ABC Vote Tied On Stimmelators License Review
July 28, 2016 at 4:25 p.m.
A tie vote of 2-2 was reached by the Kosciusko County Alcoholic Beverage Commission Thursday on the renewal of Stimmelators Gentleman's Club's beer, wine and liquor retailer permit.
The decision on the permit now will be left to the state commission.
Sam Stimmel is owner of the club.
The fate of Stimmel's Indiana permit came into question in October after Indiana Excise Officer Sgt. Greg Wiese questioned Stimmel about an alcohol license permit Stimmel applied for in Victoria County, Texas, in September 2003. To apply for an alcohol permit in Texas, an applicant must be a resident of the state for at least one year. Stimmel, on his application, provided a Texas address. Stimmel admitted at the October meeting he gave false information to Texas and is a Hoosier.
Stimmel bought a bar in Texas about three years ago so he could retire in Texas. He found a manager and put the alcohol license in the manager's name, who then quit in 2003. Stimmel said money was extorted from him and he spent money to keep the Texas bar open. When the license came up for renewal, Stimmel said he had no one in Texas to apply for the alcohol license so he put it in his name. He got a Texas driver's license and registered to vote there, but Stimmel said he didn't think that made him a Texas resident.
He has since closed the Texas establishment and is trying to sell it.
Thursday, attorney Steve Snyder, representing Sam Stimmel's daughter Tracy Stimmel, told the ABC Tracy has been learning the business for the past two to three years to buy the club from Sam. It was decided the best way to purchase the club was through a stock purchase. On Nov. 3, Snyder said, Tracy applied for a transfer of stock of the business subject to the renewal of Stimmelator's alcohol license.
The issue before the board was if the license should be renewed and if Sam jeopardized his license by his actions in Texas, said Snyder. Indiana State Excise Police Sgt. Greg Wiese said the issue was whether or not Sam's actions in Texas reflected on his reputation in Indiana.
Under Indiana Code, a reason for recommending a permit not be renewed includes "the applicant does not maintain a high and fine reputation, and is not of good moral character and good repute in the community in which he or she resides."
Indiana Code also states that "in no case shall a liquor retailer's permit be issued or stand unrevoked if the owner, manager or management of the establishment is not a person of strict integrity and high repute" and "in determining an applicant's or permitee's eligibility to hold, renew or continue to hold a permit, particularly whether the applicant is of good moral character and of good repute, the commission shall consider whether acts or conduct of the applicant, permittee or his employees or his agent would constitute action or conduct prohibited by the Indiana Penal Code, or a criminal offense under the laws of the United States." The commission also may weigh the esteem in which the person is held by the community and assessment of his character as may be inferred by reports and records.
Wiese said Sam's actions in Texas are the same as a Class C felony in Indiana, which would disqualify him from holding an Indiana license if convicted.
"There's been no conviction of a felony," Snyder said, and won't be until the legal proceedings in Texas are complete. Without a conviction, there's nothing to disqualify Sam from having his license renewed. Snyder said what Sam did in Texas was a "very poor business decision," but not a morality decision.
Stimmelators has had only three violations in the past 17 years. Sam has been very cooperative with the ABC, Snyder said, even allowing the ABC to provide classes to Stimmelators' employees on serving and checking for ID. Some people don't like the nature of Sam's business, but it is legal and the nature of the club is not the question of the meeting, Snyder argued.
Sam has not been convicted of any crimes in Texas and it's premature to raise the issue until a decision has been handed down. In the United States, a person is "innocent until proven guilty," Snyder said.
He said the board could renew the license, allow the license to be transferred to Tracy, and if there are any criminal convictions against Sam, the ABC wouldn't have to deal with it because Sam would no longer be holding the liquor license. Tracy would own 100 percent of the business. She knows she will be watched very closely, Snyder said, if she's allowed to purchase the business. To use a pending charge against Sam as a reason not to renew the license is unfair to Tracy, he said.
Wiese said Sam's case still has to go before a grand jury and there is no trial date set at this time. The Texas trial could be done in two months or a year. If the board waited until there was a decision in Texas, the ABC would have to issue letters of extension for Stimmelator's license every 90 days.
Tracy, 26, told the board she quit school three years ago to help her father with the business and to eventually buy it. "I'm a single mother and I have nothing if this doesn't go through," she said.
She told the ABC her father does many good things and helps his employees out a lot.
Helen Hoy, P.O. Box 317, North Webster, then spoke under oath as a remonstrator. She was asked if she lived within the town limits of North Webster and she said she did. Sam told Hoy, "You're not a North Webster resident." At the October meeting, she was allowed to speak but not be a remonstrator because she does not live within the town limits.
Hoy asked Tracy if she ever was arrested for drugs in Fort Wayne. Tracy said that is "not accurate at all" and is "totally erroneous."
Hoy then said there is underage drinking, fights, indecent exposure and intoxication because of Stimmelators. She said Sam needs to run his business "more professionally." She provided the ABC with copies of police reports as evidence against Stimmelators.
Also speaking against Stimmelators was Sally Johnson, who said Sam's character needs to be evaluated and the "community doesn't desire to receive his services.
"Morality, immorality has a big place in this," said Jeff Boyer. Stimmelators is not the "beacon of light" he wants to see in North Webster.
Snyder rebutted that all they heard from the remonstrators was the same issues they've heard for the past 17 years. The remonstrators don't want the club in the town, but that's not the issue, Snyder said.
Wiese said Sam misled the Texas alcohol commission with his application for a license. Sam's been in the business for 17 years, so when he went to Texas, Sam should have known he needed to adhere to state laws, Wiese said.
In order to hold an Indiana alcohol permit, the applicant must be a continuous resident for five consecutive years. Wiese said Sam didn't violate any Indiana laws by his actions in Texas and his actions in Texas did not affect his Indiana residency.
The only issue for the board to consider is the Indiana Code regarding reputation and character on deciding whether or not to renew the license.
The board then took individual voice votes on the license. Board member Elim Smith voted against the renewal. Kenneth Johnson, board member, agreed with Snyder that Sam was innocent until proven guilty and voted in favor of renewing the license. Vanator voted to approve the renewal and said that if Sam was found guilty, the board could deal with it at that time. Excise Officer Patty Fleck voted against renewing the permit, citing the Indiana Code regarding character and repute.
Fleck said all the information will be sent to the state Alcohol and Tobacco Commission, where a commissioner will be assigned to the case. The commissioner will review the evidence, make a determination and then present it to the full commission for a decision. Until that point, Stimmelators will be issued letters of extension.
After the meeting, Sam and Tracy said if Stimmelators loses its license, the club could become a juice bar like Deja Vu in Kalamazoo, Mich..
That bar which has exotic dancing for 18-year-olds and up.
With a liquor license, Stimmelators is governed by the more strict rules of the ABC. Without a license, the club would be regulated only by state indecency laws. Exotic dancing could continue with an even younger crowd of customers. [[In-content Ad]]
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A tie vote of 2-2 was reached by the Kosciusko County Alcoholic Beverage Commission Thursday on the renewal of Stimmelators Gentleman's Club's beer, wine and liquor retailer permit.
The decision on the permit now will be left to the state commission.
Sam Stimmel is owner of the club.
The fate of Stimmel's Indiana permit came into question in October after Indiana Excise Officer Sgt. Greg Wiese questioned Stimmel about an alcohol license permit Stimmel applied for in Victoria County, Texas, in September 2003. To apply for an alcohol permit in Texas, an applicant must be a resident of the state for at least one year. Stimmel, on his application, provided a Texas address. Stimmel admitted at the October meeting he gave false information to Texas and is a Hoosier.
Stimmel bought a bar in Texas about three years ago so he could retire in Texas. He found a manager and put the alcohol license in the manager's name, who then quit in 2003. Stimmel said money was extorted from him and he spent money to keep the Texas bar open. When the license came up for renewal, Stimmel said he had no one in Texas to apply for the alcohol license so he put it in his name. He got a Texas driver's license and registered to vote there, but Stimmel said he didn't think that made him a Texas resident.
He has since closed the Texas establishment and is trying to sell it.
Thursday, attorney Steve Snyder, representing Sam Stimmel's daughter Tracy Stimmel, told the ABC Tracy has been learning the business for the past two to three years to buy the club from Sam. It was decided the best way to purchase the club was through a stock purchase. On Nov. 3, Snyder said, Tracy applied for a transfer of stock of the business subject to the renewal of Stimmelator's alcohol license.
The issue before the board was if the license should be renewed and if Sam jeopardized his license by his actions in Texas, said Snyder. Indiana State Excise Police Sgt. Greg Wiese said the issue was whether or not Sam's actions in Texas reflected on his reputation in Indiana.
Under Indiana Code, a reason for recommending a permit not be renewed includes "the applicant does not maintain a high and fine reputation, and is not of good moral character and good repute in the community in which he or she resides."
Indiana Code also states that "in no case shall a liquor retailer's permit be issued or stand unrevoked if the owner, manager or management of the establishment is not a person of strict integrity and high repute" and "in determining an applicant's or permitee's eligibility to hold, renew or continue to hold a permit, particularly whether the applicant is of good moral character and of good repute, the commission shall consider whether acts or conduct of the applicant, permittee or his employees or his agent would constitute action or conduct prohibited by the Indiana Penal Code, or a criminal offense under the laws of the United States." The commission also may weigh the esteem in which the person is held by the community and assessment of his character as may be inferred by reports and records.
Wiese said Sam's actions in Texas are the same as a Class C felony in Indiana, which would disqualify him from holding an Indiana license if convicted.
"There's been no conviction of a felony," Snyder said, and won't be until the legal proceedings in Texas are complete. Without a conviction, there's nothing to disqualify Sam from having his license renewed. Snyder said what Sam did in Texas was a "very poor business decision," but not a morality decision.
Stimmelators has had only three violations in the past 17 years. Sam has been very cooperative with the ABC, Snyder said, even allowing the ABC to provide classes to Stimmelators' employees on serving and checking for ID. Some people don't like the nature of Sam's business, but it is legal and the nature of the club is not the question of the meeting, Snyder argued.
Sam has not been convicted of any crimes in Texas and it's premature to raise the issue until a decision has been handed down. In the United States, a person is "innocent until proven guilty," Snyder said.
He said the board could renew the license, allow the license to be transferred to Tracy, and if there are any criminal convictions against Sam, the ABC wouldn't have to deal with it because Sam would no longer be holding the liquor license. Tracy would own 100 percent of the business. She knows she will be watched very closely, Snyder said, if she's allowed to purchase the business. To use a pending charge against Sam as a reason not to renew the license is unfair to Tracy, he said.
Wiese said Sam's case still has to go before a grand jury and there is no trial date set at this time. The Texas trial could be done in two months or a year. If the board waited until there was a decision in Texas, the ABC would have to issue letters of extension for Stimmelator's license every 90 days.
Tracy, 26, told the board she quit school three years ago to help her father with the business and to eventually buy it. "I'm a single mother and I have nothing if this doesn't go through," she said.
She told the ABC her father does many good things and helps his employees out a lot.
Helen Hoy, P.O. Box 317, North Webster, then spoke under oath as a remonstrator. She was asked if she lived within the town limits of North Webster and she said she did. Sam told Hoy, "You're not a North Webster resident." At the October meeting, she was allowed to speak but not be a remonstrator because she does not live within the town limits.
Hoy asked Tracy if she ever was arrested for drugs in Fort Wayne. Tracy said that is "not accurate at all" and is "totally erroneous."
Hoy then said there is underage drinking, fights, indecent exposure and intoxication because of Stimmelators. She said Sam needs to run his business "more professionally." She provided the ABC with copies of police reports as evidence against Stimmelators.
Also speaking against Stimmelators was Sally Johnson, who said Sam's character needs to be evaluated and the "community doesn't desire to receive his services.
"Morality, immorality has a big place in this," said Jeff Boyer. Stimmelators is not the "beacon of light" he wants to see in North Webster.
Snyder rebutted that all they heard from the remonstrators was the same issues they've heard for the past 17 years. The remonstrators don't want the club in the town, but that's not the issue, Snyder said.
Wiese said Sam misled the Texas alcohol commission with his application for a license. Sam's been in the business for 17 years, so when he went to Texas, Sam should have known he needed to adhere to state laws, Wiese said.
In order to hold an Indiana alcohol permit, the applicant must be a continuous resident for five consecutive years. Wiese said Sam didn't violate any Indiana laws by his actions in Texas and his actions in Texas did not affect his Indiana residency.
The only issue for the board to consider is the Indiana Code regarding reputation and character on deciding whether or not to renew the license.
The board then took individual voice votes on the license. Board member Elim Smith voted against the renewal. Kenneth Johnson, board member, agreed with Snyder that Sam was innocent until proven guilty and voted in favor of renewing the license. Vanator voted to approve the renewal and said that if Sam was found guilty, the board could deal with it at that time. Excise Officer Patty Fleck voted against renewing the permit, citing the Indiana Code regarding character and repute.
Fleck said all the information will be sent to the state Alcohol and Tobacco Commission, where a commissioner will be assigned to the case. The commissioner will review the evidence, make a determination and then present it to the full commission for a decision. Until that point, Stimmelators will be issued letters of extension.
After the meeting, Sam and Tracy said if Stimmelators loses its license, the club could become a juice bar like Deja Vu in Kalamazoo, Mich..
That bar which has exotic dancing for 18-year-olds and up.
With a liquor license, Stimmelators is governed by the more strict rules of the ABC. Without a license, the club would be regulated only by state indecency laws. Exotic dancing could continue with an even younger crowd of customers. [[In-content Ad]]