04-0060R

RESOLUTION IMPOSING A CIVIL FINE IN THE MATTER OF THE ON SALE INTOXICATING LIQUOR LICENSE OF WIZNER COMPANY (NORMAN'S BAR), 113 WEST FIRST STREET.

BY COUNCILOR STEWART:

WHEREAS, by Duluth City Council Resolution 03-0584, the city council imposed a fine on Wizner Company in the amount of $1,000, but stayed the imposition of the fine for one year on the condition that Wizner Company have no administrative licensing problems that brought it before the alcohol, gambling and tobacco commission during the year. If the Wizner Company had no such problems during the year, the fine did not have to be paid; and

WHEREAS, on January 7, 2004, the alcohol, gambling and tobacco commission held a hearing to consider finding that Wizner Company was in violation of the conditions established by Duluth City Council Resolution 03-0584 and to revoke the stay of imposition and impose the fine amount of $1,000. Wizner Company received notice of the hearing and was further advised that in its absence, the commission could consider the allegations of violation of the conditions to be true and could recommend to the Duluth City Council that the fine be imposed; and

WHEREAS, on January 7, 2004, the Wizner company did not appear, but the alcohol, gambling and tobacco commission considered the matter and determined that the failure to pay the quarterly license fee for the on-sale intoxicating liquor license in a timely manner constituted an administrative licensing problem which brought Wizner Company before the alcohol, gambling and tobacco commission during the year and recommended to the Duluth City Council the revocation of the stay and imposition of the civil penalty amount of $1,000, as established by Duluth City Council Resolution 03-0584;

NOW, THEREFORE, BE IT RESOLVED, that the facts which constitute the violation of the conditions established by Duluth City Council Resolution 03-0584 are as follows:
(a) For the November meeting of the alcohol, gambling and tobacco commission, held on November 12, 2003, the agenda provided notice from the city clerk that the second quarter payment of the intoxicating liquor license of Wizner Company was delinquent; and
(b) Wizner Company has chosen to pay its liquor license in quarterly payments of $693.75 per quarter. The second quarterly payment would have been due on October 15, 2003. The payment was made on November 3, 2003, with a payment in the amount of $693.75, plus penalty in the amount of $69.37, for a total payment made of $763.12; and
(c) Section 8-9(b)(3) of the Duluth City Code provides that failing to pay license fees is good cause for suspension or revocation of a liquor license or for the imposition of a civil penalty.

BE IT FURTHER RESOLVED, that the city council of the city of Duluth hereby adopts the recommendation of the alcohol, gambling and tobacco commission regarding the revocation of the stay and imposition of the civil penalty in the amount of $1,000 relating to the on sale intoxicating liquor license of Wizner Company (Norman's Bar), 113 West First Street.


STATEMENT OF PURPOSE:  By city council resolution adopted on August 11, 2003, Wizner company was determined to have violated the city's alcohol beverage code when it failed to make timely payment of quarterly payments for its on-sale intoxicating liquor license and when its liquor liability insurance was cancelled, resulting in a period of time during which the business was operated without required dram shop insurance.

The city council adopted the recommendation of the alcohol, gambling and tobacco commission that, as authorized by the city code, the Wizner Company would be fined $1,000, but the amount would be stayed for one year on condition that the Wizner Company have no administrative licensing problems during the year.

At its regular November meeting, which would be within the one year period of the stay, the alcohol, gambling and tobacco commission was advised that Wizner Company had failed to make the timely quarterly payment for the on-sale intoxicating liquor license which was due in October of 2003.

At is regular January meeting, the alcohol, gambling and tobacco commission held a hearing to determine if the late quarterly payment should be considered a cause for revocation of the stay of imposition of the civil penalty. Wizner Company received due notice of the hearing, but did not appear at the hearing. The alcohol, gambling and tobacco commission determined that the late payment of the quarterly on-sale intoxicating license fee was an administrative licensing problem and recommended that the city council revoke the stay of imposition of the fine in the amount of $1,000.