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These letters spell out Minneapolis' case against Envy and Bootleggers.
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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
1.
2.
3.
4.
5.
b.
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
1.
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