#07 Review and approval of economic development grant for Lyfe Lounge and Banquets @ 18-24 River StreetCOMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM
February 13, 2012
TO: Janesville City Council
FROM: Gale S. Price, AICP, Manager of Building and Development Services
SUBJECT: Action on a Request from Decisions LLC, DBA as Lyfe Lounge and Banquets, (Lyfe)
18-24 River Street, for an Economic Development Grant.
Executive Summary
In 2002 the City Council adopted an ordinance to establish an Economic Development Grant program
to permit the City Council to approve economic grants to those establishments that obtain a Reserve
Class B liquor license. Based on specific criteria the City Council may approve such grants up to the
one-time $10,000 Reserve Class B liquor license fee. Decisions LLC represented by Donta Evans has
requested an Economic Development Grant for their Reserve Class B license which was issued in
December, 2011.
Committee and Staff Recommendation
The Alcohol License Advisory Committee and the Community Development Department recommend
that following the City Council review, a motion to approve an Econcomic Development grant in the
amount of $10,000 for Decisions LLC, be confirmed.
City Manager Recommendation
The City Manager concurs with the ALAC and Community Development Department recommendation.
Suggested Motion
Motion to approve an Economic Devleopment Grant in the amount of $10,000 for Decisions LLC, DBA
Lyfe Lounge and Banquets.
Request
The City Clerks Office has received a written request for a $10,000 Economic Development Grant from
Donta Evans, owner of Lyfe which is a resturaunt and bar at 18-24 River Street. The use was issued a
Reserve Class B license in December, 2011 and has paid their initial $10,000 Reserve Class B license
fee with their application.
Background
Alcohol licenses are regulated by State Statute Chapter 125 and Janesville Code of General
Ordinances Chapter 5. In 1997, the State reduced the number of Class B licenses that a municipality
may issue and created a new Reserve Class B alcohol license. A Class B license and a Reserve Class
B license are the same except for the cost. A Class B license costs $600 per year and a Reserve
Class B license costs $600 per year plus a one-time fee of $10,000 when the license is initially issued.
The fees are paid to and retained by the City.
Since the enactment of this Reserve Class B license fee, several cities in Wisconsin have created an
economic development grant program which in effect refunds all or part of the initial $10,000 fee. In
2002, the City Council adopted an ordinance to establish such an Economic Development Grant
Program to allow the City Council to issue a one-time non-repayable grant to businesses who receive a
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Reserve Class B License. According to the ordinance, after submission by the applicant of a written
application to the City Clerk for a grant, the City Council may provide an Economic Development Grant
to the licensee in an amount not to exceed $10,000 following a review and recommendation from the
Alcohol Licensing Advisory Committee (ALAC).
The ordinance further provides that the City Council may consider the following criteria when
determining whether to grant all or part of the $10,000 grant to a particular applicant:
1. That the extent to which the license and/or the grant will promote a redevelopment or
rehabilitation project in the downtown or other commercial areas including the amount of
investment, the extent of rehabilitation, historic preservation and public improvement
effectuated, and related revitalization, health, welfare, peace and public good order factors.
2. That the applicant demonstrates that their investment and the establishment issued the Class B
reserve intoxicating liquor alcohol beverage license is equal to or greater than the dollar amount
of the grant request.
3. That the Class B reserve establishment is located at least 300 feet from any residential-zoned
area.
Analysis
The Community Development Department has evaluated this request based on the above criteria and
believes that the entire $10,000 initial license fee should be refunded as a grant. Staff’s findings are
based on the following:
1. The property is an existing downtown structure and constitutes a re-use of an existing historic
structure as it is included within the West Milwaukee Street Historic District. Re-use of the
building promotes preservation of this historic structure.
2. The owner was required to make extensive electrical upgrades to the building to meet current
building codes and to facilitate the use. In addition other maintenance and painting was required
to upgrade the interior environment and a new sound system for the facility has been
implemented. The amount of investment exceeds the $10,000 initial license fee.
3. The establishment is located over 600 feet from property zoned exclusively residential. There is
a residential apartment building to the north at approximately 350 feet, but is zoned B6, Central
Service District which is a business district, but allows apartment structures in certain instances.
The B6 District expects a mix of uses and activities. In Staff’s opinion the use meets the intent
of the criteria.
The Alcohol License Advisory Committee reviewed this request at their February 7, 2012 meeting and
unanimously voted to forward the request to the City Council with a positive recommendation.
cc: Eric Levitt
Jacob J. Winzenz
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