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HomeMy WebLinkAbout1991-07-10 VLLA Agenda & MinutesAGENDA LOCAL LICENSING AUTHORITY REGULAR MEETING JULY 10, 1991 10:00 A.M. 1. Consideration of the Authority of a modification of premises for Vail Food Services, Inc., dba, Frasier's at Lionshead/ Trail's End. Sandy Davies present. APPROVED: 5 -0 2. Consideration of the Authority of a modification of premises for Legends of Vail, Ltd., dba, Gondo's. Present: Bard Garton APPROVED: 5 -0 approval CONDITIONAL on PEC /DRB approval July 22, 1991. 3. PUBLIC HEARING - Consideration of the Authority of an application for a Special Events Permit, Malt /Vinous/ Spirituous Beverages, by the Vail Alpine Garden, Inc., on Saturday, August 3, 1991, from 12:00 noon to 10:00 p.m., at the location of Gerald R. Ford Park /Lower Bench, 530 South Frontage Road East, Vail, Colorado. Officers for this event are as follows: President - Helen Fritch Events Manager - Becky Brake - Present Event will take place from 5:30 to 7:30; open bar; bartenders will be checking I.D.s, when necessary. APPROVED: 5 -0 4. PUBLIC HEARING - Consideration of the Authority of a 100% transfer of ownership of the Hotel and Restaurant license held by Alma Equities Corporation, dba, L'Ostello, to Bienvenu! Inc., dba, L'Ostello, at the location of 705 West Lionshead Circle, Vail, Colorado. Lewis Futterman - President, Treasurer, Director, Registered Manager, and 100% stockholder John Lunsmann - Vice - President Starla Futterman - Secretary Lewis Futterman, John Lunsmann and Jay Peterson present. Foreclosure took place on 5- 29 -91; they are now in a period of redemption until 8- 12 -91. Larry addressed issue of bankruptcy. It was agreed to send packet to state with condition that we are waiting for Treasurer's deed so that License will not lapse 5. Status of Gary Haubert, Steve Buis, etal, dba, Lionshead Bar & Grill 100% transfer - 7/8/91 filing deadline imposed by Liquor Authority Paperwork was filed on 7 -3 -91; lease assignment is not complete. Schedule transfer for 8 -14 -91 6. Senate Bill 91 -139 - Concerning the Issuance of Temporary Permits Authorizing the Sale of Beverages Containing Alcohol Pending a Transfer of a License to Sell Beverages Containing Alcohol at Retail See attached V 7. Notification to the Authority of recent renewals: a. Clair- Boris, Inc., dba, Montauk b. Sonnenalp Properties, Inc., dba, Sonnenalp Restaurant C. J.S. Ho, Inc., dba, Szechwan Lion Chinese Restaurant d. Vail Racquet Club Restaurant, Inc., dba, Racquet Club Restaurant e. B.J. McFadden & Company, dba, Lionshead Liquor Store APPROVED: 5 -0 8. Any other matters the Authority wishes to discuss. Davey Wilson brought up the matter of wedding receptions on hotel premises and guests leaving the premises with drinks. Additionally, occasional room service drinks leaving premises. Call regarding problem with security. TOWN OF VAIL Vail Local Licensing Authority U&tf&L & PLLukw Mart a S. Raecker Assistant Secretary to the Authority ' s AGENDA LOCAL LICENSING AUTHORITY REGULAR MEETING JULY 10, 1991 10:00 A.M. 1. Consideration of the Authority of a modification of premises for Vail Food Services, Inc., dba, Frasier's at Lionshead /�, Trail's End. & ( /�� U, , . -d — 1�.�l,I Iearee- t � +P4r (Qltcw�Ji v�t' '° 2. Consideration of the Authority of a modification of premises i for Legends of Vail, Ltd., dba, Gondo's. - PEG 'I y InAO, 7/22; D98 (rn a&d- no4- have fv ,) kfpvwxt l ! I wun P - add lv►d a+w - VA l eaw void if aCor�`-+ &t-X 0nt ett Olt 6#. P �� 3. PUBLIC HEARING - Consideration of the Authority of an application for a Special Events Permit, Malt /Vinous/ If Spirituous Beverages, by the Vail Alpine Garden, Inc., on Saturday, August 3, 1991, from 12:00 noon to 10:00 p.m., at the location of Gerald R. Ford Park /Lower Bench, 530 South Frontage Road East, Vail, Colorado. Officers for this event are as follows: (n(�D �Q�A� President - Helen Fritch G crru Events Manager - Becky Brake 1PW a� PUBLIC HEARING - Consideration of the Authority f a 100% 4 y o transfer of ownership of the Hotel and Restaurant license held by Alma Equities Corporation, dba, L'Ostello, to Bienvenu! Inc., dba, L'Ostello, at the location of 705 West Lionshead KJ ` sn C�ce Vasl Folo a o. �J ���, �� Lewis Futterman - President, Treasurer, Director, Registered � Manager, and 100 o kbol er 4 — John Lunsmann Vice - President Starla Futterman - Secretary C 4) 6 0 / r, L JM,vt =Lj4Lk1fV10_( OL 4t3n8o vwt o-ou b . 0 5. Status of Gary Haubert, Steve Buis, dba, Lionshead Bar & Grill 100% transfer - 7/8/91 filing deadline imposed by Liquor Authority 1".C6 aSSi n f J u;Q� a, taq � _&A"Itt 4 d i(4 41 6. Senate Bill 91 -139 - Concerning the Issuance of Temporary i Permits Authorizing the Sale of Beverages Containing Alcohol Pending a Transfer of a License to Sell Beverages Containing Alcohol at Retail sc �v W �0 6,,V G'►4 , C� 7 - ",4". 4 � 7 4 P'a i 7. Notification to the Authority of recent renewals: 0 a. Clair- Boris, Inc., dba, Montauk S� b. Sonnenalp Properties, Inc., dba, Sonnenalp Restaurant * c. J.S. Ho, Inc., dba, Szechwan Lion Chinese Restaurant d. Vail Racquet Club Restaurant, Inc., dba, Racquet Club Restaurant e. B.J. McFadden & Company, dba, Lionshead Liquor Store 8. Any other matters the Authority wishes to discuss. w � ► G�� " ^s+-,� -+ �w TOWN OF VAIL ' S� Vail Local Licensing Authority UAqAO- & Pa &*u, Mart a S. Raecker Assistant Secretary to the Authority 3.15.11 - 4 dat6 bu s wtsi ivi voku44 - Rwice -h A 11tii n&,/ tai I wc - 4 ( S-FaUD AGENDA LOCAL LICENSING AUTHORITY REGULAR MEETING JULY 10, 1991 10:00 A.M. 1. Consideration of the Authority of a modification of premises for Vail Food Services, Inc., dba, Frasier's at Lionshead/ Trail's End. 2. Consideration of the Authority of a modification of premises for Legends of Vail, Ltd., dba, Gondo's. 3. PUBLIC HEARING - Consideration of the Authority of an application for a Special Events Permit, Malt /Vinous/ Spirituous Beverages, by the Vail Alpine Garden, Inc., on Saturday, August 3, 1991, from 12:00 noon to 10:00 p.m., at the location of Gerald R. Ford Park /Lower Bench, 530 South Frontage Road East, Vail, Colorado. Officers for this event are as follows: President - Helen Fritch Events Manager - Becky Brake 4. PUBLIC HEARING - Consideration of the Authority of a 100% transfer of ownership of the Hotel and Restaurant license held by Alma Equities Corporation, dba, L'Ostello, to Bienvenu! Inc., dba, L'Ostello, at the location of 705 West Lionshead Circle, Vail, Colorado. Lewis Futterman - President, Treasurer, Director, Registered Manager, and 100% stockholder John Lunsmann - Vice - President Starla Futterman - Secretary 5. Status of Gary Haubert, Steve Buis, etal, dba, Lionshead Bar & Grill 100% transfer - 7/8/91 filing deadline imposed by Liquor Authority 6. Senate Bill 91 -139 - Concerning the Issuance of Temporary Permits Authorizing the Sale of Beverages Containing Alcohol Pending a Transfer of a License to Sell Beverages Containing Alcohol at Retail r 7. Notification to the Authority of recent renewals: a. Clair- Boris, Inc., dba, Montauk b. Sonnenalp Properties, Inc., dba, Sonnenalp Restaurant C. J.S. Ho, Inc., dba, Szechwan Lion Chinese Restaurant d. Vail Racquet Club Restaurant, Inc., dba, Racquet Club Restaurant e. B.J. McFadden & Company, dba, Lionshead Liquor Store 8. Any other matters the Authority wishes to discuss. TOWN OF VAIL Vail Local Licensing Authority Wkf&L S, k a &,kw Mart a S. Raecker Assistant Secretary to the Authority F - - �l t )) 1 -0-00, SENATE BILL 91 -139. BY SENATORS Pastore, Leeds, and Mutzebaugh; also REPRESENTATIVES Prinster, Anderson, P. Hernandez, June, Salaz, 0. Williams, and S. Williams. CONCERNING THE ISSUANCE OF TEMPORARY PERMITS AUTHORIZING THE OFLEA FLICENSEGETO CONTAINING BEVERAGES CONTAININGA TRANSFER ALCOHOLAT 0 RETAIL. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 46 Statutes, 1985 Repl. Vol., ADDITION OF A NEW SECTION to of title 12, amended, as read: Colorado Revised is amended BY THE 12 -46- 106.5. Tem orar permit. (1) NOTWITHSTANDING ANYTHING IN THIS A L H CONTRARY, A LOCAL LICENS_ o AUTHORITY SHALL HAVE DISCRETIONARY AUTHORITY TO ISSUE A TEMPORARY PERMIT TO A TRANSFEREE OF A FERMENTED MALT BEVERAGE LICENSE ISSUED BY THE STATE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE. SUCH TEMPORARY PERMIT SHALL AUTHORIZE A THE SELLING APPLICATION TRANSFER THE OWNERSHIP THE PERIOD OF THE LICENSE IS PENDING. (2) A TEMPORARY PERMIT SHALL AUTHORIZE A TRANSFEREE TO CONDUCT BUSINESS AND SELL FERMENTED MALT BEVERAGES AT RETAIL IN ACCORDANwI ALL OF 7HELICENSE FOLLOWING THE CONDITIONS:TRANSFEROR SUBJECT TO COMPLIANCE (a) THE PREMISES SHALL HAVE BEEN PREVIOUSLY LICENSED BY THE STATE AND LOCAL LICENSING AUTHORITIES, AND SUCH LICENSE SHALL HAVE BEEN VALID AT THE TIME THE APPLICATION FOR TRANSFER OF OWNERSHIP H AS URISDICTIOND WITH THE APPLICATION� AUTHORITY A WHICH H TEMPORARY PERMIT. aphes swo indicate new material added to existingist statutes; atutesand dashes t hrough such material not part of act. %. /7 (b) THE APPLICANT HAS FILED WITH THE LOCAL LICENSING AUTHORITY ON FORMS PROVIDED BY THE DEPARTMENT OF REVENUE AN APPLICATION FOR THE TRANSFER OF THE FERMENTED MALT BEVERAGE LICENSE. SUCH APPLICATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION: (I) THE NAME AND ADDRESS OF THE APPLICANT; IF THE APPLICANT IS A PARTNERSHIP, THE NAMES AND ADDRESSES OF ALL THE PARTNERS; AND, IF THE APPLICANT IS A CORPORATION, ASSOCIATION, OR OTHER ORGANIZATION, THE NAMES AND ADDRESSES OF THE PRESIDENT, VICE - PRESIDENT, SECRETARY, AND MANAGING OFFICER; (II) THE APPI-ICANT'S FINANCIAL INTEREST IN THE PROPOSED TRANSFER; (III) THE PREMISES FOR WHICH THE TEMPORARY PERMIT IS SOUGHT; AND (IV) SUCH OTHER INFORMATION AS THE LOCAL LICENSING AUTHORITY MAY REQUIRE. (c) THE APPLICATION FOR A TEMPORARY PERMIT SHALL BE FILED NO LATER THAN THIRTY DAYS AFTER THE FILING OF THE APPLICATION FOR TRANSFER OF OWNERSHIP AND SHALL BE ACCOMPANIED BY A TEMPORARY PERMIT FEE NOT TO EXCEED ONE HUNDRED DOLLARS. (3) A TEMPORARY PERMIT, IF GRANTED, BY A LOCAL LICENSING AUTHORITY SHALL BE ISSUED WITHIN THREE WORKING DAYS AFTER THE RECEIPT OF SUCH APPLICATION. A TEMPORARY PERMIT ISSUED PURSUANT TO THIS SECTION SHALL BE VALID UNTIL SUCH TIME AS THE APPLICATION TO` TRANSFER OWNERSHIP OF THE LICENSE TO THE APPLICANT IS GRANTED OR FOR ONE HUNDRED TWENTY DAYS, WHICHEVER SHALL FIRST OCCUR; EXCEPT THAT, IF THE APPLICATION TO TRANSFER THE LICENSE HAS NOT BEEN GRANTED DURING THE ONE- HUNDRED - TWENTY -DAY PERIOD AND THE TRANSFEREE DEMONSTRATES GOOD CAUSE, THE LOCAL LICENSING AUTHORITY MAY EXTEND, IN ITS DISCRETION, THE VALIDITY OF SAID PERMIT FOR AN ADDITIONAL PERIOD NOT TO EXCEED SIXTY DAYS. (4) A TEMPORARY PERMIT SHALL ALSO BE AUTHORIZED IN THE EVENT OF A TRANSFER OF POSSESSION OF LICENSED PREMISES BY OPERATION OF LAW, A PETITION IN BANKRUPTCY PURSUANT TO FEDERAL BANKRUPTCY LAW, THE APPOINTMENT OF A RECEIVER, A FORECLOSURE ACTION BY A SECURED PARTY, OR A COURT ORDER DISPOSSESSING THE PRIOR LICENSEE OF ALL RIGHTS OF POSSESSION PURSUANT TO ARTICLE 40 OF TITLE 13, C.R.S. (5) A TEMPORARY PERMIT MAY BE CANCELLED, REVOKED, OR SUMMARILY SUSPENDED IF THE LOCAL OR STATE LICENSING AUTHORITY DETERMINES THAT THERE IS PROBABLE CAUSE TO BELIEVE THAT THE TRANSFEREE HAS VIOLATED ANY PROVISION OF THIS ARTICLE OR HAS VIOLATED ANY RULE OR REGULATION ADOPTED BY THE LOCAL OR STATE PAGE 2- SENATE BILL 91 -139 LICENSING AUTHORITY OR HAS FAILED TO TRUTHFULLY DISCLOSE THOSE NATTERS REQUIRED PURSUANT TO THE APPLICATION FORMS REQUIRED BY THE DEPARTMENT OF REVENUE. SECTION 2. Article 47 of title 12, Colorado Revised Statutes, 1985 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read: 12 -47- 106.5. Temporary ermit. (1) NOTWITHSTANDING ANYTHING IN THIS ARTICLE H N RARY, A LOCAL LICENSING AUTHORITY SHALL HAVE DISCRETIONARY AUTHORITY TO ISSUE A TEMPORARY PERMIT TO A TRANSFEREE OF ANY CLASS OF LIQUOR LICENSE ISSUED BY THE STATE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE. SUCH TEMPORARY PERMIT SHALL AUTHORIZE A TRANSFEREE TO CONTINUE SELLING SUCH ALCOHOLIC BEVERAGES AS PERMITTED UNDER THE PERMANENT LICENSE DURING THE PERIOD IN WHICH AN APPLICATION TO TRANSFER THE OWNERSHIP OF THE LICENSE IS PENDING. (2) A TEMPORARY PERMIT SHALL AUTHORIZE A TRANSFEREE TO CONDUCT BUSINESS AND SELL ALCOHOLIC BEVERAGES AT RETAIL IN ACCORDANCE WITH THE LICENSE OF THE TRANSFEROR SUBJECT TO COMPLIANCE WITH ALL OF THE FOLLOWING CONDITIONS: (a) THE PREMISES WHERE SUCH ALCOHOLIC BEVERAGES ARE SOLD SHALL HAVE BEEN PREVIOUSLY LICENSED BY THE STATE AND LOCAL LICENSING AUTHORITIES, AND SUCH LICENSE SHALL HAVE BEEN VALID AT THE TIME THE APPLICATION FOR TRANSFER OF OWNERSHIP WAS FILED WITH THE LOCAL LICENSING AUTHORITY WHICH HAS JURISDICTION TO APPROVE AN APPLICATION FOR A TEMPORARY PERMIT. (b) THE APPLICANT HAS FILED WITH THE LOCAL LICENSING AUTHORITY ON FORMS PROVIDED BY THE DEPARTMENT OF REVENUE SUCH APPLICATION FOR THE TRANSFER OF THE LIQUOR LICENSE. APPLICATION SHALL INCLUDE, BUT NOT BE LIMITED T0, THE FOLLOWING INFORMATION: (1) THE NAME AND ADDRESS OF THE APPLICANT; IF THE APPLICANT IS A PARTNERSHIP, THE NAMES AND ADDRESSES OF ALL THE PARTNERS; AND, IF THE APPLICANT IS A CORPORATION, ASSOCIATION, OR OTHER ORGANIZATION, THE NAMES AND ADDRESSES OF THE PRESIDENT, VICE - PRESIDENT, SECRETARY, AND MANAGING OFFICER; (II) THE APPLICANT'S FINANCIAL INTEREST IN THE PROPOSED TRANSFER; (III) THE PREMISES FOR WHICH THE TEMPORARY PERMIT IS SOUGHT; AND RY SUCH OTHR INFORMATION AS THE LOCAL LICENSING AUTHOIT MAY REQUIRE. PAGE 3- SENATE BILL 91 -139 (c) THE APPLICATION FOR A TEMPORARY PERMIT SHALL BE FILED NO LATER THAN THIRTY DAYS AFTER THE FILING OF THE APPLICATION FOR TRANSFER OF OWNERSHIP AND SHALL BE ACCOMPANIED BY A TEMPORARY PERMIT FEE NOT TO EXCEED ONE HUNDRED DOLLARS. (3) A TEMPORARY PERMIT, IF GRANTED, BY A LOCAL LICENSING AUTHORITY SHALL BE ISSUED WITHIN THREE WORKING DAYS AFTER THE RECEIPT OF SUCH APPLICATION. A TEMPORARY PERMIT ISSUED PURSUANT TO THIS SECTION SHALL BE VALID UNTIL SUCH TIME AS THE APPLICATION TO TRANSFER OWNERSHIP OF THE LICENSE TO THE APPLICANT IS GRANTED OR FOR ONE HUNDRED TWENTY DAYS, WHICHEVER SHALL FIRST OCCUR; EXCEPT THAT, IF THE APPLICATION TO TRANSFER THE LICENSE HAS NOT BEEN GRANTED WITHIN THE ONE- HUNDRED - TWENTY -DAY PERIOD AND THE TRANSFEREE DEMONSTRATES GOOD CAUSE, THE LOCAL LICENSING AUTHORITY MAY EXTEND, IN ITS DISCRETION, THE VALIDITY OF SAID PERMIT FOR AN ADDITIONAL PERIOD NOT TO EXCEED SIXTY DAYS. (4) A TEMPORARY PERMIT SHALL ALSO BE AUTHORIZED IN THE EVENT OF A TRANSFER OF POSSESSION OF THE LICENSED PREMISES BY OPERATION OF LAW, A PETITION IN BANKRUPTCY PURSUANT TO FEDERAL BANKRUPTCY LAW, THE APPOINTMENT OF A RECEIVER, A FORECLOSURE ACTION BY A SECURED PARTY, OR A COURT ORDER DISPOSSESSING THE PRIOR LICENSEE OF ALL RIGHTS OF POSSESSION PURSUANT TO ARTICLE 40 OF TITLE 13, C.R.S. (5) A TEMPORARY PERMIT MAY BE CANCELLED, REVOKED, OR SUMMARILY SUSPENDED IF THE LOCAL OR STATE LICENSING AUTHORITY DETERMINES THAT THERE IS PROBABLE CAUSE TO BELIEVE THAT THE TRANSFEREE HAS VIOLATED ANY PROVISION OF THIS ARTICLE OR HAS VIOLATED ANY RULE OR REGULATION ADOPTED BY THE LOCAL OR STATE LICENSING AUTHORITY OR HAS FAILED TO TRUTHFULLY DISCLOSE THOSE MATTERS REQUIRED PURSUANT TO THE APPLICATION FORMS REQUIRED BY THE DEPARTMENT OF REVENUE. SECTION 3. Effective date - applicability. This act shall take effect July 1. 1991, and shall apply to licenses for intoxicating beverages issued on or after said date. SECTION 4. Safety clause The general assembly hereby PAGE 4- SENATE BILL 91 -139 finds, determines, and declares that this act is necessary for the imediate preservation of the public peace, health, and safety. ed L. Strickland PRESIDENT OF THE SENATE - Min M. Albi ECRETARY OF THE SENATE '�ha E erry EAK OF HOUSE OF EPRE NTATIVES Lee ahrych CHIEF CLERK OF E HOUSE OF REPRESENTATIVES APPROVED oy er 60V OR OF THE STATE OF COLORADO PAGE 5- SENATE BILL 91 -139 �i r LOCAL LICENSING AUTHORITY REGULAR MEETING JULY 10, 1991 Transcription of tape regarding Item #6, Senate Bill 91 -139, concerning issuance of temporary permits authorizing the sale of beverages containing alcohol pending a transfer of a license to sell beverages containing alcohol at retail. LARRY: What the state legislature has done is to give, at the discretion of the local licensing authority, the authority the power to issue a temporary liquor license in situations where a transfer is going to occur from the present license holder to a new license holder and the problem which existed in the past is, because of the time gap which occurred, people were forced to enter into management agreements which were kind of shams and everybody knew they were shams. Well, if you decide to go forward with the temporary license, no management agreements would be required. What would happen is that people who have their files substantially complete, for example, like in this situation (Lewis Futterman), would be able to get a temporary liquor license for a short period of time and that would carry them over until their final license was process. Now, the statute is not big on details. It is somewhat vague and doesn't really give any requirements for how the process is to occur and it doesn't give any requirements for the type of a permit we are going to issue, type of application we are going to require. STEVE: How about a time frame. LARRY: There is a time frame and that's the problem. Once the application is submitted, the temporary license has to be issued within three days. That's the problem because if we were to pass an Ordinance or allow the issuance of this type of a permit, it means... if you guys were going to issue the license you would be having these special meetings all the time which is not very acceptable to anybody. What I would suggest and what we decided we would do is what the Colorado Municipal League is reccommending is have the Ordinance authorize the administrative issuance of the license by the municipal clerk, so, what I would do is if you decide you want to go forward with a temporary, I would draft an ordinance with the Town Council, I would draft a Resolution for the local licensing authority and then we would be in a position where Martha could simply issue that license in three days if all the necessary documents for the permanent license are on file. PAM: It is important, and the state is very clear on this, that a complete packet for the 100% transfer has to be submitted, let's say, to the Town Clerk's office. No. 2, it is good for up to 120 days, No. 3, a $100.00 fee is paid to the local authority, not to the state, No. 4, the local authority is then required to issue the permit, No. 5, the permit ... I talked with Herb Louma as well this morning down at the state ... he said they are requesting that a 1 i copy of this temporary permit be mailed to the state, so we could certainly handle that; and it appears to me that this really makes what has been a very uncomfortable position over handling these for the past several years, the question comes up on an average of six to ten times a year... STEVE: Would this affect those people that forget to renew their licenses? PAM: No, that is covered differently. There is another temporary license that was approved last year, or two years ago, that allows now for an expired license to get a temporary, so that is a different issue; that is covered, that is cleaned up and is a wonderful thing. When Larry and I discussed it, it really makes sense because the temporary license is issued acting under the current license holder, you still have that license holder on the hook. He is the one responsible. LARRY: So you have them both on the hook. STEVE: Do we have to approve the transfer before they get the temporary? LARRY: No, you don't. In fact, it happens before you approve the transfer; that is the purpose of it because of the gap between the time ... PAM: Most of these deals are constructed so that somebody wants to buy, they want to take over now or yesterday and because of our posting, publishing requirements as well as the fact that the law calls out that their packet has to be submitted a minimum of 30 days prior.... (everybody talking...) STEVE: But don't we have to approve the new .... PAM: Then you will... then they will come through.. STEVE: Who holds the temporary? The new guy or the old guy? PAM: The new guy holds the temporary. STEVE: So we have to approve him for the temporary. PAM: No. That is what we are coming to you for... LARRY: What I am asking you to do is ultimately to give that authority to Martha, and the reason I am asking you to do that is because, the issuance, according to the statute, the temporary permit has to be dealt with within three days after the application is received. Of course, we have no assurance that that three -day period is going to occur when you have your meeting or that we could get a quorum together for a special meeting. There is no 2 ti reason, apparently, according to both the state licensing authority and the Colorado Municipal League, who was active in getting this thing passed , there is no reason why you can't delegate the authority to issue a temporary license, not the final license transfer, but the temporary license, which is good for that 120 -day period maximum. MITZI: What would be the reason for extending it that 120 days? Wouldn't we address the issue at the next regular meeting? PAM: Hopefully. LARRY: If, for whatever reason, something came up, they didn't appear, we couldn't get a quorum, this just simply gives them 120 days to operate. If it is addressed at the next meeting, then the temporary permit is gone and they have a full operative liquor license. What they will do if there is no temporary permit, is what they have always done in the past.. and that is get a management agreement which gives them the right to run the operation under the existing liquor license. You will really have no say whatsoever. They just sign the agreement and they go. And the state does not really acknowledge this interim management agreement. We realize that these have become an accepted norm for trying to handle this interim period of time but the state doesn't acknowledge that. The state has always said the license transfers when the paperwork comes down to us. We don't care how you structure your contract for the purpose of the transfer, but it should happen simultaneously with our issue of that license. In reality, the state knows and I think that they have been helpful in this as well because they feel that this is a good solution to what has been a problem. It puts the authority back to the local issuing authority. I mean we have the power then to give the temporary license. I think we have two people on the hook. We have the original license holder, the current license holder, as well as the temporary one. It seems to work most efficiently if you would empower the Town Clerk's office to administer this then we don't have to worry about calling a quorum.... STEVE: I think a board member should be involved in that decision. PAM: In think that would be fine. STEVE: In think the chairman or the vice - chairman should be involved in that decision. Not just the Town Clerk's office. MITZI: And I would like in that that authority to the Town Clerk's a regular meeting at the earliest in order. I don't like the idea season here. resolution where you are giving office that it be brought before h opportunity when the file is all of 120 days. That is a summer STEVE: That's why I feel the Chairman or the vice - chairman should 3 be involved with the Town Clerk. LARRY: With your direction, what I will do is draft an ordinance for the Town Council authorizing you to issue a temporary permit and, in addition, I will draft a resolution for you stating that you wish to do pursuant to the power given you by the Town Council and that will be done. You can review those documents to make sure they meet with your approval. In fact, I wonder if I should go forward with the ordinance... PAM: I think we should. We have the Gondola Cafe waiting right now.... STEVE: Do you need a motion? LARRY: I would like a motion to go forward with the ordinance and a resolution. MITZI: I move that the local licensing authority approve the issuance of temporary permits for a liquor license to be authorized by the Town Clerk's office with the approval of the chairman of the liquor board, and these temporary permits be to enhance the process of transferring liquor licenses from the original holder of the license to the new holder of the license and this is in connection with the new Senate Bill 91 -139 that we have a copy of. ? ? ?? - My only question is she said "Chairman ".. do we need to say chairman STEVE: Well, actually, she can go down the line really. If you can't get hold of the chairman, you get hold of the vice - chairman, etc. LARRY: What if I state "with one member of the board ". MITZI: Further, while I am making this motion, that the entire matter be brought to the next regular meeting of the licensing authority to complete the process and not necessarily extend the license 120 days... the temporary permit. Motion passed unanimously. 4 0 LOCAL LICENSING AUTHORITY REGULAR MEETING JULY 10, 1991 Transcription of tape regarding Item #4, 100% transfer of ownership of the Hotel and Restaurant license held by Alma Equities Corporation, dba, L'Ostello, to Bienvenu! Inc., dba L'Ostello: Jay Peterson: What has transpired is that the current license is held by Alma Equities. Alma Equities also owns the building which is known as L'Ostello's. The building itself went into foreclosure on May 29th, either May 29th or May 23rd; it was postponed for one week. The redemption period on that runs until August 12th. At that point in time Alma Equities has no more interest in the hotel, does not have possession of the hotel and therefore their license automatically lapses because they do not have possession. Alma Equities is currently in bankruptcy. They filed a Chapter it which is a reorganization. That happened after the foreclosure transpired, which means that the foreclosure and the redemption period is not forestalled. That moves forward and so possession is given up on August 12th. That is the reorganization, for a couple of different reasons, number 1 is to pay as many creditors as possible but for sure to pay sales tax, withholding and things like that which have to be paid. Those items will be picked by Bienvenu, which is the new corporation because it really attaches to the assets that are there and the sales tax people both from the town and from the state can go in there and padlock those premises. They can't, at this point in time, because of the bankruptcy that was filed by Alma, but these matters will be taken care of so all the personal property will remain. We filed for this liquor license. Bienvenu will be the holder of the liquor license. The question has come up whether there is an asset of Alma Equities that they are giving up. In my opinion, that asset is for the next 25 days because at that point it automatically expires. Nobody has tried to extend that. No. 1, in my opinion, there is no way to extend that. The bankruptcy was filed after the foreclosure started. Bankruptcy does not forestall the redemption period and so that period runs and it is a 75 day period and when that is over, the liquor license is over because possession is lost. So, we are before you today for the hearing for the liquor license. The liquor license itself would not be granted until the day after that redemption period is over, so the redemption period as the lease in your file talks about that, is August 12th, or the day after the redemption period, just in case we missed a day in there so there would not be any lapse. The town or the state cannot issue that license until ... that license cannot go into effect until that day. This happens all the time, basically, when we have sales of businesses when we have a new person come in for a license, the old license stops, the new lease begins the moment after the other one lapses... no different than in this case. Like I said, a question came up whether there was any asset value in Alma Equities or whatever. The asset value.. 1 0 they are continuing to run the restaurant under the Chapter 11 reorganization. All the funds go into a debtor- in- possession account which has been set up by the bank which is not controlled by the Bankruptcy Court but reviewed by the Bankruptcy Court, so all that has been done. This is a brand new program. Lew (Futterman) is here if you have any questions regarding the financial aspects of it. It is not a pleasant position to be in. Lew is the shareholder of the other corporation; likewise, he is the shareholder of this one. He has a tremendous amount of money of his own personal funds in the hotel and in the restaurant. The problem has really been generated by the fact that the deeded trust holder was due a year ago. It was a one -year financing package. Financial markets, as I am sure you all are aware, changed in the last couple years and it is very difficult, if not impossible, to finance a hotel. That is how the foreclosure transpired. However, the people that have that deeded trust like the operation that Lew has put together. They like the restaurant; they like what he has done with the hotel and so they have entered into a lease with him once they take it back; they think that much of him even though they had to foreclose on him .. actually, there were a couple different entities involved with that. The money behind that decided to foreclose and get the money back to keep him basically as the tenant of not only the restaurant but of the hotel itself, to run it. As far as I know, there are no violations, no accusations of any violations for L'Ostello; I think it is a very clean operation. It has been a tremendous restaurant, tremendous reviews and, from a liquor standpoint, I don't know of any problems over there. They run a very clean ship.... Unfortunaltely, these other matters have come forward where we need to do something about the... to get a new entity in there. But Lew is here, to come up and be sworn in if you have any questions of him. Once again, we do not have to show needs of the neighborhood. That has been done. The property has been licensed and you have seen him in the past as far as his restaurant experience and liquor license experience, not only in Vail but he has a restaurant in New York. If you have any questions regarding that or any questions regarding the financials. The presentation is an open book. LARRY: Before Lew gives any testimony, before there are any questions of the Board of either Jay or Lew, I would like to comment on the issue of the Bankruptcy and how the bankruptcy affects the issuance of this license. A Bankruptcy Court attempts to marshall all the assets of the bankrupt for the creditors and the Bankruptcy Court Trustee is generally very jealous of allowing those assets.... I mean, those assets cannot be disposed of once bankruptcy has been declared. The liquor license is an asset. I don't know what the position of the Bankruptcy Court is presently in regard to that asset and I am equally unsure how the state of bankruptcy affects a foreclosure that was instituted, like this one was, prior to the time the bankruptcy was instituted. My natural inclination, without having to review the bankruptcy law, is to agree with Jay in that once that foreclosure is started, the state 2 cannot stop that foreclosure from proceeding through the redemption period and the Treasurer's Deed being issued to the foreclosing party. I have two problems with just issuing the license today. The first is that, forgetting the bankruptcy, the redemption period does not end until August; consequently, there is no ... it could be redeemed. We don't know whether a redemption could occur or not. That is the purpose of a redemption period. To allow the debtor time in which to get money back to pay the creditor the cost that are due and owing on the mortgage, as well as other cost - related foreclosure. Although it is unlikely that that will happen, it could happen. Secondly, the other concern is.. I am not sure how the Bankruptcy Court would look at this because I am not competent in the Bankruptcy law. It is not an area I work in very frequently; in fact, I don't work in it at all until something like this comes up. My suggestion to the liquor licensing authority would be to take all the evidence you need today, but to withhold the actual granting of the actual license and to make that conditional upon the evidence of true possession, whether it is a Treasurer's Deed, and that is what it will have to be. If there is a Treasurer's Deed that can be demonstrated to the Liquor Licensing Authority that we know that the landlord has possession and can lease the property to Mr. Futterman's new corporation. So that is my suggestion. I would not issue the license today. There is no possession of the premises on the part of the licensee, but I think because all the other things have been filed that a determination can be made as to the character of the new licensee because that is the chief issue when we are talking about on how well he has performed. That is the chief issue before you and I would hold off the actual issuance of the license until we have evidence that deed - possession has changed. Does that make sense to all you guys and gal? You have no problem with that? MITZI: I am just wondering why we don't basically make that a contigency upon approval of it . Next liquor board meeting is not until August 14th. I am not sure what procedure you are reccommending we go through to approve it at some date after it... LARRY: I think what you would do is basically approve the license today contingent upon being shown that possession has transferred. STEVE: I think we have to do that anyway. Can that be shown to Pam or to Martha.. or be shown to you. LARRY: That can be shown to me. I probably won't know either but I can call up the Court.... I am happy to authorize that on behalf of the Board for the issuance of the license if the Board gives me that O.K. PAM: So to further clarify this, if the Board were to go through the proceedings now and approve this loot transfer, Martha then would assemble all the paperwork, sign off on it, send it to the State; during the interim, it will come back in approximately 01 1 three weeks and Martha holds that license until August 13th. LARRY: It is not to speculate that the state may not issue the license. JAY: If they don't they we would have to send it down to them also. PAM: I think they would not accept the packet unless everything was complete. LARRY: That is not what I am say"'% It makes no sense to have the issue of whether or not the transferee is suitable to operate the premises to be heard. We can do that and make a decision on that. The only issue is possession. Once the Treasurer's Deed is issued then I think possession is there and then the packet can be sent to the state. Does that make sense? JAY: Can we have it go down there... LARRY: It can go down there, but they don't act on it. They DO want to see possession. That is one of the things the state likes to know.. that there is possession. They want to see... PAM: We are considering a temporary today as well and the procedure for that where we should get to the time frame where August 12th... LARRY: I just talked to Martha on that. What the Colorado Municipal League is reccommending and they discussed at the Clerk's Conference is that an Ordinance be passed by the Town Councils setting forth the procedure to be followed for the issuance of a temporary license which means that we are looking at a couple of weeks... It could be done by the 6th. STEVE: I think you all could work out the dates. (To Jay: Do you have anything ?) JAY: I don't have anything. (Lewis was trying to say or ask something here. Was sworn in) Lewis is worried about time lapse. LARRY: There will be a license in existence, but you won't have it. LEWIS: Can we operate the premises during that time? LARRY: I think that whoever has the license can enter into a management agreement with you to allow you to operate the premises under their license. The only other thing that could occur is that 4 this ordinance that I am talking about be passed which allows you a temporary license without a management agreement to operate under the existing license. There is no disappearance of the license. The license is there. The problem you are faced with is that, again, you don't have it. STEVE: Who has it? JAY: I think what we can do though is Alma can stay in possession. Once the redemption period is up, we are no longer owners of it. Title does in fact now vest as of the date of that redemption period. Whether you take a Treasurer's Deed or not you are still deemed to be the owner and so I think rather than even a Treasurer's Deed there can be the fact that the letter from the Treasurer that the redemption period is up and these people are in fact the owner. LARRY: That would be fine. JAY: Just a sense of the ownership. The only thing with the state, I guess, is do they ever require, when you have a lease, require a deed behind that lease showing that the person actually owns that property for the lease? I have never seen them ask for any backup documentation. I have never really thought about it before but ... LARRY: Why should we allow a lease to go down when it's an invalid lease. JAY: It's not.. It's that the lease, as of August 12th, they are the owners automatically upon the end of ... LARRY: I am willing to send documents down with a letter to the state to the effect that property is in foreclosure; we do not want the license to issue until title is vested in the owner of the property. JAY: That would be great. And if they raise any... Yeah, let's do that. My concern is that we don't lose three weeks at the state level. The other thing is that there could be a temporary lease with Alma from Bienvenu ... during that time until the new license was issued and have that automatically terminate upon the issuance of the new lease. LARRY: What authority should I have either to a temporary lease or a vestment of title. PAM: I think the issue of not having a year's lease is something in question... LARRY: It would have to be management agreement. Jay, you__, couldn't do a temporary lease; it would have to be a management 5 agreement under the existing lease. You have to have a year's lease. JAY: It could be a year's lease and terminate upon the conditions... I understand the problem, so we could do a management agreement. STEVE: I would just like to know.. when you say that Bienvenu will not have the license until August 12th, who holds the license? LARRY: Right now, the existence of the license is with Alma and will stay with Alma until such time that Bienvenu has possession of the premises. And that's not going to happen until this foreclosure is complete. STEVE: And then come August 12th, Alma ... they don't have possession. LARRY: That's exactly right. They lose the property to the foreclosure. The property is gone. And that's why the transfer will have to occur. Either the license is lost or the transfer has to occur. STEVE: Everybody follow that? Yes.. LARRY: Just make the motion granting the license contingent upon Bienvenu having possession of the premises; I think that.. MITZI: or a management agreement authorizing them to... STEVE: Mr. Futterman, if you would, the Board members that were not present when you first came in to apply for the license just give a brief past of your liquor license experience.... (Brief Intermission) ... JAY: What Larry said is I think the way it should be done. If it can go down to the state with just a letter with Larry just basically stating when the lease comes into effect. If they (the state) can act on it and hold it until they have verification of \ ownership by the landlord, I guess, I don't know if they would send it back up here or not ... they may not.. for you to have that verification. And then we could either hand -carry that verification down to them or if they would accept a fax... or whatever, it could be issued quickly. LARRY: I will call the state. JAY: Yeah, do that. You guys have gone beyond the call of duty in 11 trying to understand our problem and work with us on this so, we appreciate that. But I think that is the way it has to be handled. This does not come up very often because there are very few license that are held by an owner of the property. Most of the time you see leases. So this is a very abnormal type of a situation. BILL: Am I correct ... If what we have just done on our senate bill had been passed, this would have made things simple. LARRY: Absolutely.. we would have just issued a temporary license. BILL: So you are just a month too early. STEVE: Is there anyone here to speak against the issuance of this license? Let the record show there is not. Any other questions for the board? MITZI: I just have one quick question. You keep referring to when Alma Equities' redemption period is ended they lose possession and in this interim time, now which entity are you speaking of will have possession if in fact the foreclosure happens on August 12th. JAY: Bienvenu MITZI: Bienvenu.. and this is who you are, Lewis, the President of, so it isn't a landlord.... STEVE: So what entity is it? JAY: The lender is the landlord and Bienvenu is a tenant and there is a lease. And that lease runs until December 1, 1992, so it is more than a year's lease. MITZI: So we have to have an agreement or document from the bank that it owns it at the end of August 12th... JAY: All we have to show is that they, in fact, own it. The lease immediately goes into effect once the redemption period is up. So the state may just say, who the hell is the landlord and why did they enter into this lease, is basically what they might ask. STEVE: Anything further to add? May I have a motion to either approve or disapprove the transfer of ownership conditional on true possession as was... LARRY: On proof of possession of the premises to the Town Attorney. ? ?? Mr. Chairman, I move that we approve the 100% ownership of the hotel and restaurant license held by Alma Equities Corp. dba L'Ostello to Bienvenu, Inc. dba L'Ostello ...... conditional on the receipt of the possession of the property and approved by the Town 7 L of Vail. Motion passed unanimously. IA At TOWN OF VAIL From the desk of... Martha S. Raecker 479 -2136 July 2, 1991 Liquor Board Members: I have enclosed a shortened version of Wednesday's agenda, as well as a copy of Senate Bill 91 -139. Please review the bill for discussion with Larry at the meeting. An area that we need to address is who will hold the authority to issue the temporary license. As stated in the bill, once application is made for a temporary license, we must respond within three days. Obviously the board can't meet that quickly -- my thought was to poll you individually by phone for a vote on the license issuance. While the state wishes to be notified when we issue a temporary license, all paperwork and licensing will be done at the local level, with the $100 fee going to the Town of Vail. I think the bill is going to be VERY helpful during the transfer process; we just need to work out some of the details. Have a wonderful meeting -- I'll be in Boulder. See you in August. Ton 75 south frontage road vail, colorado 81657 (303) 479 -2136 office of the town clerk PUBLIC NOTICE To be published in THE VAIL TRAIL Friday, July 5, 1991. The regular meeting of the Local Licensing Authority for the Town of Vail will be held in the Council Chambers of the Vail Municipal Building, 75 South Frontage Road West, Vail, Colorado, on Wednesday, July 10, 1991, at 10:00 a.m. The agenda, to be set the morning of the hearing, will include the following: 1. Consideration of a modification of premises for Vail Food Services, Inc., dba, Frasier's at Lionshead /Trail's End. 2. Consideration of a modification of premises for Legends of Vail, Ltd., dba, Gondo's. 3. PUBLIC HEARING - Consideration of a Special Events Permit, Malt /Vinous /Spirituous Beverages, by the Vail Alpine Garden, Inc. on Saturday, August 3, 1991, from 12:00 noon to 10:00 p.m., at the location of Gerald R. Ford Park /Lower Bench, 530 South Frontage Road East, Vail, Colorado. 4. PUBLIC HEARING - Consideration of the Authority of a 100% transfer for Bienvenu! Inc., dba, L'Ostello, currently held by Alma Equities Corporation, dba, L'Ostello. 5. Notification of recent renewals: a. Clair- Boris, Inc., dba, Montauk b. Sonnenalp Properties, Inc., dba, Sonnenalp Restaurant C. J.S. Ho, Inc., dba, Szechwan Lion Chinese Restaurant d. Vail Racquet Club Restaurant, Inc., dba, Racquet Club Restaurant e. B.J. McFadden & Company, dba, Lionshead Liquor Store 6. Any other matters the Authority wishes to discuss. TOWN OF VAIL LOCAL LICENSING AUTHORITY AA,t� If ka.P.c t/ Martha S. Raecker Assistant Secretary to the Authority TOP 75 south frontage road vail, colorado 81657 (303) 479 -2136 office of the town clerk July 16, 1991 To All Liquor Licensees: It has been brought to the attention of the Local Licensing Authority that in some instances, for example, wedding receptions, private parties on licensed premises and similar occasions, liquor has been taken off the licensed premises property and onto public property such as streets, sidewalks, carriages and the like. As you know, this type of action is prohibited by the Town of Vail Municipal Code and the Colorado Revised Statutes Section 9.32.010 - Prohibited. It is unlawful for any person to drink any malt, vinous, or spirituous liquors upon any street, alley, sidewalk, public building or public parking lot in the town or in any vehicle upon the streets, alleys, sidewalks or public parking lots in the town except by written authorization of the town council. It is unlawful for any person to possess or have in his possession or under his control in or upon any street, alley, sidewalk, public building or public parking lot in the town, any malt, vinous, or spirituous liquors in any container of any kind or description which is not sealed or upon which the seal is broken. The word sealed means the regular seal applied by the United States Government over the cap of all malt, vinous or spirituous liquors. CRS 12 -47 -119.1 (A) Restaurants. Restaurants may sell malt and vinous liquors for consumption on the premises, and may but are not required to serve such liquors with meals. Restaurants may serve spirituous liquors only for consumption on the premises, but only in the room or rooms in which meals are served. e Page 2 July 16, 1991 To date, we have not taken action on this matter and would like to only issue a warning to those who have violated this, perhaps unknowingly. However, it is the responsibility of the licensed owner to have the proper amount of security available during these "extra" functions to handle easy access on and off the premises and we would appreciate it if you would address this problem so that the Authority will not have to take any action in regard to these violations. Your immediate attention to this situation is greatly appreciated. Ver my yours, Steve �Simone,airman Local Liquor Authority