CC Minutes 2002 05 03
SPECIAL CITY COUNCIL MINUTES
MAY 3, 2002
Mayor Jansen called the special meeting to order at 1:04 p.m. in the Council Chambers. The
following members were present: Mayor Jansen, Council members Labatt, Boyle, and Ayotte.
Councilman Peterson was absent. Staff present included Todd Gerhardt, City Manager and
Karen Engelhardt, Office Manager.
REQUEST FOR REINSTATEMENT OF LIQUOR LICENSE, HIGH TIMBER LOUNGE
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AND MEETING ROOMS, 575 WEST 78 STREET:
As a part of the liquor license renewal
for the High Timber Lounge and Meeting Rooms (part of the Country Suites complex), it was
discovered that the taxes and utility bills are delinquent on the Country Suites property in the
amount of approximately $274,000. City Code requires that all taxes and utility bills be paid in
full before a license is issued or renewed; and therefore, their liquor license has been suspended
until the bills are paid.
Jeff Robinson from Trident Real Estate Mortgage and Jerry Easley from National Lodging
Corporation (High Timber’s management company) and KDF Corporation (the license holder)
were present on behalf of High Timber Lounge.
Mr. Easley stated that it has been a difficult six months with the property and wanted to clarify
why they are in this situation and what they plan to do to get cash flowing again. He stated that
they fired the management company in April of 2001 and that things have steadily improved.
They also had a significant investor last year, but they withdrew their offer after the
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September 11th attack. Revenue dropped $240,000 to $250,000 after September 11. The
company has approached Trident Real Estate Mortgage and they are working to get things back
on track, but not as fast as all would like.
Mr. Robinson stated that he is the CEO of Trident Real Estate Mortgage and that they’ve had a
longstanding relationship with National Lodging Corporation. He explained the financial
situation and history and stated that they are close to a satisfactory resolution and that payment is
imminent within 45-60 days.
Councilman Ayotte asked if the city has given other licensee’s slack and stated that he did not
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like the September 11 attack excuse. Karen Engelhardt stated that the Chanhassen Bowl
received a reprieve on their license, but that was because they were involved in bankruptcy and
therefore the license was protected by the courts.
Councilman Labatt asked if they had other properties that were delinquent on taxes. Mr. Easley
stated that they had one other property in North Dakota that was delinquent on last year’s taxes.
He further stated that revenue generated by the High Timber is approximately $160,000-
$200,000 annually and that things are looking better since the old management company was
replaced.
Todd Gerhardt stated the KDF Corporation is the license holder and that they have a lease with
Bloomberg Companies. He stated that the only way KDF could protect their license would be to
file for bankruptcy. He further stated that suspending their license could impact Bloomberg
Companies (the landlord), the employees, and customers who have events scheduled.
Mayor Jansen stated that the city’s revenue is affected as well and is concerned about the
precedent it would set for other liquor establishments. She further stated that she prefers not to
deviate from the ordinance and would have liked to have seen a better good faith effort.
Councilman Boyle stated that he would like to see a good business get a chance to redeem itself.
Suspension of the license only hurts the employees and clientele.
Councilman Ayotte feels deceived and that he would have liked to have seen a good faith move.
A motion was made by Councilman Labatt and seconded by Mayor Jansen to reinstate the
liquor license of KDF Corporation dba High Timber Lounge and Meeting Rooms until
midnight on May 24, 2002 contingent upon full and complete payment of back taxes and
city utility bills delivered to the county before 4:30 p.m. in the form of a money order or
cashier’s check. Mayor Jansen, Councilman Ayotte and Councilman Labatt voted in
favor. Councilman Boyle voted against. Motion carried.
A motion was made by Councilman Ayotte and seconded by Councilman Boyle to adjourn
the meeting at 2:05 p.m. All voted in favor and the motion carried.
Todd Gerhardt
City Manager
Prepared by: Karen Engelhardt, Office Manager
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