MinneapolisCity of Lakes

Regulatory ServicesDepartment

Licenses &ConsumerServlces

Division

350 Soulh 5lh Stlsel - Room lCMinneapolis MN 55415-1391

Olfice 612 673-2080

Fax 612 673-3399

TTY 612 673-2157

wvw.ci.minnaapclis.mn-us

Altirmalivs Aclion Employer

August 7 ,2012

NOTICE OF ADVERSE LICENSE ACTION

James BeamonGrand Group Entertainment400 1tt Avenue North, #XzAMinneapolis, MN 55401

Dear Mr. Beamon;

This notice is being issued to advise you that the Regulatory Services

Department is making a recommendation to the Minneapolis City Council

that the following licenses held by Grand Group Entertainment be revoked:

L178-50142 - On Sale Liquor Class A, Sunday Sales license, and 2:00 a.m'

endorsement for EnvY Nightclub.

This recommendation is based upon the following factors, which indicates

that continued operation of the establishment is not in ihe publie's interest:

l. A liquor violation of Minnesota State Statute 340A.502 allowingintoxicated persons on the premises. This is a violation $nderMlnnesota State Statue 340A.415, Gauses for revocation.

1. On Wednesday, February 15,2012 an obviously intoxicated

customer of Envy was fighting inside the establishment, The

fight continued outside of the establishment where Minneapolis

Police Officers intervened. The customer assaulted aMinneapolis Police Officer. Minneapolis Police Repod 12-

044391 documented the incident'

!1. A liquor violatisn of lHinnesota $tate Statute 340A.504 Subd.3and Minneapolis Ordinance 364'S0 {c} any On $ale Liquorestablishment open on sundays must. provide prepared foodfor consumption sn the premises. This is a violation underMinnesota $tate statue 340A.4'15, causes for revocation.

1. On Sunday, June 12,2Ai1 Susan Beamon, minority owner of' Grand Group Entertainment inc', represented herself to

irliinneapolis Police officers and licensing staff as the owner of

Envy while the business was iicensed under Degrees ot

ilt.

Entertainment lnc. Ms. Beamon reported that Envy does not' sellfood on Sunday. Violation 11-0840215 was issued'

2. On Sunday, July 22,20121he licensee.was in violation of the

Sunday food sale requirement. Citation 12-0931271 was

issued. This citation has not been paid.

Eight violations of Minneapolis Code of Ordinances (MCO)

Chapter 259.250 (9), responsibility to comply with conditionsof license. This establishment has business licensingconditions that were approved by the Minneapolis Citycouncil on August 5, 2011. The Minneapolis city council alsoapproved a license settlement conference on February 10,

_

ZOtZ wittr additional conditions. On August7,2012 notice 12-

0935108 was issued, stating.the stayed amount of the penaltyfor the license settlement conference is due.

1. On Sunday, Septemb er 4,2011 the licensee violated conditions

#1, #3 and #9. The details of the violations are as follows:

a. Failure to adequately utilize security staff to prevent

criminal activity (marijuana smoking) in thebathrooms.

b. Failure to adequately utilize security staff to ensure a

clear walkway on the dance floor.c. Failure to adequately utilize security staff to preyent

patrons and others from loitering on the public

sidewalk.d. Patrons without wristbands were observed in areas

of the premises where alcohol was belng served.e. Licensee did not provide a "do not admit" list.

Citation 11'0868045 was issued for $200. The citation was

appealed. The appealwas heard by Administrative hearing

officer James Gurovitsch. The citation was upheld. This

citation has been Paid.

2. On Sunday, February 2A,2}12the licensee violated condition

#1 by failing to request police and medicai services for an

employee that was assaulted b)t a customer' The empioyeewalked to ihe First Frecinci to reporl tire incident. MinneapolisPolice Report 12-049793 documents the incident.

3. Qn Saturday, March 10,2a12the licensee violatecj conciition #1

by failing to request police and medicai seruices for a eustomqr

that rruas assaulted by an empioitee. The custarner walked to

the First Preeinct io report the incident. Minneapolis Poiice

Report 12-069703 dacuments the incident.

4. On Sunday, July 29,2}12the licensee violated condition #1 by

failing to employ Minneapolis police officers. Later that evening

an event occured at the establishment that required police

services from on duty officers. Minneapolis police

correspondence documents the incident. Violation notice 12-

0933623 was issued

On Sunday, July 8,2A12the licensee violated condition #3 by

and failed io noiity the Police Department at least 72 hours in

advance of events wheie persons between the ages of 1B and

20 years of age would be admitted. Minneapolis police

correspondence documents this incident'

on wednesday, August 1,2}12the licensee violated condition

#1 by failing to appear to a scheduled license settlementconference. Minneapolis Police lnsp€ctor Eddie Frizell, Lt

chris Hildreth, Manger Grant Wilson, District supervisor Linda

Roberts, lnspector Craig Eliason, and City Attorney Joel Fussy

were in attendance. Citation 12-0933600 was issued. The

citation has not been paid.

On Wednesday, August 1,2012 a record request 12-0933475

was sent to provide documentation of compliance withcondition #8 requiring annualalcohol service training. The due

date of the request was August 4,2012. Citation 12-0933475

was issued on August 7 ,2012 when no response was received.

The citation has not been Paid,

On Wednesday, August 1,2Q12 a record request 12-0933453

was sent to provide documentation of compliance with

condition # I requiring video surveillance tape for Sunday, July

29, 2012. The due date of the request was August 4,2A12-Citation 12-0933453 was issued. The citation has not beenpaid.

6.

7.

tv. A violation of MCO 259.250 t2lthat requlres licensee tomaintain and operate the businese in compliance with all

laws; nnCO 259"250 {4} that requires the lieeneee to provide

adequate security to prevent crirninal activity, loitering,lurking and disorderly csnduct sn the business prer*ises,including parking area$ and MCO ?59.250{{i{,!}, MinnesotaStatutes, $ections 609.74 and 6G$.?45, which prohibit publie

nuisance and Bermltting a pubiie nuisance.

on August 2g, 2011 an assault involving a 20 year old occurred

inside Envy involving glassware used as a weapon'Minneapolis police RJport 11.251610 documented the incident'

An advisory notice 11-0864619 was sent to the licenseerequesting how they responded to the incident. The business

did not respond.

On August 23,2011 a fight occurred on the sidewalk in the

front eitrance of Envy. Minneapolis Police Report 11-251597

documented the incident. An pdvisory notice 11-0865877 was

sent to the licensee requesting how they responded to the

incident. The business did not respond. A license settlement

conference was held on September 7, 2011 to address the

nuisance anil safety concerns due to a lack of adequate

security and not promptly responding to business licensing

concerns.

On Sunday; July 8,2}12the licensee was in violation when

Minneapolis poiice officers and License inspectors observed

marijuana smoke in the establishment which was pervasive

neaithe VIP area. Minneapolis Police Report 12-211637

documented the incident. Violation notice 12-0927611 was

issued.

on July 20,2012the licensee was in violation of Minneapolis

Ordinahce 362.90 when a nonsufficient check was submitted

for payment of second half license fee. Violation notice 12-

OgiOlaZ was issued. The licensee responded by remitting

payment with a cashier's check'

This Lieensee has operated this business since May 2011'

since January 2012 there have been at least 12 police reports +-of crimes ranging from thefts to aggravaied robberies of person

that can be attributed to the business.

There have been a totai of 5 advisory notices sent to the

licensee regarding eriminal incidents that can be attributed to '

the business. These advisory notices requested a iesponse

from the licensee that detailed iheir actions taken to address

ihe crlminal incidenis. The licensee has responded to 1 of the

5 acivisory notices.

This matier has been referred io the fulinneapclis Citv Attorney for adverse

license action. Adverse license hearings take piace before an administrative

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law judge or the Minneapolis City Council. Adverse license action includes,

but is not limiteO to, revocation or denial of the renewal oJ your business

license, suspension, administrative fines, or additional business license. ,

operating conditions. You may consider the following options in regard to the

adverse license hearing:

Surrender your business license and close the business. An

agreemenimay be reached regarding the date your license is to be

surrendered and any applicable license fee refund;

You may stipulate tliatihe violations presented above did occur and

allow the Minneapolis City Councilto determine if any adverse license

action should be taken, orYou may opt to have the entire case presented to an administrative

law judge for an evidentiary hearing. The Minneapolis City Council

wouid still determine if any adverse license action should be taken

upon receiving the report and recommendation from the

Administrative Law Judge,

please contact Business License District Supervisor, Linda Roberts at612'

673-3908 regarding your decision about the options listed above' lf you

would like to requeif copies of police reports, you may contact Sargent'

Stephen McCarty a|612-673-3588. lf we do not get a response by August

27 ,2012, this mitter will be referred to an administrative law judge for an

evidentiary hearing.

d,t^-Licensing

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2.

3.

Regulatory Services DePartment

Cc: Noah Schuchrnan, DirectorJcel Fussy, Assistant Minneapolis Ciiy AttorneySusan Beamon, Grand Grorrp F-ntertainment

4Minneapolis

City ol Lakes

Regulatory Services

August 7,2012

NOTICE OF ADVERSE LICENSE ACTION

Department lnception Entertainment LLC

Licenses &. Deepak Nathconsumerservlces 323 1" Avenue North

Divislon Minneapolis, MN SS401350 South 5lh Sl]est - Room lC

Minneapolis MN 5s415-13e1 Deaf fr.tlf. Nath;Of,ics 612 673-2080

Fax 6t2 623-33es This notice is being issued to advise you that the Regulatory ServicesTTY 612 673'2157 Department is making a recommendation to the Minneapolis City Council

that the following licenses held by lnception Entertainment LLC be revoked:

L198 50113-On Sale Liquor Class A, Sunday Sales license, and 2:00 a.m.

endorsement for Bootleg gers.

L022 50992-Tobacco Dealer license for Bootleggers.

This recommendation is based upon the following factors, which indicates

that continued operation of the establishment is not in the public's interest:

l. A liquor violation of Minnesota State Statute 340A'502atlowing intoxicated persons on the prernises. This is aviolation under Minnesota State Statue 340A.415, causes forrevocation.

1. On April 1,2012the licensee was in vislation by admitting.,

serving and allowing an obviously intoxicate patron on thepremises. Minneapolis Police Report fi-AAA129 documentsthe violation.

ll. A liquor violation of Minnesota State Statute 340A.504 andMinneapolis Ordinance 364'8CI for hours and days of sa!e.This is a violation under Minnesota $tate Statue 340A.415,eauses for revocation.

1. On fr4ay 28,2}72the iicensee was in violation by failing torernove alcohollc beverages from the tables and ailowedpatrons to consLlrne alcohoiic L'everages after 2:30 a.m.

Minneapolis Poliee Report 12-i61463 documents this viotation

Citaticn 12-0933675 was issued. Citation has not been paici'

www.ci.minneapr:iis.nn. us

Af{imativ6 Acticn Employer

2. On June 28,2012the licensee was in violation by serving

alcohol after 2:00 a.m. Minneapolis Police Report 12-198764

documents this violation. citation 12-0933763 was issued.

Citation has not been Paid.

lll. A violation of Minneapolis Ordinance 362.330(a) Change ofShareholders and Minneapolis Ordinance 362.120(o) Unknown

Manager

1. Since May 2012the licensee admitted that susan Beamon,

minority owner of Envy, was allowed to make day to day- .

operatihg decisions as a manager and potential owner of the

establishment. Violation notice 1'2-a929438 was issued.

Business Licensing has gathered significant evidence that

demonstrates Susin Beimon being the primary decision maker

for the business operations. citationl2-0929438 was issued.

The citation has not been Paid'

lV. A violation of Mihneapolis Ordinance 259'151360'140 Fees and

Fines. Minneapotis ordinance 259.15/360.140 state thatunpaid fee and flnes are causes for revocation.

1. City records show that the licensee owes $1,500 in false alarm

fees. Violation notice 12-0934282 was issued for $600 in false

alarm fees,

This rnatter has been referred to the Minneapolis Gity Attorney for adverse

license action. Adverse license hearings take place before an administratiVe

law judge or the Minneapolis City Councii. Adverse license action includes,

but is not timiteO to, revocation or denial of renewal of your'business license,

suspension, administrative fines, or additional business license operating

conditions. You may consider the following options in regard to the adverse

license hearing:

1. Surrender your business license and close the business. An

agreernenirnay be reached regarding the date your license is to be

surrendered and any applieahle lieense fee refund;

2. you may stipulate that the violations presented above did occur and

. ailerw the Minneapolis City Council to determine if any adverse license

action should be taken, or3. you may opt to have the entire case presenied to an adrninistrative

law judge for an evldentiary hearing. Tlie Minneapolis Cliy Councll

would stili deterrnine if any advei'se iicense aeiion should be taken

upon receiving the report and recominendaiicn frcm the

Administrative Law Judge'

Please contact Business License District Supervisor, Linda Roberts at612-673-3908 regarding your decision about the options listed above. lf we do

not get a response by August 20,2A12, this matter will be referred to an

administrative law judge for an evidentiary hearing. lf you would like to

request copies of police reports, you may contact Sargent Stephen McCarty

a|612-673-3588.

Sincerelv.

n# \^n

/\4^{-tIth-'c\d, wilson, Manager

. Business LicensingRegulatory Services DePartment

Cc: Noah Schuchman, DirectorJoel Fussy, Assistant Minneapolis City AttorneySusan Beamon, Grand Group Entertainment