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Louisville Local Licensing Authority <br />Meeting Date: May 14, 2001 <br />9 <br />Davis stated that they struggle every day to get by, and that they don't need the liquor license because they <br />are a family business with liquor accounting for only 5% of their sales. Mr. Davis said that they would <br />probably survive without the liquor license, though it is a nice amenity and allows them to compete with <br />area restaurants. <br /> <br />Attorney Moore asked Mr. Davis to explain the business trends, and how this will affect their ability to be <br />prompt and timely with sales tax payments and other obligations. Mr. Davis stated that 2000 sales were <br />approximately $356,000 before taxes, and this year are on pace to do approximately $420,000 before taxes. <br />Davis stated that in 1999 sales were approximately $488,000. Mr. Davis stated that they have struggled and <br />that they did not intend to withhold sales tax money from the state. Davis stated they are willing to be <br />accountable for the things that have gone wrong. Mr. Davis stated that they are going to stick it out, that <br />they haven't struggled for two and one half years without taking salaries just to walk away. <br /> <br />Attorney Moore asked Mr. Davis what type penalty he felt would be appropriate for the Authority to <br />impose. Mr. Davis stated that he knows there are three days being held in abeyance that they will have to <br />serve. Davis also stated that in his dealings with other businesses, he knows that most of the penalties are <br />issued for selling to or serving intoxicated persons, and that they have not had any such incidents at their <br />establishment. Mr. Davis stated that he understands this issue is different and is a character issue. Davis <br />stated it was difficult to come before the Authority and that they have come to the point where their <br />struggle to keep the business going is threatening their character and endangering their reputation. Mr. <br />Davis stated that he does not have the experience to suggest what type of penalty would be appropriate, but <br />that they will serve whatever is required and move on. <br /> <br />Attorney Moore asked Mr. Davis if he thought that holding a large number of days in abeyance would be <br />favorable given his optimistic outlook for the business and confidence that once their business loan is paid <br />off, sales tax payments will be timely. Mr. Davis stated that they are heading into the busiest season and that <br />their cash flow will increase by $4,000 per month. Davis continued that their sales are $50,000 - $60,000 per <br />month in the summer and $25,000 a month in the winter. Davis stated that all future payments to the state <br />would be made in certified funds so that they will not have to appear before the Authority again on the issue <br />of short checks. <br /> <br />Attorney Moore asked Mr. Davis about the five NSF checks paid to Costco and what their current <br />relationship is with Costco. Mr. Davis stated that Costco has been made whole on the NSF checks. He <br />stated that they are one of Costco's best customers, spending approximately $2,000 a week at the store, and <br />that they continue to do business with Costco on a cash only basis. <br /> <br />Chairperson Myers asked Attorney Barnett if he had any questions for Mr. Davis. Attorney Barnett stated <br />he did not. <br /> <br />Member KAmmett asked Mr. Davis to confirm that the business loan would be paid off in June, and that <br />they are currently behind in the loan payments. Mr. Davis stated that payments are due on the 20th of each <br />month and that they are approximately fifteen days behind on the April payment. Mr. Davis stated that they <br />will have approximately $11,000 coming in for the month of June from scheduled catering, and that he <br />expects to have the loan paid in full by the end of June. <br /> <br />Member Kimmett stated his opinion that they have consistently been writing short checks and that it is a <br />bad habit for any business to get into and a poor way to run a business. I~mmett asked Mr. Davis how he <br />was going to stop this bad business practice. Mr. Davis stated that he was not proud of the way they have <br />had to do business, and that there were times when they wrote checks, knowing that they would have to <br /> 9 <br /> \ \FRED~VARRAN\LIQUOR\2001 \MINUTES\MINUTES051401.DOC <br /> <br /> <br />