Title
Directing the Department of Safety and Inspections to proceed with the $500 matrix penalty and license suspension adverse action against KJ’S Hideaway LLC Inc. d/b/a KJ’S Hideaway, (License ID #20210001046) for the premises located at 408 St. Peter Street.
Body
WHEREAS, the Liquor On Sale - 101-180 Seats, Entertainment (B) and Liquor On Sale Sunday license (“License”) held by KJ’S Hideaway LLC Inc. d/b/a KJ’S Hideaway under License ID #20210001046 for the premises located at 408 ST Peter Street., in Saint Paul (“Licensed Premises”), which is owned by Jeremy Siers was the subject of adverse action pursuant to an October 16, 2024, Notice of Violation and Request for Imposition of $500 Matrix Penalty and License Suspension (Notice”) in which the Department of Safety and Inspections (“Department”) provided notice to the Licensee of its intent to suspend license until licensee renewed their license, paid the fee payment to renew license, and submitted the supporting documents required, and move forward with adverse action supported by Saint Paul Legislative Code §310.03; and
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: “Form. All applicants 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 deems the application meets the substantially complete criteria…”
Saint Paul Legislative Code §310.02 (2)(e)(3) states: “Revocation or suspension. If the director determines that the application for renewal does not meet all of the requirements of law or that there exist no grounds for revocation or suspension of a Class N License, the director must follow the hearing procedures as outlined in Saint Paul Legislative Code §310.03.”
Saint Paul Legislative Code §310.03 states: “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, of the disapproval of a license issues by the State of Minnesota, the applicant or licensee must be given notice and an opportunity to be heard 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 §310.03(m) states: a presumptive penalty of $500 for a first-time
violation of a provision of the legislative code related to the licensed activity.
Saint Paul Legislative Code §310.03 (a)(m)1(8) states: Failure to pay license fees can lead to a the suspension of a license for a first time violation and revocation of a license for a second violation.
Saint Paul Legislative Code §310.03 (m)2(10) states: Failure to make application for license renewal prior to license expiration date for a first violation is $500.00.
Saint Paul Legislative Code § 409.05(a) states: “Term. All licenses for the sale of intoxicating liquor are be for a term of one (1) year from the date of issuance or renewal, except as provided herein. The date shall be determined by the inspector and entered upon the license.”
Saint Paul Legislative Code § 409.05(b) states: “License fees, on-sale; semiannual installments. The fees required for licenses is be established by ordinance as specified in section 310.01 of the Legislative Code. Said sum must be paid in two (2) equal amounts, the first to be paid before the license is issued or renewed, the second payment to be made within six (6) months from the date of the issuance or renewal.”
Saint Paul Legislative Code § 409.06(j)(1) states: “An on-sale license renewal may be denied for any license who is delinquent in any payment or contribution to a health and welfare trust or pension trust.”
Saint Paul Legislative Code § 409.065 states: “No license under this chapter may be issued, maintained, or renewed unless the licensee or applicant therefor complies with the insurance requirements imposed by Minn. Stat. §340A.409. Such insurance coverage must comply with the requirements of Minn. Stat. §340A.409 and Chapters 7 and 8 of this Legislative Code.”
WHEREAS, the Licensee had failed to provide required information, the Department of Safety and Inspections will recommend a $500 matrix penalty and license suspension of the Liquor On Sale - 101-180 Seats, Entertainment (B) and Liquor On Sale Sunday license application based on violation to Saint Paul Legislative Code §310.02(2)(a)1, §310.02(e)(3), §310.03(m), §310.03 (a)(m)1(8), §310.03 (m)2(10), §409.05(a), 409.05(b), §409.06(j)(1), and § 409.065.
WHEREAS, the Department of Safety and Inspections recommended a $500 matrix penalty and license suspension; and
WHEREAS, the Notice laid out options for the Licensee:
“You have four (4) options on how to proceed:
1. If you do not contest the imposition of the proposed adverse action, you may do nothing. If I have not heard from you by October 28, 2024, 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 imposition of the $500 matrix penalty and suspension of your License.
2. You can complete the renewal process including payment of the renewal fee and vehicle inspections. If this is your choice, you should make payment directly to the Department of Safety and Inspections, at 375 Jackson Street, Ste. 220, St. Paul, Minnesota 55101-1806 no later than October 28, 2024. Please contact the Department immediately.
3. If you wish to admit the facts but you contest the $500 matrix penalty and suspension of your License, 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 Council hearing no later than October 28, 2024. The matter will then be scheduled before the City Council to determine whether to impose the $500 matrix penalty and License suspension. You will have an opportunity to appear before the 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 October 28, 2024. 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. At that time, the City Council will decide whether to adopt, modify or reject the ALJ’s report and recommendation.
WHEREAS, the Notice was sent to the licensee on October 16, 2024, providing that you respond by October 28, 2024, on whether you contest the proposed adverse action; and
WHEREAS, on November 5, 2024, the City Attorney’s Office contacted the Department of Safety and Inspections to confirm whether the requested documents had been received and was informed that they have not heard from the Licensee/or received the requested documents.
WHEREAS, the Notice stated if the Licensee 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 - 101-180 Seats, Entertainment (B) and Liquor On Sale Sunday license held by KJ’S Hideaway LLC Inc. d/b/a KJ’S Hideaway, (License ID #20210001046) for the premises located at 408 ST Peter Street., Saint Paul, MN 55102 is hereby ordered to pay imposed the $500 penalty fee and suspension of license, and complete the renewal process and provide required documents to the Department of Safety and Inspections in violation of Saint Paul Legislative §310.02(2)(a)1, §310.02(e)(3), §310.03(m), §310.03 (a)(m)1(8), §310.03 (m)2(10), §409.05(a), 409.05(b), §409.06(j)(1), and § 409.065.