August 7 ,2012

Minneapolis
City of Lakes

NOTICE OF ADVERSE LICENSE ACTION

James Beamon Grand Group Entertainment 400 1tt Avenue North, #XzA Minneapolis, MN 55401

Regulatory Services Department

Licenses & ConsumerServlces Division
350 Soulh 5lh Stlsel - Room lC Minneapolis MN 55415-1391

Olfice 612

673-2080

Dear Mr. Beamon;

Fax 612 673-3399 TTY 612 673-2157

This notice is being issued to advise you that the Regulatory Services Department is making a recommendation to the Minneapolis City Council that the following licenses held by Grand Group Entertainment be revoked:
L178-50142 - On Sale Liquor Class A, Sunday Sales license, and 2:00 a.m' endorsement for EnvY Nightclub.

This recommendation is based upon the following factors, which indicates that continued operation of the establishment is not in ihe publie's interest:

l.

A liquor violation of Minnesota State Statute 340A.502 allowing intoxicated persons on the premises. This is a violation $nder Mlnnesota State Statue 340A.415, Gauses for revocation.

1.

On Wednesday, February 15,2012 an obviously intoxicated customer of Envy was fighting inside the establishment, The fight continued outside of the establishment where Minneapolis Police Officers intervened. The customer assaulted a Minneapolis Police Officer. Minneapolis Police Repod 12044391 documented the incident'

!1. A liquor violatisn of lHinnesota $tate Statute 340A.504 Subd.3 and Minneapolis Ordinance 364'S0 {c} any On $ale Liquor establishment open on sundays must. provide prepared food for consumption sn the premises. This is a violation under Minnesota $tate statue 340A.4'15, causes for revocation.

'

1.

On Sunday, June 12,2Ai1 Susan Beamon, minority owner of Grand Group Entertainment inc', represented herself to irliinneapolis Police officers and licensing staff as the owner of Envy while the business was iicensed under Degrees ot

wvw.ci.minnaapclis.mn-us

Altirmalivs Aclion Employer

' sellfood on Sunday. Violation

Entertainment lnc. Ms. Beamon reported that Envy does not 11-0840215 was issued' On Sunday, July 22,20121he licensee.was in violation of the Sunday food sale requirement. Citation 12-0931271 was issued. This citation has not been paid.

2.

ilt.

Eight violations of Minneapolis Code of Ordinances (MCO) Chapter 259.250 (9), responsibility to comply with conditions of license. This establishment has business licensing conditions that were approved by the Minneapolis City council on August 5, 2011. The Minneapolis city council also approved a license settlement conference on February 10, _ ZOtZ wittr additional conditions. On August7,2012 notice 120935108 was issued, stating.the stayed amount of the penalty for the license settlement conference is due.

1.

On Sunday, Septemb er 4,2011 the licensee violated conditions #1, #3 and #9. The details of the violations are as follows: a. Failure to adequately utilize security staff to prevent criminal activity (marijuana smoking) in the bathrooms. b. Failure to adequately utilize security staff to ensure a clear walkway on the dance floor. c. Failure to adequately utilize security staff to preyent patrons and others from loitering on the public sidewalk. d. Patrons without wristbands were observed in areas of the premises where alcohol was belng served. e. Licensee did not provide a "do not admit" list. Citation 11'0868045 was issued for $200. The citation was appealed. The appealwas heard by Administrative hearing officer James Gurovitsch. The citation was upheld. This citation has been Paid.

2. On Sunday, February 2A,2}12the licensee violated condition

#1 by failing to request police and medicai services for an employee that was assaulted b)t a customer' The empioyee walked to ihe First Frecinci to reporl tire incident. Minneapolis Police Report 12-049793 documents the incident.
Qn Saturday, March 10,2a12the licensee violatecj conciition #1 by failing to request police and medicai seruices for a eustomqr that rruas assaulted by an empioitee. The custarner walked to the First Preeinct io report the incident. Minneapolis Poiice Report 12-069703 dacuments the incident.

3.

4. On Sunday, July 29,2}12the licensee violated condition #1 by failing to employ Minneapolis police officers. Later that evening an event occured at the establishment that required police services from on duty officers. Minneapolis police correspondence documents the incident. Violation notice 120933623 was issued

On Sunday, July 8,2A12the licensee violated condition #3 by and failed io noiity the Police Department at least 72 hours in advance of events wheie persons between the ages of 1B and 20 years of age would be admitted. Minneapolis police correspondence documents this incident'
6.

on wednesday, August 1,2}12the licensee violated condition

#1 by failing to appear to a scheduled license settlement conference. Minneapolis Police lnspctor Eddie Frizell, Lt chris Hildreth, Manger Grant Wilson, District supervisor Linda Roberts, lnspector Craig Eliason, and City Attorney Joel Fussy were in attendance. Citation 12-0933600 was issued. The citation has not been paid.

7. On Wednesday, August 1,2012 a record request 12-0933475

was sent to provide documentation of compliance with condition #8 requiring annualalcohol service training. The due date of the request was August 4,2012. Citation 12-0933475 was issued on August 7 ,2012 when no response was received. The citation has not been Paid,
On Wednesday, August 1,2Q12 a record request 12-0933453 was sent to provide documentation of compliance with condition # requiring video surveillance tape for Sunday, July 29, 2012. The due date of the request was August 4,2A12Citation 12-0933453 was issued. The citation has not been paid.

tv.

A violation of MCO 259.250 t2lthat requlres licensee to maintain and operate the businese in compliance with all laws; nnCO 259"250 {4} that requires the lieeneee to provide adequate security to prevent crirninal activity, loitering, lurking and disorderly csnduct sn the business prer*ises, including parking area$ and MCO ?59.250{{i{,!}, Minnesota Statutes, $ections 609.74 and 6G$.?45, which prohibit publie nuisance and Bermltting a pubiie nuisance.

1.

on August 2g, 2011 an assault involving a 20 year old occurred inside Envy involving glassware used as a weapon' Minneapolis police RJport 11.251610 documented the incident' An advisory notice 11-0864619 was sent to the licensee requesting how they responded to the incident. The business
did not respond.

2. On August

23,2011 a fight occurred on the sidewalk in the front eitrance of Envy. Minneapolis Police Report 11-251597 documented the incident. An pdvisory notice 11-0865877 was sent to the licensee requesting how they responded to the incident. The business did not respond. A license settlement conference was held on September 7, 2011 to address the nuisance anil safety concerns due to a lack of adequate
security and not promptly responding to business licensing concerns.

3. On Sunday; July 8,2}12the licensee was in violation when Minneapolis poiice officers and License inspectors observed marijuana smoke in the establishment which was pervasive neaithe VIP area. Minneapolis Police Report 12-211637 documented the incident. Violation notice 12-0927611 was issued. 4. on July 20,2012the licensee was in violation of Minneapolis Ordinahce 362.90 when a nonsufficient check was submitted for payment of second half license fee. Violation notice 12OgiOlaZ was issued. The licensee responded by remitting payment with a cashier's check'
5. This Lieensee has operated this business since May 2011'

since January 2012 there have been at least 12 police reports of crimes ranging from thefts to aggravaied robberies of person that can be attributed to the business.
licensee regarding eriminal incidents that can be attributed to ' the business. These advisory notices requested a iesponse from the licensee that detailed iheir actions taken to address ihe crlminal incidenis. The licensee has responded to 1 of the 5 acivisory notices.

+-

b. There have been a totai of 5 advisory notices sent to the

This matier has been referred io the fulinneapclis Citv Attorney for adverse license action. Adverse license hearings take piace before an administrative

law judge or the Minneapolis City Council. Adverse license action includes, but is not limiteO to, revocation or denial of the renewal oJ your business license, suspension, administrative fines, or additional business license. , operating conditions. You may consider the following options in regard to the adverse license hearing:

Surrender your business license and close the business. An agreemenimay be reached regarding the date your license is to be surrendered and any applicable license fee refund; 2. You may stipulate tliatihe violations presented above did occur and allow the Minneapolis City Councilto determine if any adverse license action should be taken, or 3. You may opt to have the entire case presented to an administrative law judge for an evidentiary hearing. The Minneapolis City Council wouid still determine if any adverse license action should be taken upon receiving the report and recommendation from the Administrative Law Judge,
1.

please contact Business License District Supervisor, Linda Roberts at612' 673-3908 regarding your decision about the options listed above' lf you would like to requeif copies of police reports, you may contact Sargent' Stephen McCarty a|612-673-3588. lf we do not get a response by August judge for an 27 ,2012, this mitter will be referred to an administrative law evidentiary hearing.

d,t^Licensing Regulatory Services DePartment

Cc:

Noah Schuchrnan, Director Jcel Fussy, Assistant Minneapolis Ciiy Attorney Susan Beamon, Grand Grorrp F-ntertainment

4
Minneapolis
City ol Lakes

August 7,2012

NOTICE OF ADVERSE LICENSE ACTION

Regulatory Services

lnception Entertainment LLC Deepak Nath Licenses &. consumerservlces 323 1" Avenue North Divislon Minneapolis, MN SS401
350 South 5lh Sl]est Minneapolis MN

Department
Room lC

5s415-13e1 Deaf

fr.tlf.

Nath;

Of,ics 612 673-2080 Fax 6t2 623-33es

TTY 612

This notice is being issued to advise you that the Regulatory Services 673'2157 Department is making a recommendation to the Minneapolis City Council that the following licenses held by lnception Entertainment LLC be revoked:
L198 50113-On Sale Liquor Class A, Sunday Sales license, and 2:00 a.m. endorsement for Bootleg gers. L022 50992-Tobacco Dealer license for Bootleggers.

This recommendation is based upon the following factors, which indicates that continued operation of the establishment is not in the public's interest:

l.

A liquor violation of Minnesota State Statute 340A'502 atlowing intoxicated persons on the prernises. This is a violation under Minnesota State Statue 340A.415, causes for revocation.

1.

On April 1,2012the licensee was in vislation by admitting., serving and allowing an obviously intoxicate patron on the premises. Minneapolis Police Report fi-AAA129 documents the violation.

ll.

A liquor violation of Minnesota State Statute 340A.504 and Minneapolis Ordinance 364'8CI for hours and days of sa!e. This is a violation under Minnesota $tate Statue 340A.415, eauses for revocation.

1.

On fr4ay 28,2}72the iicensee was in violation by failing to rernove alcohollc beverages from the tables and ailowed patrons to consLlrne alcohoiic L'everages after 2:30 a.m. Minneapolis Poliee Report 12-i61463 documents this viotation Citaticn 12-0933675 was issued. Citation has not been paici'

www.ci.minneapr:iis.nn. us

Af{imativ6 Acticn Employer

2.

On June 28,2012the licensee was in violation by serving alcohol after 2:00 a.m. Minneapolis Police Report 12-198764 documents this violation. citation 12-0933763 was issued. Citation has not been Paid.

lll.

A violation of Minneapolis Ordinance 362.330(a) Change of Shareholders and Minneapolis Ordinance 362.120(o) Unknown Manager

1.

Since May 2012the licensee admitted that susan Beamon, minority owner of Envy, was allowed to make day to day- . operatihg decisions as a manager and potential owner of the establishment. Violation notice 1'2-a929438 was issued. Business Licensing has gathered significant evidence that demonstrates Susin Beimon being the primary decision maker for the business operations. citationl2-0929438 was issued. The citation has not been Paid'

lV.

A violation of Mihneapolis Ordinance 259'151360'140 Fees and Fines. Minneapotis ordinance 259.15/360.140 state that unpaid fee and flnes are causes for revocation.

1.

City records show that the licensee owes $1,500 in false alarm fees. Violation notice 12-0934282 was issued for $600 in false alarm fees,

This rnatter has been referred to the Minneapolis Gity Attorney for adverse license action. Adverse license hearings take place before an administratiVe law judge or the Minneapolis City Councii. Adverse license action includes, but is not timiteO to, revocation or denial of renewal of your'business license, suspension, administrative fines, or additional business license operating conditions. You may consider the following options in regard to the adverse license hearing:

1. 2.

3.

Surrender your business license and close the business. An agreernenirnay be reached regarding the date your license is to be surrendered and any applieahle lieense fee refund; you may stipulate that the violations presented above did occur and ailerw the Minneapolis City Council to determine if any adverse license action should be taken, or you may opt to have the entire case presenied to an adrninistrative law judge for an evldentiary hearing. Tlie Minneapolis Cliy Councll would stili deterrnine if any advei'se iicense aeiion should be taken upon receiving the report and recominendaiicn frcm the Administrative Law Judge'

Please contact Business License District Supervisor, Linda Roberts at612673-3908 regarding your decision about the options listed above. lf we do not get a response by August 20,2A12, this matter will be referred to an administrative law judge for an evidentiary hearing. lf you would like to request copies of police reports, you may contact Sargent Stephen McCarty a|612-673-3588.

Sincerelv.

. Business Licensing

c\d,

/\4^{-tIth-'
wilson, Manager
Noah Schuchman, Director Joel Fussy, Assistant Minneapolis City Attorney Susan Beamon, Grand Group Entertainment

#
n

\^n

Regulatory Services DePartment

Cc: