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HomeMy WebLinkAbout1980 12-10 Liquor license MGM denied THE REVIEW Maplewood, Minnesota ...e.,..- Single Copy 30` wED.,DEc.lo,-ieeo , Franchise agreement disliked - LiquorRcense for MGM denied By MARY LEE RAGERT manager under the franchisors. "the council knows who to go to if THE MAYOR asked the reason for the disciplinary actions are needed. request to drop the application. A MGM Liquor Warehouse Inter- THIS IS THE FIRST time the council "I'd like to see the council retain the Selloff explained that if Chesnut applies national will not be allowed to operate in has received an application for an off-sale- power to come down heavy on any for a liquor license in another city,he will Maplewood. liquor license for a franchise business. violators,"he said.Nelson added,that have to explain why the Maplewood City After three months of debate, the Chesnut planned to enter a franchise under the franchise agreement,it seemed Council denied his application. Maplewood City Council unanimously agreement with MGM Liquor Warehouse unclear to him on who the council would voted last week to deny Dwight Chesnut International,which is owned by Patrick go to in the case of legal violations. Councilman Gary Bastian made a an off-sale liquor license. and Terry Maglich. Nelson also directed the city staff to motion to consider the request to with- Chesnut, a St. Paul construction Chesnut would have operated his store begin considering amending the city code draw the license application. Nelson estimator and project director,wanted to under the MGM name and would have to guard against liquor licenses being seconded the motion saying, "I see change professions and planned to received business counseling and granted for the operation of a franchise nothing wrong with the applicant. We operate a MGM franchise liquor store in training, purchasing power and store. turned this down because of problems the former Burger Chef restaurant cooperative advertising of his products in with the franchise agreement" building near Maplewood Mall. exchange for a percentage of the gross The license denial will probably please However, on a 2-2 vote, the council Present at the meeting were four sass fee. most small,private operators of liquor decided not to consider the withdrawal council members. Councilmnn Norman stores in the city.They have expressed Ilton Lais, Maplewood city attorney, concern that the MGM franchise store request.Councilwoman Fran Juicer and Anderson is recuperating from surgery issued an opinion that the franchise the mayor voted against the request. and was absent. would hurt their businesses. operation would not constitute a multiple The council's refusal to drop Chesnut's In his motion to deny Chesnut's license owptership situation. The liquor store owners were worried application could mean legal restitution application, Mayor John Greavu said, In seconding Greavu's motion for that the MGM Warehouse would have might besought by Chesnut and the MGM "I've read the(franchise)contract and it denial,Councilman Earl Nelson said he more purchasing and advertising power corporation,Gandrud told the council. shows me that MGM is the sole owner and believed the council was being asked to and would be selling its products at lower In a later interview,the MGM attorney Mr.Chesnut is just a manager.We have a approve the application on the merits of prices stated he believed the council's action in liquor license operator a block away and I the"fine"operating procedures of MGM this matter was a"willful disregard of the believe it(the proposed MGM store)will businesses. "I'm not interested in how After the liquor license application was law." be a traffic hazard." well they do. turned down, MGM corporate attorney Had the application been dropped, Greavu has repeatedly said Maplewood "Up to now,"Nelson stated,"we have Gary Gandrud,and Chesnut's attorney, Gandrud stated,Chesnut would have"no has a policy of not allowing its liquor only granted licenses to small family Ron Selloff,asked the council members to legal remedies." license owners to possess more than one operations,who have sunk their whole consider a request to drop the application. As it stands now,he said,the decision such license.Under the MGM franchise stake in it Itheir liquor store). "It's my opinion that the action you(the can be appealed. "I think there are agreement, Greavu said he believes council members)have taken is illegal.I substantial damages and liabilities on the Chesnut will not be the sole owner of the "WHEN THESE family-owned liquor want the courtesy of withdrawing the part of the council toward the applicant store, but instead will be merely a stores violate the law,"Nelson continued, application." (Chesnut),"he explained.