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03.02.22 BLA Special Hearing Minutes BLA 3/2/2022 FINAL Minutes Page 1 of 7 CITY OF BOULDER BEVERAGE LICENSING AUTHORITY * * * SPECIAL HEARING MINUTES * * * WEDNESDAY, MARCH 2, 2022, 1:00 P.M. VIRTUAL HEARING NAME OF BOARD/COMMISSION: Beverage Licensing Authority (BLA) DATE OF MEETING: March 2, 2022 NAME & PHONE OF PERSON Jon Yslas, Licensing Specialist PREPARING SUMMARY: (303-441-1934) yslasj@bouldercolorado.gov NAMES OF MEMBERS, STAFF, AND INVITED GUESTS PRESENT: Board Members: Michael Friesen, Matthew Califano, Steven Wallace, and Mike Absalom Staff Present: Laurel Witt, Assistant City Attorney, Mishawn Cook, Licensing Manager, and Jon Yslas, Licensing Specialist 1. Agenda Item: i. Instructions for Virtual Hearing & Rules of Procedure; Jon Yslas, Licensing Specialist, provided instructions to the BLA members, city staff, and hearing participants on how to participate during the virtual hearing and read the rules of procedure. ii. Member Roll Call; Authority member roll call was completed with a quorum of all 4 members present. iii. General Public Comment; The following people confirmed they do not live or own a business within the pre- designated neighborhood boundary. Nancy Coulter-Parker spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Gregg Kass spoke to the Authority in opposition to the proposed liquor license for Landloch, LLC. Wayne Seltzer spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Jeff Sherman spoke to the Authority in opposition to the proposed liquor license for Landloch, LLC. Garth Leonard spoke to the Authority in opposition to the proposed liquor license for BLA 3/2/2022 FINAL Minutes Page 2 of 7 Landloch, LLC. Bill Rigler spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Josh Goldstein spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Jill Grano spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Marcia Kosar spoke to the Authority in opposition to the proposed liquor license for Landloch, LLC. Jim Carr spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Angie Jeffords spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Charles Bloomfield spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Cliff Smedley spoke to the Authority in opposition to the proposed liquor license for Landloch, LLC. Kristina Miller-Olsen spoke to the Authority in support of the proposed liquor license for Landloch, LLC. Valerie Yates spoke to the Authority in opposition to the proposed liquor license for Landloch, LLC. Jackie Seltzer spoke to the Authority in support of the proposed liquor license for Landloch, LLC. 2. Public hearing and consideration of an application filed on December 20, 2021, from Landloch, LLC d/b/a Driftwind, 5565 51st Street, Boulder, CO 80301; Josh Dinar, Managing Member, and with Jeff Suskin, Managing Member, and Amanda Perkins, Proposed Registered Manager, with a business mailing address of 2075 Oak Avenue, Boulder, CO 80304, for a new Hotel-Restaurant type liquor license. Brian Proffitt, attorney for the licensee appeared for this matter along with Josh Dinar, Managing Member, Jeff Suskin, Managing Member, Allison Rhodes, City of Boulder Parks and Recreation, and Eva Garretson, Liquor Pros Petitioning, Nathan Dewey, Responsible Association of Retailers, and Shawn Rodine, Rocky Mountain Paddleboard, appeared for the licensee and were sworn in. Mr. Dinar confirmed the 10-day legal posting requirement. Member Steve Wallace brought to the attention of the Authority that he received two e-mails in regard to this application brought forth to Hearing and confirmed they were deleted without being read. Laurel Witt, Assistant City Attorney confirmed that no ex-parte communications or conflict of interest occurred. Due to the nature of the application, Vice-Chair Absalom read the procedures into the record. Joel Judd, attorney for interested parties appeared for this matter. The following people were sworn in as interested parties confirming, by address, that they either live or work within the pre-designated neighborhood boundaries: Arnie Turnacliff, Eric Tussey, Roberto BLA 3/2/2022 FINAL Minutes Page 3 of 7 Caccia, John Bachman, John Barberis, Kate Barberis, Ted Bacharach, Shannon Callahan, Roger Pioszak, Gregory Brueing, James Peshock, Tannis Sampson, Karin De Bartolme, Sarah Sparks, Sorayn Smith, Sharon Anderson, Simon Sparks, Lisa Brussell, Kim Bixel, Jennifer Arnold, Patti Tussey, Jessica Kramer, Bernee Stron, Sue Koral, Charlotte Chase, Susie Harris, Neil Anderson, Kelly DiNatale, Kathy Lee, and Sabine Painter. Mr. Brian Proffitt called Allison Rhodes as a witness to discuss the history of the Boulder Reservoir and the building of the Driftwind Restaurant. Member Wallace inquired about the restaurant’s compliance with the City of Boulder’s lighting ordinance and operating hours of the restaurant. Ms. Rhodes confirmed that the restaurant is in compliance and Boulder Parks and Recreation’s lease and operating agreement with the restaurant would not allow the restaurant to open until 2 am. However, if there was a special event until 12:00 am they would be willing to discuss future special events as needed. Attorney, Joel Judd, and interested parties Eric Tussey and Shannon Callahan asked Ms. Rhodes to clarify why special events would be allowed during this evening time frame. Also, they brought to the attention of the BLA that all sworn-in interested parties were opposed to this proposed application as stated in their submitted petitions. The parties mentioned that they are not opposed to the restaurant, but they are opposed to the late hours of operation serving alcohol along with the lack of roads to accommodate the amenities of the Boulder Reservoir. At 4:04 pm, a ten-minute recess began. Vice Char Absalom called the meeting back to order at 4:15 pm. Interested party, Gregory Bruening, asked Ms. Rhodes if the City of Boulder would change the lease to allow parties at Driftwind after hours if their revenue increased. Mr. Proffitt objected to the question stating that what could possibly happen in the future is not relevant to this discussion. Member Califano motioned to sustain the objection. Member Friesen seconded. Motion passed 4:0. Mr. Proffitt asked Ms. Rhodes if the restaurant was properly zoned for restaurant use and if the construction was subject to the planning and development requirements of the City of Boulder. Ms. Rhodes replied that it was. Mr. Proffitt then called Mr. Ted Bacharach as a witness. Mr. Bacharach then proceeded to provide testimony in favor of Driftwind receiving a liquor license. Mr. Proffitt then called Mr. Shawn Rodine as a witness. Mr. Rodine then proceeded to provide testimony in favor of Driftwind receiving a liquor license as a business owner who provides sports equipment rentals at the Boulder Reservoir. Interested party, Tannis Sampson, asked Mr. Rhodine how much of the beach would be left for families to recreate after his plan to work with Drftwind for paddleboard rental BLA 3/2/2022 FINAL Minutes Page 4 of 7 packages. Mr. Proffitt objected to the question due to relevance. Member Absalom motioned to sustain the objection. Member Califano seconded. Motion passed 3:1 with Member Wallace voting nay. Mr. Proffitt then called Mr. John Bachman as a witness. Mr. Bacharach then proceeded to provide testimony in favor of Driftwind receiving a liquor license. Mr. Proffitt then called Mr. Nathan Dewey with the Responsible Association of Retailers as a witness. Mr. Dewey then proceeded to provide testimony in favor of Driftwind receiving a liquor license. Mr. Proffitt called Eva Garretson, Liquor Pros Petitioning, as a witness to discuss the petitioning process completed by the licensee. Ms. Garretson provided testimony regarding the submitted petitioning results. Mr. Proffit asked Ms. Garretson if she encountered any residents who indicated that they supported the idea of the liquor license, but simply weren’t willing to put their name on the petition due to the politics of the situation. Mr. Judd objected to the question due to hearsay. Member Absalom motioned to overrule the objection. Member Califano seconded. Motion passed 4:0. Ms. Garretson replied that she had encountered such residents. Mr. Proffitt then called Mr. Josh Diner, Owner of Driftwind, as a witness. Mr. Proffitt and Mr. Diner provided testimony regarding the application presented to the Authority, including the submission of an online survey conducted by Driftwind showing support for the liquor license. Mr. Joel Judd objected to the inclusion of this online survey and completed a memorandum in regard to the exclusion of this online survey. This memorandum was then e-mailed to BLA members for review. Member Absalom motioned to overrule the objection and keep the record intact by including the online survey to give weight as needed at deliberation. Member Friesen seconded. Motion passed 3:1 with Member Wallace voting nay. At 7:20 pm, a ten-minute recess began. Vice-Chair Absalom called the meeting back to order at 7:31 pm. Mr. Proffitt continued his discussion of the online petitions and requested the Authority to include the online survey to be labeled as an exhibit. Mr. Judd objected to the request. Member Friesen motioned to sustain the objection as the online survey was already included in the BLA packet. Member Absalom seconded. Motion passed 4:0. Mr. Proffitt then asked his client to summarize his experience with this BLA Hearing. Mr. Dinar then expressed his understanding of the members of the interested party’s concerns. However, this project had been exhausting and disheartening as miss information among the neighbors was being spread along with personal attacks against his character. Mr. Judd objected to this testimony as this was supposed to be a question-and-answer format. Member Califano motioned to overrule the objection. Member Friesen seconded. Motion passed 4:0. BLA 3/2/2022 FINAL Minutes Page 5 of 7 BLA Members proceeded to question Mr. Dinar in regard to alcohol service and control policy. Mr. Dinar confirmed that Driftwind maintains exclusive possession and control of the kitchen and premises at all times concerning their relationship with Ruthie’s Boardwalk Social. Mr. Judd then proceeded to question Mr. Dinar’s previous violation for serving to a minor at his Boulder restaurant, River and Woods. Mr. Dinar replied that yes, the violation occurred, but it was a server who ‘missed the mark’. Retraining the entire staff along with a suspension occurred as a result. Mr. Judd asked if they were able to verify if the people who participated in Driftwind’s submitted online survey were over the age of 21. Mr. Dinar answered ‘No’. Interested party’s Shannon Callahan, Kim Bixel, John Barbaris, Sharon Anderson, Sorya Smith, Anne Turnacliff, Lisa Brussel, Roger Pioszak, Charlotte Chase, and Eric Tussey questioned Mr. Dinar about their local neighborhood concerns. The interested party, Sabine Painter, asked Mr. Dinar who would be held liable if there was an alcohol-related accident either at the reservoir or driving after visiting the reservoir. Mr. Proffitt objected to this question due to speculation and relevance. Member Wallace motioned to sustain the objection. Member Absalom seconded. Motion passed 4:0 Mr. Judd called Shannon Callahan, an interested party, as a witness to discuss the petitioning collected by the local neighborhood which results described no need or desire for Driftwind to obtain a liquor license. Member Wallace motioned to include these petitions as Agenda Item 2, Exhibit 1. Member Absalom seconded. Motion passed 4:0. Mr. Proffitt began his line of questions to Ms. Callahan and asked why she signed the petition against Driftwind receiving their liquor license. Mr. Judd called an objection as his witness already answered the question as she does not want this particular license due to the liquor service after dark. Member Wallace motioned that the question was already answered. Member Friesen seconded. Motion passed 4:0 Mr. Judd called Bernee Strom, an interested party, as a witness. Ms. Strom stated that she has no need or desire for this liquor license within the designated boundary. Mr. Proffitt asked if Ms. Strom lived in the City of Boulder city limits. She replied that she lives in unincorporated Boulder County but is an interested party. Mr. Judd called Tannis Sampson, an interested party, as a witness. Ms. Sampson stated that she has no need or desire for this liquor license within the designated boundary. Mr. Proffitt asked if Ms. Sampson lived in the City of Boulder city limits. She replied that she lives in unincorporated Boulder County but is an interested party. BLA 3/2/2022 FINAL Minutes Page 6 of 7 Mr. Judd called Eric Tussey, an interested party, as a witness. Mr. Tussey stated that she has no need or desire for this liquor license within the designated boundary. Mr. Proffitt asked if Mr. Tussey lived in the City of Boulder city limits. He replied that he lives in unincorporated Boulder County but is an interested party. Member Absalom motioned to take a break. Member Wallace seconded. Motion passed 4:0 Vice-Chair Absalom called the Hearing back to order at 10:48 pm. Member Friesen motioned to receive bulk testimony from the interested parties. Member Absalom seconded. Motion passed 4:0. Licensing Specialist Yslas swore in Lisa Brussell, Simon Sparks, Susie Harris, Sarah Sparks, Charlotte Chase, John Barberis, Sorya Smith, Kelly Di Natale, Neil Anderson, Roberto Caccia, and Patti Tussey. In a bulk testimony, they all agreed that they have no needs or desires for this application and would oppose a liquor license for Driftwind. Mr. Proffitt began his closing statements. Member Califano motioned to allow Mr. Judd to also speak his closing statements. Member Absalom seconded. Motion passed 4:0. Mr. Judd began his closing statements. The Authority then closed for deliberation. Assistant City Council Laurel Witt read aloud the section of the BLA Rules and Procedures that describes the burden of proof which states that the applicant is qualified to hold the license, have sufficient financial sources, the reasonable requirements of the neighborhood are not being met by existing liquor or fermented beverage outlets, and the neighborhoods needs and desires of the applicant’s particular outlet. The Authority continued their discussion burden of proof section stating that the needs and desires of the applicant’s particular outlet were not being met as the interested parties largely oppose the license. Member Friesen moved, and Member Wallace seconded, to deny this new Hotel- Restaurant type Liquor License application. Motion passed 3:1 with Member Absalom voting nay. Vice-Chair Absalom mentioned on behalf of the Authority that they appreciated all BLA 3/2/2022 FINAL Minutes Page 7 of 7 spoken comments and written letters provided for this agenda items and thanked everyone for their time. 3. Matters from Assistant City Attorney Nothing at this time 4. Matters from the Licensing Clerk Nothing at this time 5. Matters from Members of the Authority Nothing at this time ADJOURNMENT Member Friesen moved, Member Absalom seconded, that this hearing should be adjourned, and thus the hearing was adjourned at 12:26 AM. Motion to adjourn approved 4:0. Attested: Approved: _________________________________ ___________________________________ Mishawn J. Cook, Licensing Manager Vice- Chair of Beverage Licensing Authority And Secretary to the Authority Michael Absalom (Apr 21, 2022 10:22 MDT)Mishawn J Cook (Apr 21, 2022 16:58 MDT) 03.02.22 BLA Special Hearing Minutes (FINAL) Final Audit Report 2022-04-21 Created:2022-04-21 By:Jon Yslas (yslaj1@bouldercolorado.gov) Status:Signed Transaction ID:CBJCHBCAABAAuYOpU6GIN1sIq36c7CQPsR9al4_XYDIt "03.02.22 BLA Special Hearing Minutes (FINAL)" History Document created by Jon Yslas (yslaj1@bouldercolorado.gov) 2022-04-21 - 3:16:15 PM GMT- IP address: 8.36.226.103 Document emailed to Michael Absalom (michael.absalom@gmail.com) for signature 2022-04-21 - 3:16:40 PM GMT Email viewed by Michael Absalom (michael.absalom@gmail.com) 2022-04-21 - 4:21:42 PM GMT- IP address: 172.225.198.145 Document e-signed by Michael Absalom (michael.absalom@gmail.com) Signature Date: 2022-04-21 - 4:22:08 PM GMT - Time Source: server- IP address: 98.245.166.12 Document emailed to Mishawn J Cook (cookm@bouldercolorado.gov) for signature 2022-04-21 - 4:22:10 PM GMT Email viewed by Mishawn J Cook (cookm@bouldercolorado.gov) 2022-04-21 - 5:17:14 PM GMT- IP address: 161.98.4.6 Document e-signed by Mishawn J Cook (cookm@bouldercolorado.gov) Signature Date: 2022-04-21 - 10:58:25 PM GMT - Time Source: server- IP address: 172.58.62.232 Agreement completed. 2022-04-21 - 10:58:25 PM GMT