Liquor Commission

City of Naperville 400 S. Eagle Street Naperville, IL 60540 Meeting Minutes - Final-revised Thursday, April 7, 2022 3:00 PM Council Chambers Liquor Commission Liquor Commission Meeting Minutes - Final-revised April 7, 2022 A. CALL TO ORDER: Mayor Chirico called the meeting to order at 3:05 PM. B. ROLL CALL: Present 8- Mayor Steve Chirico, Karyn Charvat, John Koranda, Anthony Signorella, Mitch Stauffer, Joe Vozar, Scott Wehrli, and Kimberly White Absent 1- Charles Maher Staff Present: Miranda Barfuss, Assistant to City Council; Marty Creighton, Police Detective; Scott Thorsen, Police Sergeant; Matt Egan, Police Commander; Mike DiSanto, City Attorney C. PUBLIC FORUM: None D. OLD BUSINESS: None E. NEW BUSINESS: Provide recommendations concerning The Matrix’s concept and its requests for three liquor licenses, two amendments to the Liquor Code, and a finding that its uses are compliant with the City’s liquor license location restrictions Attachments: Liquor Commission The Matrix Agenda Item Attachments Madan Kulkarni, Principal Partner of The Matrix Club, presented his concept of a multi-use facility that includes a restaurant, banquet/convention facility, concert venue, sound lab, yoga studio, dance studios and art gallery. The Matrix will offer performances from international artists in high end surroundings with LED screens, calibrated surround sound and the ability to cater to different ethnic audiences e.g. Greece, Poland and South Asia. There is a full service kitchen and four bars in the Grand Ballroom, one bar in the Lounge, an International Cuisine restaurant with a Michelin star chef and a stage. The artists can perform in the large venue on the weekend and perform smaller shows during the week in the 220 seat restaurant. Mayor Chirico asked for information specifically about the liquor service. Kulkarni stated that he is requesting the ability to provide bottle service at City of Naperville Page 1 Printed on 5/6/2022 Liquor Commission Meeting Minutes - Final-revised April 7, 2022 some of his events and emphasized that bottles won’t be served to groups smaller than 4. Mayor Chirico asked the capacity of the largest venue on site and what percentage of the events booked are concerts. Kulkarni replied that the banquet facility can accommodate 2,000 people and 20% of events will be concerts as opposed to weddings and private events. Mayor Chirico asked if there is a 3rd party management company or promoters for the concerts and if there will be Matrix staff providing security for events both inside and outside of the facility. Kulkarni replied that some events will be produced in-house and some will be contracted. The contracted events will require security to be provided and if it is not provided, the Matrix will provide security and charge the client back. Mayor Chirico asked if there is a minimum number of security present for events. Kulkarni replied that 8-16 security people would be present depending on the size of the event and added that there are security cameras inside and outside the facility. He will also hire off-duty officers if necessary and submit a security plan in May when his security staff are hired. Mayor Chirico asked if Kulkarni is currently running a similar operation in Schaumburg. Kulkarni confirmed that he previously had a banquet facility in Schaumburg called The Meadows Club from 2007 to 2020 and his company is experienced in serving different international constituencies. Commissioners asked if the venue will have DJ’s and be open to the public at night. Kulkarni replied that on weekdays there may be a live band or other entertainment, including celebrity DJs, but it will be family-oriented and not just drinking and dancing. There will be a cover charge and he does not want a loitering place. Celebrity DJs will be booked in the restaurant which is an audience of 200. The Main Stage productions will not be DJ’s, except for events like New Years Eve and food will also be sold. Commissioners asked if other licensees have been issued more than one liquor license and if bottle service has ever been granted. Mayor Chirico confirmed that several businesses have multiple liquor licenses currently including Sixty Four Wine Bar and Tapville and bottle service has never been granted. Commissioners asked about the kitchen facilities, if bottle service is being requested for all 3 liquor licenses, if restaurant patrons can drink and congregate in the lobby area, if the late night permit would extend to the lobby area, and if open bar packages will be available in the restaurant. Kulkarni confirmed that there is a restaurant kitchen and a large banquet kitchen, the open bar packages are not part of the restaurant and bottle service is only being requested for the banquet and concert facility. He would like the late night permit to extend to the lobby area. Mayor Chirico reviewed the Class K request and asked for confirmation from the Commission that the primary business is not the sale of liquor. The Commission confirmed. Mayor Chirico reviewed the Class R request and City of Naperville Page 2 Printed on 5/6/2022 Liquor Commission Meeting Minutes - Final-revised April 7, 2022 noted that there is a request to include spirits, in addition to wine and beer. If approved by the Liquor Commission, that will have to go to City Council for final approval. Commissioners asked what other Class R licenses will be impacted by the decision. Barfuss reported that the other Class R license holders are Wentz Concert Hall and Center Stage Theatre and there is no cap. Commissioners discussed bottle service. Mayor Chirico reviewed that if bottle service is approved, it will also need approval by the City Council. DiSanto reported that allowing bottle service may require a few amendments to the liquor code. The commission can grant bottle service only as part of the Class K or only a part of the Class R, or both. Mayor Chirico asked the concerns of the police department. Creighton replied that they have concerns about bottle service because there is no BASSET trained server controlling the disbursement of the alcohol which risks patrons being over served and underage patrons being served. He went on to say that the police department is concerned about monitoring the large parking lot for congregating, drinking and fights, as well as the control on the different rooms in the venue and large crowds when the venue is operating at capacity. Kulkarni stated that bottle service will only be available for selected events and in his previous venue they did not have liquor violations or fights. He went on to say that the establishment will build a reputation based on high-quality events that are regulated and noted that they are making a large investment in the facility. Mayor Chirico asked if The Meadows Club had any incidents that resulted in a violation or police involvement. Kulkarni said there were several incidents of an argument at weddings, but no police involvement other than an emergency evacuation due to flooding. He went to say that the liquor license had one violation where retail beer was found on the premise and he had to pay a fine. Commissioners asked about the liquor violation process. DiSanto said the liquor commission has the authority to see violations prosecuted and the most common violations are underage service and over service, as well as happy hour violations. He went on to say that anytime a violation happens, it is typically investigated by the police department liquor liaison, a citation is issued to the individual that is handled in circuit court, simultaneously a violation is brought on behalf of the Liquor Commission directly against the licensee and there are escalating penalties. One violation isn’t generally enough to revoke a license under the law, but multiple violations escalate the penalties. There can be a liquor hearing if there is a dispute about the violation or the penalty being too harsh and for that, there would be a hearing officer and a ruling issued. The Mayor as Liquor Commissioner has final say on the penalty and the licensee can appeal the penalty. There is also emergency authority where there can be an immediate revocation of City of Naperville Page 3 Printed on 5/6/2022 Liquor Commission Meeting Minutes - Final-revised April 7, 2022 the license and hearing. DUI reports can also indicate a pattern of over service. Mayor Chirico asked for a motion on the Class B and late night and entertainment permit. Barfuss confirmed both permits are available. Stauffer suggested a motion to table the agenda item until the next meeting to allow the petitioner to tighten up their presentation and submit a security plan and other items that may help with the decision, as well as provide the opportunity for Commissioners to tour the facility. Kulkarni invited all Commissioners to tour the facility. Mayor Chirico noted that Commissioners need to visit in groups of no more than 2 at a time in accordance with the Open Meetings Act and reviewed that the Commission would like additional information on security, management policies on alcohol and how they will monitor underage service, and a list of artists that are booked and upcoming events. Commissioners thanked Kulkarni for bringing the exciting concept to Naperville. Commissioner Stauffer made a motion to table the agenda item to the next meeting, seconded by Signorella. The motion was approved and carried by unanimous vote. Designate prior Liquor Commission closed session meeting minutes as non-confidential Commissioner White made a motion to designate prior Liquor Commission closed session meeting minutes as non-confidential, seconded by Stauffer. The motion was approved and carried by unanimous vote. Mayor Chirico announced his selection of a new Liquor Commissioner. Kelly Douglas has been appointed and will be sworn in at the next meeting. F. REPORTS: Approve the regular Liquor Commission meeting minutes of February 3, 2022 Attachments: Liquor Commission Meeting Minutes DRAFT 020322 Commissioner Stauffer made a motion to approve the regular Liquor Commission meeting minutes of February 3, 2022, seconded by White. The motion was approved and carried by unanimous vote. 1. Restaurant Association Report - Jeffries Christine Jeffries reported that restaurants are doing well recovering from the COVID pandemic. She encouraged Commissioners to take a tour of the Matrix Club and stated that it is going to be an amazing new venue for City of Naperville Page 4 Printed on 5/6/2022 Liquor Commission Meeting Minutes - Final-revised April 7, 2022 the city. She reported on new restaurants opening including Gia Mia, Schlotzky’s/Cinnabon, Spartan Ale House and a new tenant moving into the vacant Shakou space. The owners of the shopping center at the corner of Aurora Avenue and Route 59 will be redeveloping the property and calling it “Block 59.” It will have new restaurants, pickle ball courts and an outdoor area with screens for entertainment. Downtown construction is moving very quickly, and the sidewalks may be wider after the construction to allow more outdoor dining. The restaurant association is working with Downtown Naperville Alliance on a recommendation for expanded outdoor seating again this year. 2. BASSET- Employee Training Statistics - Creighton Creighton reported that the online BASSET training had 139 people trained in February and 155 people trained in March. In person classes are resuming this month. 3. Tobacco Enforcement Review - Creighton Creighton reported on tobacco compliance checks. There were 72 licensees checked and 3 violations resulted. Mayor Chirico commented that he was surprised there was a violation at a grocery store since violations often occur at one person establishments like a gas station and asked if the penalty for these violations is set by the Liquor Commission. DiSanto clarified that the individual employee who made the sale is issued a citation and it goes to court. After the plea of guilty, we issue a tobacco code violation against the license holder and there is a menu of fines and penalties. If they plead, it is resolved outside of the Liquor Commission. Creighton added that the grocery store immediately changed the process for tobacco sales and put up signs after the violation occurred. 4. Liquor Report - Creighton Creighton reported that there were 13 DUIs in February 2022, compared to 9 DUIs in February 2021 and 23 in February 2020. There were 12 DUIs in March 2022, compared to 15 DUIs in March 2021 and 11 in March 2020. The Mayor asked if any state funded programs are coming up for DUI grants. Creighton said yes for Memorial Day weekend. 5. Liquor Concept Committee Update - Barfuss Barfuss reported that since the last Liquor Commission Meeting, the Liquor Concept Committee had two meetings on February 17th and March 17th. The following concepts were discussed: City of Naperville Page 5 Printed on 5/6/2022 Liquor Commission Meeting Minutes - Final-revised April 7, 2022 G.L.O.W. 5K Run, event scheduled for Saturday, May 21st at 5th Avenue Station The charity is the Jeanine Nicarico Memorial Fund. There is no third party organizer. They will be serving beer and wine only. Their request was approved and their application is in process. First Watch Restaurant, locating at 1355 E. Ogden Ave. New business seeking a Class B - Restaurant & Tavern license with an outdoor seating permit. Their request was approved and their application is in process. Naperville Food Truck Festival, 2 events scheduled for Saturday May 7th and Saturday August 13th at Naper Settlement The charity is Community Access Naperville. The third party organizer is Brew Avenue Events. They will be serving beer and canned seltzers/spritzers. Their request was approved and their application is in process. Brown Bag Seafood, locating at 1023 S. Washington St. New business seeking a Class A - Restaurant license with an outdoor seating permit. Their request was approved and their application is in process. The Matrix, locating at 808 S. Route 59 Discussed today G. EXECUTIVE SESSION: None H. ADJOURNMENT: Commissioner Stauffer made a motion to adjourn the Liquor Commission meeting of April 7, 2022, seconded by Koranda. The motion was approved and carried by unanimous vote. /S/ Miranda Barfuss Miranda Barfuss Assistant to City Council City of Naperville Page 6 Printed on 5/6/2022