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HomeMy WebLinkAbout2020-07-02 Liquor Commission MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION MINUTES — July 2, 2020 WEBEX 1. Call To Order The meeting was called to order by Chair Claude Onizuka at 10:01 A.M., via WebEx (tele/video conferencing). The following were present and constituted a quorum: Commissioners: Claude Onizuka, Chair Michael Hughes, Vice Chair Warren Arakaki, Commissioner David Greenwell, Commissioner Ronald Ibarra, Commissioner Dawn Raymond, Commissioner Allen Salave'a, Commissioner Paula Thomas, Commissioner Absent and Excused: None Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Craig Masuda, Deputy Corporation Counsel Stacie Waltjen, Licensing Officer Dorsi Lim, Secretary to the Board & Commission Onizuka: Good morning. I'd like to call this meeting of the Liquor Commission, County of Hawaii, Department of Liquor Control, to order. My name is Claude Onizuka and I'm the Chairman of the Commission, and the time now is 10:01 A.M. For everyone participating, please put your microphones on mute. We are conducting the meeting via WebEx. Some of us have both audio and video. Some of us have just audio. Onizuka: We are recording the meeting so please remember a couple of things: 1) speak one at a time so that the recording remains clear; 2) if you want to speak, unmute your microphone, state your name, proceed with your statement/question, and when done speaking, mute your microphone. Onizuka: We will now do a roll call to determine who is present for this meeting. When your name is called, please say, "present." Dorsi, start the roll call, please. Lim: Commissioner Arakaki? Arakaki: Present. Lim: Commissioner Greenwell? Greenwell: Present. Lim: Commissioner Hughes? Hughes: Present. Lim: Commissioner Ibarra? Ibarra: Present. Lim: Commissioner Raymond? Raymond: Present. Lim: Commissioner Salave`a? Salave`a: Present. Lim: Commissioner Thomas? Thomas: Present. Lim: Commissioner Onizuka? Onizuka: Present. Lim: Gerald Takase, Director? Takase: Present. Lim: Brandon Gonzalez, Administrative Officer? Gonzalez: Present. Lim: Craig Masuda, Deputy Corporation Counsel? Masuda: Present. Lim: Stacie Waltjen, Licensing Officer. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 2 Waltjen: Present. Lim: I'm Dorsi Lim. Onizuka: Moving on with the agenda, Approval of Minutes. II. Approval of Minutes Onizuka: The minutes of May 7 and June 4, 2020, are still in preparation, so we will table that to the next meeting. Onizuka: Approval of Addendum and/or Supplemental Agenda. III. Approval of Addendum and/or Supplemental Agenda Onizuka: (10:03 A.M.) There is an addendum to the agenda. Pursuant to Section 92-7, Hawai'i Revised Statutes, as amended, Item 1 is the proposed amendment to the agenda and has been determined not to be of reasonably major significance nor does it affect a significant number of persons, and is proposed for placement on the agenda by two-thirds vote of the Commission. We will be adding Item No. 24(a) to 24(f). New Business, ADD Item No. 24(a) to 24(f): 24. Ratification of Temporary Licenses a. Application No. 19-13, The View Restaurant Bar and Grill Corp., dba The View Restaurant Bar & Grill, original Dispenser General liquor license, Category 131, issuance of second temporary license (T -DG -935), effective January 29, 2020, through May 28, 2020. b. Application No. 19-13, The View Restaurant Bar and Grill Corp., dba The View Restaurant Bar & Grill, original Dispenser General liquor license, Category B1, issuance of third temporary license (T -DG -935), effective May 28, 2020, through September 25, 2020. C. Application No. T19-11, Blue Wilderness General Store Inc., dba Blue Wilderness General Store Inc., sale and transfer of Retail General liquor license, issuance of second temporary license (T -RG -049), effective February 29, 2020, through June 28, 2020. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 3 d. Application No. T19-11, Blue Wilderness General Store Inc., dba Blue Wilderness General Store Inc., sale and transfer of Retail General liquor license, issuance of third temporary license (T -RG -049), effective June 29, 2020, through June 30, 2021. e. Application No. 19-09, Travel Traders Hotel Stores, Inc., dba The Resort Shop, original Retail General liquor license, issuance of second temporary license (T -RG -938), effective March 9, 2020, through June 30, 2020. f. Application No. 19-09, Travel Traders Hotel Stores, Inc., dba The Resort Shop, original Retail General liquor license, issuance of third temporary license (T -RG -938), effective July 1, 2020, through November 4, 2020. Call for a motion. Hughes: Motion to add the addendum to the agenda. Greenwell: Second. Mr. Hughes moved to add the addendum to the agenda; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: If not, we'll have a roll call vote by Dorsi. Lim: Mr. Arakaki? Arakaki: Aye. Lim: Mr. Greenwell?-- Greenwell: Aye. Lim: Mr. Hughes? Hughes: Aye Lim: Mr.lbarra? JULY 2020 - LIQUOR COMMISSION MINUTES 4 Ibarra: Aye. Lim: Ms. Raymond? Raymond: Aye. Lim: Mr. Salave'a? Salave`a: Aye. Lim: Ms. Thomas? There was no response from Commissioner Paula Thomas. Lim: Chair Onizuka? Onizuka: Aye. Lim: Mr. Chair, there were 7 Ayes, no Nays, 1 No Vote. The Ayes have it. Onizuka: Thank you. Motion carried. The motion was carried unanimously. Onizuka: Moving on with the agenda, Public Statements. IV. Public Statements on Agenda Items Onizuka: Due to the COVID-19 pandemic and the Governor's orders to stay at home and practice social distancing, the public was instructed to submit public testimony in writing by email or fax by noon of Wednesday, July 1, 2020. All written testimony, regardless of time of receipt, will be made a part of the permanent record for each application. We do have members of the public participating in this teleconference today. Do any members of the public wish to make any statements? Onizuka: Hearing none... Forbes: Yes, I would, regarding Application No. 18-21. Onizuka: Go ahead. Forbes: Thank you for this opportunity to address the petition for rehearing of Application 18-21 that was submitted by Steven Shropshire. The facts shared by Mr. Shropshire relate to proclamations related to COVID-19 and the stay at home order that became effective March 25th. However, the linkage of the COVID-19 related facts with Mr. Shropshire's concerns about unfair advantage on the part of the opposition is blatantly false. In his petition, JULY 2, 2020 - LIQUOR COMMISSION MINUTES 5 Mr. Shropshire, who is the landlord, not the applicant, presents to you the unethical protest organizers willing to take unfair advantage using something as serious as the lockdown. He wants you to rectify that alleged wrongdoing by granting his petition. His concerns are false. He stated, "I am also concerned that opponents of the application continued their door-to-door campaign, canvassing the neighborhood despite the mandatory stay at home measures imposed. This was not responsible and in violation of stay at home orders." This is not... When we first read this petition, we were rather stunned that the petition ... and the allegations are... I offer the facts of what actually transpired and when. These are in the written testimonies. There are three attachments. Each fact clearly demonstrates that a rehearing is not warranted. Here's what we actually did. Forbes: The Liquor Control Department process requires a number of actions on the part of each resident who does not want a drinking establishment next to his or her neighborhood. If the resident does not complete all of the action, he or she is counted as not opposed. This is not unlike having an election and deciding the registered voters who didn't vote to be votes for the incumbent. What we did was we facilitated the completion of a formal statement of opposition by creating a protest form that included all of the data elements required. We offered that form to any resident who wanted it. That's the completed form in a couple of folders, and eventually scanned and submitted them to the Department, all well before the May 7th hearing, as requested by the Department. Forbes: To ease the burden upon those opposed to equate more closely with the lack of any burden upon those not opposed, who have no requirements at all, the process of attesting to their opposition in writing, complete with a dated signature, took place before the lockdown, with the exception of one registered voter. The residents will tell you that they own their statements of opposition. They did the thinking for themselves. We were facilitators, not protest organizers in the vein we see on (television) these days. Forbes: In terms of property owners, the majority of property owners and registered voters had completed the protest forms before the lockdown. In fact, a majority had completed (them) by March 11. They began completing them in early January, January 11. Two of the attachments you have, one for property owners, one for registered voters, indicate a number for the protest form, the date it was signed, which is the date it was completed, and also the date it was delivered to the Liquor Control Department. Forbes: In the case of the registered voters, we had 19 out of 20 who had completed their form by March 11. That's 66 percent of the registered voters of record as of May 7. The twentieth submitted her protest form on April 1St, and she did that by delivering it to the lanai of Mr. Kaye. There was no personal contact between the two individuals. The third attachment that you have is an affidavit attesting to that fact. There was no unfair advantage despite Mr. Shropshire's sense of aggrievement. There were no meetings, no door-to-door canvassing that took place during the lockdown. (Mr.) Shropshire's concern that we violated the lockdown is not true, and frankly, it is ridiculous. It would have been irresponsible and given our backgrounds; I have a doctorate in public health, my husband has a master's degree, John Kaye and his wife are both retired attorneys; add to that the fact that all four of us are over sixty-five years old, and therefore, at risk of COVID-19; and further, when you JULY 2, 2020 -LIQUOR COMMISSION MINUTES 6 stop to think, you might also expect that our neighbors would not have appreciated any person-to-person contact during that time. The Liquor Control Department has evidence that residents in opposition to the issuance of the liquor license had already completed and signed their form before the lockdown was in place. The concern regarding our door-to-door canvassing is unfounded. The applicant's planned community meeting scheduled for late next March, cancelled because of COVID-19, would have taken place after a majority of the property owners and registered voters had completed their forms. I doubt that people would have attended. The applicant's planned meeting with John Kaye and Susan Forbes would have taken place after our protest forms were submitted. If we had met with them at all, it would have just been a courtesy visit, and our issues with the planned establishment were categorical. There were no arguments that they could have about the bridge being adequate for the traffic, etcetera, etcetera. It wouldn't have mattered. Forbes: Mr. Shropshire's concerns, including his perception of unfair advantage for the protest organizing, are not supported by the facts, given the timing of the completion of the protest forms, it's concluded that the lockdown for COVID-19 did not impact the outcome. The rules related to COVID-19 are irrelevant in the context of the timing of the completion and signatures of the protest forms. Based on the facts substantiated on the protest forms submitted to the Department of Liquor Control, I request that you deny Mr. Shropshire's petition for rehearing. Thank you. Onizuka: Thank you, Ms. Forbes. Any other public statement? There was no other public statement. Onizuka: (10:15 A.M.) Hearing none, we move on. At this time, the Commission will take an item out of order on the agenda. We will take New Business, Item 22. 22. Petition for Rehearing submitted by Steve Shropshire for Application No. 18-21 Pacific Aqua Beverages LLC, dba Hilo Brewing Company, for Commission review, discussion, and decision-making. The Petition was filed pursuant to Liquor Rule 1-9 by Steve Shropshire, the landowner of the subject property and received by the Department of Liquor Control on June 9, 2020. At this time, we will hear from Corporation Counsel on a jurisdictional matter concerning this Petition for Rehearing. Kaye: Could I interrupt for one second? I got cut off when Susan Forbes was speaking, and want to say that I also would like to have the opportunity to speak against the petition for rehearing. Onizuka: Mr. Kaye, is this something in addition to your submitted testimony? Kaye: What I submitted on the testimony that everybody's gotten a copy of, I guess in terms of anything new or anything different that I would have liked to have pointed out, there was one thing that I did not mention, because it got by me, is the fact that the notice of the denial, JULY 2, 2020 - LIQUOR COMMISSION MINUTES 7 was sent to Pacific Aqua on May 15, 2020. Under the rules, the applicant, himself, had fifteen days in which to file a petition after that date, and he did not do so. I neglected to point that out, which means, that even though Pacifica Aqua never submitted any kind of a petition for rehearing, they certainly would've had to have done so by, I believe, the end of May. May 30, 1 believe, was the cut-off date. The only document that came in after that was Mr. Shropshire's petition for a rehearing, which occurred, and I don't understand, on June 9th. I looked at it, the date is June 9 on that thing. It says he turned it in to the Planning Department on May 23rd or 24th to May 261h, somewhere in there, but it did not come to the Department. Kaye: By statute, it has to come to the Liquor Control Department, and it didn't get there until June 9th. So, even if Mr. Shropshire could sit in as an interested person, in this case, he was way late. If you judge it by the fifteenth, when the letter of denial went out, he was way late. If you judge it by the day the denial was made, which was May 7th, he was really late. In addition to all of those other reasons I gave that the petition should not be considered, that's another one. He just missed the due date. Thank you. Onizuka: Thank you, Mr. Kaye. Let's proceed, at this time, Corporation Counsel? Masuda: Thank you, Mr. Chairman. As the previous speaker just said, I'll explain the exact same issue, which is one of jurisdiction. The ruling made on May 7, and what the rule requires under our Liquor Rule 1-9, and in this case, (Rule 1-9) G would be applicable if he's considered the interested person. Assuming the fifteen days, fifteen days from May 7th would have been May 22"d, which was not done. And as the previous speaker said, he sent it to the Department of Planning on May 26th, so that was late anyway. By the time the Liquor Department got it, it was June 9th. As far as timing, there is no jurisdiction. Masuda: Mr. Shropshire, apparently, sent another document this morning, saying that the suspension of deadlines that were first contained in the March 24, 2020, second supplementary emergency proclamation, then clarified on April 1St in the Mayor's third supplementary proclamation, explained that it would extend the deadline to sixty days. Except that, what shall be noted, and in my opinion is, that this extension is for permit deadlines and automatic approvals, which is not the case for this petition. I have nothing further, Mr. Chairman. Onizuka: Thank you. Masuda: There's one more thing. Within the Governor's proclamations, under Exhibit H, there is provision for the County to make a decision. Individual counties can make a decision on how they want to conduct public hearings. Obviously, since we're having this one, the County of Hawai'i, Department of Liquor Control chose to conduct business as usual about having social distancing using this format of the WebEx. I'd like to just put that on the record, Mr. Chairman. Thank you. Onizuka: Thank you. At this time, call for a motion to close the public hearing. Hughes: Motion to close the public hearing. Raymond: Second. JULY 2,2020— LIQUOR COMMISSION MINUTES 8 Mr. Hughes moved to close the public hearing; seconded by Ms. Raymond. Onizuka: Moved and seconded to close the public hearing. Any discussion? I have one question. Is Mr. Shropshire on the application for the license, or is he just the landowner? Takase: Mr. Chairman, Mr. Shropshire is not an applicant on the license, but he is the landowner of the applicant, Mr. Bender. He was the landlord of Mr. Bender. Technically, he probably would have been an interested party and that is why we are recognizing him. But, as you heard said, one, he missed the deadline; and, secondly, there's a difference in the way we treat interested parties versus applicants in that they have different deadlines. But, suffice it to say, as Craig said, he didn't make the filing deadlines, even in the best -case scenario. That's why we're taking this action. Also, he raised a point this morning about the Mayor's proclamations, but what Craig was saying is that, in his opinion, that is inapplicable in this case, as well. Onizuka: Thank you. Any other discussion? Ibarra: Mr. Chair, I have another question, following up with Gerald's comments about who is the... Gerald, there is the applicant interest and a landowner's interest, and as far as the application, and as far as the meetings, who's burden was it to conduct these meetings—the applicant or the landowner? Takase: There's no burden for them to have a meeting, but it would typically be in the best interest of the applicant to have made contact with the landowners. In this case, the landowner seemed to be taking over for the applicant at this point, trying to appeal the case. Ibarra: But the decision was against the applicant, not the landowner, right? Does the landowner have any standing to ask for a recon? Takase: Yes, technically it's against the applicant. I believe he would have standing because he did enter a letter as an interested party to the original hearing. Ibarra: Thank you. Onizuka: Thank you. Any other questions? Greenwell: Claude, I question why this discussion has come up in the meeting when, yesterday, there was a letter that said that they were pulling back this petition for a rehearing? Onizuka: The letter was just that he was not participating in this meeting today. Greenwell: So why is he here participating today? Takase: He's only submitting testimony on the matter. JULY 2, 2020 -LIQUOR COMMISSION MINUTES 9 Greenwell: Okay. Onizuka: He's not at the meeting today. Greenwell: But his written testimony is. Takase: Correct. Onizuka: Yes. Takase: The reason it's coming back to the Commission today, is that the Commission is the only body entitled or empowered to take action on all of these motions. We, as a department, could not summarily dismiss a matter. It has to come back to the Commission to make an informed decision as to what to do. We're trying to provide the Commission with all of the facts to put you in a position where you can decide. Greenwell: Thank you. Onizuka: Any other discussion? There was no other discussion from the Commissioners. Onizuka: If not, call for a vote to close the public hearing. All in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Hearing none, the public hearing is closed. The motion was carried unanimously. Onizuka: Call for a motion to approve or deny the petition for rehearing. Hughes: Motion to deny the petition for rehearing. Greenwell: I second that. Mr. Hughes moved to deny the Petition for Rehearing for Application No. 18-21, Pacific Aqua Beverages LLC, dba Hilo Brewing Company, for Commission review, discussion, and decision-making, filed pursuant to Liquor Rule 1-9 by Steve Shropshire, the landowner of the subject property and received by the Department of Liquor Control on June 9, 2020; seconded by Mr. Greenwell. JULY 2,2020- LIQUOR COMMISSION MINUTES 10 Onizuka: Moved and seconded that the... Masuda: Mr. Chairman, if I may interrupt? Commissioner Hughes, can you clarify your motion of what your motion to deny is based on? Is it for untimely filing? Hughes: Yes, it is... Masuda: Or is it for failure to state new facts for evidence? Hughes: Craig, I would say a little of both, but for the record, it would be for missing the deadlines for a rehearing. Mr. Hughes revised his motion to deny the Petition for Rehearing for Application No. 18-21, Pacific Aqua Beverages LLC, dba Hilo Brewing Company, for Commission review, discussion, and decision-making, filed pursuant to Liquor Rule 1-9 by Steve Shropshire, the landowner of the subject property and received by the Department of Liquor Control on June 9, 2020, on the basis of untimely filing for a rehearing; seconded by Mr. Greenwell. Masuda: Thank you. Onizuka: Moved and seconded, any other discussion? There was no other discussion from the Commissioners. Onizuka: If not, all those in favor of denying the application for rehearing say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Hearing none, motion carried. Request for rehearing is denied. The motion was carried unanimously. Onizuka: Moving on to Public Hearings. Item 1, Application No. 19-29, Crossroads Fireart LLC, dba Fireart Cuisine, applying for an original Dispenser General liquor license, Category A. V. Public Hearings APPLICATION NO.: 19-29 (10:28 A.M.) APPLICANT: Crossroads Fireart LLC TRADE NAME: Fireart Cuisine JULY 2, 2020 -LIQUOR COMMISSION MINUTES 11 PLACE OF BUSINESS: Crossroads Shopping Center, 75-1027 Henry Street, #104, Kailua-Kona, Hawaii TMK: 7-5-004:054 LICENSE APPLIED FOR: Original Dispenser General liquor license, Category A Feng Ding, Manager, was present. Onizuka: Do we have a representative for the Application 19-29? Gonzalez: Mr. Chair, we do have someone logged in. Onizuka: Can you state your name and relationship to the business, please? Ding: This is Feng Ding and I'm the Manager. Onizuka: Thank you. Can you describe your business, please? Ding: We are a sit-down restaurant and looking to add liquor to our menu. Onizuka: Mr. Director, any report of protests? Takase: Mr. Chairman, the applicant mailed 2 out of 2 notices within 100 feet and 9 out of 9 notices within 500 feet. There were 9 properties entitled to protest and there were no protests to this application. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: Hearing none, Commissioners, questions, discussion? There were no questions or discussion from the Commissioners. Onizuka: If not, call for a motion to close the public hearing. Thomas: I move to close the public hearing. Raymond: Second. Ms. Thomas moved to close the public hearing; seconded by Ms. Raymond. Onizuka: Thank you. Moved and seconded that we close the public hearing. Is there any discussion? There was no discussion from the Commissioners. JULY 2020 -LIQUOR COMMISSION MINUTES 12 Onizuka: Hearing none, all those in favor of closing the public hearing say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Call for a motion to approve or deny Application No. 19-29, pending final inspection. Hughes: Motion to approve Application No. 19-29. Greenwell: I'll second that motion. Mr. Hughes moved to approve Application No. 19-29, Crossroads Fireart LLC, dba Fireart Cuisine, for an original Dispenser General liquor license, Category A, located at the Crossroads Shopping Center, 75-1027 Henry Street, #104, Kailua-Kona, Hawaii, TMK: 7-5-004:054, pending final inspection; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we approve Application No. 19-29, pending final inspection. Discussion? There was no discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Hearing none, motion carried. Thank you. The motion was carried unanimously. Ding: Thank you very much, guys. Mahalo. Onizuka: Application No. 19-30, Big Island Jeep Rental LLC, dba Big Island Jeep Rental, applying for an original Retail General liquor license. JULY2, 2020 - LIQUOR COMMISSION MINUTES 13 2. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS TMK: LICENSE APPLIED FOR: 19-30 (10:35 A.M. ) Big Island Jeep Rental LLC Big Island Jeep Rental 73-4156 Hulikoa Drive, Bay #6, Kailua-Kona, Hawaii 7-3-058:018 Original Retail General liquor license Joseph Webster, Owner, was present. Onizuka: Do we have a representative for this application? Webster: Hi, this is Joe Webster with Big Island Jeep Rental. Thank you. Onizuka: Can you state your relationship to the business, please? Webster: I'm the owner, the sole owner. Onizuka: Thank you. Are there any changes to the report that was filed? Webster: No, sir. Onizuka: Thank you. Can you describe your business, please? Webster: It is a car rental agency, technically. We do jeep rentals with kind of a premium service. We provide beach gear, sunscreen, and all that kind of stuff. We are looking to provide gift baskets for our customers, such as honeymooners. We'll give them a bottle of local wine, some chocolates, and things of that nature. Onizuka: Thank you. Director, any report of protests? Takase: Mr. Chairman, the applicant mailed 2 out of 2 notices within 100 feet and 11 out of 11 notices within 500 feet. There were 11 total properties entitled to protest and there were no protests to this application. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: Hearing none, Commissioners, questions, or discussion? There were no questions or discussion from the Commissioners. Onizuka: If not, call for a motion to close the public hearing. Thomas: Move to close the public hearing. JULY 2020 - LIQUOR COMMISSION MINUTES 14 Raymond: Second. Ms. Thomas moved to close the public hearing; seconded by Ms. Raymond. Onizuka: Moved and seconded that we close the public hearing. Is there any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor of closing the public hearing say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. The motion was carried unanimously. Onizuka: Hearing none, call for a motion to approve or deny Application No. 19-30. Thomas: I move to approve Application No. 19-30, pending receipt of State Tax Clearance and final inspection. Raymond: Second. Ms. Thomas moved to approve Application No. 19-30, Big Island Jeep Rental LLC, dba Big Island Jeep Rental, for an original Retail General liquor license, located at 73-4156 Hulikoa Drive, Bay #6, Kailua-Kona, Hawaii, TMK: 7-3-058:018, pending receipt of State Tax Clearance and final inspection; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application No. 19-30. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 15 The motion was carried unanimously. Webster: Thank you, everybody, really appreciate it. Thomas: Good luck. Onizuka: Now we move on to Preliminary Hearings. VI. Preliminary Hearings Onizuka: Item 1, Application Number T1 9-39, Faith Group, LLC, dba Nani Mau Gardens, applying for a sale and transfer of a Restaurant General liquor license, Category B2, currently held by Glory Nani Mau LLC, dba Nani Mau Gardens. 1. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR T19-39 (10:39 A.M.) Faith Group, LLC Nani Mau Gardens 421 Makalika Street, Hilo, Hawaii 2-2-048:013 Sale and Transfer of the Restaurant General Liquor license, Category B2, currently held by Glory Nani Mau LLC, dba Nani Mau Gardens Mark Mattos, Owner, was present. Onizuka: Do we have a representative present for this application? Mattos: Yes. Onizuka: Can you state your name and relationship to the business? Mattos: Mark Mattos, sole Owner, Faith Group, LLC. Onizuka: Are there any changes to the report that was filed with the Liquor Department? Mattos: Yes, sir. We are changing the trade name to Pa`ina at Nani Mau. Onizuka: Okay, thank you. Mattos: Previously, Nani Mau Gardens, to be changed to Pa'ina at Nani Mau. Onizuka: Thank you. That's being submitted to the Department? Mattos: Yes, sir. Onizuka: Thank you. Can you describe your business, please? JULY 2,2020- LIQUOR COMMISSION MINUTES 16 Mattos: Yes, we are a multi -functional facility that focuses on private banquets, events, and parties, mostly for the local community. We also, not currently but have in the past, serviced some ship business and tour business of that type. But, we are primarily more so a restaurant than a garden, as the priority was in the past years. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: If not, Commissioners, questions, or discussion? There were no questions or discussion from the Commissioners. Onizuka: If not, call for a motion to approve or deny Application No. T19-39. Thomas: I move to approve Application No. T19-39; if approved, public hearing to be held on August 6, 2020, in Kona. Greenwell: Second. Ms. Thomas moved to approve Application No. 19-39, Faith Group, LLC, dba Pa`ina at Nani Mau, for a sale and transfer of the Restaurant General liquor license, Category 132, currently held by Glory Nan! Mau LLC, dba Nani Mau Gardens, located at 421 Makalika Street, Hilo, Hawaii, TMK: 2-2-048:013; if approved, public hearing to be held on August 6, 2020, in Kona; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we approve Application No. 19-39; if approved, public hearing to be held on August 6, 2020, in Kona. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Mattos: Thank you very much to the Department for their continued guidance and support. Much mahalo. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 17 Onizuka: Thank you. Moving on to Application No. T19-40, KW Kona Investors Beverage, LLC, dba Kona Village — Hale Ho'omau, applying for a sale and transfer of a Retail General liquor license, Category B2, currently held by Kona Village Investor's, LLC, dba Kona Village — Hale Ho`omau. 2. APPLICATION NO.: T19-40 (10:40 A.M.) APPLICANT: KW Kona Investors Beverage, LLC TRADE NAME: Kona Village — Hale Ho`omau PLACE OF BUSINESS: 72-300 Maheawalu Drive, Kona, Hawai'i TMK: 7-2-010:010 LICENSE APPLIED FOR: Sale and Transfer of the Retail General liquor license, currently held by Kona Village Investors, LLC, dba Kona Village — Hale Ho`omau Robert A. Ueoka, Esq., was present. Ueoka: Good morning, Mr. Chairman, members of the Commission, Mr. Takase. Robert Ueoka on behalf of KW Kona Investors Beverage, LLC. I have no changes to the investigator's report. Onizuka: Can you briefly describe the business? Ueoka: This is a retail type resort shop to be located in the Kona Village Resort. This current store is under construction. We were damaged by the March 2019 tsunami due to the Japanese earthquake. We plan to reopen in November 2022. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: Hearing none, Commissioners, questions, or discussion? There were no questions or discussion from the Commissioners. Onizuka: Hearing none, call for a motion to approve or deny Application No. T19-40. Greenwell: I move to approve Application No. T19-40; if approved, public hearing to be held on August 6, 2020, in Kona, Hawai'i. Raymond: Second. Mr. Greenwell moved to approve Application No. T19-40, KW Kona Investors Beverage, LLC, dba Kona Village — Hale Ho`omau, for a sale and transfer of the Retail General liquor license, currently held by Kona Village Investors, LLC, dba Kona Village — Hale Ho`omau, located at 72-300 Maheawalu JULY 2, 2020 - LIQUOR COMMISSION MINUTES 18 Drive, Kona, Hawaii, TMK: 7-2-010:010; if approved, public hearing to be held on August 6, 2020, in Kona, Hawai'i; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application No. T19-40; if approved, public hearing to be held on August 6, 2020, in Kona. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Ueoka: Thank you so much. Onizuka: Moving on to Application No. T19-41, KW Kona Investors Beverage, LLC, dba Kona Village Resort, applying for a sale and transfer of a Hotel liquor license, currently held by Kona Village Investors, LLC, dba Kona Village Resort. 3. APPLICATION NO.: T19-41 (10:44 A.M.) APPLICANT: KW Kona Investors Beverage, LLC TRADE NAME: Kona Village Resort PLACE OF BUSINESS: 72-300 Maheawalu Drive, Kona, Hawai'i TMK: 7-2-010:010 LICENSE APPLIED FOR: Sale and Transfer of the Hotel liquor license, currently held by Kona Village Investors, LLC, dba Kona Village Resort Robert A. Ueoka, Esq., was present. Ueoka: Robert Ueoka on behalf of Kona Village Resort, no changes to the investigator's report. Onizuka: Thank you. For the record, can you briefly describe the business, please? Ueoka: Sure, this is for the Kona Village Resort. Again, it was damaged in the 2019 tsunami. It is approximately 81 acres, with swimming pools, restaurants, bars, a spa/fitness center, also a luau and event areas. Again, currently under construction, estimated reopening date November 2022. JULY Z 2020 - LIQUOR COMMISSION MINUTES 19 Onizuka: Okay, do we have any public testimony on this application? There was no public testimony. Onizuka: Hearing none, Commissioners, questions, or discussion? There were no questions or discussion from the Commissioners. Onizuka: Hearing none, call for a motion to approve or deny Application No. T19-41. Greenwell: I'll move to approve Application No. T19-41; if approved, the public hearing to be held on August 6, 2020, in Kona, Hawaii. Raymond: Second. Mr. Greenwell moved to approve Application No. T19-41, KW Kona Investors Beverage, LLC, dba Kona Resort, for a sale and transfer of the Hotel liquor license, currently held by Kona Village Investors, LLC, dba Kona Village Resort, located at 72-300 Maheawalu Drive, Kona, Hawaii, TMK: 7-2-010:010; if approved, public hearing to be held on August 6, 2020, in Kona, Hawaii; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application No. T19-41; if approved, public hearing to be held on August 6, 2020, in Kona. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Hearing none, motion carried. Thank you. The motion was carried unanimously. Onizuka: Application No. T19-42, Wishard Enterprises, LLC, dba Luna Restaurant, applying for a sale and transfer of a Restaurant General liquor license, Category 61, currently held by Gormando LLC, dba Luna Restaurant. 4. APPLICATION NO.: T19-42 (10:45 A.M.) APPLICANT: Wishard Enterprises, LLC TRADE NAME: Luna Restaurant JULY 2, 2020 -LIQUOR COMMISSION MINUTES 20 PLACE OF BUSINESS: Waimea Center, 65-1158 Mamalahoa Highway, Suites 10 & 11, Kamuela, Hawaii TMK: 6-5-005:002 LICENSE APPLIED FOR: Sale and Transfer of the Restaurant General Liquor license, Category B1, currently held by Gormando LLC, dba Luna Restaurant Harry Wishard, Owner, was present. Onizuka: Do we have a representative? There was no response. Onizuka: No representative on this application? Gonzalez: Mr. Chair, I have Harry Wishard listed as a participant. Takase: He seems (to be) on the line. Onizuka: State your name and describe your relationship to the business, please. Wishard: Harry Wishard, owner of the Luna Restaurant, sole Owner. Onizuka: Thank you. Are there any changes to the report that was filed with the Department? Wishard: No. Onizuka: Can you briefly describe the business, please? Wishard: Italian restaurant, roughly 1,200 square feet, seats 56 people, mostly Italian food. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Wishard: No. Onizuka: Hearing none, Commissioners, questions, discussion? Thomas: I just wanted clarification. We're transferring Wishard to Gormando? Is that what's happening here? Wishard: No, it's the other way.. Thomas: Gormando to Wishard, okay. Onizuka: Any other questions? JULY 2,2020- LIQUOR COMMISSION MINUTES 21 Greenwell: When do they expect to open for business considering COVID-19? Are they going to do take-outs? What are they going to do? Wishard: We have a target date of August 1 st, and that looks like it may actually go a little later to August 15th, but I will reduce the number of seats by half. There won't be any take-out, initially. It'll be just in the restaurant with the proper social distancing. Greenwell: Thank you, Harry. Onizuka: Are there any questions? There were no questions from the Commissioners. Onizuka: Call for a motion to approve Application No. T19-42. Thomas: I move to approve Application No. T19-42; if approved, public hearing to be held on August 6, 2020, in Kona. Hughes: I'll second that. Ms. Thomas moved to approve Application No. T19-42, Wishard Enterprises, LLC, dba Luna Restaurant, for a sale and transfer of a Restaurant General liquor license, Category B1, currently held by Gormando LLC, dba Luna Restaurant, located at the Waimea Center, 65-1158 Mamalahoa Highway, Suites 10 & 11, Kamuela, Hawaii, TMK: 6-5-005:002; if approved, public hearing to be held on August 6, 2020, in Kona, Hawaii; seconded by Mr. Hughes. Onizuka: Moved and seconded that we approve Application No. T19-42; if approved, public hearing to be held on August 6, 2020, in Kona. Any other discussion? There was no other discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Wishard: Thank you very much, I appreciate it. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 22 Onizuka: Application No. 19-43, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company, applying for an original Small Craft Producer Pub liquor license, Category A, to add a second location. 5. APPLICATION NO.: 19-43 (10:50 A.M.) APPLICANT: Pacific Aqua Beverages, LLC TRADE NAME: Hilo Brewing Company PLACE OF BUSINESS: 1672 Kamehameha Avenue, Hilo, Hawaii TMK: 2-2-032:062 LICENSE APPLIED FOR: Original Small Craft Producer Pub liquor license, Category B2 (pursuant to Hawaii Revised Statutes §281-31(r)(9), Applicant requests to add a second location to its current Small Craft Producer Pub liquor license, Category A, located at 275 East Kawili Street, Hilo, Hawaii) Marcus Bender, Owner, was present. Onizuka: Do we have a representative present? Bender: Marcus Bender, Owner. Onizuka: Thank you. Are there any changes to the report that was filed? Bender: The (trade) name will change to Hilo Brewing Company and Cafe. Onizuka: Thank you. Can you briefly describe the business, please? Bender: Brewing company making local beer and the second location will be a place we can actually sell the beer, as well as have food, and looking to expand our footprint to offer more seating and more opportunity to sell our beer to the public. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: If not, Commissioners, questions, discussion? There were no questions or discussion from the Commissioners. Onizuka: Hearing none, call for a motion to approve or deny Application No. 19-43. Hughes: I make the motion to approve Application No. 19-43; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawaii. Thomas: Second. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 23 Mr. Hughes moved to approve Application No. 19-43, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company and Cafe, for an original Small Craft Producer Pub liquor license, Category B2, (pursuant to Hawaii Revised Statutes §281-31(r)(9), to add a second location at 1672 Kamehameha Avenue, Hilo, Hawaii, to its current Small craft Producer Pub liquor license, Category A, located at 275 East Kawili Street, Hilo, Hawaii; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawaii; seconded by Ms. Thomas. Onizuka: Moved and seconded that we approve Application No. 19-43; if approved, public hearing to be held on September 3, 2020, in Hilo. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Bender: Thank you very much. Onizuka: Moving on, Application No. T19-44, Stay Dream LLC, dba Sushi Cocoro & Udon Noodle, applying for a sale and transfer of a Dispenser General liquor license, Category A, currently held by Dragon Roll LLC, dba Tunaichi. 6. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR T19-44 (10:52 A.M.) Stay Dream LLC Sushi Cocoro & Udon Noodle 75-5699 Alii Drive, Suite F, Kailua-Kona, Hawaii 7-5-006:010 Sale and Transfer of the Dispenser General liquor license, Category A, currently held by Dragon Roll LLC, dba Tunaichi Yoshito Sanada, Owner, was present. Onizuka: Do we have a representative present? Sanada: This is Yoshito Sanada. I am the owner. JULY Z 2020 - LIQUOR COMMISSION MINUTES 24 Onizuka: Thank you. Are there any changes to the report that was filed? Sanada: No, sir. Onizuka: Can you describe your business, please? Sanada: Yes, we are a small sushi restaurant located on Alii Drive. There are no changes from the previous (operation). Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: If none, Commissioners, any questions, discussion? There were no questions or discussion from the Commissioners. Onizuka: If not, call for a motion to approve or deny Application No. T19-44. Greenwell: I move to approve Application No. T19-44; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawai'i. Hughes: I'll second that. Mr. Greenwell moved to approve Application No. T19-44, Stay Dream LLC, dba Sushi Cocoro & Udon Noodle, for a sale and transfer of a Dispenser General liquor license, Category A, currently held by Dragon Roll LLC, dba Tunaichi, located at 75-5699 Alii Drive, Suite F, Kailua-Kona, Hawaii, TMK: 7-5-006:010; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawaii; seconded by Mr. Hughes. Onizuka: Moved and seconded that we approve Application No. T19-44; if approved, public hearing to be held on September 3, 2020, in Hilo. Any other discussion? There was no other discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 25 The motion was carried unanimously. Onizuka: Call for a motion to ratify issuance of temporary license. Hughes: Motion to ratify issuance of temporary license T -DG -926, effective July 1, 2020. Greenwell: I'll second that. Mr. Hughes moved to ratify the issuance of temporary license T -DG -926, effective July 1, 2020; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we ratify temporary license T -DG -926, effective July 1, 2020. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: At this time, we'll take New Business Item No. 15 out of order, since it's related to the same application. 15. Dragon Roll LLC, dba Tunaichi, pursuant to HRS §281-41, approval for a sale and transfer within one year of issuance, of its Dispenser General liquor license (DG -926), Category A, located at 75-5699 Ali'i Drive, Suite F, Kailua-Kona, Hawai'i. Takase: Mr. Chair, sorry, we probably should have taken this matter before the last matter. But, Section 281-41 requires that the Commission make a finding of good cause to allow for the sale and transfer of a license within one year of its issuance. In this matter, Mr. Sunada is buying from the current owner, Yasuharu Muramatsu who was the previous owner. I believe Mr. Sunada is an employee and Mr. Muramatsu is, as you've seen through the last couple of months, divesting himself of all his physical holdings in the Kona area. The Department would find that there is good cause to allow him to do that and there's no problem with allowing for the transfer within the one-year period. Onizuka: Thank you. Call for a motion to approve. JULY Z 2020 - LIQUOR COMMISSION MINUTES 26 Ibarra: Move to approve, finding good cause as stated by Gerald. Hughes: I second that. Mr. Ibarra moved to approve the finding of good cause for the sale and transfer of the Dispenser General liquor license (DG -926), Category A, located at 75-5699 Alii Drive, Suite F, Kailua-Kona, Hawaii, within one year of its issuance, pursuant to HRS §281-41, on the basis that the previous owner is divesting all physical holdings in the Kona area; seconded by Mr. Hughes. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: Going back to Preliminary Hearings, Item No. 7, Application Number T19-45, Hilo Sunrise LLC, dba MOMS Hilo, applying for a sale and transfer of a Restaurant General liquor license, Category B2, currently held by Hilo Noodle Bar, LLC, dba Kanpai. 7. APPLICATION NO.: T19-45 (11:01 A.M.) APPLICANT: Hilo Sunrise LLC TRADE NAME: MOMS Hilo PLACE OF BUSINESS: 190 Keawe Street, Ste. 10, Hilo, Hawaii TMK: 2-3-006:008 LICENSE APPLIED FOR: Sale and Transfer of the Restaurant General liquor license, Category B2, currently held by Hilo Noodle Bar, LLC, dba Kanpai Yuta Momoki, Owner, was present. Onizuka: Do we have a representative? Gonzalez: Mr. Chair, in the list of participants, we have a Yuta Momoki listed, who is the owner for this application. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 27 Onizuka: Is he on now? Gonzalez: He is connected to the conference, but I can't hear him. Yuta, are you there? There was no response from Mr. Momoki at this time. Onizuka: Brandon, do you want to try to contact him and we can come back to this? Gonzalez: Sure. Onizuka: We'll proceed. Gonzalez: We can proceed, Mr. Chair, and I will try calling him in the meantime. Thank you. Onizuka: This is a restaurant, I believe. Do we have any public testimony on this .application? There was no public testimony. Onizuka: Hearing none, Commissioners, any discussion? Takase: Mr. Chairman, we're trying to get a hold of him, it looks like he's on, but (we) can't get in touch with him. This is the old Kanpai in downtown Hilo. Mr. Momoki will be coming from Japan and taking over the operation. It will remain, basically, the same. Onizuka: Thank you. Hearing no other discussion, call for approval or denial of Application No. T19-45. Greenwell: I make the motion to approve Application No. T19-45; if approved, public hearing to be held on August 6, 2020, in Kona, Hawai'i. Masuda: Mr. Chairman, I'm not sure, but did we call for public testimony on this matter? Onizuka: Do we have any public testimony? There was no public testimony? Masuda: Mr. Chair, it looks like Mr. Yuta Momoki is online. There was some technical (audio) difficulty occurring. Onizuka: Do the Commissioners have any questions for the owner? There were no questions from the Commissioners. Onizuka: Any other discussion on the motion? There was no other discussion from the Commissioners. JULY 2,2020- LIQUOR COMMISSION MINUTES 28 Onizuka: If not, the motion is to approve Application No. T19-45; if approved, public hearing to be held on August 6, 2020, in Kona, Hawai'i. All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Lim: Excuse me, Chairman Onizuka? We need a second for the motion. Salave`a: I'll second the motion. Mr. Greenwell moved to approve Application No. T19-45; Hilo Sunrise LLC, dba MOMS Hilo, for a sale and transfer of a Restaurant General liquor license, Category B2, currently held by Hilo Noodle Bar, LLC, dba Kanpai, located at 190 Keawe Street, Ste. 10, Hilo, Hawaii, TMK: 2-3-006:008; if approved, public hearing to be held on August 6, 2020, in Kona, Hawaii; seconded by Mr. Salave`a. Onizuka: Moved and seconded that we approve the application. Any other discussion? There was no other discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. Application Number 19-46, Safeway Inc., dba Safeway, applying for a change of location from 75-1027 Henry Street, Kailua-Kona, Hawaii to 75-971 Henry Street, Kailua-Kona, Hawai'i; and change in trade name from Safeway Store #1501 to Safeway. 8. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR 19-46 (10:04 A.M.) Safeway Inc. Safeway 75-971 Henry Street, Kailua-Kona, Hawaii 7-5-004:007 Change of location from 75-1027 Henry Street, Kailua-Kona, Hawai'i to 75-971 Henry Street, JULY 2, 2020 - LIQUOR COMMISSION MINUTES 29 Kailua-Kona, Hawai'i, to its Retail General liquor license; and Change in Trade Name from Safeway Store #1501 to Safeway Robert Ichikawa, Esq.; and, John Perillo, Store Director, were present. Onizuka: Do we have a representative? Ichikawa: Good morning, Mr. Chair, Commissioners, Gerald Takase. This is Robert Ichikawa representing Safeway Inc. Also participating is John Perillo who is the Store Director. There is one change. The dba will be Safeway Store #1117. Thank you. Onizuka: Thank you. Can one of you briefly describe the business for the record, please? Perillo: Hi, this is John Perillo. I'm Store Director for Safeway in Kona. It's a general supermarket. We're just going to have a new footprint, larger store with an additional fuel station. Onizuka: Do we have any public testimony on this application? There was no public testimony. Onizuka: If not, Commissioners, any questions or discussion? Question, Mr. Perillo, I live in Kona. Where is the gas station? Perillo: It will be located on Henry Street. They haven't built it yet. If you're facing the front of the store, it's going to be on the right-hand side, next to the road. Onizuka: Okay, and what is that building across that entry road from Henry Street in to Lanihau? Perillo: The one that's Makai? Onizuka: Yes. Perillo: I'm not sure what that one is. The developer has all that information. I'm not privy to that. Onizuka: Commissioners, any other questions? There were no other questions from the Commissioners. Onizuka: If not, call for a motion to approve or deny Application No. 19-46. Thomas: I move to approve Application No. 19-46; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawai'i. Greenwell: Second. JULY 2,2020- LIQUOR COMMISSION MINUTES 30 Ms. Thomas moved to approve Application No. 19-46, Safeway Inc., dba Safeway Store #1501, for a change of location from 75-1027 Henry Street, Kailua-Kona, Hawaii to 75-971 Henry Street, Kailua-Kona, Hawaii; and change in trade name from Safeway Store #1501 to Safeway Store #1117, to its Retail General liquor license, located at 75-1027 Henry Street, Kailua-Kona, Hawaii; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawaii; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we approve Application No. 19-46; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawai'i. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Ichikawa: Thank you very much. Thanks, everyone for all of your efforts during this challenging time, appreciate it. Perillo: Thank you to the whole Commission. Onizuka: At this time, we're going to take New Business, Item No. 13 out of order, since it's related to this application. 13. Safeway Inc., dba Safeway Store #1501, dba Safeway (Hilo Fuel Center), dba Safeway Stores, Inc. #2893 (Maka`ala), acceptance of the change in officers/directors with the addition of Vivekanand (Vivek) Sankaran, as CEO/President, and Gary Ray Morton, as Vice President/Treasurer/AS, effective October 1, 2019; and, the Personal History and Affidavit for Vivekanand (Vivek) Sankaran, CEO/President; and Gary Ray Morton, Vice President/Treasurer/AS, effective October 1, 2019, to its Retail General liquor licenses, located at the Crossroads Shopping Center,75-1027 Henry Street, Kailua-Kona, Hawai'i; and 381 East Maka'ala Street, Hilo, Hawai'i, respectively. Onizuka: Call for a motion to accept the changes. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 31 Hughes: Motion to accept the changes. Thomas: Second. Mr. Hughes moved to accept the change in officers/directors submitted by Safeway Inc., dba Safeway Store #1501, dba Safeway (Hilo Fuel Center), and dba Safeway Stores, Inc. #2893 (Maka`ala), with the addition of Vivekanand (Vivek) Sankaran, as CEO and President, and Gary Ray Morton, as Vice President, Treasurer, and AS, effective October 1, 2019; and, the Personal History and Affidavit for Vivekanand (Vivek) Sankaran, CEO and President; and Gary Ray Morton, Vice President, Treasurer, and AS, effective October 1, 2019, to its Retail General liquor licenses, located at the Crossroads Shopping Center, 75-1027 Henry Street, Kailua-Kona, Hawaii; and 381 East Maka`ala Street, Hilo, Hawaii, respectively; seconded by Ms. Thomas. Onizuka: Moved and seconded to accept the changes. Any other discussion? Greenwell: Mr. Chairman? Onizuka: Yes? Greenwell: I don't understand the Safeway Store #1501. Is it being moved to Kona? Is that what's happening there? Onizuka: They're moving down the road, so it's a new construction a new shopping center being moved. Greenwell: Okay, so they're moving it out of Hilo to Kona? Ichikawa: I'm sorry, the existing one in Hilo is going to stay, but because of the records, we needed to update the officers on file for that location. So, Hilo stays in Hilo, and Kona is moving just down the street. Greenwell: Okay, thank you. Ichikawa: Sure. Onizuka: Any other discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." JULY 2, 2020 - LIQUOR COMMISSION MINUTES 32 Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Ichikawa: Thank you very much. Onizuka: Back to Preliminary Hearings, Item No. 9, Application Number 19-47, The Odom Corporation, dba The Odom Corporation, applying for an original Wholesale General liquor license. 9. APPLICATION NO.: 19-47 (11:11 A.M.) APPLICANT: The Odom Corporation TRADE NAME: The Odom Corporation PLACE OF BUSINESS: 45 Holomua Street, Hilo, Hawai'i TMK: 2-2-049:007 LICENSE APPLIED FOR: Original Wholesale General liquor license Steven Stenberg, Sr. Vice President of Finance, was present. Onizuka: Do we have a representative? Stenberg: Yes, my name is Steve Stenberg with The Odom Corporation. I am the Sr. Vice President of Finance. I believe we also have Adam Hilpert, President, on the call. As you have stated, we are applying for an original Wholesale General liquor license at a location in Hilo. Onizuka: Thank you. Are there any changes to the report that was filed? Stenberg: No changes. Onizuka: Can you briefly describe the business for the record? Stenberg: Sure, The Odom Corporation is a wholesale beverage distributor focused primarily on beer. We currently hold the Wholesale General liquor licenses in Honolulu and Kauai, as well as a Solicitors Permit for Maui. This is part of our plan to build a statewide distribution platform for our beer business. You may also be aware that The Odom Corporation owns the Coca Cola distribution rights in Hawai'i on all islands with the exception of Maui. We operate the Coca Cola business as a separate entity from our beer distribution business. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: Hearing none, Commissioners, questions, or discussion? JULY 2, 2020 -LIQUOR COMMISSION MINUTES 33 Thomas: I have a question. What beers do you distribute? Stenberg: Good question. At the moment, we're in Hawai'i with approximately twenty-five different beer suppliers, mostly craft beer. I can mention a couple of supplier names. I'm not sure you would recognize them, but, Modern Times is one of them. You may be familiar with Vailima; that brand has been around for a long time, but primarily craft beer. Thomas: Okay, thank you. Stenberg: Sure. Onizuka: Commissioners, any other questions, discussion? There were no other questions or discussion from the Commissioners. Onizuka: Hearing none, call for a motion to approve or deny Application No. 19-47. Greenwell: I make the motion to approve Application No. 19-47; if approved public hearing to be held on September 3, 2020, in Hilo, Hawai'i. Thomas: I second. Mr. Greenwell moved to approve Application No. 19-47, The Odom Corporation, dba The Odom Corporation, for an original Wholesale General liquor license, located at 45 Holomua Street, Hilo, Hawaii, TMK: 2-2-049:007; if approved, public hearing to be held on September 3, 2020, in Hilo, Hawaii; seconded by Ms. Thomas. Onizuka: Moved and seconded that we approve Application No. 19-47; if approved public hearing to be held on September 3, 2020, in Hilo, Hawai'i. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Stenberg: Thank you very much. Mahalo. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 34 VII. Unfinished Business Onizuka: We have no Unfinished Business, so we'll move on to New Business. VIII. New Business (11:15 A.M.) Onizuka: 1. The Club at Hokuli`a, Inc., dba Club at Hokuli`a (The), dba Club at Hokuli`a (The) (Retail), acceptance of the change of officers/directors with the election of Lisa Burgis Der and Stephen Ewing as Directors, replacing Ronald Ervin Nelson and Richard O. White, Directors, effective March 16, 2020, received on May 21, 2020, to its Restaurant General liquor license, Category B2, and Retail liquor license, located at 81-6636 Pu'u Ohau Place, Kealakekua, Hawaii. Motion to accept? Greenwell: Motion to accept. Onizuka: Do we have a second? Thomas: Second. Mr. Greenwell moved to accept the change of officers/directors submitted by The Club at Hokuli`a, Inc., dba Club at Hokuli`a (The), dba Club at Hokuli`a (The) (Retail), with the election of Lisa Burgis Der and Stephen Ewing as Directors, replacing Ronald Ervin Nelson and Richard O. White, Directors, effective March 16, 2020, received on May 21, 2020, to its Restaurant General liquor license, Category B2, and Retail liquor license, located at 81-6636 Pu`u Ohau Place, Kealakekua, Hawaii; seconded by Ms. Thomas. Onizuka: Thank you. Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. JULY 2, 2020 -LIQUOR COMMISSION MINUTES 35 The motion was carried unanimously. Onizuka: 2. Contemporary Restaurant Corporation, dba Merriman's, acceptance of the change in officers/directors with the promotion of Cristina Schenk, from Vice President/Director to Chief Executive Officer, effective March 3, 2020, received on May 23, 2020, to its Restaurant General liquor license, Category B2, located at Opelo Plaza II, 65-1227 Opelo Road, Kamuela, Hawaii. Call for a motion. Hughes: Motion to accept. Greenwell: Second. Mr. Hughes moved to accept the change in officers/directors submitted by Contemporary Restaurant Corporation, dba Merriman's, with the promotion of Cristina Schenk, from Vice President/Director to Chief Executive Officer, effective March 3, 2020, received on May 23, 2020, to its Restaurant General liquor license, Category B2, located at Opelo Plaza II, 65-1227 Opelo Road, Kamuela, Hawaii; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we accept. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 3. Puna Plantation Hawaii, Limited, dba KTA Super Stores #1 (Keawe), #2 (Kailua-Kona), #3 (Puainako), Keauhou, Kamuela, #9 (Waikoloa), and KTA Express Kealakekua, acceptance of the change in officer/director with the removal of Barry K. Taniguchi, effective September 20, 2019, received on May 26, 2020, to its Retail General liquor licenses. Hughes: Motion to accept the change. JULY 2,2020- LIQUOR COMMISSION MINUTES 36 Raymond: Second. Mr. Hughes moved to accept the change in officer/director submitted by Puna Plantation Hawaii, Limited, dba KTA Super Stores #1 (Keawe), #2 (Kailua-Kona), #3 (Puainako), Keauhou, Kamuela, #9 (Waikoloa), and KTA Express Kealakekua, with the removal of Barry K. Taniguchi, effective September 20, 2019, received on May 26, 2020, to its Retail General liquor licenses; seconded by Ms. Raymond. Onizuka: Moved and seconded that we accept the change. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: 4. Hidekazu Ito, ratification of Application for Solicitor's Permit for possession of liquor for sampling to buyers by The Cherry Company, Ltd., pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on May 27, 2020, approved by Director Gerald Takase on May 28, 2020. Onizuka: Call for a motion to ratify. Greenwell: I make the motion to ratify. Hughes: I'll second. Mr. Greenwell moved to ratify the Application for Solicitor's Permit submitted by Hidekazu Ito, for possession of liquor for sampling to buyers by The Cherry Company, Ltd., pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on May 27, 2020, approved by Director Gerald Takase on May 28, 2020; seconded by Mr. Hughes. Onizuka: Moved and seconded to ratify. Any discussion? JULY 2, 2020 - LIQUOR COMMISSION MINUTES 37 There was no discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 5. Dubidee LLC, dba Mi's Waterfront Bistro, ratification of Application for Temporary Increase in Licensed Premises to the deck area fronting the main entrance, from June 1, 2020, through July 31, 2020, approved by Director Gerald Takase on June 2, 2020, to its Restaurant General liquor license, Category 132, located on Waterfront Row, 75-5770 Alii Drive, Restaurant 2, Kailua-Kona, Hawaii. Call for a motion to ratify. Hughes: Move to ratify. Thomas: Second. Mr. Hughes moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Dubidee LLC, dba Mi's Waterfront Bistro, to the deck area fronting the main entrance, from June 1, 2020, through July 31, 2020, approved by Director Gerald Takase on June 2, 2020, to its Restaurant General liquor license, Category B2, located on Waterfront Row, 75-5770 Alii Drive, Restaurant 2, Kailua-Kona, Hawaii; seconded by Ms. Thomas. Onizuka: Moved and seconded that we ratify. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." JULY 2,2020- LIQUOR COMMISSION MINUTES 38 There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 6. Mauna Kea Resort LLC, dba Mauna Kea Beach Hotel, dba The Westin Hapuna Beach Resort, acceptance of the change of officers/directors with the removal of Tomoyuki Nishii, Director; appointment of Masaaki Arahara as Director; and, the Personal History and Affidavit for Masaaki Arahara, Director, effective April 1, 2020, received on May 27, 2020, to its Hotel liquor licenses, located at 62-100 Mauna Kea Beach Drive, Kamuela, Hawai'i; and 62-100 Kauna'oa Drive, Kamuela, Hawai'i, respectively. Hughes: Motion to accept changes and Personal History and Affidavit. Raymond: Second. Mr. Hughes moved to accept the change of officers/directors submitted by Mauna Kea Resort LLC, dba Mauna Kea Beach Hotel, dba The Westin Hapuna Beach Resort, with the removal of Tomoyuki Nishii, Director; appointment of Masaaki Arahara as Director; and, the Personal History and Affidavit for Masaaki Arahara, Director, effective April 1, 2020, received on May 27, 2020, to its Hotel liquor licenses, located at 62-100 Mauna Kea Beach Drive, Kamuela, Hawai'i; and 62-100 Kauna'oa Drive, Kamuela, Hawai'i, respectively; seconded by Ms. Raymond. Onizuka: Moved and seconded that we accept changes and Personal History and Affidavit. Discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. JULY 2, 2020 -LIQUOR COMMISSION MINUTES 39 Onizuka: 7. Hatch Enterprises Incorporated, dba The Temple, ratification of Application for Temporary Increase in Licensed Premises to the lobby area and entrance area of the restaurant, from June 1, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on May 29, 2020, to its Restaurant General liquor license, Category 131, located at 64 Keawe Street, Space 102, Hilo, Hawai'i. Call for a motion to ratify. Hughes: Motion to ratify. Raymond: Second. Mr. Hughes moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Hatch Enterprises Incorporated, dba The Temple, to the lobby area and entrance area of the restaurant, from June 1, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on May 29, 2020, to its Restaurant General liquor license, Category 131, located at 64 Keawe Street, Space 102, Hilo, Hawaii; seconded by Ms. Raymond. Onizuka: Moved and seconded that we ratify. Any discussion? Hughes: Mr. Chair, I have a question. When is the end of this COVID-19 (period), just so we have an end date? Thomas: I have the same question. Takase: We don't really have an end date for it yet, but, looking at all these increases, we're prepared to go at least to the end of the year. My understanding is that none of the restrictions will be lifted before that point in time, if ever, maybe. We may be working with the Licensees on extending these temporary increases for a longer period. Greenwell: Chairman Onizuka? Onizuka: Yes, sir? Greenwell: I follow up on this COVID-19 restriction period date ending with, that I think there should be a little more clarification because, if something should come about where restaurants or bars are exempt, or hotels are exempt, or something like that gets exempt and one doesn't, I'd like to revisit this a little more in case this COVID-19 restriction period does not end for all different applicants at the same time. Takase: We will keep monitoring it. Right now, bars and restaurants are allowed to open with social distancing, and that has cut in deeply into their ability to reach their capacity. That's why we had granted all of the Licensees, if they wanted, to extend it to their outside dining areas to JULY 2,2020- LIQUOR COMMISSION MINUTES 40 help them recover some of their capacity for dining. I don't know that they're going to "piecemeal" allow some to get off the restrictions or not. I think it's going to be for all, it's going to be the same. I don't think the restrictions are coming off any time soon. If I had to guess, would say we'll probably be in this situation through the end of the year. Greenwell: Okay, Gerald, I just want it on record that we're trying to help them; but, at the same time, we're protecting ourselves from ambiguities that could come up with other problems. Ibarra: Chair, I have a question. Onizuka: Go ahead. Ibarra: Gerald, is there a provision that we can put in, like in the approval of any application, that the applicant applies with the law? So, if there is a resolution by the State or the Governor's proclamation that cuts it back, the applicant would have to comply with that. You would have to inform that applicant of the change in the law or any proclamation issued by the governmental agencies. Takase: We can do that and it certainly ...to add that proviso to the temporary increase, if you so wish. We are in good contact with all of the Licensees right now in trying to help them through this situation. A lot of them had applied just for a one month period. I told them that I didn't think it would be over in one month. We're moving them to a longer period of time and I think their landlords, as well, have been amenable to allowing them to use these areas. In most instances, it's still on private property; either property owned by the Licensee or leased by them. Some of our concerns are to make sure that we don't block the passage and things of that nature, and in most instances, we've been able to work with the Licensees, and with the landowners to make more reasonable accommodations. Ibarra: Like David, I have no problem with the extension. I just want to be sure that they understand that if there is a proclamation that may be inconsistent with our extension, that certainly, the proclamation should govern and that you or our agency would inform them that we have to comply with the proclamation. Takase: Yes, we will do that. With each proclamation that comes out, we've been issuing updates as far as how the proclamations affect their liquor licenses. If we do get one that calls off or eliminates the numbers for restriction, we will make that note and notify all the Licensees and we will cancel all the temporary increases. Thomas: Would it be appropriate to append this by saying "the COVID-19 restriction period for Category B1 Licensees?" Because that's what they are. Takase: I don't think we have to limit them to one category because it's across the board for all the Licensees. The category has to do with entertainment more than... Thomas: Okay. Right, my suggestion was based on the particular category that this applicant fits into, as a way of circumscribing the COVID-19 restriction; anything other than a Category B1 might or might not apply to The Temple, but just in the way of limiting the restrictions for JULY 2, 2020 - LIQUOR COMMISSION MINUTES 41 COVID-19, not to... just them in particular. They would have to adhere to any of the restrictions that were relevant for the particular type of licensed applicant. But if it's not necessary, it's fine. Takase: The language that we've been applying to them is what you see there. It would be through the COVID-19 restriction period. It goes back to Commissioner Ibarra's point that if the restrictions get lifted, the extensions will end. Thomas: Okay. Onizuka: Is there any other discussion? There was no other discussion from the Commissioners. Onizuka: We need to vote. All those in favor of approving the ratification say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was approved unanimously. Onizuka: 8. The Other Bar LLC, dba Hilo Town Tavern, ratification of Application for Temporary Increase in Licensed Premises as an extension to the outside patio, from June 1, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on May 29, 2020, to its Restaurant General liquor license, Category B2, located at 168 Keawe Street, Hilo, Hawaii. Hughes: I'll make the motion to ratify. Thomas: Second. Mr. Hughes moved to ratify the Application for Temporary Increase in Licensed Premises submitted by The Other Bar LLC, dba Hilo Town Tavern, as an extension to the outside patio, from June 1, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on May 29, 2020, to its Restaurant General liquor license, Category B2, located at 168 Keawe Street, Hilo, Hawaii; seconded by Ms. Thomas. Onizuka: Moved and seconded. Any other discussion? JULY2, 2020 -LIQUOR COMMISSION MINUTES 42 There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: 9. The Other Bar LLC, dba Hilo Town Tavern, approval of Application for Increase in Licensed Premises to include approximately 275 square feet of outside dining area, to its Restaurant General liquor license, Category 132, located at 168 Keawe Street, Hilo, Hawai'i, TMK: 2-3-006:007. Takase: Mr. Chairman, I'll explain what's happening on this one. Hilo Town Tavern had a small business attached to it previously. There was a walkway carved out of part of their licensed premises to allow for egress to and from the street. That business has ceased to operate, and they are now in control of the entire premises. They are now asking for the increase of this 275 square feet to the outside dining area which was previously the walkway to the other business. If you see Stacie's report, she highlights the area. It was a driveway or walkway to the back area. Onizuka: Thank you. Call for a motion to approve. Hughes: I make the motion to approve. Greenwell: I'll second. Mr. Hughes moved to approve the Application for Increase in Licensed Premises submitted by The Other Bar LLC, dba Hilo Town Tavern to include approximately 275 square feet of outside dining area, to its Restaurant General liquor license, Category B2, located at 168 Keawe Street, Hilo, Hawaii, TMK: 2-3-006:007; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." JULY2, 2020 - LIQUOR COMMISSION MINUTES 43 The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 10. Anahkahna, Inc., dba Korner Pocket Bar & Grill (The), ratification of Application for Temporary Increase in Licensed Premises to the south side of the building's sidewalk and Makai covered patio, from June 1, 2020, through July 31, 2020, approved by Director Gerald Takase on June 1, 2020, to its Restaurant General liquor license, Category B2, located at the Central Kona Shopping Center II, 81-970 Haleki'i Street, Building B, Kealakekua, Hawai'i. Call for a motion to ratify. Greenwell: I'll make the motion to ratify. Hughes: I'll second it. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Anahkahna, Inc., dba Korner Pocket Bar & Grill (The), to the south side of the building's sidewalk and Makai covered patio, from June 1, 2020, through July 31, 2020, approved by Director Gerald Takase on June 1, 2020, to its Restaurant General liquor license, Category B2, located at the Central Kona Shopping Center II, 81-970 Haleki`i Street, Building B, Kealakekua, Hawaii; seconded by Mr. Hughes. Onizuka: Moved and seconded. Any other discussion? There was no other discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 44 The motion was carried unanimously. Onizuka: 11. Andrew I. Dunbrack, ratification of Application for Individual Importation of Liquor Permit for a single shipment of liquor not to exceed five gallons (19 liters) which are unavailable in the State of Hawai'i (Finback Beer — 8 cans, Grimm Beer — 8 cans, total of 2 gallons), approved by Director Gerald Takase on June 4, 2020. Call for a motion to ratify. Greenwell: I'll move to ratify. Hughes: Second. Mr. Greenwell moved to ratify the Application for Individual Importation of Liquor Permit submitted by Andrew I. Dunbrack, for a single shipment of liquor not to exceed five gallons (19 liters) which are unavailable in the State of Hawaii (Finback Beer — 8 cans, Grimm Beer — 8 cans, total of 2 gallons), approved by Director Gerald Takase on June 4, 2020. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 12. Tommy Bahama Beverages, LLC, dba Tommy Bahama's Tropical Cafe, ratification of Application for Temporary Increase in Licensed Premises to the courtyard fronting the restaurant and store, from June 8, 2020, through July 1, 2020, approved by Director Gerald Takase on June 3, 2020, to its Restaurant General liquor license, Category B2, located at The Shops at Mauna Lani, 68-1330 Mauna Lani Drive, Suite 101, Kamuela, Hawai'i. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 45 Motion to ratify? Thomas: Chairman, I have a question. It says "Change to be made ... through the COVID-19 restriction period" versus July 1 st. Is that applicable to this particular issue? Takase: Mr. Chairman, we actually spoke with Tommy Bahama's and they are not going to continue with the outside seating. You can ratify this one. They are withdrawing any increase for future use as of... Thomas: Okay, I move to ratify. Greenwell: Second. Ms. Thomas moved to ratify the Application for Temporary Increase in Licensed Premises to the courtyard fronting the restaurant and store, from June 8, 2020, through July 1, 2020, approved by Director Gerald Takase on June 3, 2020, to its Restaurant General liquor license, Category B2, located at The Shops at Mauna Lani, 68-1330 Mauna Lani Drive, Suite 101, Kamuela, Hawaii; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Item No. 13 was previously accepted. 14. Mo's Fish and Chips LLC, dba Mohala's Bay Front Fish and Chips, ratification of Application for Alteration Permit to increase the existing restaurant space, approved by Director Gerald Takase on June 19, 2020, to its Restaurant Beer and Wine liquor license, Category A, located at 50 Waianuenue Avenue, Hilo, Hawai'i, TMK: 2-3-004:004. Call for a motion to ratify. JULY Z 2020 - LIQUOR COMMISSION MINUTES 46 Greenwell: I'll make the motion to ratify. Raymond: Second. Mr. Greenwell moved to ratify the Application for Alteration Permit submitted by Mo's Fish and Chips LLC, dba Mohala's Bay Front Fish and Chips to increase the existing restaurant space, approved by Director Gerald Takase on June 19, 2020, to its Restaurant Beer and Wine liquor license, Category A, located at 50 Waianuenue Avenue, Hilo, Hawaii, TMK: 2-3-004:004; seconded by Ms. Raymond. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Item No. 15 was previously approved. 16. Big Island Brewhaus LLC, dba Big Island Brewhaus, ratification of Application for Temporary Increase in Licensed Premises to the area fronting the entrance to allow additional seating during the COVID-19 restriction period, approved by Director Gerald Takase on June 9, 2020, to its Brewpub liquor license, Category 132, located at 64-1066 Mamalahoa Highway, Kamuela, Hawaii. Call for a motion to ratify. Hughes: Motion to ratify. Greenwell: Second. Mr. Hughes moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Big Island Brewhaus LLC, dba Big Island Brewhaus, to the area fronting JULY 2, 2020 - LIQUOR COMMISSION MINUTES 47 the entrance to allow additional seating during the COVID-19 restriction period, approved by Director Gerald Takase on June 9, 2020, to its Brewpub liquor license, Category 132, located at 64-1066 Mamalahoa Highway, Kamuela, Hawaii; seconded by Mr. Greenwell. Onizuka: Thank you. Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 17. Sam's Sushi Inc., dba Sushi Sam, approval to extend the time issuance of its approved Restaurant General liquor license, Category A, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Unit 1, Kailua-Kona, Hawaii, for an additional six months, from August 1, 2020, to and including February 1, 2021, by email dated June 11, 2020. Passage requires finding of good cause pursuant to Rule 4-2-F, of the Hawai'i County Liquor Commission Rules and Regulations. We are making a motion ... we need to find good cause. Is there an explanation for this, Gerald? Takase: Yes, Mr. Chairman, they submitted a letter to us stating that due to this COVID situation, they've been slow in getting their permits for plumbing and electrical, and also getting their materials was held up. But they should be moving forward and they anticipate getting back on track shortly. The good cause would be a delay in materials and permits from the County, partially due to the COVID-19 situation. Onizuka: Thank you. Thomas: Also, according to the letter received June 11th to the Liquor Commission, it says they're likely expecting to be finished by July 31, 2020, so I guess they're asking for the extension to cover the six-month period, which is appropriate, but, they might not need that much time. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 48 Onizuka: I think the County permits are taking longer now, so that will be a major setback for getting approvals. We need a motion to approve or deny, but for the approval, we need to state the reason, the cause, in the motion. Hughes: I'll make a motion to approve based on delays in permits and necessary supplies. Thomas: I second. Mr. Hughes moved to approve the request submitted by Sam's Sushi Inc., dba Sushi Sam, finding good cause based on the delay in obtaining permits and necessary supplies, for the extension in time for issuance of the approved Restaurant General liquor license, Category A, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Unit 1, Kailua-Kona, Hawaii, for an additional six months, from August 1, 2020, to and including February 1, 2021, by email dated June 11, 2020; seconded by Ms. Thomas. Onizuka: Moved and seconded that we approve with the justification of time for getting permits and supplies causing delays. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: 18. K61oa Rum Co., request for support for an Executive Order from Governor Ige to amend HRS §281-33.1(b) and HRS §281-33.6, to allow direct to consumer (DTC) shipping in light of COVID-19. Mr. Director, can you bring us up to date on this? Takase: Mr. Chairman, there is a distillers group that is formed in the State and they had a couple of requests to the Governor, as well as, to all the Liquor Commissions. The two that they specifically addressed to us were HRS §281-33.1, which was the ability to receive shipments of liquor from within the State. To that, we actually answered that. The way we JULY 2, 2020 - LIQUOR COMMISSION MINUTES 49 read the statute, they already have that ability. (HRS §) 281-33.1 deals with, like you saw, shipments of liquor coming into the State. I spoke with Bob Gunther and told him that as far as our reading is concerned, they have the right to sell within the State right now. But, we told him that we would lend any support he has to the Governor, if necessary. Takase: The second one is asking for, somewhat the same thing, recognizing that the wine industry already has this ability to do it, and they're asking for an extension to the distilleries, as well. To this matter, we're also in support of it. For all of you that have gone to National conferences in the last year, there's been a lot of discussion about the Tennessee case. I believe it's coming, probably not fast enough for these guys, but there is going to be a change to the laws that extend the ability to sell directly to consumers through these distillers as they have done for the wineries. It's somewhat a constitutional law question; why do wineries get this privilege and not the distilleries? I don't think there's a really good reason for them not to have the ability. Takase: It's going to change and we are lending our support to it. I spoke with the Mayor about it, and he was supportive of the matter. We had sent a letter back to Mr. Gunther indicating the same and I'm letting the Commission know since it'll come to you for any formal change. We did not request a formal change because, in our minds, they already have that ability to sell within the State. Greenwell: Mr. Chair, may I speak? Onizuka: Go ahead, David. Greenwell: Gerald, brief me a little bit. Does this circumvent the three-tier system? Takase: It sort of circumvents the three-tier system because it is allowing the manufacturers to go directly to the consumers. But, that's the breakdown in the three-tier system at this point in time, is that you have a lot of small manufacturers, and it started really, with the wineries. You had a lot of small wineries that could not get to the retailers because the wholesalers have become somewhat of a lynch point in this whole operation. Let's say you take on distillers that we have here, or all of our manufacturers here for that matter. We have Koloa Rum or Volcano Winery. They are not big enough to get picked up by a national wholesaler because they can't provide enough product to satisfy a national account, so they are frozen out of the market. That seems to be what's driving it. That's what drove the direct to wine shippers with the Granholm case, and that was maybe twenty years ago now, that they couldn't get to market because the second tier, the wholesalers, were excluding them, and in the Granholm case they had filed an appeal against the State of Michigan. They won that case and the right to ship direct. Takase: Right now we have about 400 to 500 wineries across the country that are allowed to ship directly to consumers in Hawai'i, and they file for Direct Wine Shippers permits with us every year. This is the evolution, I guess. The next step is, now, distilleries have become the new wineries and we see a lot of small craft distillers out there, and they're asking for the same rights the wineries have. It is against the three-tier system, and that's why, when we go to these conferences, everybody is talking about the end of the three-tier system, because it's JULY 2, 2020 - LIQUOR COMMISSION MINUTES 50 not providing a good model anymore for what's happening in the marketplace. Greenwell: Thank you, Gerald. Masuda: Mr. Chairman, may I ask a question of Gerald? Onizuka: Go ahead. Masuda: Essentially, what these guys want is, they want to be able to say that Hawai'i County Liquor Commission supports them, right? Takase: Yes. Masuda: And to take you to the Legislature and say the Liquor Commission supports their actions. Takase: They wanted us to ... Koloa Rum is on Kauai and they said that Kauai doesn't allow them to sell within the State. But, I spoke with them about it and said that I don't see how the law is restricting them from selling within the State, because it's only talking about inter -state sales. I spoke with Gerald Rapozo a little about it, but unfortunately, he retired the other day, so it's in limbo out there. But, I believe Honolulu is on board. Maui has no director either, so they're sort of punting the question right now. If we had the State Liquor Conference, this is one of the things that could have been addressed. Maui has called off the conference this year, so it probably won't be addressed. Since our opinion was that they already have that ability to do it, that was our answer to them. I'm sure they will use our position to try to convince the rest of the State. Thomas: Chairman, I have a question. May I ask? Onizuka: Go ahead. Thomas: The request is to support the Executive Order to amend these two statutes. Do we know what the amendment is? Is that what we would vote for? To okay the amendment they want to make, in which case, we don't know what the amendment actually is? Takase: That's not what I'm saying. I'm saying, from our interpretation of those two statutes, they already have the ability to sell within the State. There's really nothing to be amended. Thomas: Okay, thank you. Ibarra: Mr. Chair, may I ask Gerald a question? Onizuka: Go ahead. Ibarra: Gerald, all you want from us is, basically, like you said, they already have the authority, they sent us the communication, we discussed it, so having briefed us, you recommend that we just move to file the communication. JULY Z 2020 - LIQUOR COMMISSION MINUTES 51 Takase: Yes. I've already taken the position that there is nothing that needs to be done. They already have that right, but they wanted support for that position, so with the Mayor, we've given that support. There's really nothing for the Commission to do at this point. Onizuka: Call for a motion to file the communication. Ibarra: I so move. Greenwell: I second it. Mr. Ibarra moved to file the Hawaii County Department of Liquor Control's letter of support and communications regarding HRS §281-33.1(b) and §281-33.6, received from Mr. Bob Gunther, President/CEO, Koloa Rum Company with the Department; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we file the communications. Any other discussion? There was no other discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: 19. Masaki Miyazawa, ratification of Application for Solicitor's Permit for possession of liquor for sampling to buyers by Wismettac Asian Foods, Inc., pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on June 10, 2020, approved by Director Gerald Takase on June 15, 2020. Call for a motion to ratify. Greenwell: I make the motion to ratify. Raymond: Second. Mr. Greenwell moved to ratify the Application for Solicitor's Permit submitted by Masaki Miyazawa, for possession of JULY Z 2020 - LIQUOR COMMISSION MINUTES 52 liquor for sampling to buyers by Wismettac Asian Foods, Inc., pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on June 10, 2020, approved by Director Gerald Takase on June 15, 2020; seconded by Ms. Raymond. Onizuka: Moved and seconded that we ratify. Any discussion? There was no discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 20. JTJ Enterprises, Inc., dba Quinn's, ratification of Application for Temporary Increase in Licensed Premises to its parking lot, from June 12, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on June 15, 2020, to its Restaurant General liquor license, Category B2, located at 75-5655 Palani Road, Kailua-Kona, Hawaii. Call for a motion to ratify. Thomas: I move to ratify. Greenwell: Second. Ms. Thomas moved to ratify the Application for Temporary Increase in Licensed Premises submitted by JTJ Enterprises, Inc., dba Quinn's, to its parking lot, from June 12, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on June 15, 2020, to its Restaurant General liquor license, Category B2, located at 75-5655 Palani Road, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Onizuka: Thank you. Moved and seconded that we ratify. Any discussion? There was no discussion from the Commissioners. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 53 Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: 21. Hawaiian Ola Brewing Corporation, dba Ola Brew Co., ratification of Application for Temporary Increase in Licensed Premises to the outdoor front patio for dining and liquor consumption, from June 13, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on June 10, 2020, to its Small Craft Producer Pub liquor license, located at 74-5598 Luhia Street, Kailua-Kona, Hawaii. Call for a motion to ratify. Hughes: Motion to ratify. Greenwell: Second. Mr. Hughes moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Hawaiian Ola Brewing Corporation, dba Ola Brew Co., to the outdoor front patio for dining and liquor consumption, from June 13, 2020, through the COVID-19 restriction period, approved by Director Gerald Takase on June 10, 2020, to its Small Craft Producer Pub liquor license, located at 74-5598 Luhia Street, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. JULY 2,2020- LIQUOR COMMISSION MINUTES 54 Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: Item No. 22 has been completed earlier. We will move on to Special Licenses Issued for Ratification. Request motion for ratification of Special Licenses, Application Nos. SP -19-122 and SP -19-126, Item Nos. 23(a) and (b). Hughes: So moved. Greenwell: Second. Mr. Hughes moved to ratify the following Special Licenses: 23. Special Licenses Issued for Ratification a. Application No. SP -19-122, Christopher Camero Memorial VFW Post 12122, dba Christopher Camero Memorial VFW Post 12122, for a Special General liquor license, on June 5, 12, 19, and 26, 2020, at 74-5543 Kaiwi Street, Suite 185A, Kailua-Kona, Hawaii. b. Application No. SP -19-126, Christopher Camero Memorial VFW Post 12122, dba Christopher Camero Memorial VFW Post 12122, for a Special General liquor license, on June 24, 2020, at 74-5543 Kaiwi Street, Suite 185A, Kailua-Kona, Hawaii. The motion was seconded by Mr. Greenwell. Onizuka: Moved and seconded that we ratify. Any discussion? There was no discussion from the Commissioners. Onizuka: Hearing none, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed? There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Item No. 24, Ratification of Temporary Licenses. Requesting a motion for ratification of temporary liquor licenses, Item Nos. 24(a) to 24(f). JULY 2, 2020 -LIQUOR COMMISSION MINUTES 55 Greenwell: I'll make the motion to ratify the temporary licenses, Item Nos. 24(a) to 24(f). Thomas: I second. Mr. Greenwell moved to ratify the following temporary licenses: 24. a. Application No. 19-13, The View Restaurant Bar and Grill Corp., dba The View Restaurant Bar & Grill, original Dispenser General liquor license, Category 131, issuance of second temporary license (T -DG -935), effective January 29, 2020, through May 28, 2020. b. Application No. 19-13, The View Restaurant Bar and Grill Corp., dba The View Restaurant Bar & Grill, original Dispenser General liquor license, Category 131, issuance of third temporary license (T -DG -935), effective May 28, 2020, through September 25, 2020. C. Application No. T19-11, Blue Wilderness General Store Inc., dba Blue Wilderness General Store Inc., sale and transfer of Retail General liquor license, issuance of second temporary license (T -RG -049), effective February 29, 2020, through June 28, 2020. d. Application No. T19-11, Blue Wilderness General Store Inc., dba Blue Wilderness General Store Inc., sale and transfer of Retail General liquor license, issuance of third temporary license (T -RG -049), effective June 29, 2020, through June 30, 2021. e. Application No. 19-09, Travel Traders Hotel Stores, Inc., dba The Resort Shop, original Retail General liquor license, issuance of second temporary license (T -RG -938), effective March 9, 2020, through June 30, 2020. f. Application No. 19-09, Travel Traders Hotel Stores, Inc., dba The Resort Shop, original Retail General liquor license, issuance of third temporary license (T -RG -938), effective July 1, 2020, through November 4, 2020. The motion was seconded by Ms. Thomas. Onizuka: It's been moved and seconded. Any more discussion? There was no further discussion from the Commissioners. JULY 2, 2020 -LIQUOR COMMISSION MINUTES 56 Onizuka: All those in favor signify by saying "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: We move on to Announcements. IX. Announcements Onizuka: I'm not sure this would come under Announcements, but I'd like to commend Gerald, the Director, and his Department and the Commissioners who empowered him. He took steps to help the restaurants and bars early on when the shutdown began, and today, the other counties are trying to file for relief for what we are already doing on Hawai'i Island. Hats off to Gerald and the Department and the Commissioners for approving that. I think Gerald took us one step ahead of the game through this thing. Thank you, Gerald. Takase: And thank you to the Commission for backing me up on a lot of these things. We've received a lot of compliments from the Licensees and they recognize that we are trying to help them deal with this crisis and get through it. Onizuka: I think the big thing is that the other counties are trying to start what you have already implemented. Good job. Any other announcements? Takase: (For) next month's meeting, we are going to go back to a live meeting, since we got clearance to meet. But, due to social distancing, our Kona conference room is too small, so we have moved it to the Council Chambers in Kona. Onizuka: Thank you. Meetings of Liquor Commission August 6, 2020, 10:00 A.M., Kona County Council Chambers, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building A, Kailua-Kona, Hawai'i. September 3, 2020, 10:00 A.M., Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. JULY 2, 2020- LIQUOR COMMISSION MINUTES 57 X. Adjournment Onizuka: If no one has anything else, call for a motion for adjournment. Greenwell: I'll make the motion for adjournment of today's meeting of July 2, 2020. Onizuka: Do I have a second? Raymond: Second. Mr. Greenwell moved to adjourn the meeting of July 2, 2020; seconded by Ms. Raymond. Onizuka: Moved and seconded that we adjourn. Any discussion? There was no discussion from the Commissioners. Onizuka: If not, all those in favor say, "Aye." The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: It is now 11:59 A.M. Take care, everybody. The motion was carried unanimously. The meeting adjourned at 11:59 A.M. er Id Takase Director The July 2, 2020, and August 6, 2020, Liquor Commission minutes were approved as circulated via email/mail, by the Liquor Commission of the County of Hawaii on September 3, 2020. JULY 2, 2020 - LIQUOR COMMISSION MINUTES 58