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Decision on unused liquor license delayed
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MONROE - The city's License Committee postponed taking any action on an unused liquor license Tuesday, after members determined they could wait until their next meeting in two weeks to decide whether to issue a notice of intent to not renew the license.

The license, a class B beer and liquor license, is issued to The Roadhouse, a bar and restaurant at 1001 30th St. The license is up for renewal July 1.

The committee first met Jan. 5 to discuss the possibility of the business violating the city's "use it or lose it" ordinances on liquor licenses.

The Common Council passed an amendment to city ordinances May 5, 2010, requiring license holders to be closed for no more than 120 consecutive days and to serve beverages not less than 25 percent of the days in a year.

City Clerk Carol Stamm informed the committee that The Roadhouse appears not to be not open to the public and not in business for "many, many months."

According to Stamm, other applicants are in line for a class B license.

Police Chief Fred Kelley verified that officers have been checking the business since January "every day, on every shift" and have concluded that the business does not appear to be open.

The police checks would meet the burden of proof for the city, should the city have to make a case to not renew the license, according to City Attorney Rex Ewald.

Robert Duxstad, the attorney representing The Roadhouse company, KTHOG, Inc., said active negotiations are in progress to sell the business, which involve the transfer of the license to a new owner.

He asked the committee to take no action that would jeopardize the negotiations.

The committee asked Ewald to verify at its next meeting how much advance notice they would be required to give. Ewald had advised that "a month or so" would be a reasonable amount to time to notify the license holders of the intent to not renew.

At the January meeting, Stamm said the city had been informed that the business appears to have been closed, possibly since May, 2010.

The Roadhouse is the last business to "purchase" a liquor license, under the old tradition of paying a license holder for the privilege of acquiring the license, and are heavily invested in the license, Duxstad said in January.

Under the new ordinance, the city invokes its right to re-possess the license for reissuance, following a business closing. The "use it or lose it" clause prevents a license holder from continually renewing an unused license.

Ewald said the burden of proof of violations to the ordinance is on the city, if or when it decides to take action.