MINUTES BEER BOARD MEETING OCTOBER 7, 2014 The Jackson, Tennessee, Beer Board met at 8:00 a.m. on Tuesday, October 7, 2014, in the City Council Chambers at City Hall. Board members present were Charles Pepper Bray, Harvey Buchanan and Charles Rahm. Also present were City Attorney Lewis Cobb; Jackson Police Major Thom Corley and Lieutenant Mike Johnson; Ben Smith, commercial building and fire codes inspector for the city of Jackson; Angela Collins-Turner, Business License and Beer Permit Clerk for the city of Jackson; Hilda Little, coordinator for the Community Anti-Drug Coalition of Jackson-Madison County; and Anita Brooks, recorder of the minutes. The meeting was called to order. On the motion of Board member Buchanan, seconded by Board member Bray, the minutes from the August 26, 2014, and September 2, 2014, meetings were approved. BEER APPLICATIONS: A request from Ernest G. Scherer for a business known as Northside Tobacco Shop, located at 3542 Highway 45 North, for selling, storing and distributing beer for consumption off the premises was presented for consideration. Ernest Scherer was present. Ernest Scherer stated that he was in the process of buying the business from Ms. Sparks. Ernest Scherer further stated that the business sale transaction was supposed to have been completed by October 1, 2014, but as of today, he and his attorney were still working out the terms of the sales agreement with Ms. Sparks' -1-
attorney. Attorney Angela Snider was present and confirmed that ownership of the business has not been transferred to Ernest Scherer. City Attorney Lewis Cobb advised the Board that it was his opinion that until the business has been transferred, approving the request would be premature. Board member Buchanan moved to table the consideration of the request until the sale of the business takes effect. Board member Bray seconded the motion and the motion carried unanimously. A request from Rodrigo Rayas for a business known as La Roka Club Latino, a bar and dance club located at 23 Heritage Square, for selling, storing and serving beer on the premises where sold was presented for consideration. Rodrigo Rayas, owner of the business, and Roberto Rayas, manager of the business, were present. Rodrigo Rayas stated that their plans were to have a place for people to come and enjoy Hispanic music and hang out. Rodrigo Rayas also stated that he was not applying for a liquor license, only a beer license. The business hours will be Fridays from 8:00 p.m. to 1:00 a.m., Saturdays from 8:00 p.m. to 3:00 a.m., and Sundays from 5:00 p.m. to 12:00 a.m. Major Thom Corley gave the exact location of the business. Board member Buchanan asked Major Corley if the building was vacant at this time. Major Corley stated that he believed the Electric Rodeo was closed and he believed Rodrigo Rayas was leasing the property from William Diamond. Roberto Rayas stated that William Diamond turned in his beer permit for the business known as Electric Rodeo. Roberto Rayas further stated that the property they were leasing from William Diamond has its own parking lot and the parking lot would not be shared with other nearby businesses. City Attorney Lewis Cobb stated that his recollection of the conversation with William Diamond, when William Diamond applied for a permit to operate a business known as -2-
Electric Rodeo, was that William Diamond did not have adequate parking for the number of people in his club. City Attorney Lewis Cobb further stated that William Diamond told the Beer Board that he had worked out an agreement with Bob Kilburn, owner of a nearby restaurant, to use part of his parking lot for parking. Rodrigo Rayas and Roberto Rayas stated that they thought the parking situation would not be a problem because they were not expecting large crowds of people. Phillip Jackson and Frankie Lax were present and expressed opposition to the request. Phillip Jackson stated that he and Frankie Lax owned the majority of property located on Heritage Square. Phillip Jackson further stated that the property that Rodrigo Rayas would be using to operate a nightclub was first developed for retail use and, in his opinion; the property should have remained developed for retail use because there is not enough parking for an assembly type building. Phillip Jackson stated that he and Frankie Lax were opposed to the approval of the request because of inadequate parking on the business property. Phillip Jackson also stated that he and Frankie Lax had problems with people using their business parking lot who were not patronizing the businesses they were leasing and whenever the police was called to the area, the police always associated the problems to be happening on the parking lot of the business property they owned. Frankie Lax stated that because of ingress and egress issues, the City of Jackson Fire and Police Department asked him and Phillip Jackson to consider putting in another exit in the Heritage Square area for emergency vehicles, which they did at their own expense, and in addition to that, they had an agreement with the owners of King Tire Company to put in another exit on to the east side of the tire company business parking lot, also at their expense. Frankie Lax further stated that Rodrigo -3-
Rayas does not have their permission to use any of the exits they own in the Heritage Square area. Frankie Lax also stated that Rodrigo Rayas potential customers will only have one way to go out onto Old Hickory Boulevard. City Attorney Lewis Cobb asked Frankie Lax and Phillip Jackson if they would agree that having a large concentration of night clubs on Heritage Square can create traffic problems. Frankie Lax stated that was why the City of Jackson Fire and Police Department asked them to try to do something about the ingress and egress issues on their properties. City Attorney Lewis Cobb asked Frankie Lax how a person would determine whose parking lot to use if all three night clubs were operating simultaneously on Heritage Square. Frankie Lax stated that there was no way for a person to determine whose parking lot to use unless he put some of his security officers out there to direct people or put up gates. Frankie Lax also stated that when all three night clubs were operating simultaneously, there was not a true and clear distinction in parking lot incidents when police were dispatched to the area. City Attorney Lewis Cobb stated that what he was hearing from Frankie Lax and Phillip Jackson was that there was not enough parking to accommodate all three night clubs and if all three night clubs were open and operating simultaneously, Frankie Lax and Phillip Jackson would feel that their parking lot would be infringed upon. Rodrigo Rayas stated that his potential customers would only be using the exit between King Tire Company and Bob Kilburn s chicken restaurant. Rodrigo Rayas also stated that he thought he would have adequate parking spaces for his potential customers. Major Thom Corley stated that the City did have a continued problem with egress and ingress issues when all of the night clubs were operating simultaneously on Heritage Square. Major Thom Corley also stated he had a conversation with Rodrigo Rayas regarding a -4-
security agreement with the City of Jackson but the terms of the security agreement would only pertain to securing the premises of the business and would have nothing to do with traffic control or designating parking. Board Chairman Rahm stated that he did not have a problem with the business venture itself but he did have a problem with the inadequate parking for the business and thought it would be a major issue not only for egress to the other locations on Heritage Square as well as just causing problems in general. On the motion of Board Chairman Rahm, seconded by Board member Bray, the request to sell, store and serve beer at 23 Heritage Square was denied by a 2-1 vote, with Board member Buchanan voting nay. A request from Remon Rizk for a business known as Neighborhood Grocery, Inc. doing business as Bowling Express Mart, a convenience store located at 26 Bowling Drive, for selling, storing and distributing beer for consumption off the premises was presented for consideration. Remon Rizk was present. City Attorney Lewis Cobb asked Remon Rizk if his request was for a business name change and if so, what the former name of the business was. Remon Rizk stated that the request was for a business name change. Remon Rizk further stated that the business located at 26 Bowling Drive was formerly known as Rizk Market and the business opened in 2012. Remon Rizk stated that his oldest brother, Michael Marzowk, is the owner of the property where the business is located. Remon Rizk further stated that Michael Marzowk is not a part of his business corporation and that he, Remon Rizk, is the sole owner of the corporation. Remon Rizk stated that his brother, Ehab Rizk, was the owner of the business when the business opened in 2010 and when Ehab Rizk got in trouble for selling illegal drugs at the business, his oldest brother, Michael Marzowk, kicked him out of the business in -5-
June 2013. Remon Rizk further stated that Ehab Rizk was under restrictions with the Federal Bureau of Investigation for being charged with selling synthetic marijuana at the business and could no longer operate the business. Remon Rizk further stated that his brother, Michael Marzowk, made a deal with the U.S. Marshals Service to take the store back from Ehab Rizk and sell it to Remon Rizk. Remon Rizk stated that he purchased the business from Michael Marzowk about two months ago. In that there was uncertainty about the time frame for the business ownership change and the beer permit change, the consideration of the request was deferred to allow the city attorney time to review past and current records associated with the business. A request from Jackson Baseball Club L.P., located at 4 Fun Place, for selling, storing and serving beer on the premises where sold was presented for consideration. Eric Kormanik, representative for the business, was present and answered questions regarding the request. On the motion of Board member Buchanan, seconded by Board member Bray, the request was unanimously approved. The consideration of a request from Zaid Alshaif for a business known as Zaid Group, Inc., located at 1819 Highway 45 Bypass, for selling, storing and distributing beer for consumption off the premises was tabled because the applicant was not present to answer questions regarding the request. A request from Verla Price for a business known as Forever Communications, Inc. for a special occasion permit to sell, store and serve beer at an event to be held at the Jackson Fairgrounds Park on October 25, 2014, known as the Tennessee Cigar and Brew Fest, was presented for consideration. Verla Price was present. Verla Price stated that this will be the sixth year for the event and that last year the event was partnered -6-
with Fredcat Promotions. On the motion of Board member Buchanan, seconded by Board member Bray, the request was unanimously approved. Reginald Hobson was present and addressed the Board regarding his request to sell, store and serve beer at a business known as Pandora s Box, LLC doing business as Pandora s Box Restaurant and Lounge. Reginald Hobson s request was presented before the Board at the September 2, 2014, Beer Board Meeting. The beer permit failed to be issued at the meeting for lack of a motion to approve the request. Reginald Hobson was advised to discuss the action taken by the Beer Board with his legal counsel. There being no further business to discuss, the meeting was adjourned. CHARLES RAHM, CHAIRMAN -7-