expenditure of funds for public improvements and services to conform to the most advantageous uses of land, resources and property. - Total number of similar licenses in the city. - Impact of the establishment on surrounding businesses and neighborhoods. - Whether a proposed licensed premise is part of a multi-use project with substantial new retail, office, or residential components. The size of the licensed premise relative to the overall project or development. - Will the facility be a sit down full service restaurant serving alcohol or other bar only type establishment. - Type or character of the establishment, e.g. dining, nightclub, hotel, dance club. - Overall benefit of the plan to the City.
Page 4 - Any other factor(s) that may affect the health, safety and welfare or the best interests of the community. It was explained that in August 2008, the MLCC placed the Class C on-premise license associated with MacKinnons (out of business) into escrow. Since there was no activity with this license, in January 2009, the MLCC terminated the license. This action made available an onpremise quota license in the City of Northville. State liquor license regulations provide for one on-premise license for every 1,500 population. This allows the City of Northville four on-premise quota licenses. Currently, there are 13 onpremise licensed businesses in the City and one on-premise license in escrow (NOMI). Many of these licenses were transferred into the City and count against the quota of the originating jurisdiction. Three of the 13 licenses are club licenses (VFW, American Legion, and Eagles). Should the LLRC choose not to recommend the approval of this request for a Tavern license, it would not prevent the owners of Simply Wine from transferring a similar license to their location from another jurisdiction within the County. The benefit of an available quota license for future economic development in conformity with the City of Northville s development plan should be considered. Proper notice, as required by the ordinance, has been posted and mailed. The Department s background investigations did not find any negative contacts with the owners or the business and the Department has no reason to object to approval of this license. Public hearing opened at 6:46 p.m. Jerry Hix, resident, spoke in support of the request, noting the importance of keeping Simply Wine in the community. The license would be an additional tool to help this business succeed and be profitable. Robert Bloom, resident, spoke in support of the request, noting the excellent customer service philosophy of Simply Wine. He believed that Northville has enough bars and restaurants and does not need a quota license available for additional establishments. John Callahan, spoke in support of the request, noting his observations throughout the years of businesses coming in and out of the downtown. He believed it was good to support an established downtown business. Maryanne Coulter, spoke in support of the request, noting that Simply Wine s success would mean success for the businesses surrounding Simply Wine. If the established downtown businesses are successful, it will draw more businesses to the downtown. Peg Green, spoke in support of the request, noting that the City should support businesses that are already established in the downtown. It is difficult to spend $20-$30 on a bottle of wine without having the opportunity to taste test. The license will help increase wine sales at Simply Wine.
Page 5 Fred Scheel, spoke in support of the request, noting the many vacant store fronts and the importance of supporting the existing businesses, which are of value to the community. Make Paulo, spoke in support of the request, noting that Simply Wine is also a destination shop that is unique and different. The City should help retain existing businesses versus saving the license for an unknown business. Dave Jaska, spoke in support of the request, noting that Simply Wine is very supportive of the community. He questioned the need to save a quota license for an unknown, non-existent business. John Genitti, spoke in support of the request, noting the importance of nurturing existing businesses. He also noted that there are other methods to bring a liquor license into the City if needed. Sam Dawson, spoke in support of the request, noting that he is a frequent supporter of Simply Wine and the other downtown businesses. He spoke of Simply Wine s knowledge and customer service philosophy. He noted the importance of helping downtown businesses succeed in difficult economic times. Mike Rhyner, spoke in support of the request, noting that the City should do all it can to support this business as successful businesses bring more foot traffic to the downtown. He frequently brings friends and out of town guests to patronize Simply Wine. Nancy Kassel, spoke in support of the request, citing Simply Wine s excellent customer service philosophy. Anne Smith, spoke in support of the request, noting that Simply Wine is an excellent business and the City needs to support an existing business. She did not believe that a new development would choose Northville simply because there was an available on-premise quota license. Jim Eathorne, spoke in support of the request, noting that he enjoys purchasing wine from Simply Wine. However, it is difficult to compete with other wine shops in the surrounding communities without wine tasting ability. Cindy Shepard, spoke in support of the request, citing Simply Wine s knowledge and excellent customer service philosophy. She believed the City should support an existing downtown business. Jim Cooper, spoke in support of the request. While he understood the City s desire to hold the on-premise quota license for a future development, he believed that it was also important to support a current downtown business during difficult economic times. Mishelle Lussier, spoke in support of the request, citing Simply Wine s excellent customer service philosophy that goes above and beyond to please the customer.
Page 6 Mary Starring, spoke in support of the request, noting that Simply Wine is the type of business that Northville needs. She also cited Simply Wine s excellent customer service philosophy and spoke of the need to support existing businesses and not the unknown. Marie Vasseliou and Laura McQueen of Simply Wine spoke to their license request, asking the City to grant the request to help their business succeed. They also noted that their wine club has approximately 250 members that come into their store and also frequent the other downtown restaurants and businesses. Allowing for wine samples is a unique way to increase Simply Wine s business. While the business is doing okay, it will not succeed at its current level. Wine sampling will increase sales and foot traffic. Downtown rents are high and existing businesses need every tool available to succeed. Matthew Fedor, Attorney for Simply Wine, spoke of the cost to purchase an escrowed Tavern or Class C license, the difficulty for Simply Wine to recoup the costs of an escrowed license purchase, the fact that Simply Wine s business plan does not include expanding to a bar or restaurant, and the fact that a new development could likely afford the cost of a license transfer as part of their project budget. LLRC questions, comments and discussion included: - The fact that an on-premise quota license may be used to license the sale of any type of alcohol. - NOMI s license is not a quota license. Currently, that license is in escrow and could be transferred anywhere in Wayne County. - Why Simply Wine did not look into the transfer of a Tavern license when they were opening the business. It was responded that Simply Wine was modeled after a similar business in Birmingham. They are moving away from that model, which includes offering wine sampling. The owners do not wish to operate a bar or restaurant. However, Michigan law requires a Tavern license in order to offer wine sampling. - In response to a question, Simply Wine representatives noted that they were aware of two Tavern licenses in escrow that could be purchased and transferred into the City. Calls inquiring on the purchase amount have not been returned. It is believed the cost would range from $10,000-$18,000. While the cost is less than a Class C license, the owners cannot financially afford the cost of an escrowed Tavern license. It would also take a significant amount of time for Simply Wine to recoup the cost of a transferred license. - In response to a question from Simply Wine, it was noted that while there have been informal inquiries; no other business is currently seeking an on-premise license in the City.
Page 7 - LLRC comments noting that the on-premise quota license is a key economic tool for encouraging new development in the City. The City s downtown has many vacancies and the availability of a quota license places the City in a powerful position to attract new development. - Comments from representatives of Simply Wine countered that a larger development would have the financing to add the cost of transferring an escrowed license to their overall project budget. - LLRC comments spoke of the need to support existing businesses. The public hearing comments from citizens and other business owners are a testament to Simply Wine s contribution to the community and their customer service philosophy. - LLRC comment noting that there are two escrowed Tavern licenses that can be transferred to any jurisdiction within Wayne County. It is difficult to deny Simply Wine s request with all of the community support shown today and the fact that a new development could purchase a license and transfer it into the City. It was noted that the LLRC would be making a recommendation to City Council. However, the final decision to recommend approval/disapproval to the MLCC rests with the City Council. Being no further comment, the public hearing was closed at 7:14 p.m. Motion Buckland, seconded by Fecht that City Council recommend to the MLCC that the request made by Center Wine L.L.C. for a new Tavern License to be held in conjunction with their existing 2009 SDM license located at 109 N. Center be considered for approval. Voice vote. Yes: Buckland, Fecht. No: Allen. Motion carried. There being no further business, the meeting was adjourned at 7:15 p.m. Respectfully submitted, Dianne Massa City Clerk Approved as submitted: 8/3/09