Minutes - Council - 04/06/1999 - Special

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...... = lJ~ i~.oo MHSH ~ LODGE 612 712 1015 P.04/06 Page three of four A significant part of the Diamonds' overhead is attributed to wages. The Diamonds' employs 68 local people. Over the course of any given day 18 people rely on their paycheck from the Diamonds. On weekends that number rises to 36. While it may be said that the Diamonds can keep its doors open without serving liquor, the fact is that the Diamonds is known as a sports bar and grille. During any suspension the Diamonds will not only lose all of its liquor revenue but it will also lose a significant amount of its other revenue. At a minimum the Diamonds will have to cut back on its staff during any suspension and most likely will have to close altogether. Since it's opening the average sales of liquor is as follows: Friday $4,666.72 Saturday $4,942.'71 Sunday $1,331.88 Based on these averages the Diamonds will lose on an average $10,941.31 for a Friday, Saturday and Sunday suspension. In fact it wilt be greater since the averages do not reflect the growing customer base, does not factor in special events that are planned and does not factor in the start of the softball season. I have attached as Exhibit "A" a summary of liquor revenues for the Diamonds broken down by the day. In addition, I have enclosed copies of the actual accounting summaries. As of April 19, 1999, the softball leagues will start at the Diamonds. The Diamonds has projected that its revenue will triple. At the present time there are between 75 and 100 people in the Diamonds on any night. As soon as softball starts the number will dramatically increase. There will be 16 softball teams playing each night. If they have an average of 10 players on each team that is 160 customers, plus their friends and families that have come to watch. This is in addition to the regular customers. It is easy to see that the penalty associated with any penalty imposed during softball season or other special events would dramatically increase and could easily be in excess of $33,000.00! Such a loss will jeopardize the future of this new business and all its employees. The practical economic impact of the 3 day suspension is particularly severe in light of the maximum $2,000.00 fine that could be imposed by the City if it chose to levy a fine rather than a suspension. The indiscretion on the night of March 19 raises emotionally charged issues in this community. However, when rationally considered, it is not as serious as serving a minor or if this was not a first offense. An overreaction on the part of the City will have a devastating effect on the Diamonds. The potential impact of the proposed penalty on the Diamonds is disproportionate to the same penalty as imposed on other establishments in the City. In light of the foregoing, we earnestly hope that we can reach a resolution to this problem without a public hearing, and without allowing this to escalate to any higher level than is necessary. We would also request that the city impose a financial fine instead of a suspension. The Diamonds made a mistake; it