Title
Directing the Department of Safety and Inspections to proceed with the Denial of the Liquor On Sale-181-290 seats and Entertainment (B) License and adverse action against Pupraya Thai Restaurant LLC d/b/a Pupraya Thai Restaurant LLC (License ID #20220001254) for the premises located at 945 Rice St Unit A.
Body
WHEREAS, the Liquor On Sale-181-290 seats and Entertainment (B) license application submitted by Pupraya Thai Restaurant LLC d/b/a Pupraya Thai Restaurant LLC (“Pupraya Thai Restaurant LLC”) under License ID #2022001254 for the premises located at 945 Rice St Unit A, Saint Paul, MN 55117 (“Premises”), which is owned by Bee Yang is subject to a Notice of Intent to Deny License (Notice”) in which the Department of Safety and Inspections (“Department”) provided notice to the Applicant of its intent to deny license and move forward with adverse action supported by Saint Paul Legislative Code 310.03(a); and
WHEREAS, on May 31, 2022, the Applicant submitted a Class “N” License Application for a Liquor On Sale-181-290 seats and Entertainment (B) license.
WHEREAS, on September 29, 2022, DSI Inspector, Ross Haddow sent the Applicant a letter to inform them that their application is in the process of being reviewed. The Applicant was advised to submit missing documents to the Department of Safety and Inspections in order for the application to be processed. The requested documents were the State of Minnesota AGED documents, a copy of the Business Purchase Agreement, Notarized Personal Affidavit, Personal Taxes over the last 3 years, and a copy of the Liquor Liability Insurance certificate.
WHEREAS, on January 8, 2025, DSI Inspector, Jeff Fischbach sent the Applicant a letter informing them their application had been pending since July 28, 2022, and the Department of Safety and Inspections had no record of any further communication from the Applicant involving the pending license application. It also stated that due to the length of time since the application was submitted and the subsequent inactivity, DSI was no longer able to continue processing the license application.
WHEREAS, The Applicant was given a deadline of January 31, 2025, to either complete and return a Request to Withdraw/Request for Refund form to DSI and receive a refund of 75% of the license application fee or the Applicant could do nothing and DSI would begin adverse action with the recommendation that the City Council deny the license application.
WHEREAS, on January 8, 2025, DSI Inspector, Jeff Fischbach sent an email to the Applicant at beeyang90@yahoo.com enclosing the January 8, 2025, letter that was previously mailed to the Applicant. The email advised that action was required by January 31, 2025.
WHEREAS, the Notice laid out the basis for adverse action and the Legislative Code upon which the Department was relying as follows:
Saint Paul Legislative Code §310.01, defines Adverse Action as: “the revocation or suspension of a license, the imposition of conditions upon a license, the denial of an application of the grant, issuance or renewal of a license, the imposition of a fine, the assessment of the costs of a contested hearing, and any other disciplinary or unfavorable action taken with respect to a license, Licensee or applicant for a license. “Adverse action” includes any of the foregoing directed at one (1) or more licenses held by a Licensee at any location in the city. “Adverse action” also includes disapproval of licenses issued by the state under statutory provisions which permit the governing body to disapprove the issuance of the license.”
Saint Paul Legislative Code §310.02 (2)(a)1 states:
(2) Class N Licenses.
(1) Form. All applications for a Class N License issued pursuant to these chapters will make both original and renewal applications to the director on such forms as are provided by the department. Such applications will not be received by the director until the director seems the application meets the substantially complete criteria. Subsequently, issuance of a license cannot occur until insurance policies, bonds, deposits, sureties, and indemnifications or certificates required by these chapters, together with the certification required in paragraph 2 below are received and approved.
Saint Paul Legislative Code §310.02 (3)(a)4 states:
(4) Additional Information. The director will prescribe the information required to be submitted by each applicant in their application, in addition to that required by specific sections in these chapters, as may be necessary to carry out and enforce any provision hereunder. The director will require in every case the applicant to submit their name; business or corporate name; names of partners, officers, directors, shareholders, or trustees involved in the business; age; address; description or blueprint of the premises, if any, and the owner thereof, and locations and addresses of other business locations in Minnesota.
Saint Paul Legislative Code §310.02 (2)(c)1 states:
(c) Application denial.
1. Denial of a Class N License application is adverse action and the procedures for notice and hearing outlined in Saint Paul Legislative Code Section 310.03 must be followed.
Saint Paul Legislative Code §310.03(a) states:
(a) Adverse action; notice and hearing requirements. In any case where the council may or intends to consider any adverse action, including the revocation or suspension of a license, the imposition of conditions upon a license, or the denial of an application for the grant, issuance or renewal of a license, or the disapproval of a license issued by the State of Minnesota, the applicant or licensee must be given notice and an opportunity to be heard as provided herein. The council may consider such adverse actions when recommended by the director, by the director of any executive department established pursuant to Chapter 9 of the Charter, by the city attorney or on its own initiative.
Saint Paul Legislative Code §409.06(a) states:
(a) Application. In accordance with Saint Paul Legislative Code Section 310.02(2)(a) and Minnesota Statute 340A.412, Subd. 2a. Any person desiring a license to sell intoxicating liquor must make their verified application in writing upon a form prescribed by the liquor control commissioner of the state and with any additional information as the City requires.
Minnesota State Statute 340A.412, Subd. 2(a)
Subd. 2. Investigation of on-sale licenses.
(a) The city or county having jurisdiction over on-sale licenses to sell intoxicating liquor shall on initial application for an on-sale license or on application for a transfer of an existing license conduct a preliminary background and financial investigation of the applicant. The application must be in the form prescribed by the commissioner and with any additional information as the governing body of the city or county having jurisdiction over the license requires. If the governing body of the city or county having jurisdiction determines or if the commissioner on the commissioner’s own initiative determines that a comprehensive background and investigation of the applicant is necessary, the governing body may conduct the investigation itself or contract with the commissioner for the investigation. In addition, an investigation may be required prior to renewal of an existing on-sale license when the governing body of the city or county deems it in the public interest. An investigation fee not to exceed $500 shall be charged an applicant by the city or county if the investigation is conducted within the state, of the actual cost not to exceed $10,000 if the investigation is required outside the state.
WHEREAS, the Department of Safety and Inspections recommended a denial of the license application; and
WHEREAS, the Notice laid out options for the Applicant:
“You have five (5) options on how to proceed:
1. If I have not heard from you by March 7, 2025, I will presume that you have chosen not to contest the proposed adverse action, and the matter will be placed on the City Council Consent agenda for approval of the proposed remedy and denial of your license application.
2. Submit the required information requested to the Department of Safety and Inspections (DSI) located at 375 Jackson Street, Ste. 220, St. Paul, Minnesota 55101-1806 no later than March 7, 2025.
3. If you wish to admit the facts but you contest the penalty, you may have a hearing before the Saint Paul City Council. You will need to send me a letter with a statement admitting to the facts and requesting a public hearing no later than March 7, 2025. The matter will then be scheduled before the City Council to determine whether or not your Liquor On Sale-181-290 seats and Entertainment (B) license applications should be denied. You will have an opportunity to appear before the City Council and make a statement on your own behalf.
4. If you dispute the facts outlined above, you may request a hearing before an Administrative Law Judge (“ALJ”). You will need to send me a letter disputing the facts and requesting an administrative hearing no later than March 7, 2025. At that hearing both you and the City will appear and present witnesses, evidence and cross-examine each other’s witnesses. After receipt of the ALJ’s report (usually within 30 days), a hearing will need to be scheduled before the City Council. At that time, the City Council will decide whether to adopt, modify or reject the ALJ’s report and recommendation.
5. You can withdraw your Liquor On Sale-181-290 seats and Entertainment (B) license application. Complete and return the attached REQUEST TO WITHDRAW REQUEST FOR REFUND form to the Department of Safety and Inspections (DSI), located at 375 Jackson Street, Ste. 220, St. Paul, Minnesota 55101-1806 no later than March 7, 2025.”
WHEREAS, the Notice was sent to the Applicant on February 25, 2025, providing that the Applicant respond by March 7, 2025, (Exhibit #1), on whether they contest the proposed adverse action; and
WHEREAS, on March 11, 2025, the City Attorney’s Office contacted the Department of Safety and Inspections to confirm whether the requested missing documents had been received and was informed that they have not heard from the Applicant; and
WHEREAS, the Notice stated if the Applicant failed to contest to the denial of the license application, that the matter would be placed on the City Council Agenda to impose the recommended penalty; now, therefore, be it
RESOLVED, the Liquor On Sale-181-290 seats and Entertainment (B) license application submitted by Pupraya Thai Restaurant LLC d/b/a Pupraya Thai Restaurant LLC (License ID #20220001254) for the premises located at 945 Rice St Unit A, in Saint Paul is hereby to deny the license since the Applicant did not provide the requested missing documents the Department of Safety and Inspections in violation of Saint Paul Legislative Code §310.01, §310.02 (2)(a)1, §310.02 (3)(a)4, §310.02 (2)(c)1, §310.03(a), §409.06(a), and Minnesota State Statute 340A.412, Subd. 2(a).