Ultra lounge and restaurant owners update city committee on plans to open

Back in January 2009 we wrote about Ivanhoe Pub & Eatery owner Doug Nicholson's plans to open an "ultra lounge" on Main Street in the former Racine News building.

It looks like it'll be a few more months before the "green" night club, tentatively named "Envi," opens. Nicholson appeared before the Public Safety and Licensing Committee Monday night to update committee members on the status of the project. The City Council granted Nicholson a liquor license for Envi about 15 months ago.

Nicholson told the committee it would be four or five months before he's able to open. He is, however, working on remodeling the interior and exterior of the building, which he owns.

The committee is interested in Nicholson's progress, and the progress of two other establishments with liquor licenses, because Racine is close to the state-set limit on Class B liquor licenses. It only has three available licenses, at the moment, and those license cost $10,000 a piece because they are "reserve" licenses that technically exceed the city's legal limit.

Nicholson's club, as well as the proposed "Grumpy's" on Lathrop Avenue and "Gerald's" on Washington Avenue, all hold liquor licenses but have yet to open. All three owners were called before the Public Safety and Licensing Committee Monday night under a new city ordinance that requires liquor license holders to update the committee on their progress if they don't open within nine months of receiving the license.

Grumpy's owner Karley Barcalow told the committee her plans were delayed because used kitchen equipment she planned on using didn't pass health department inspection. She told the committee she's now seeking additional loans to buy new equipment and to open, but is having a hard time convincing a bank to help her. That said, she has made progress on opening at 2011 Lathrop Ave. and hopes to move forward within four to five months. Barcalow received her license last summer and had planned to open Sept. 1.

Gerald Bester, owner of Gerald's on Washington Avenue, is hoping for a late-May opening, he told the committee. Bester has been appearing regularly before city committees in recent months to gain approvals for his restaurant, cafe and comedy club in the former "Bank" building in Uptown. He had always planned a spring 2010 opening. 

Alderman Aron Wisneski, chairman of the Public Safety and Licensing Committee, said city staff confirmed all three business owners are making progress on their establishments. Under city ordinance, each will have to provide a written update to the committee in three months, if they don't open.

City may give new bars, restaurants a deadline to use liquor licenses

Alderman Aron Wisneski and City Clerk Janice Johnson-Martin

at Monday night's Public Safety and Licensing Committee meeting.

Restaurant and bar owners who get a liquor license approved by the city may soon face a deadline to put the license the work.

The Public Safety and Licensing Committee deferred action Monday night on a proposal that would give liquor license holders nine months to open their doors or return to the city for a six-month extension. Despite the delay, committee members appeared to be leaning in favor of the proposal.

Alderman Aron Wisneski, chairman of the committee, said city-imposed deadlines are important following the City Council's recent decision to charge entrepreneurs $10,000 for a "reserve" liquor license.

Reserve licenses are granted when the city reaches its state-imposed quota of 128 Class B liquor licenses in the city. The city is at that limit right now, which means it will cost anyone $10,000 just to get a permit to serve liquor in a bar or restaurant.

However, if a regular license becomes available - meaning the city falls below the state-imposed quota - the license would only cost $500.

For that reason, Wisneski said, it's important for the city to encourage businesses to use their licenses or turn them back in so others can put them to use.

Three specific businesses in Racine were mentioned during the committee's discussion. Grumpy's on Lathrop Ave., Gerald's in Uptown, and Envi, on Main Street, all received liquor licenses, but have yet to open.

The Public Safety and Licensing Committee will take the matter up at its next meeting and possibly forward a recommendation to the full City Council for a vote.

As city thinks about limiting new bars, a committee splits on how many bars Racine should have

One alderman's attempt to limit the proliferation of bars in Racine is headed for a showdown before the City Council.

At issue are the number of Class B liquor licenses the city issues, and how much applicants have to pay for one of the licenses.

Alderman Greg Helding wants to make it more expensive to get a Class B liquor license - the one needed to run a bar or a restaurant with a bar - if the license exceeds the state-set quota on liquor licenses in the city.

OK, that's a mouthful. Let's break it down.

State law says Racine can give out 128 Class B liquor licenses and 22 "reserve" Class B liquor licenses. So what does that mean? There's two ways to see it:

1.) The city has a limit of 128 liquor licenses. The 22 "reserve" licenses are special and should be treated as such.

2.) The city has 150 Class B liquor licenses. There's no difference between regular and reserve licenses.

(There's actually a third option: The city could set a limit on its Class B licenses lower than the state-set limit, which is based on population. This may be the direction is headed this year.)

Right now, the city follows option No. 2. Racine has given out all of its regular licenses, and is now issuing reserve licenses. There is a $10,000 fee to get a reserve license, but the city refunds $9,500 of the fee, meaning the reserve license costs the same as a regular liquor license. (The city also doesn't treat reserve liquor license applications any different from regular applications. The only difference between the two is you need $10,000 upfront with the understanding most of the money will be returned.)

OK, this all sets up Monday night's Public Safety and Licensing Committee meeting. Helding proposed eliminating the $9,500 refund for the reserve licenses. The city is allowed to do so under state law, Helding said, and it would create a special, more expensive tier for Class B liquor licenses. In essence, it would be aligning the city option No. 1 above: the city has 128 liquor licenses, and if someone wants to exceed that number, it's going to cost them.

Helding's proposal ran into opposition. Aldermen Bob Mozol and Jim Kaplan voted against the measure saying it could cost new businesses, like a restaurant, too much money to get started.

"That $9,500 could be another piece of equipment in the kitchen," Kaplan said.

Aldermen Sandy Weidner and Aron Wisneski voted in favor of the proposal, but it still failed on a 2-2 vote. Alderman David Maack, who sits on the committee, was not in attendance.

The committee then voted unanimously to "receive and file" Helding's proposal, which heads to next week's City Council without the Public Safety and Licensing Committee's support. But that doesn't mean the proposal is dead.

It now heads to the full City Council, which can vote to override the committee's vote. Helding said Monday night he's not sure if he'll push for the council to consider his proposal or regroup and consider other ways to limit Class B liquor licenses in Racine, such as making it more difficult to exceed a locally set quota on Class B liquor licenses.

City Council passes fine on video gambling machines; Crackdown in Racine coming?

This one slipped past us, and city officials probably don't mind that it did.

Tucked into Tuesday's City Council agenda under the "Public Safety and Licensing Committee Report" was this:

Subject: Ord. 24-09 , To amend Sec. 66-3(b) and 66-299 of the Municipal Code of the City of Racine, WI relating to Payment of forfeiture in lieu of court appearance; Penalty for violation.

Clearly newsworthy, right? Well, yes. This vaguely worded motion, passed at the Dec. 7 Public Safety and Licensing Committee meeting, may significantly cut back video gambling in the city.

State law allows Class B liquor license holders to install up to five video gambling machines. Several local bars and restaurants, as well as hundreds of other Class B license holders around Wisconsin, have taken advantage of the law as a way to make more money.

But several other businesses lacking Class B licenses - such as convenience stores - are also installing video gaming machines. That's technically a violation of the state law, which allows local governments to seize the machines, with money inside, and fine the businesses $500 per machine.

The local ordinance passed by the City Council on Tuesday night reflects the state law. It changes city code to allow a $500 fine per illegal machine and seizure of the machines. Section 66-299 of the city code previously allowed a court to order police to seize the machines, but did not include a fine.

So what does all of this mean?

It seems the city is gearing up a local effort of some kind to control video gambling in the city. As it stands, several local businesses are now in danger of receiving a $2,500 fine (most places have five machines) and seizure of their games. As to whether it happens is yet to be seen.

As for the obscure wording of the agenda item, that's my mistake. We need to pay closer attention to agenda items, particularly ones written predominantly in the language of city code.

Simmering feud? Wisneski, Shields continue to clash

Alderman Mike Shields heatedly addressed the Public Safety and Licensing Committee Monday night that's chaired by Alderman Aron Wisneski. Shields was ruled out of order for arguing.

Aldermen Aron Wisneski and Michael Shields continued their contentious relationship Monday night during two committee meetings.

First, Shields opposed Wisneski's effort at the Finance and Personnel Committee to get six decorative street lights for his district. Then, Shields heatedly engaged Wisneski during the Public Safety and Licensing Committee meeting over questions the committee was asking Tommy Daniels, who is trying to reopen the former "Cash Money's" as "Tommy's Den" at 901 S. Memorial Drive. Daniels turned in his liquor license to the city back in February rather than improve security.

The aldermen have exchanged words in the past over the Public Safety and Licensing Committee's aggressive oversight of liquor licenses in the city. The committee routinely calls in bars to explain incidents with police and to demand tighter security measures, such as video cameras, electronic ID checkers and private security.

On Monday night, Shields said the committee "micromanages" businesses applying for liquor licenses and suggested Daniels was being treated unfairly. During the tense exchange, Alderman Bob Mozol called Shields "out of order" for arguing with the committee. Shields then backed down and the committee voted to defer action on Daniels' request for two weeks.

Last month, Shields exhorted Wisneski's committee for the way it works with minority business owners. "The way they drill people of color is a problem with me," he said July 28.

Wisneski responded in July that Shields was misinformed. "Our committee is doing its job," he said. "We don't hand out licenses like candy. Liquor licenses are a serious job for our committee."

On Monday night the committee considered Daniels' application for a new liquor license for 901 S. Memorial Drive. Daniels was under scrutiny earlier this year for a murder and shooting that occurred near the bar. Mozol nearly lost his temper Monday night when addressing Daniels, saying Cash Money's "was not just a normal bar that closed." He said Daniels needed a detailed business plan to win over the committee's support. Wisneski recommended Daniels meet with City Attorney Rob Weber to work out an agreement within the next two weeks.

Shields said the committee needed to make it clear to applicants what they need to show to win approval for a license. Wisneski responded the City Clerk hands out a sample business plan and specific questions to all liquor license applicants.

As an aside to the issue, Daniels will not have to pay $10,000 to acquire one of the city's "reserve" "Class B" liquor licenses because he applied when a license was available. As of now, the city is at a state-mandated quota for liquor licenses and anyone who wants to open a bar or restaurant with a full bar would need to purchase one of the reserve licenses.

'John's Dock' to open in former Sandpiper's

Look for a "more affordable, more fun" restaurant and bar is opening in the former Sandpiper's at 303 Dodge St.

The owners of John's Dock received a liquor license Monday night contingent on passing health inspections and submitting a menu to the Public Safety and Licensing Committee. The committee voted unanimously in favor of the license.

Owner John Durk hopes to open by Sept. 1. He described the restaurant as a place where a couple can get sandwiches and a couple of drinks for $20. "We're not going for upscale," Durk said. "It's basic food."

Durk said he planned to have some live music, including Jimmy-Buffet-esque bands and possibly a karaoke night. The restaurant will be themed to attract middle-aged adults, he said. Durk added he plans to be "very involved" with Downtown Racine events.

The hours are scheduled as 11 a.m. to midnight Monday through Thursday, 11 a.m. to 2 a.m. Fridays and Saturdays, and 11 a.m. to 10 p.m. on Sundays.

Committee gives Sixth St convenience store another setback

A proposed convenience store on Sixth Street can't get any traction with city officials because the owners want to sell packages of wine and beer.

The Public Safety and Licensing Committee voted 3-0 Monday night to deny a license for a proposed store at 420 Sixth St. The vote practically dooms the store, which was opposed by several Sixth Street business owners.

James and Caroline Chun had proposed opening a convenience store that would sell basic groceries and household items along with prepackaged beer and wine. The couple had initially applied for a full liquor license, but that was rejected back in April.

Alan Bagg, the owner of Corporate Images at 417 Sixth St., told the committee during a public hearing that the convenience store would disrupt a "fragile area."

"A bad fit is a bad business for everyone else," Bagg said.

Fritz Cape, the owner of 302 and 304 Sixth St., said there was already a large concentration of liquor licenses on the street.

"It's not in keeping with the vision of a revitalized Sixth Street," said Cape, whose wife, former Alderwoman Cherri Cape, also spoke against the proposal. Cherri is also the owner of Moxie Child at 304 Sixth St.

Jeff Shawhan, the owner of The Elements Gallery at 409 Sixth St., wondered why the committee was considering a proposal it had already rejected. "What's changed in those few months?" he asked.

Several people spoke in favor of the store. A petition with 61 names supporting the business was submitted and members of the Racine LiberTEA party attended the hearing to speak in favor of the proposal.

Elizabeth Jones, who owns the building at 612 6th St., said the convenience store was a good fit for the area, even if it sold alcohol.

"I don't think we should be discouraging business," she said.

Blogger and Downtown business owner Dennis Navratil argued the city doesn't have problems with businesses that sell packaged alcohol, and pointed out businesses like Uncorkt and the former Braun's and Historic Century Market never have had a problem.

Navratil also pointed out Downtown has at least 20 vacant buildings, which would seem the indicate the need to attract new businesses. If Downtown bars are creating problems, he said, take away their licenses, don't punish a convenience store that's never opened.

Kate Remington, who owns a building at 613 Sixth St., said the convenience store would be a nice addition for Sixth Street residents. "We don't have a grocery store. We get hungry," Remington said.

But ultimately the committee members were unswayed by arguments for the store, and its chances are now slim of getting the needed two-thirds majority support from the City Council. With Aldermen Aron Wisneski, Jim Kaplan and Terry McCarthy voting against the license, one woud have to switch their vote and the rest of the City Council would need to support the Chun's for them to receive a license. That's unlikely because Alderman Jeff Coe, whose district includes Sixth Street, spoke against the proposal.

The two-thirds majority vote is required because the City Council recently passed an ordinance limiting the number of "Class A" liquor licenses in the city. Two-thirds of the City Council would need to make an exception to the freshly enacted ordinance to allow the Chuns to sell beer and wine.

Opposition to the convenience store is a blow for local businessman Michael Choi, who has opened three successful restaurants in the Sixth Street area (Shogun, Asiana and Olde Madrid). He spoke to the committee and pointed out that it makes no sense for him to open a business that would harm is surrounding restaurants. He also said the convenience store would be a better fit for Sixth Street than a vacant storefront.

"This is not a packaged liquor store," Choi said. "It's a convenience store that sells packaged liquor."

But the aldermen, set in their belief that alcohol will harm Sixth Street, were unconvinced.

Kaplan actually said the site at 420 Sixth St. was a "perfect place" for a convenience store. But he said selling alcohol in the store was a deal breaker. McCarthy and Wisneski made similar comments and suggested the Chuns open without selling alcohol.

But the Chuns had earlier shut down that idea, estimating alcohol sales would make up 25 percent of their business.

Ironically, shortly before the committee rejected the Chuns' license they paved the way for Keith Fair to reopen the Tango Bar on Sixth Street. Fair is planning to reopen the bar by Labor Day.

Aldermen exchange barbs over committee's review of liquor licenses

Alderman Mike Shields accused the City Council's Public Safety and Licensing Committee Monday night of treating minority-owned bars and restaurants unfairly.

"The way they drill people of color is a problem with me," Shields said in the hallway during the committee meeting.

Shields' comments came after the committee asked Gerald Bester, an African-American businessman from Milwaukee, a series of tough questions about his plans to open a new restaurant in Uptown.

Alderman Aron Wisneski, chairman of the committee, forcefully rejected Shields' contention.

"As usual, he (Shields) didn't do his homework to make an informed decision," Wisneski said.

Wisneski said the committee asks every business that's applying for a liquor license a series of questions designed to probe the applicant's ability to run a safe business.

He acknowledged the committee is tougher than its predecessors, but said it's tougher because the council allowed people to sell alcohol without doing enough research into their backgrounds. The result: Unsafe and unruly bars that brought down the quality of life in their neighborhoods.

"Our committee is doing its job," Wisneski said. "We don't hand out licenses like candy. Liquor licenses are a serious job for our committee."

Every meeting the committee calls bars and restaurants before it to review recent police incidents in or near the establishment. License holders are typically asked to explain what happened and are given a series of actions meant to control crowds and cut down on violent incidents.

For example, the committee asks bars to install a certain type of video camera to help monitor the premises. Another common request is an electronic ID checker that forces the bars and liquor stores to scan IDs of people buying alcohol.

The committee will also ask bars to close early if police incidents are occurring after 1 a.m.

Occasionally, bars choose not to comply and turn in their liquor license. Cash Money, a former bar on S. Memorial Drive, shut down after a murder and a shooting occurred nearby.

Other times, businesses are denied. A proposed Sixth Street convenience store failed to win a liquor license because neighboring businesses were opposed.

Mostly, though, bar owners are called in, scolded for police incidents and ordered to work with the City Attorney's office to make improvements. The underlying threat is the city will pull a business's liquor license if it doesn't comply.

"We have to do a better job of making sure they're good neighbors, not bad neighbors," Wisneski said about liquor license holders. "Alcohol makes people do stupid things. Good tavern owners know how to do things responsibly. They know how to be good neighbors."

As for business owners of color, Wisneski said the committee is tough to all applicants and license holders. He pointed to a tough series of questions Karley Barcalow, who is white, went through about her new restaurant on Lathrop Ave. They were similar to the questions Bester and another applicant, who is Hispanic, had to answer Monday night. (Barcalow, who received committee approval, said after the meeting she was a little flustered by the committee's questions.)

To ensure fair treatment, Wisneski said the committee works off a list of standard questions it asks all applicants, Wisneski said.

He added that while the committee is tough, it grants most liquor license applications.

"It is very rare we deny a license," Wisneski said. "A person would have had to have committed a felony. But we take this seriously. We don't just rubber stamp applications. We have high expectations for them (license holders)."