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Home My WebLink About1981/08/17 - ADMIN - Minutes - City Council - Regular (2) MINUTES FETING SPECIAL CITY COUNCI � N � SOTA ST . LOUIS PARK . August 17 , 1981 A special meeting of the City Council was 1 . Call to Order called to order by Mayor Phyllis McQuaid at 6 : 30 p . m . Roll Call The following Councilmen were present 2 . at roll call : Ronald • Backes Keith Meland Martha Elstrom John Ralles Lyle Hanks Phyllis McQuaid • Also present were the City Manager and City Attorney . 3 . Hearing regarding liquor The Mayor asked the City Manager and City license at Steak and Ale Attorney to relate the facts known now and at the July 20 , 1981 Council meeting about liquor operations and licensing at Steak and Ale , 6475 Wayzata Boulevard . The City Manager noted that information in the July 20 Council meeting minutes should be corrected . At that time , it was believed that Steak and Ale had not submitted the second half -year payment for a liquor license . In fact , Steak and Ale had paid the 1981 license fee in full in November , . 1980 . The City Attorney said that the Council had specified this public hearing to gain an explanation of the negotiations with David Bongiorno of I1 Primo Ristorante , Inc . , dba Mama Rosa ' s ; the facts of the license transfer to Mr . Bongiorno , a prospective buyer of the Steak and Ale operation ; and the liquor operations by Steak and Ale since the osten - sible license transfer effective June 2 , 1981 . Marcy McLean , an attorney with the Steak and Ale home office in Dallas , Texas , explained Steak and Ale ' s belief that the liquor license trans - fer to Il Primo Ristorante , Inc . had not been valid . The purchase agreement stated that closing on the sale would occur by May 22 , 1981 . Because the sale had not been concluded , Steak and Ale felt that the contract - which included the transfer of the liquor license - had expired . Despite this expiration , the City Council transferred the license on June 1 , 1981 . Prior to May 22 , the local manager , Tom Zakowicz , had lent the liquor buyer ' s card to Fir . Bongiorno so that I1 Primo Ristorante could obtain the buyer ' s number for documentation purposes necessary for the sale . He did not realize the importance of possessing the card itself . Following the June 1 Council meeting , Mr . Bongiorno called Mr . Zakowicz and wondered how Steak and Ale could conduct liquor operations since he and the buyer ' s card was with the Cipossessed " the liquor license contacted the City Attorney ' s City Steak and Ale ' s Dallas office y office and was told to continue to operate liquor business . until matters had been settled . Councilman Hanks asked if the contract' ne negotiations were done by the g ate ons _ l+' 7i• 117�R1' - i wZCYM a -•• - Ni.. . ci al City Council meeting ;, oust 17 , 1981 I gallas office , to which Ms . McLean answered yes . He asked who was res - ponsihle for the liquor card . Ms . McLean responded that it was the local manager ' s responsibility . Councilman Hanks cormiented that giving the buyer ' s card to someone else and allowing its use by others shows a bad practice in liquor operations . Mr . Zakowicz replied that he had lent the buyers card for Mr . Bongiorno ' s documentation purposes ; subsequently Mr . Bongs orno had never returned the buyer ' s card . Mr . Zakowicz had never needed to use the card and thus did not know its importance . Councilman Ralles mentioned that the Steak • and Ale manager • should have given the number on the card and not the card itself . The buyer ' s card should have been displayed . Mr . Zakowicz said that orders were telephoneiin and thus the card did not need to be displayed . He noted that Mr . Bongiorno returned the card to the City , not to Steak and Ale as he had promised . Councilman 9el and wondered if there were any criminal .r felony or nark - violations . The City Attorney responded that in his opinion , there were no criminal violations by either party since it was a private contractual matter with no criminal intentions . Councilman Meland noted that the buyer ' s number could have been obtained from the State Liquor Control Commission . Councilman Elstrom asked if any negotiations with Mr . Bongiorno are now ongoing . Ms . McLean said that there were none . Councilman Elstrom asked if there were now any criminal acts committed by Mr . Bongiorno . Ms . McLean said that when the buyer ' s card was sent to the City on May 19 by Mr . Bongiorno , he acted on the basis of good faith negotiations . Councilman Hanks declared that the issue at hand was the appearance of having operated for more than a month without a liquor license . Ms . e. P1cLean said that Steak and Ale was unaware of the apparent violation be - cause there had been no formal documentation process within the Steak and Ale organization or from the City . Councilman Hanks noted that• McLean responded that i t i s = licenses are issued to addresses . M • precisely for that reason that Steak and Ale believed that there was no ,• change in the status' of the license . Steak and Ale remained � inopldshaveon the license sh of the premises . Without a change in ownership , stayed with Steak and Ale . Y.F. Bongiorno had proposed any deals in " re - Councilman Elstrom asked if Mr . Bong Bon - .. turning " the license to Steak and Ale . Pts . McLean repled that Mr . Torn return the license for $ 6 , 000 , an amount representing lt: 9 o had offered to expenses incurred for obtaining the license and retaining employees .the license have been thoseflavor P1cOuaid said that the p ,roblems surrounding Steak and Ale doesof a lack of information and a lack of communication .nota ear to a made a deliberate attempt to operate without aanlicense . ^ pp have valued by the City __. . She stressed that liquor licenses are highly rzt businessmen . d Councilman �._ . The Mayor then closed the hearing . Councilman Meland moved an ,tS Meland R ytaken on this issue . Councilman P'1el and q Al Ralles seconded , that no action be : ewn'. 'S - 253 - . . \ ti. . \` \.\ . \ \.,h �\ ,„k !►\l� ,i ,.., :.; moi.:.:'; ... i•i. . `zits,. Special City Council meeting August 171 1981 • 114 ` this affair makes people realize the value of level local l i control in liquor operations ; often they u t said that are handled at the other local involvement is minimal . Councilman Hanks said that he states and Louis Park citizens deserved would support the motion . He said St . the right to have this issue fully aired . He concluded by saying Steak and Ale has had a good business and hoped that it would stay that way . The motion passed 6 - 0 . Councilman Ralles noted that the Steak and Ale manager should not let go of the buyer ' s card . The meeting was adjourned at 6 : 58 p . m . • 4 '4 ()) g-- .olte,ez_41 Phyl l i McQuaid , Mayor Cfre • . wson , Recording Secretary