Pawtucket Board of License Commissioners
September 7, 2005
A regular session of the Pawtucket Board of License Commissioners is held Wednesday, September 7, 2005, at 7:05 p.m. in the City Council Chamber, City Hall, 137 Roosevelt Avenue, Pawtucket, RI.
Present – Chairman Grebien, Councilors Barry, Bray, Carr, Clemente, Hodge, Moran, Vitali and Wildenhain.
Absent – 0.
Chairman Grebien presides.
The reading of the records of August 24, 2005, is dispensed with and the records are approved as prepared by the Clerk.
A public hearing is held on the following application for license, which was advertised for a hearing at this time, is taken up:
CLASS A
PLW-MA, Inc., d/b/a Blackstone Wine & Spirits, (transfer from Gary’s Liquors, Inc., d/b/a Gary’s Liquors), 1179 Central Avenue, LIC#10351
Representing the applicant is Joseph Keough, Jr., Esq., 100 Armistice Boulevard, Pawtucket, RI.
Also present is Michael Devane, Esq., 225 East Avenue, Pawtucket, RI, representing Gary’s Liquors Inc.
Frank J. Milos, Jr., Assistant City Solicitor, representing the City of Pawtucket.
Mr. Milos states that there are possible objectors present and suggests tabling the Public Hearing and rescheduling with a court stenographer present.
Mr. Keough agrees with Mr. Milos’ suggestion to reschedule the hearing because of the serious issues that were raised in the past case.
Mr. Milos, in response to Councilor Hodge, states that if the Department of Business Regulations rules in favor of the original application at the East Avenue location and if tonight’s transfer is approved, the applicant could end up with two licenses.
Councilor Hodge asks if a videotape of tonight’s meeting would serve as a transcript.
Mr. Milos states that the Department of Business Regulations prefers to review the written transcript before an appeal hearing.
Councilor Wildenhain states that he would like to continue with the hearing. Before the board this evening, is merely a request for a transfer of ownership from Gary’s Liquors Inc. at the Central Avenue location.
Mr. Keough states that he would reserve comments until the opposition has been given an opportunity to speak so that he may discuss their issues.
The first speaker in opposition is Robert Brady, Esq., 1 Grove Avenue, East Providence, RI, representing JR Sav-On Liquors, 350 Benefit Street, Pawtucket, RI.
Mr. Brady states that the same issues that were raised at the May 25, 2005, hearing for the transfer of PLW-MA, Inc. from Gary’s Liquors at the East Avenue address are applying to this transfer, being that the applicant is affiliated with another Class A establishment. The principal listed on the application has interest in Douglas Liquors. He states that this is the same application as presented on May 25, 2005, and that license was denied.
Councilor Wildenhain states that the license was denied because of the location and the complaints of the neighbors.
Mr. Brady states that tonight’s hearing is for another location but the same issue remains. He refers to RIGL 3-5-11 which prohibits an applicant from holding more than one Class A liquor license. He further states that the previous application is on appeal. His principal objection is the accurateness of the application, and is the application for transfer properly before the Board, as there is an appeal on the first application.
The next speaker is Joseph Larisa, Jr., Esq., 1 Financial Plaza, Providence, RI.
Mr. Larisa states his objection that the application is not properly before the Board because it is the same license as before, which is on appeal at the Department of Business Regulations.
Mr. Larisa states that the applicant should decide what license application he wants, either this one or the one pending before the Department of Business Regulations. State Law prohibits an applicant from holding two liquor licenses.
Mr. Larisa states that his second objection is that RIGL 3-5-11 is being violated. He states that the owner and Board of Director is Craig Powers, whether it is at this location or the other location, and this is a violation of the chain store/franchise legislation.
Mr. Larisa distributes a franchise circular. The statute prohibits franchising and Mr. Powers is associated and works for Douglas Wine and Spirits.
Mr. Larisa states that he is presently representing Murphy’s Liquors before the Department of Business Regulations on this chain store issue. He adds that the Council should deny this license because of the violation of RIGL 3-5-11, which is one of the issues which was raised at the previous hearing, which is under appeal.
Councilor Barry states that the issue of whether there is a violation of RIGL 3-5-11 is a separate issue and the issue before the Council is a request for an ownership transfer from one owner to another at an existing location.
Councilor Vitali asks if there is a Rhode Island General Law that states that a license under appeal would stop an applicant from applying for a second time at a second location.
Mr. Larisa states that he does not know if there is case law on this. He states that Mr. Powers is Vice President at Douglas Wine and Spirits and is involved in some capacity at seven different Class A liquor store locations and refers to the circular. He states that the Council cannot transfer this license because of the chain store/franchise provision.
Councilor Clemente asks if this transfer can be allowed if Mr. Powers is not running the store.
Mr. Larisa states that he feels that Mr. Powers must terminate his association with Douglas Wine and Spirits.
The next speaker is Brian Fitzgerald, owner of JR Sav-On Liquors, 350 Benefit Street, Pawtucket, RI.
Mr. Fitzgerald states that he has been located in Pawtucket for one year. If he could own more than one store he would be able to be more competitive and offer better prices because of the ability of volume purchases. The intent of the law is to stop multiple store ownership. He is objecting to this application because he cannot compete with a large chain store organization. If this applicant does not terminate his association with a larger corporation, this would be a major concern for him, and he is objecting to this transfer.
The next speaker is Joseph A. Keough, Jr., Esq., representing the applicant.
Mr. Keough states that he is hearing the same accusations that were made on May 25, 2005, without any proof. He states that RIGL 3-5-11 was adopted on April 1, 2005, as a new law. Mr. Larissa’s distributed document is dated 2004. Mr. Powers is listed as an individual owner of this liquor store. He does not own another liquor store. He works for Douglas Liquors and is not on the Board of Directors for Douglas Liquors.
Mr. Powers would face a $10,000 fine and a permanent loss of liquor license if he was in violation of RIGL 3-5-11, and the Department of Business Regulation will enforce this law.
Both Councilor Wildenhain and Councilor Carr discuss the action on the appeal by the Department of Business Regulation, if this license is approved.
Mr. Keough states that the previous license was denied because of the objections of the neighbors and not on the grounds of any possible violation as alleged by Mr. Larisa and Mr. Brady of the chain store franchise laws.
Councilor Carr states that if the first application prevails with the Department of Business Regulations, what will happen to this license if it is approved?
Mr. Keough states that the hearing before the Department of Business Regulations does not have any bearing on tonight’s hearing.
Councilor Barry states that the issue before the Board of License Commissioners is an application to transfer a class A liquor license from the current owner to a new owner.
Mr. Milos states that if this license is granted this evening, he will file a motion with the Department of Business Regulation in the morning to dismiss the first appeal. He reaffirms that the previous transfer denial was based on the objections of the neighborhood and not on any association of possible chain store connections.
There are no other speakers.
The Hearing is closed.
THE CHAIR RECOGNIZES COUNCILOR WILDENHAIN.
Upon motion made by Councilor Wildenhain, seconded by Councilor Moran, the following license is APPROVED PENDING THE SETTLEMENT OF ALL OUTSTANDING CLAIMS, on a voice vote:
Councilor Hodge abstains from voting.
CLASS A
PLW-MA, Inc., d/b/a Blackstone Wine & Spirits, (transfer from Gary’s Liquors, Inc., d/b/a Gary’s Liquors), 1179 Central Avenue, LIC#10351
THE CHAIR RECOGNIZES COUNCILOR WILDENHAIN.
With majority consent of the Council, Councilor Wildenhain introduces the following communications:
Upon motion made by Councilor Wildenhain, seconded by Councilor Clemente, the following communications are READ AND ORDERED FILED:
THE CHAIR RECOGNIZES COUNCILOR CLEMENTE.
Upon motion made by Councilor Clemente, seconded by Councilor Moran, the following application is WITHDRAWN WITHOUT PREJUDICE on a unanimous voice vote:
CLASS B (Victualer)
Cretcheu Corp d/b/a Cretcheu Grupo, 593 Weeden Street, (transfer from Rock’s Bar Incorporated, 451 Prospect Street) LIC#10352
Communication from Major Stephen P. Ormerod, to Chief George L. Kelley, III. (Calls for service – Gary’s Liquors, 1179 Central Avenue) is READ AND ORDERED FILED.
THE FOLLOWING LICENSE IS APPROVED ON A UNANIMOUS VOICE VOTE:
Class F –1 (Beer & Wine)
Petition of All Children’s Theatre, to sell beer and wine at a Fundraiser, at Pawtucket Armory, 172 Exchange Street, on Friday, September 23, 2005, from 7:00 p.m. to 9:30 p.m. LIC#156
THE CHAIR RECOGNIZES COUNCILOR MORAN.
With majority consent of the Council, the following motion made by Councilor Moran, seconded by Councilor Vitali, is passed on a unanimous voice vote:
The Clerk is instructed to send a communication to Mark Welsh, Esq., representing Garrity Pub & Restaurant, Inc., requesting, once again, an update on this license as follows.
Opening date.
Number of employees hired; number of Pawtucket residents hired.
Copy of menu.
The Council is requesting the respond for the September 21, 2005, City Council meeting. Also, if the Council does not receive this information for the next meeting, an informal hearing will be scheduled on this license.
Upon motion made by Councilor Moran, seconded by Councilor Vitali, the meeting is adjourned at 8:02 p.m.