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#4 License agenda JANESVILLE CITY COUNCIL LICENSE AGENDA 10/11/2010 RECOMMENDED A. ELECTRICIANS–ORIGINAL Tim Lins W13969 Selwood Drive Prairie Du Sac, WI Jeffrey A. Knudtson 4269 Argosy Court, Madison, WI NEGATIVE RECOMMENDATION A. ORIGINAL CLASS B INTOXICATING LIQUOR AND FERMENTED MALT BEVERAGE LICENSE MACSFORYOU AND FRIENDS, LLC d/b/a Club Haven Mary A. McIntyre 18-24 S. River St. JANESVILLE POLICE DEPARTMENT October 7, 2010 TO: City Council FROM: Deputy Chief Dan Davis SUBJECT: Council Action on an Application for a Class B Intoxicating Liquor and Fermented Malt Beverage License by MACSFORYOU and Friends LLC, d/b/a Club Haven, 18-24 S. River Street Executive Summary At the October 5, 2010, meeting the Alcohol License Advisory Committee (ALAC) on a 3-1 vote sent a negative recommendation to the Common Council for a Class B Intoxicating Liquor and Fermented Malt Beverage License for Club Haven. The Negative Recommendation was based upon the unwillingness of Mary McIntyre to provide financial information that would show credit solvency for the business. Background Mary McIntyre first appeared before the ALAC on August 3, 2010, after applying for a Class B alcohol license. On that date, the ALAC decided to postpone a decision on the application for 30 days. The decision to postpone was based on the fact that the most recent tenant of 18-24 S. River Street, Robert Forbush, had delivered a letter to the police department on August 2, alleging that the building was subject to foreclosure action. Forbush also alleged that the building was not up to code and that the owner, Kurt Miller, had engaged in illegal activity and questionable business practices. The ALAC decided that the police department should have the opportunity to investigate Forbush’s claims of criminal activity. In a 3-1 vote the ALAC postponed the decision 30 days and asked that Mary McIntyre present a business plan and financial statement showing credit solvency for her proposed business. Detective Buescher from the police department investigated the claims of criminal activity on the part of building owner Kurt Miller. Detective Buescher determined that Forbush’s claims had no merit. On August 25, 2010, the City Clerk’s office received a business plan for Club Haven. The letter was not signed, but indicated that it was the work of Mary McIntyre. The business plan did not contain and made no mention of the financial solvency of the business. At the September 7, 2010, ALAC meeting Mary McIntyre appeared with Kurt Miller and Ryan Vega. Ryan Vega is listed as the Secretary/Member on the original Class B license application. When asked about the financial statement, Ms. McIntyre stated that she did not understand the request and thought she had done what was asked when she submitted the business plan. She also stated that she had been trying to get personal financial information from the other members of the LLC, and that she had receipts from when she paid vendors and rent. Ms. McIntyre was told that the ALAC was not interested in personal financial information, and that the ALAC was only interested in being able to confirm financial solvency of the business. The ALAC voted unanimously to allow 30 days for MACSFORYOU and Friends LLC to submit financial statements that would show financial solvency of the business. Mary McIntyre was asked to return to the October 5, 2010, ALAC meeting with that information. When Kurt Miller addressed the ALAC he intimated that the ALAC was discriminating against Mary McIntyre and her LLC because the group are homosexuals. Mary McIntyre appeared alone at the October 5, 2010, ALAC meeting. She initially said that she was withdrawing her application for a Class B license. After some discussion she stated that she did not want to withdraw the application, but said that neither she nor any other member of the LLC was willing to divulge personal financial information. She was again reminded that the ALAC was not interested in personal financial information and only wanted financial information related to the business. Ms. McIntyre said she felt that the request was unreasonable and that if she presented the information she would be asked for something else because the ALAC just did not want her to have the business. She also noted that other applicants are typically not asked to provide financial information nor does the application have a field requesting financial information. Recommendation The site at 18-24 S. River St. has a recent history of short term and problematic licensed alcohol establishments. This would have been the 8th licensed establishment at this location in the past 5 years. When the businesses dissolve, the police department routinely takes complaints of civil disputes between Kurt Miller and whoever the licensed agent at the time is. Mr. Miller has a history of finding tenants who are idealistic about their establishment’s success, but lack the business experience or skills to see that success come to fruition. While the request for financial information was somewhat out of the ordinary, some level of assurance that there was a likelihood that the business would survive seems reasonable. Ms. McIntyre was either unwilling or unable to provide the information requested therefore, the police department is recommending that the application for a Class B Intoxicating Liquor and Fermented Malt Beverage License for MACSFORYOU and Friends LLC, d/b/a Club Haven be denied. Respectfully Submitted, Deputy Chief Dan Davis C: Eric Levitt Jay Winzenz