Kosciusko County Alcoholic Beverage Board voted Thursday against renewing the license for Stimmelators Gentlemen’s Club. The denial came despite assurances that Sam Stimmel, owner of the North Webster club, would no longer be involved after selling the company to a Nappanee factory worker for close to $1 million. The board heard arguments against renewal from Dino Zurzolo, a former operator of strip clubs in Fort Wayne, who filed a civil suit against Stimmel over failed negotiations for sale of the club; and from North Webster Police Chief Greg Church, who said his department often responds to complaints in and around Stimmelators. The $950,000 sale to Dom Carl Gonzales, 38, Nappanee, was approved Tuesday by the board of Night Shift of North Webster Inc., the company that runs the club, and filed with the state the next day. The sale as well as settlement of $2,500 in state excise fines were necessary for renewal of the club’s permit, according to Jeff McKean, Stimmel’s attorney. He said the solution emerged from negotiations with state Alcohol and Tobacco Commission Prosecutor Mark Mader. The fines were for public nuisance, food service and gambling violations. “(Mader) said there could only be a resolution if there was a permit transfer,” McKean told the board. “He felt it’s what the community wanted, that Mr. Stimmel would no longer be involved in the club and that it would have a new owner.” Zurzolo’s attorney, Konrad Urberg, said they only learned of the sale Monday. They filed a breach of contract suit against Stimmel in Kosciusko Circuit Court and may amend it to include a fraud claim. Urberg said negotiations between Stimmel and Zurzolo began in September; that Zurzolo provided a $25,000 downpayment to cover Stimmel’s outstanding taxes; and that while there was no final purchase agreement, the two men did sign a letter of intent. Zurzolo had made an offer on the club of $500,000, according to a copy of the letter provided to the board. “We think he’s operating in bad faith, we think it’s fraud, and I think his license ought to be yanked,” Urberg told the board. He also expressed doubt that Stimmel would keep away from the company: “It’s still going to be Mr. Stimmel’s sideshow.” Board members expressed their own doubt that Stimmel would stay away. “If you were sitting in our position and someone continued to lie to you, why would you trust them?” board member Elim Smith asked McKean. “What’s the penalty for perjury? He’s done it time after time. In my estimation, we should deny the license.” State excise officer April Tackett noted that the alcohol license was up for renewal regardless of ownership of the club. She also listed the formal considerations for denial under state law: the applicant is not of good moral character, the establishment is a public nuisance, or criminal offenses have taken place there. “How about all three?” Smith said. His motion to deny was approved by the two other board members. He noted though that the license renewal is ultimately up to the state, which he said has a history of overturning their decisions. “Sometimes we wonder why we even got a board,” member Gordon Vanator remarked. Also Thursday, the board approved license renewals for two bars that had received violations for underage sale, Spike’s Beach Grill/Noa Noa, Warsaw, and Turf Bar, Milford, after hearing about the incidences from the owners; and for two bars without violations, Bulldog Saloon, Mentone, and Down Under, Syracuse. A renewal hearing for Service Liquors East, Warsaw, was postponed because the owner could not attend the meeting.
