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Resolution No. 2021-68 Halo's License Resolution No. 2021-68 Revocation of the On-Sale Intoxicating Liquor License for Halo’s Restaurant Bar and Vero’s Banquet Whereas, Halo’s Restaurant Bar and Vero’s Banquet (Halo’s), a Minnesota limited liability company, currently operates a restaurant at 1040 Osborne Road N.E, Fridley; and Whereas, Halo’s owner, Angel Morocho-Carchi (Licensee), holds an On-Sale Intoxicating Liquor License (License) that was renewed by the City of Fridley (City) effective May 1, 2021; and Whereas, on August 23, 2021, the City Council held a public hearing for the purpose of considering if the City should impose sanctions regarding Mr. Morocho-Carchi’s License due to significant concerns regarding oversight of operations, the safety and security of the City’s residents, Halo’s patrons and staff, and other persons and property within the surrounding area; and Whereas, Morocho-Carchi was provided reasonable notice of the hearing, notice of which was published in the Star Tribune on August 13, 2021; and Whereas, during the hearing, the City Council received evidence relating to Halo’s and afforded Morocho-Carchi an opportunity to provide any testimony and evidence that he wished for the City Council to consider in rendering its decision; and Whereas, since Morocho-Carchi opened Halo’s in November of 2020, there have been numerous incidents related to the establishment that have significantly jeopardized public safety, including, but not limited to a shooting, fights, other criminal activity, and violations of the conditions of the license issued to Morocho-Carchi as further described below; and Whereas, between May and July 2021, Morocho-Carchi admitted that he “stepped away” from operating Halo’s, resulting in unauthorized persons operating under Halo’s License during that period; and Whereas, on May 14, 2021, officers were dispatched to Halo’s for a report of gunfire, received witness testimony that someone had fired several rounds in the south parking lot, and recovered a 9mm shell casing at the scene; and Whereas, on July 11, 2021, officers observed Halo’s patrons consuming alcohol in the parking lot and landscaped locations on the property outside of the licensed premises, Halo’s being open past 1:00 am, and an individual urinating on the side of the building, additionally officers from the Fridley Police Department and the Spring Park Police Department responded to a report of 20 people fighting in the parking lot – a fight that spilled over into the parking lot of the Minnoco next door, damaging vehicles in the Minnoco parking lot; and Resolution No. 2021-68 Page 2 Whereas, security personnel employed to work at Halo’s were on-site but ineffective in addressing the incidents that occurred on May 14, 2021, and July 11, 2021; and Whereas, after the July 11, 2021, incidents, staff attempted to contact Morocho-Carchi via phone, but the voicemail box was not set-up, and email, but no response was received from Morocho- Carchi until staff received voicemails from Morocho-Carchi and his attorney on July 23, 2021, requesting to meet with city staff – a meeting was scheduled for July 30, 2021; and Whereas, on July 21, 2021, staff received a phone call from an individual, Jonathan Hernandez, who identified himself as the Event Manager for Halo’s, despite having no Managerial License on file with the City, as required by City Code, and Hernandez also informed the City that Morocho- Carchi had stepped away from operating Halo’s; and Whereas, staff informed Hernandez that since Morocho-Carchi was not operating the business in accordance with the terms of the license that Halo’s was not allowed to sell liquor, staff then received a message from Morocho-Carchi’s sister, Gaby, who claimed that she and another individual, Jose, were operating Halo’s while Morocho-Carchi was on vacation for 2-3 more weeks and that Hernandez had been terminated for disclosing to staff that Morocho-Carchi had stepped away from operating Halo’s; and Whereas, staff met with Morocho-Carchi and his attorney on July 30, 2021 and at the meeting Morocho-Carchi admitted that he had stepped away from the business in early May 2021, acknowledged he understood the terms of the license, provided that other employees and family members had been operating Halo’s during his absence, and that Halo’s had not been operated in a manner that complied with Chapter 603 of the Fridley City Code or the additional license conditions approved by the City Council; and Whereas, the ownership and management of Halo’s has not maintained control of security measures, and appears unable to successfully operate a safe and secure environment for the dispensing of alcohol; and Whereas, the Minnesota Supreme Court has recognized that there is no property right in a liquor license and, therefore, municipalities have broad discretion to determine the manner in which liquor licenses are issued, regulated, and revoked; and Whereas, Minnesota Statutes § 340A.415 authorizes the City to revoke an On-Sale Liquor License on a finding that the license holder has failed to comply with any applicable statute, rule, or ordinance relating to alcoholic beverages or the operation of the licensed establishment; and Whereas, the City has documented numerous violations of the City Code including violations of the following specific provisions:  603.02 - No person, except wholesalers or manufacturers to the extent authorized under State License, shall directly or indirectly deal in, sell, or keep for sale any intoxicating liquor without first having received a license to do so as provided in this Chapter. Resolution No. 2021-68 Page 3  603.02 - No person shall sell any intoxicating liquor after 1:00 a.m. without obtaining a special Late Night License Endorsement for an existing liquor license as provided in this Chapter.  603.10, subd. 2. - Licensees shall be responsible for the conduct of their place of business and the conditions of sobriety and order in the place of business and on the premises.  603.10, Subd. 4. - No license shall be effective beyond the space named in the license for which it was granted  603.10, subd. 16. - Changes in the corporate or association officers, corporate charter, articles of incorporation, by-laws, or partnership agreement, as the case may be, shall be submitted to the City Clerk within 30 days after such changes are made. Notwithstanding the definition of interest as given in Section 603.08, in the case of a corporation, the licensee shall notify the City Clerk when a person not listed in the application acquires an interest which, together with that of spouse, parent, brother, sister, or child, exceeds 5%, and shall give all information about said person as is required of a person pursuant to the provisions of Section 603.03.3.  603.11, subd. 1. - No sale of intoxicating liquor for consumption on the licensed premises may be made between 1:00 a.m. and 8:00 a.m. on the days of Monday through Sunday.  603.11, subd. 2. - It shall be unlawful for any persons or customers, other than the licensees or their employees to remain on the premises after 1:30 a.m. There shall be no consumption by any persons, including the licensees and their employees, after 1:30 a.m.  603.20, subd. 1. - No person shall work as a manager of a premises licensed under this Chapter, and no licensee shall permit any such person to be so employed, unless such person, within seven days after first being so employed, shall apply for a license to engage in such business. No persons may be so employed for any length of time if their license is denied or revoked.  603.26, subd. 1. - The sale of alcoholic beverages pursuant to any of the licenses issued in accordance with Chapters 602, 603 or 606 of the Code, with the exception of a temporary license, will be limited to the sale and consumption inside of a structure on the licensed premises, unless the licensee applies for and receives approval from the City Council for a Patio Endorsement to allow the sale and consumption outside of a structure on the licensed premises; and Whereas, the City has documented the following violation of the additional conditions imposed by the City Council on Halo’s liquor license:  Close by 1:00 a.m., regardless of the day of week;  The safety of patrons, staff, and the community shall be the top priority of management, staff, and contracted personnel;  The establishment shall employ staff and/or contracted personnel who are capable of maintaining a safe and welcoming environment for everyone;  Staffing shall be sufficient to provide control of patrons and guests at all times;  Staff and/or contracted personnel shall be responsible for the activities of patrons and guests while on the Halo’s property;  Attention shall be paid to activities occurring in the parking lot to discourage loitering, public urination, drinking, drug use, or violence; Resolution No. 2021-68 Page 4  The conduct of Halo’s patrons and guests shall not negatively impact surrounding businesses, residences, or public property;  Licensee shall not advertise itself as a “nightclub” or hold events common to such venue at which liquor will be sold; and Whereas, allowing Morocho-Carchi to maintain Halo’s On-Sale Intoxicating Liquor License would permit the continuation of a significant risk to public health and safety. Now therefore, be it resolved by the City Council of the City of Fridley, Minnesota, as follows: 1. The recitals outlined above are hereby adopted by the City Council as factual findings and are fully incorporated herein. 2. The On-Sale Intoxicating Liquor License held by Angel Morocho-Carchi for Halo’s Restaurant Bar and Vero’s Banquet, 1040 Osborne Road N.E., Fridley, Minnesota 55432 is hereby revoked, effective immediately. Passed and adopted by the City Council of the City of Fridley this 23rd day of August 2021. _________________________________________ Scott J. Lund – Mayor ATTEST: ________________________________ Daniel Tienter – City Clerk