STORYLINE 2700 Block of J Street

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Hurley's license transfer protested

by Suzanne Hurt, published on September 29, 2009 at 9:00 PM

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Three protests have been filed recently against a controversial establishment's attempt to transfer a liquor license to a new restaurant operator.

The protests have been filed with the California Department of Alcoholic Beverage Control within the last two weeks as owners of the now-closed G.V. Hurley's try to transfer the liquor license for 2718 J St. to Red Lotus Enterprise, said ABC spokesman John Carr.

At least one person filed a protest in an effort to get the conditions of Hurley's liquor license continued to the next establishment by ABC.

"The current protest is based on the fact that the past owners of that site have ignored its commitment to ABC," said nearby resident Vito Sgromo, who filed a protest. "We feel there is reason to believe ... that the previous establishment has violated at least one of its conditions."

The owners of Red Lotus Enterprise, Buu "Billy" Ngo and Peter Kwong, have applied for the license for an Asian-fusion restaurant called Red Lotus Kitchen & Bar they want to open in the space where G.V. Hurley's owners operated a bar and restaurant for a year and a half.

The sale of the business and leasing the space from G.V. Hurley's owners — Township 9 developer Steve Goodwin, River West Investments President Brian Vail and Pete Hurley Geremia, who owns Hurley Construction and comes from the Geremia Pools family — is contingent on the liquor license being transferred, Ngo said.

"We need the liquor license or we can't do it," he said, adding he won't open a restaurant there without the license.

ABC can't release details about protests unless a public hearing is required to resolve the matter, at which time the information becomes public record, Carr said.

Sgromo said he and other residents are concerned about the amount of alcohol that would be sold and whether the same number of off-site parking spaces would have to be maintained by the new business.

While both residents and Ngo said Tuesday they'd like to meet, neither has tried to set up a meeting to discuss concerns and conditions of the previous liquor license. Instead, both sides say they'll wait for a formal mediation session set up by ABC.

Residents prefer to go through the established legal process due to past experience with bars and restaurants in the 2700 block of J Street and because the issue is a legal one, Sgromo said.

"Every owner promises the sun, the moon and the stars. As soon as they get their license, they turn their back on us," Sgromo said. "Our only leverage is to file a protest."

G.V. Hurleys' liquor license required the business to sell at least as much food as alcohol, based on quarterly sales records that had to be maintained, Carr said. However, the city's planning department regulates parking for businesses, not ABC, he added.

The license prohibited live entertainment, inside or out, as well as "loitering" on adjacent sidewalks. The license required Hurley's to use "sufficient" uniformed security guards from 11 p.m. to thirty minutes after closing, Thursday through Saturday, to "maintain order and prevent any activity which would interfere with the quiet enjoyment of the property of nearby residents," Carr said.

In March and June, Sgromo filed complaints with ABC charging that G.V. Hurley's was selling more alcohol than food and that it had leased its required parking spaces to an outside vendor for a special event, according to copies of those complaints.

ABC staff can't discuss whether complaints have been filed against a business unless there has been disciplinary action and new conditions placed on a license as a result of complaints, Carr said.

ABC investigates complaints and works with businesses to get issues corrected. If the same problem persists, disciplinary action is taken, he said. There is no public record at ABC that shows any disciplinary action against G.V. Hurley's.

"The entity has a clean record," he said.


Suzanne Hurt is a staff reporter for The Sacramento Press.

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September 30, 2009 | 9:34 AM
Thanks for the follow-up to your earlier article, Suzanne.
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edited on  September 30, 2009 | 10:00 AM
Re: "clean record" what ABC's records show and what is reality often differ dramatically. While I have no personal experience with Hurley's, I have had years of dealings with ABC and off-sale alcohol selling establishments.

It makes no difference how many complaints are lodge against an alcohol selling place -even with solid evidence in the form of logs, documentation or pictorial, ABC investigators must confirm with their own visits that the conditions as stated in the complaint exists.

In hard times ABC cuts or reduces its enforcement staff in favor of keeping its revenue producing licensing staff. Consequently, business and residential neighborhoods can suffer significant adverse quality of life problems with that establishment as well as the purveyors violating nearby residents constitutional right to the quiet enjoyment of property.

In short, the cards are stacked against complainants.
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