Local Licensing Authority Minutes 2000 11 27

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Louisville Local Licensing Authority Meeting Date: November 27, 2000 Page 8 Member Turner asked Mr. Davis if he admitted that some of their sales tax payments had been delinquent. Mr. Davis agreed that some payments had been late and that they received a serious blow to their business in May when the transfer application was denied, and that their sales in June and July were over fifty percent off. Mr. Davis continued that they paid over $13,000 in taxes August 1, 2000 and that it took seven weeks after the new license was granted to gain back business they had lost. Again Mr. Davis said they are struggling to make ends meet, that they are a new business, that they took out a $110,000 loan when they bought the business in March of 1999 and that the loan will be paid off in May of 2001. He stated that they had an aggressive plan but that when the relationship with the former owner went bad, they had many financial burdens, including change of d6cor and advertising. Mr. Davis stated that they will make $80,000 less this year than in their first year. Vice Chairperson Lipton called for closing comments. Special Prosecutor Steve Barnett addressed the Authority, and submitted to members that the basis for the show cause hearing, the statutory requirements of sales tax payments by the licensee, had been met and that evidence of this violation is contained in the affidavit of Agent Douglas C. Kowalis and by the licensee's own admissions. Attorney Barnett stated that there were many confusing issues discussed, some of which pertain to the time period prior to issuance of the new liquor license. Barnett clarified that the scope of the Order to Show Cause, and his subsequent investigation, relate specifically to the payment record of the licensee after the granting of their hotel and restaurant license on July 31, 2000. In closing, Attorney Barnett stated that it was up to the Authority to determine what sanctions, if any, should be imposed against the licensee. Vice Chairperson Lipton asked the licensee if they had any closing statements. Mr. Davis stated that he hoped the Authority would bear with them for the next six months and that they hope to become a viable and successful business partner in the community. Member Kimmett asked if the sales tax for October had been submitted by the due date of November 20, 2000. Mr. Davis responded the October payment had been made personally to Agent Kowalis last week. Vice Chairperson Lipton asked if there were any further matters to be considered. Hearing none, Vice Chairperson Lipton closed the hearing. Vice Chairperson Lipton moved that the Authority go into executive session solely for the purpose of consulting with the Authority Attorney with respect to pending litigation. Member Jeffers seconded the motion. Roll Call Vote: Jeffers - yes, Evans - yes, Turner - yes, Lipton - yes, Kimmett - yes. All members were in favor, the motion carried. 8