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Boards & Commissions Supporting Documents - 03/08/2011 - Board of TrusteesFOUNZN AGENDA ITEM Regular Board of Trustees Meeting of March 8, 2011 SUBJECT: Update on Sky Bar Issues FROM: David Niemeyer, Village Manager BUDGET SOURCE/BUDGET IMPACT: N/A MOTION: N/A ITEM lo.G. 0 JOU -10il Lilftl KIlto'i I Backeround/Historv: I would like to give the Board an update on the issues related to the Sky Bar that was discussed at the February 28th Special meeting with the Homeowners Assocation Presidents. Attorney Sterk and I met with Reggie Benjamin and Iwana Burnat yesterday. We told them of the concerns expressed in the community about some of the lewd advertising that has appeared on their website and newspapers advertising their business. They agreed to stop this type of advertising. It is important to remember that we have never found evidence of any illegal activity in the establishment despite 43 police checks on the facility in the past year (compared to,three for Tuscany's). Also, the floor plan that was submitted at the time their building permit was approved last year does not match the current layout of the establishment. The current floor plan has more bar stools and a couch than the approved plan. They have agreed to change the floor plan to conform with the approved plan. In addition, the Fire Department received notification that the Sky Bar's fire alarm will be shut off on March 16, 2011 if they don't pay their alarm bill., They have agreed to get this issue resolved by that date. Also, after further investigation of the liquor license after Monday's meeting, staff has determined that we issued them an incorrect liquor license classification. The previous operators of the facility had operated this facility as predominantly a restaurant, which is an A -I license. I visited the establishment this week and it is clear that the establishment is actually more of a lounge that also serves food. Therefore, they should be under the A -3 category (tavem/lounge). I met with staff to review how the A -1 license was issued. The change from a restaurant to a lounge is an unusual situation in Oak Brook. With one exception (York Tavern), all of our other .. Oak Brook establishments are restaurants with a lounge area. It may be the first time we have encountered a switch in the type of license category required. To determine whether an establishment qualifies for a restaurant license, Village code requires that applicants must give us a floor plan that shows restaurant seating is 3.5 to 1 compared to bar seating. The plan we reviewed last year for the Sky Bar did show that. However, we do not have a process in place to physically verify whether a floor plan we receive actually matches the floor plan in existence, or whether an establishment is actually a restaurant or lounge. As a result of this, we have instituted new procedures to verify whether an establishment's written floor plan actually matches the actual plan. Community Development will now have to initial each liquor license application saying that they have approved the floor plan and physically inspected the facility and determine whether it was predominantly a restaurant or a bar. There will also be a similar check when the license is renewed annually. In terms of the Sky Bar, they will have to get Board approval to receive an A -3 license when their current license expires on June 30'x'. Their other alternative would be to change the establishment to primarily a restaurant, which would not require Board approval. The Board does not actually approve licenses for individual establishments, the Liquor Commissioner does. The Board only approves changes to the number of licenses in a particular classification. Recommendation: N/A