Loading...
HomeMy WebLinkAbout2020-03-05 Liquor Commission MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION MINUTES — MARCH 5, 2020 HILO LAGOON CENTRE, 101 AUPUNI STREET, UNIT 230, HILO, HAWAII Call To Order The meeting was called to order by Chair Claude Onizuka at 10:00 A.M., in the Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. 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: Shelby Nahale-a, Commissioner 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: At this time, anyone with cell phones please make sure they are on vibrate or turned off. A couple of items to remember: this meeting is being recorded so please speak one at a time and clearly. The microphones are not for amplification, it's just for recording the meeting. At this time, we'll go around with introductions of the staff and Commission starting with Brandon. Gonzalez: Good morning, Brandon Gonzalez, Administrative Officer. Waltjen: Good morning, Stacie Waltjen, Licensing Officer. Takase: Gerald Takase, Director. Ibarra: Ronald Ibarra, Commissioner. Thomas: Paula Thomas, Commissioner. Greenwell: David Greenwell, District 9 Commissioner. Hughes: Mike Hughes, Commissioner. Onizuka: Claude Onizuka, Commission Chair. Masuda: Craig Masuda, Commission Attorney. Raymond: Dawn Raymond, Commissioner. Arakaki: Warren Arakaki, Commissioner. Salave`a: Allen Salave`a, District 6 Commissioner. Lim: Dorsi Lim, Secretary to the Board and Commission. II. Approval of Minutes Onizuka: Call for approval of the minutes that have been circulated. Raymond: Move to approve. Greenwell: Second. Ms. Raymond moved to approve the February 6, 2020, Liquor Commission minutes as circulated; 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. Onizuka: Motion carried. The motion was carried unanimously. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 2 III. Approval of Addendum and/or Supplemental Agenda Onizuka: We have an addendum to the agenda. Pursuant to Section 92-7, Hawaii 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 a two-thirds vote of the Commission. 1. New Business, ADD Item No. 10- 10. Kohala Village Hub Pub & Shop LLC, dba Hub Pub, approval to store alcohol in locked food truck, and sell alcohol out of food truck, effective March 9, 2020, to its Small Craft Producer Pub liquor license, located at 55-514 HAwi Road, HAwi, Hawaii. Hughes: Motion to approve. Raymond: Second. Mr. Hughes moved to approve the addendum to the March 5, 2020, Liquor Commission agenda; seconded by Ms. Raymond. Onizuka: Moved and seconded, discussion? Hughes: Do we have to do a roll call? Onizuka: We will do a roll call vote. Lim: Commissioner Arakaki? Arakaki: Aye. Lim: Commissioner Greenwell? Greenwell: Aye. Lim: Commissioner Hughes? Hughes: Aye Lim: Commissioner Ibarra? Ibarra: Aye. Lim: Commissioner Raymond? Raymond: Aye. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 3 Lim: Commissioner SalAve'a? SalAve`a: Aye. Lim: Commissioner Thomas? Thomas: Aye. Lim: Chair Onizuka? Onizuka: Aye. Lim: Mr. Chair, there were 8 Ayes, no Nays. The Ayes have it. IV. Public Statements on Agenda Items Onizuka: At this time, do we have any public statements on the agenda items? There was no reply from the public. V. Public Hearings Onizuka: Seeing none, we'll move on to Public Hearings. Application 18-21, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company. 1. APPLICATION NO.: 18-21 (10:04 A.M.) APPLICANT: Pacific Aqua Beverages, LLC TRADE NAME: Hilo Brewing Company PLACE OF BUSINESS: 29-2306 Old MAmalahoa Highway, Bldg. A, Hakalau, Hawai'i TMK: 2-9-002:079 LICENSE APPLIED FOR: Original Small Craft Producer Pub, Category B1 Onizuka: Please come forward. Takase: We're asking for a continuance of the public hearing because mailings have to be redone. We would like to reschedule it to May 7. They are also here for No. 1 under Preliminary Hearings, to change from Manufacturer to a Class 18 license. Onizuka: On Application No. 18-21, there's a request for a continuance of the public hearing to May 7, 2020? Takase: Yes. Onizuka: Call for a motion. Salave`a: So move. MARCH 5,2020- LIQUOR COMMISSION MINUTES 4 Greenwell: Second. Mr. Salave`a moved to approve the request to continue Application No. 18-21, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company, for an original Small Craft Producer Pub, Category B1, liquor license, located at 29-2306 Old Mamalahoa Highway, Bldg. A, Hakalau Hawaii, TMK: 2-9-002:079, to May 7, 2020, in Hilo; seconded by Mr. Greenwell. 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: At this time, we'll take Preliminary Hearing, Item No. 1, Application 19-26, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company. 1. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR 19-26 (10:05 A.M.) Pacific Aqua Beverages, LLC Hilo Brewing Company 275 East Kawili Street, Hilo, Hawaii 2-2-050:006 Change in Class to a Class 18 Small Craft Producer Pub liquor license, Category A from its Manufacturer Beer liquor license and Change in Trade Name from Hilo Brewing & Beverages to Hilo Brewing Company Marcus Bender, Owner, Ashley Harding, Director of Operations; And Sebastian Bach, Brew Master/General Manager, were present. Onizuka: Could you introduce yourselves and your relationship to the business? Bender: Marcus Bender, Owner. Harding: I'm Ashley Harding, Director of Operations. MARCH 5,2020- LIQUOR COMMISSION MINUTES 5 Bach: Sebastian Bach, Brew Master and General Manager. Onizuka: Thank you. Are there any changes to your report? Bender: None. Onizuka: Can one of you describe the business, please? Bender: Basically, it's a small craft brewery. We have a small tasting room inside where people can come and sample. We're canning the beer, as well as kegging it for the local market. We launched it into the market in December, and basically now, finding good reception. When people come in and ask if they can buy a pint of beer, we have to say 'no, cannot.' We'd like to be able to have this type 18 license so we can offer that to people when they come by. It's small, but nevertheless, it would help us from an economic standpoint because it's quite difficult to compete in this "package goods" business. That's what we're doing. We've renovated the brewery and installed a lot of new equipment based on Sebastian's understanding of what was necessary because we were old. That has been very helpful in terms of coordinating all of this. We have people that installed some new conveyors of some sort, and we're small and efficient and we want to make Hilo proud of what we're doing. Onizuka: Thank you. Do we have any public testimony on this application? There was no public testimony. Onizuka: Seeing none, Commissioners, discussion, questions? There was no discussion or questions from the Commissioners. Onizuka: Call for a motion. Greenwell: I make the motion to approve Application No. 19-26, if approved public hearing to be held May 7, 2020, in Hilo. Raymond: Second. Mr. Greenwell moved to approve Application No. 19-26, Pacific Aqua Beverages, LLC, dba Hilo Brewing Company, for a change in class to a Class 18 Small Craft Producer Pub liquor license, Category A, and a change in Trade Name from Hilo Brewing & Beverages to Hilo Brewing Company, located at 275 East Kawili Street, Hilo, Hawaii, TMK: 2-2-050:006; if approved, public hearing to be held on May 7, 2020, in Hilo; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application No. 19-26, public hearing to be held on May 7, 2020, in Hilo. Any discussion? MARCH 5,2020- LIQUOR COMMISSION MINUTES There was no discussion from the Commissioners. Onizuka: Seeing 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. Bach: Thank you. Greenwell: See you in May. Bender: I hope so. Onizuka: Public Hearings, Item No. 2, Big Island Alehouse, LLC, dba Laverne's Sports Bar. 2. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMKs: LICENSE APPLIED FOR Onizuka: Anyone present? T19-07 (10:09 A.M.) Big Island Alehouse, LLC Laverne's Sports Bar 75-5819 Alii Drive, Kailua-Kona, Hawaii 7-5-009:025 and 027 Consolidation of Big Island Alehouse, LLC, dba Humpy's Big Island Alehouse with Kohola, LLC, dba Laverne's Sports Bar for a Restaurant General liquor license, Category B2 There was no one present for the Applicant. Takase: Mr. Chair, they're requesting a continuance to April 2, 2020. Onizuka: Call for a motion to continue the public hearing to April 2, 2020, in Kona. Greenwell: I'll make that motion. Salave`a: Second. Mr. Greenwell moved to approve the request to continue Application No. T19-07, Big Island Alehouse, LLC, dba Laverne's Sports Bar, for the consolidation of Big Island Alehouse, LLC, dba Humpy's Big Island Alehouse with MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 7 Kohola, LLC, dba Laverne's Sports Bar for a Restaurant General liquor license, Category B2, located at 75-5819 Alii Drive, Kailua-Kona, Hawaii, TMKs: 7-5-009:025 and 027, to April 2, 2020, in Kona; seconded by Mr. Salave`a. 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: Application 19-21, DHL Mahi Liquor, LLC, dba The Market. 3. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS TMK: LICENSE APPLIED FOR 19-21 (10:10 A. M.) DHL Mahi Liquor, LLC The Market 68-1400 Mauna Lani Drive, South Kohala, Hawai'i 6-8-022:015 Original Retail General liquor license Maggie Stith, Manager, was present. Onizuka: Good morning. Can you introduce yourself and your relationship to the business? Stith: My name is Maggie Stith. I'm the Manager of The Market. Onizuka: Thank you. Are there any changes to your report? Stith: No. Onizuka: Can you briefly describe the business, please? Stith: Absolutely. It is a store that's in the heart of the lobby of the newly renovated Mauna Lani. We have a gift shop featuring a lot of local artists and residents, and local items for guests to enjoy and add to part of their trip while they're here. We also have MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 8 a specialty coffee shop and a deli inside where we make sandwiches that feature meats from Waimea Butcher Shop. Onizuka: Thank you. Mr. Director, any report of protests? Takase: Mr. Chairman, the applicant mailed 1 out of 1 notice within 100 feet, 82 out of 83 notices within 500 feet, and 1 notice to a condominium or cooperative apartment manager. There were 83 properties entitled to protest and we received 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? Thomas: What kind of alcohol are you planning to serve? Stith: We're not serving any, we're just selling at retail. We have bottles of wine or single cans of wine, beer by the can, and we do have some liquor bottles in smaller quantities as well. Onizuka: Any other questions? There were no other questions from the Commissioners. Onizuka: Call for a motion to close the public hearing. Ibarra: So move. Greenwell: Second. Mr. Ibarra moved to close the public hearing; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we close the public hearing. 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. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 9 Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Motion to approve Application No. 19-21. Thomas: So move. Ibarra: Second. Ms. Thomas moved to approve Application No. 19-21, DHL Mahi Liquor, LLC, dba The Market, for an original Retail General liquor license, located at 68-1400 Mauna Lani Drive, South Kohala, Hawaii, TMK: 6-8-022:015, pending final inspection; seconded by Mr. Ibarra. 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. Hughes: Good luck. Stith: Thank you. Onizuka: Application 19-22, A -Bay's Cantina LLC, dba A -Bay's Island Cafe. 4. APPLICATION NO.: 19-22 (10:14 A.M.) APPLICANT: A -Bay's Cantina LLC TRADE NAME: A -Bay's Island Cafe PLACE OF BUSINESS: Alii Sunset Plaza, 75-5799 Ali'i Drive, Building A, Units 1 & 2, Kailua-Kona, Hawaii TMKs: 7-5-009:030 and 031 LICENSE APPLIED FOR: Original Dispenser General liquor license, Category B1 Brian Flynn and Raymond McLaughlin, Owners, were present. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 10 Flynn: Good morning. Onizuka: Can you introduce yourselves and your relationship to the business? Flynn: Yes, I'm Brian Flynn, Owner. McLaughlin: And Ray McLaughlin, Owner. Onizuka: Thank you. Any changes to the report that was filed? Flynn: No. McLaughlin: No. Onizuka: Can you describe your business, please? Flynn: Yes, we're a full-service family -friendly restaurant, serving breakfast, lunch, and dinner, serving Asian Pacific and American cuisine. Onizuka: Thank you. Mr. Director, any report of protests? Takase: Mr. Chairman, the applicant mailed 80 out of 80 notices within 100 feet, 444 out of 453 notices within 500 feet, and 3 notices to condominium or cooperative apartment managers. There were 306 properties entitled to protest, and we received 17 protests to this application. Onizuka: Thank you. Any public testimony on this application? There was no public testimony. Onizuka: Seeing none, Commissioners, questions, discussion? Mr. Greenwell? Greenwell: Gerald, who was here before? Takase: The Licensee before was Volcano Grill. Greenwell: Had they had any problems? Takase: They didn't, but they were hardly open. They were open for maybe a month or two, then shut down. Prior to that, Lava Java had that location. We used to receive a lot of complaints about the music. The music was out on the lawn or the sidewalk area, but they were not a Licensee, so we never took any action against them. We've spoken with them, and I believe they spoke with the residents as well. They have a plan in place. I think the music will be inside. Flynn: Yes, it will. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 11 Takase: They can explain what they've done. Thomas: What are your hours of operation? (Are you) open for dinner? Flynn: Yes, currently, we're open from 8:00 A.M. until midnight at the Waikoloa Resort. We have music during our dinner hours from 6:00 P.M. until 9:00 P.M., with a solo artist. In Kona, we plan to have a solo artist, but knowing the neighbors are so close, we plan to have the musician inside. We'll reposition all the speakers directionally so that nothing is projected towards that condominium complex. We, obviously, want to be good neighbors and they're going to be good clientele for us as well. We sent out, to the protestors, our contact information to answer any questions or address any concerns that they might have. Thomas: Did anybody respond to that? Flynn: Not yet. Thomas: Would the entertainment be every night that you're open? Flynn: Currently, we have entertainment every night during our dinner hours. Thomas: And is it the same artist? Flynn: We have a different artist every night. Currently, we have one artist that plays twice a week at our other place. Onizuka: Commissioner Greenwell? Greenwell: Back to the neighbors, I assume you've seen this list (referring to the petition filed)? Flynn: Yes, we were just handed that. Greenwell: And there are two letters here... Flynn: Two letters and, yes... Greenwell: Have you spoken with any or many of these here (referring to the petition)? McLaughlin: That, we received late last week, right? Flynn: Yes. One of that we responded to was to the Board (in) care of one of the residents. She had listed her name as being a representative of the Board. Masuda: To the members here? Flynn: Yes. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 12 Greenwell: All right, I wish you guys all the best. You have quite a list of opponents that you have to pacify. Flynn: Yes, we're well aware of that, and like I said, you know, we plan to be good neighbors, and we want to work with that condominium complex. We know that they're going to be good clientele for us as well. The last thing we want is to have is, sort of, this tension with the guys that are going... McLaughlin: Two quick points: for the Ali'i Drive space, we're looking at opening at 7:00 A.M., Waikoloa opens at 8:00 A.M., really to compete with Lava Java, Bongo Ben's on the breakfast side. Lava Java opens up at 6:30 A.M., so we're going to open at 7:00 A.M. Flynn: And we know, I can imagine the concerns over the noise previously with Lava Java, waking up to music at 7:00 (A.M.) or 8:00 A.M. every day out on that lawn, right? Our music is in the evening during dinner hours, inside, and we're hoping that the... Greenwell: Are you going to be willing to, maybe, compromise or talk story on the hours of the live music to the neighbors? Flynn: Yes. McLaughlin: Yes. That happens between 6:00 (P.M.) to 9:30 P.M. Flynn: Yes, currently. McLaughlin: One other differentiation is (that) even when working down at the current space, I've been down there late at night, and where Laverne's is at, and nothing against them, but with the band going, you can hear the drummer the whole way through. We're not going to have this. We'll be using solo, mostly acoustic musicians that are playing. Greenwell: You understand? McLaughlin: What's that? Greenwell: You understand? McLaughlin: Yes. Flynn: Yes. McLaughlin: Yes. The clientele that we try to bring in, that we're looking for, is not for the parties and dancing. It's more the ambience of what really being on vacation is all about. Takase: Mr. Chairman, we will work with the applicants. They have a current license at Waikoloa Kings' Shops, the A -Bay's Cantina. We're not having any problems out there. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 13 We feel they are good Licensees. There's a solid wall between them and the condo, so if they project the other way, we don't see any problems. Flynn: The wall that is between the other restaurant and the condominium complex is a cinder block wall along the whole perimeter, and that's where we would position the speakers, inside, and the musicians (will be) in that area. Thomas: Do you have decibel readings, too, or no? Flynn: Up north, we have a different setup which would be sort of representative of what we'd be doing down in Kona, and we haven't had any complaints. We have live music outside, currently in the Kings' Shops, with neighbors within earshot, really. We haven't had any issues up north. Down south on Ali'i Drive, we're more than happy to get that if that's what we ... as soon as we are playing music. Ibarra: Gerald, you will work with them if there are complaints? Takase: Yes, but even without the complaints, we spoke to them about what the previous history of the place was. They're aware of it, and they've agreed to move their music indoors. That's why I said I don't anticipate any kind of a problem. Flynn: And to reiterate what Ray was saying, we're not trying to have full bands and huge live performances. We're looking to have a musician play here at dinner, as (live) music rather than just something on the stereo; something local as part of the experience. Salave`a: Mr. Chair? Onizuka: Go ahead. Salave`a: I'm very encouraged to hear of your awareness of some of the noise issues relative to the adjacent condominium, and that you have already reached out to them in trying to reconcile and develop solutions so that you mitigate the impact on the condos. I think moving forward, working with the Department and also continued outreach to the condominiums ... because what the Commission is looking for, I think, is the affirmation that whatever mitigations you create for the sound issue, the condominium can support that. Hopefully, maybe even send letters of support for your application. To David's comments that those are tough issues for us to see and have to address, I don't think we want to be heavy-handed and impose conditions of approval. We'd rather see you work with the Department and the adjacent landowners to come up with something that works for both. Hughes: I agree with Commissioner Salave'a, what he's saying. I'm pro-business, I applaud you for opening another restaurant, and working with the community around you. I don't think noise is going to be an issue there. I think we have to keep in mind, believe I heard another Commissioner say once, it is a resort area and the people in the condos should have a little bit of an understanding when they purchase those condos, MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 14 that restaurants and entertainment are going on in that area. I think it's great that you are moving forward with your venture. Flynn: Thank you. McLaughlin: One area I wasn't necessarily going to bring up other than to discuss it with our Chef, is that the back doors to the restaurant open up to a big side of that condominium, as well as, making sure that people can't be out late at night on their cell phones. It's not a smoking area for employees, and doors need to be shut. In our kitchen, they like to have music on their cell while working, which is great, but they have to keep that ... they have to be aware of that. Our Chef fully understands, so I think that'll help mitigate issues. Hughes: Great, thank you. Onizuka: I'd like to thank you, at least for reaching out to the protestors with a written letter, and hopefully, some personal contact in the future. Speaking for this Commission, we've set, in the Kailua or Kona area, 10:00 (P.M.) as a decent hour for entertainment (to end). I think as restaurant operators, you know what kind of bands to hire or music to have. I'm a firm believer that if you buy a unit in a resort area, the music or noise comes with a resort area, and 10:00 is a decent hour. As they get older, maybe they want to sleep at 8:00 P.M., but I think this Commission has to set something, and we've set prior times at 10:00 as a decent hour. We ask that you be very (selective) of your entertainment. Flynn: Yes, we believe that to be a decent hour. Onizuka: Any other discussion? There was no other discussion from the Commissioners. Hughes: Motion to close the public hearing. Raymond: Second. Mr. Hughes moved to close the public hearing; seconded by Ms. Raymond. Onizuka: Moved and seconded to close the public hearing. 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." MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 15 There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Hughes: Motion to approve Application No. 19-22, pending final inspection. Greenwell: Second. Mr. Hughes moved to approve Application No. 19-22, A -Bay's Cantina LLC, dba A -Bay's Island Cafe, for an original Dispenser General liquor license, Category 131, located at the Alii Sunset Plaza, 75-5799 Alii Drive, Building A, Units 1 & 2, Kailua-Kona, Hawaii, TMKs: 7-5-009:030 and 031, pending final inspection; seconded by Mr. Greenwell. Onizuka: Moved and seconded, to approve Application 19-22, pending final inspection. Any discussion? There was no discussion from the Commissioners. Onizuka: Seeing 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. Flynn: Thank you very much. Greenwell: Good luck. Onizuka: Thank you. Application T19-23, Outrigger Kona Resort LLC, dba Outrigger Kona Resort and Spa. 5. APPLICATION NO.: T19-23 (10:28 A.M.) APPLICANT: Outrigger Kona Resort LLC TRADE NAME: Outrigger Kona Resort and Spa PLACE OF BUSINESS: 78-128 'Ehukai Street, Kailua-Kona, Hawai'i MARCH S, 2020 - LIQUOR COMMISSION MINUTES 16 TMKs: 7-8-010:038, 039, 059, and 7-8-012:058 LICENSE APPLIED FOR: Sale and Transfer of Hotel liquor license currently held by Kona Surf Partners LLC, dba Sheraton Kona Resort & Spa at Keauhou Bay Robert Ueoka, Esq., was present. Onizuka: Good morning. Ueoka: Good morning, Mr. Chair, members of the Commission, Mr. Takase. Robert Ueoka on behalf of Outrigger Kona Resort LLC. At this time, we respectfully request to waive the presence of my client representative. He had some medical reasons and (was) unable to come. He has requested to proceed with me as Authorized Agent. Onizuka: Okay, thank you. Ueoka: At this time, we have no changes to the investigator's report. We are going to continue to operate the hotel in the same manner as the existing hotel. It is a hotel and resort with restaurants and bars; we do have conference rooms, as well. Onizuka: Thank you. Mr. Director, any report of protests? Takase: Mr. Chairman, this is a transfer application. Notification was made, and we have no protests to this application. Onizuka: Thank you. Commissioners, questions, discussion? There were no questions or discussion from the Commissioners. Onizuka: Motion to close the public hearing? Hughes: So moved. Greenwell: Second. Mr. Hughes moved to close the public hearing; seconded by Mr. Greenwell. 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." MARCH S, 2020 - LIQUOR COMMISSION MINUTES 17 There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Ibarra: Move to approve Application No. T19-23, pending final inspection. Raymond: Second. Mr. Ibarra moved to approve Application No. T19-23, Outrigger Kona Resort LLC, dba Outrigger Kona Resort and Spa, for the sale and transfer of the Hotel liquor license held by Kona Surf Partners LLC, dba Sheraton Kona Resort & Spa at Keauhou Bay, located at 78-128 `Ehukai Street, Kailua-Kona, Hawaii, TMKs: 7-8-010:038, 039, 059, and 7-8-012:058, pending Final inspection; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application T19-23, pending final inspection. Any discussion? There was no discussion from the Commissioners. Onizuka: Seeing 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. Greenwell: Thank you. Onizuka: We'll move on to Preliminary Hearings. Item 1 has been taken care of earlier. We are on Item No. 2, Application No. 19-27, Two Mikes LLC, dba The HI Dive Bar. 2. APPLICATION NO.: 19-27 (10:30 A.M.) APPLICANT: Two Mikes LLC TRADE NAME: The HI Dive Bar PLACE OF BUSINESS: Mango Court, 79-7460 Mamalahoa Highway, #A-102, Kealakekua, Hawaii MARCH S, 2020 - LIQUOR COMMISSION MINUTES 18 TMK: 7-9-007:029 LICENSE APPLIED FOR: Original Dispenser General liquor license, Category B1 Michael Lubrani, Member, was present. Lubrani: Good morning. Onizuka: Good morning. Introduce yourself and your relationship to the business. Lubrani: Michael Lubrani, it's a single -member LLC and I am the Member. Onizuka: Thank you. Lubrani: There were two Mikes at one time. Onizuka: Any changes to the report that was filed? Lubrani: No, sir. Onizuka: Can you describe your business, please? Lubrani: Yes, it would be a full bar with a small restaurant, primarily pupus and lunch. Onizuka: Do we have any public testimony on this application? There was no public testimony. Onizuka: Seeing none, Commissioners, questions, discussion? Hughes: Was this an existing bar/restaurant before? Lubrani: It's pretty much turnkey. I had not been to the bar/restaurant before, but I understand it was a pizzeria, so there's a bar set up in there. All the tables were there. Some of the kitchen equipment was in there. It's a good opportunity. Hughes: Yeah, sounds like it. Salave`a: Can I ask what type of music you're proposing to have? Lubrani: It's primarily going to be recorded music. I applied for the license for live entertainment, most likely for special occasions like St. Patrick's Day, Cinco de Mayo and those kinds of things. But, it might also cover up our singing in a bar. Salave`a: Would that also include special events, or bringing in a band? Lubrani: Not so much a band. I don't know if there's room for a band. It would be a solo (artist), soft rock. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 19 Salave`a: Okay. Amplified? Lubrani: Yes, amplified. It's bigger than just a small ... so there'd be amplification, probably speakers. Salave`a: I have some concerns, and maybe, Gerald you can provide guidance on this. From the adjacent residences that are ... Mango Court and 1,500 feet up to the north, across the road and an adjacent parcel. Lubrani: I don't know that any of our noise is going to spill out. I have noticed being there, we hear more noise coming from upstairs. Salave`a: So, that's my concern, Gerald. Is that... Lubrani: Like I said... Salave`a: ...they're adjacent to... Lubrani: ...if there's live entertainment, it's going to be very, very minimal. Salave`a: Okay. Takase: As we get to the public hearing, we'll see, but this location was the old Rocco's Pizza in Captain Cook. We never had any complaints from that ... I would think more, maybe the backside of the property might, but I don't think Rocco's had any complaints. We have Annie's Island Fresh Burgers there. We haven't had any problem so far, so we'll submit this. Salave`a: Okay, and I'm not against it, I'm just saying I wanted to raise the concern because of the residential properties that are in the vicinity. Takase: Sure. Salave`a: Thank you. That's all I have, Mr. Chair. Onizuka: I think, in that area, you have to turn up the volume pretty much before you can beat the coqui frogs. Any other discussion? There was no other discussion from the Commissioners. Onizuka: Call for a motion. Hughes: Motion to approve Application 19-27; if approved, public hearing to be held May 7, 2020, here in Hilo. Greenwell: Second. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 20 Mr. Hughes moved to approve Application No. 19-27, Two Mikes LLC, dba The HI Dive Bar, for an original Dispenser General liquor license, Category B1, located at Mango Court, 79-7460 Mamalahoa Highway, #A-102, Kealakekua, Hawaii, TMK: 7-9-007:029; if approved, public hearing to be held on May 7, 2020, in Hilo; seconded by Mr. Greenwell. Onizuka: Moved and seconded that we approve Application 19-27; if approved, public hearing to be held May 7, 2020, in Hilo. Any discussion? There was no discussion from the Commissioners. Onizuka: Seeing 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. Lubrani: Thanks. Greenwell: Good luck. Thomas: Good luck with it. Lubrani: Thanks. Onizuka: Application 19-28, Umekes, LLC, dba Umekes Fish Market Bar & Grill. 3. APPLICATION NO.: 19-28 (10:36 A.M.) APPLICANT: Umekes, LLC TRADE NAME: Umekes Fish Market Bar & Grill PLACE OF BUSINESS: 74-5599 Pawai Place, Bldg. A, Kailua-Kona, Hawaii TMK: 7-4-010:018 LICENSE APPLIED FOR: Change of location from 74-5563 Kaiwi Street, Unit No. 112, Kailua-Kona, Hawaii to 74-5599 Pawai Place, Bldg. A, Kailua-Kona, Hawaii, to its Restaurant General liquor license, Category B2; and Change in Trade Name from Umeke's Kuakini Center to Umekes Fish Market Bar & Grill Miho Yoneyama, on behalf of Nakoa Ikaika Pabre, was present. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 21 Onizuka: Can you introduce yourself and your relationship to the business? Yoneyama: Yes, this is Miho Yoneyama. I'm here on behalf of Nakoa Ikaika Pabre, the Owner of Umekes Fish Market Bar & Grill. Onizuka: Are there any changes to the report that was filed? Yoneyama: No. Onizuka: Can you describe the business, please? Yoneyama: This is still under construction. It is a little over 3,000 square feet under the roof. Besides full-service Hawaiian cuisine, they plan to have a fish market in the center of everything described, and a section for retail items. Gonzalez: Mr. Chair, this is the future relocation from Umeke's at Kuakini Center to the Brewers Block, closer to the King Kamehameha Hotel side. Onizuka: Is there any public testimony on this application? There was no public testimony. Onizuka: Seeing none, Commissioners, questions, discussion? There were no questions or discussion from the Commissioners. Hughes: When do you plan on opening? Yoneyama: Well, that's the big question. They will probably need another three months for construction. Onizuka: Commissioner Greenwell? Greenwell: Are all the permits ready to go for construction? Yoneyama: Yes. They do have a building permit on the wall and are working on it. Greenwell: So, three months is just internal construction time? Yoneyama: Yes, the outside shell is done. A building permit is in place and working on... It's not going to be easy. Hughes: Gerald, is this timeline how most applicants go as far as construction versus getting the permit for... Takase: Three months is... MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 22 Hughes: ...pretty fast. Takase: ... it's construction time. As Miho said, the outside is done, so it's just interior that has to be completed at this point. Possibly, they could do it. We've seen the other ones come in; Nashville Chicken, same complex, Shiono's, too. So, they're starting to move there, but that is their timeline. They wanted to be open sooner, but... Yoneyama: ...If the part comes in. Takase: Yes, probably numerous projects in there... Thomas: In terms of the market, are you just going to be selling the fish? Yoneyama: I guess the way it is set up is, they (will be) slaughtering fish, then they'll be serving it, and other fresh items and poke. Thomas: : Know where your food comes from. Thomas: Thank you. Onizuka: Question to the Department. This is an application for a change of location? Takase: Yes. So... Yoneyama: ...and change of name. Takase: Umekes is open right now on the corner. They're moving one block up to a bigger location. Onizuka: But construction is going to take three months? Takase: Yes, to build out the ... well, it's a brand new building. The shell is finished. They're just doing the kitchen and interior. Gonzalez: The second part of the application, Mr. Chair, is to change the name from Umeke's Kuakini Center to Umekes Fish Market Bar & Grill because they're not going to be in Kuakini Center anymore. They're going to be on the Brewers Block. Takase: They're going to retail poke and other items there, as well. Onizuka: Any other discussion? Arakaki: I have a question. The name will change only as they change the location? Takase: Yes. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 23 Arakaki: They'll keep that name and the transfer will change when they move to the new building? Takase: It's a change of location. They're not transferring. Arakaki: I mean, the license will remain the same? Takase: Yes. Arakaki: The license will remain the same, but the place of business will change on the license, correct? Takase: Correct. Onizuka: Effective upon relocation? Takase: Yes, and final inspection. Onizuka: Any other discussion? There was no other discussion. Onizuka: If not, call for a motion. Hughes: Motion to approve Application No. 19-28; if approved, public hearing to be held on May 7, 2020, in Hilo. Raymond: Second. Mr. Hughes moved to approve Application No. 19-28, Umekes, LLC, dba Umekes Fish Market Bar & Grill, for a Change of location from 74-5563 Kaiwi Street, Unit No. 112, Kailua-Kona, Hawaii to 74-5599 Pawai Place, Bldg. A, Kailua-Kona, Hawaii, to its Restaurant General liquor license, Category B2; and Change in Trade Name from Umeke's Kuakini Center to Umekes Fish Market Bar & Grill, TMK: 7-4-010:018; if approved, public hearing to be held on May 7, 2020, in Hilo; seconded by Ms. Raymond. Onizuka: Moved and seconded that we approve Application No. 19-28; if approved, public hearing to be held May 7, 2020, in Hilo. Any discussion? Greenwell: Mr. Chair? Onizuka: Yes? Greenwell: Gerald, if it is not completed by May 7, what are we doing on May 7? MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 24 Takase: Approving the change of location. Greenwell: But they won't be in business, possibly, until June. Takase: Yes, so we can prospectively approve the change of location. Greenwell: Okay. Onizuka: Effective when they move? Takase: Yes, well, upon final inspection. They would have to move before the final inspection. Yoneyama: Yeah, we will all be waiting for the Building inspector. It's pending upon that. Takase: We would have to approve it before they could move. They could move, but we wouldn't have approved it. It's a change of location; we usually do it like that. Onizuka: 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. Yoneyama: Thank you. Greenwell: Thank you. Gonzalez: Mr. Chair, if we may go to Item No. 10 under New Business on page 11 of your sheet? Mr. Anderson is here from Kohala Village Hub Pub. May we take that item out of order? Onizuka: (10:40 A.M.) At this time, we'll take New Business Item No. 10 out of order. 10. Kohala Village Hub Pub & Shop LLC, dba Hub Pub, approval to store alcohol in locked food truck, and sell alcohol out of food truck, effective March 9, 2020, to its MARCH S, 2020 - LIQUOR COMMISSION MINUTES 25 Small Craft Producer Pub liquor license, located at 55-514 Hawi Road, Hawi, Hawaii. Paul Anderson, Facilities Manager, was present. Onizuka: Can you introduce yourself and your relationship to the business? Anderson: Good morning, my name is Paul Anderson and I'm the Facilities Manager. Onizuka: Thank you. Takase: Mr. Chairman, by way of background if you recall, Kohala Hub Pub was located up in Kohala. They suffered a fire back... Anderson: ...a year ago, almost exactly a year ago. Takase: They are trying to rebuild in that location, but they are trying to get some business going. They've proposed to run a food truck operation and allow liquor service out of that, as well. While we don't usually endorse locations, it will be a fixed location. They own the property that they're going to be serving on. We have done it in the past with Luquin's in Pahoa. It's a little out of the ordinary, but it has happened in the past. We try and help them raise some capital, and if things go the way they're supposed to go, we support their request. Masuda: Gerald, this truck is just going to stay on the property? It's not going to move around, right? Takase: Yes. They'll have a fixed location and they can serve within their property. Greenwell: Following up on what Craig is saying, Gerald, is there going to be a clause in their permit saying that the truck cannot be moved off of the property? Or is there going to be some sort of a clause that ... I don't want to go down a slippery personated road where these people are going to start doing it approved. Takase: No, they can only serve at a fixed location because they have to have ownership of the location that they're serving alcohol, control of that location. You are approving their operation and location today, so they can't drag it down the street and open it up there and serve liquor from it. It's not an approved location. Greenwell: They're the owners of the Dolphin in Kawaihae? Anderson: The Dragon, correct. Greenwell: Okay. They couldn't take the truck down there and sell off of that property that they own there? Takase: No, they have a restaurant down there where they sell only to... MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 26 Greenwell: But the point I'm trying to... Takase: They could, potentially, they could ask to have their truck down there, but they would have to come back to us for approval to do that. They can't just move it as they see fit. Salave`a: The license is fixed to the TMK and not necessarily to the truck? Takase: Yes. Hopefully, they're going to get rebuilt... But, in the interim, they're going to work out of a food truck. Onizuka: If we go with the approval, a restriction can be placed on the approval that the truck remains on this property, on that parcel where that structure was? Takase: Sales can only be done on that property. Onizuka: Yes. Salave`a: I would prefer that the condition read that we prohibit the sale of alcohol to the TMK rather than the food truck. I don't know what their plans are, but if the opportunity to use that truck to attend an event where they can generate revenue, I wouldn't want to limit them for serving food. See where I'm going? If they have opportunities to generate revenue with the truck serving food, off-site, and it's at some event, I wouldn't want to infringe on that ability. But, I wouldn't want to extend the ability to sell alcohol through the truck off of that TMK or that premises that the liquor license is tied to. Ibarra: Gerald, I hear you say it's to help them out while they're rebuilding. It's not a usual situation, you said, right? Takase: Yes. Ibarra: Is there going to be a time limit for this? Or will we have people having food trucks on TMKs and selling alcohol on vacant lots? Takase: I don't even think they have a time frame for rebuilding. Ibarra: How good is the license for? Takase: Annual. Ibarra: Annual renewals? Gonzalez: Yes. Onizuka: What are your plans for this property? Are you going to rebuild, when? Anderson: That has yet to be determined. The owners are in the process of planning. There's a lot of things involved with that particular property that they're looking at, MARCH S, 2020 - LIQUOR COMMISSION MINUTES 27 potentially consolidating some of the TMKs there, and doing some other work prior to rebuilding. The have a land -use professional that they're working with right now to try to understand the bigger picture and the value, the potential value, of doing something like that. So, it's kind of delaying the rebuilding process and there isn't a schedule right now that I could give to you. Onizuka: I think we're looking at this food truck vending as only a temporary arrangement. think we need to have some timetable as to what the plans are and how long this is going to continue. This is something out of the ordinary that we're considering. Anderson: I could try to make a guess, but it would just be an assumption as to how long it would take. I'm fearing between one and two years is potentially how long it's going to take to deal with any TMK issues that they want to fix. Our professional said that it would take about a year. During that process, hopefully, we'll be able to be doing architectural work and planning of the actual building itself and then the actual building. Onizuka: This is something we'd like to consider but we don't want to drag it out. Maybe this is something for the Commissioners to consider, that if we do go ahead with approval of this beyond a one-year basis, and they come back to us in one year with a projection plan, and re -consideration of the food truck vending; because this is something that's out of the ordinary and it's to help out the Licensee. Salave`a: Then at that time, I think they'd be able to provide us some progress report as to where they are in terms of their land -use planning, what their business plans look like at that time, at that juncture. Hughes: Question for the Director. In the case of Luquin's, what happened there as far as allowing them to serve out of their food truck? Takase: They opened a ... they had it running for a while and they opened a new location at the Woodlands Center, I believe. Hughes: Oh, yeah. KFC, yeah. Waltjen: Where Longs Drugs is in Pahoa. Takase: Yes. Hughes: So they transitioned back into a brick and mortar type Takase: Yes. Their long-term plan, what they told us, was to reconstruct that site. Nothing's happened and I think they're busy enough in their other location that they... Hughes: Yeah, and I have a question for Mr. Anderson. If you're serving out of the food truck, do you have a restricted area where people can consume and be monitored? Anderson: Yes, the site where the building was, which was demolished, has been completely encircled by a fence. Most of it is three -foot -high, some of it is six -foot -high. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 28 Anderson: I mapped out the older existing fence from that area on the map that I drew. Any potential entries and exits would all be labeled as 'no alcohol beyond this point,' etc. But, yes, it's confined by a fence. Salave`a: And that would be the three-foot picket fence that you denote... Anderson: That is correct. Salave`a: ... on your site plan? Anderson: Yes, sir. Salave`a: So it encompasses the entire lot and your signage would be inward -facing and say 'no alcohol beyond this point' so they won't be able to carry off the alcohol... Anderson: That's correct. Salave`a: ... beyond those? Onizuka: Mr. Greenwell? Greenwell: Mr. Chairman, could we hear back in a month on a permit application that has the suggested variances that we're putting in, the suggested changes that we want? Because, if we approve this, there's nothing in it right now, today, for having the truck located at that particular TMK or maybe the hours of operation, or something other than what we have before us today. It's kind of vague. Onizuka: We can state the restriction in the approval of the food truck. If we want to say that the truck remains on the TMK property for one ... or granting approval of the food truck for one year, to be reconsidered in one year with plans for future improvements. Those things can be incorporated in the motion for approval. Ibarra: And the sale of the alcohol will be 7:00 A.M. to 2:00 P.M.? Anderson: Well, that's our hours of operation, so I'm assuming that they wouldn't restrict the hours of sale. But, I'm not aware of that exactly. Ibarra: I guess the concern is, the food is a separate issue but, alcohol twenty-four hours? Takase: Let me clarify. They already have a license. They're allowed to sell on that location. They just don't have a facility right now, but they cannot move the license off of that property. They may be able to take the truck and cook at different locations, but they wouldn't be able to sell (alcohol) at those locations, because the license that they're selling on is tied to that property. We're just allowing them to sell it through MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 29 a food truck rather than having a permanent structure at this point in time. We haven't rendered through their hours. If I recall, their hours were ... he didn't have late-night hours, let's put it that way, but it's been so long... Ibarra: Chair, the hours of sales regarding the liquor are governed by the original license? Takase: Yes. (Their hours were) 6:00 A.M. to 2:00 A.M., but I don't think they'd go to those hours. Ibarra: The difference is where the food truck is placed and you'd be selling it and storing the liquor. Takase: Yes. Onizuka: What we're looking at is approving the sale of liquor from the food truck on that... Takase: ...on that location. Onizuka: ...on the licensed premises. Takase: Yes. Hughes: And storage. Onizuka: Say for one year, to be reconsidered after one year. Takase: Yes, you can do that. Onizuka: Any other discussion? Arakaki: Correct me if I'm wrong, but this looks like you're asking for approval to store the alcohol in the food truck and sell out of the food truck. They already have the license and it looks like they just want to store the alcohol there and sell, and it's not really the issue of moving it or selling it elsewhere. I think that was taken care of in their original license if I'm not mistaken. I just wanted to make that point of clarification. Onizuka: Any other discussion? There was no other discussion from the Commissioners. Onizuka: Call for a motion at this time. Ibarra: Move to approve to store alcohol in locked food truck and sell alcohol out of food truck, effective March 9, 2020. Arakaki: Second. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 30 Mr. Ibarra moved to approve the request submitted by Kohala Village Hub Pub & Shop LLC, dba Hub Pub, to store alcohol in a locked food truck, and sell alcohol out of the food truck, effective March 9, 2020, to its Small Craft Producer Pub liquor license, located at 55-514 Hawi Road, Haw!, Hawaii; seconded by Mr. Arakaki. Onizuka: Moved and seconded. Discussion? I think we need to state 'on the licensed premises,' and I'd like to see a timeframe on that because of that, otherwise, this can go on forever. Ibarra: One year review? Masuda: That's the motion as modified. One year review and specifically on the licensed premises, on the TMK. Salave`a: Can we also note the area... Ibarra: Limited to the premises. Salave`a: ...as stated in the site plan? Masuda: Yes, that's always the case. It's always based upon their site plan. Salave`a: And their hours of service, is there an issue there? Onizuka: That goes with the original license. Salave`a: Original? Okay. Hughes: Do you need a second on that? Masuda: If you want to second the modified motion, that's fine. Greenwell: I'll second it. The motion was modified to approve the request submitted by Kohala Village Hub Pub & Shop LLC, dba Hub Pub, to store alcohol in a locked food truck, and sell alcohol out of the food truck, effective March 9, 2020, for one year, limited to the Small Craft Producer Pub liquor license, located at 55-514 Hawi Road, Haw -i, Hawaii, TMK: 5-5-010:021; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any other discussion? Salave`a: Can we have it restated, exactly what we're approving? MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 31 Onizuka: The motion is to approve the sale and storage of liquor from the food truck; sale is limited to the licensed premises and the approval would be for one year. Salave`a: Okay, thank you. Onizuka: Any other questions? There were no other questions 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. Hughes: Good luck. Anderson: Thank you. Greenwell: Good luck, Mr. Anderson. Anderson: Thank you, I appreciate it. VII. Unfinished Business Onizuka: Item No. VII on the agenda, Unfinished Business. Do we have any unfinished business? There was no unfinished business. Onizuka: Seeing none, move on to Item VIII. New Business. We did Item 10 first, so continuing with Hilo Yacht Club (11:01 A.M.). 1. Hilo Yacht Club, dba Hilo Yacht Club, acceptance of the notice of the change of officers/directors for 2020 as follows: • Election of Lisa Hadway Spain, as Trustee • Appointment of Britta Zimmer Long, as Commodore; Ted Hong, as Vice Commodore; Joseph Marsh, as Rear Commodore; Karyl Franks, as Secretary; and Kapena Lum, as Treasurer MARCH S, 2020 - LIQUOR COMMISSION MINUTES 32 Appointment of Jane Hoff, William Lee, Christopher Schlueter, Neal Herbert, Doreen Friberg, and Kerry Umamoto as Trustees • Retirement of Robert Saunders, Dan Belcher, Randy Hu, and John Pratt and the Personal History and Affidavit for Lisa Hadway Spain, Christopher Schlueter, Neal F. Herbert, and Doreen K. Friberg, Trustees, effective January 30, 2020, by letter received on February 21, 2020, to its Club liquor license, Category B2, located at 77 Laehala Street, Hilo, Hawaii. Greenwell: Move to accept. Salave`a: Second. Mr. Greenwell moved to accept the notice of change of officers and directors for 2020, with the election of Lisa Hadway Spain, as Trustee; appointment of Britta Zimmer Long, as Commodore; Ted Hong, as Vice Commodore; Joseph Marsh, as Rear Commodore; Karyl Franks, as Secretary; and Kapena Lum, as Treasurer; appointment of Jane Hoff, William Lee, Christopher Schlueter, Neal Herbert, Doreen Friberg, and Kerry Umamoto as Trustees; retirement of Robert Saunders, Dan Belcher, Randy Hu, and John Pratt; and the Personal History and Affidavit for Lisa Hadway Spain, Christopher Schlueter, Neal F. Herbert, and Doreen K. Friberg, Trustees, effective January 30, 2020, by letter received on February 21, 2020, to its Club liquor license, Category B2, located at 77 Laehala Street, Hilo, Hawaii; seconded by Mr. Salave`a. Onizuka: Moved and seconded. Any other discussion? Thomas: Just that it's Karyl Franks, not Carl Franks, as the Secretary. Other than that, all good. Onizuka: 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 from the Commissioners. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 33 Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Item No. 2. 2. Walmart Inc., dba Walmart No. 2321 (Kailua-Kona), dba Walmart No. 2473 (Hilo), acceptance of the notice of the change in officers/directors as primary decision -makers as follows: Designation of John Russell Scudder, Sr. Vice President, and Daniel John Rice, Assistant Secretary • Removal of Andrea Marie Lazenby, Assistant Secretary, and Cynthia Petersen Moehring, Sr. Vice President and the Personal History and Affidavits for John Russell Scudder, and Daniel John Rice, effective January 1, 2020, by letter received January 30, 2020, to its Retail General liquor licenses located at 75-1015 Henry Street, Kailua-Kona, Hawaii, and 325 East Maka`ala Street, Hilo, Hawaii, respectively. Greenwell: Move to accept. Salave`a: Second. Mr. Greenwell moved to accept the notice of the change in officers/directors as primary decision -makers, with the designation of John Russell Scudder, Sr. Vice President, and Daniel John Rice, Assistant Secretary; the removal of Andrea Marie Lazenby, Assistant Secretary, and Cynthia Petersen Moehring, Sr. Vice President; and the Personal History and Affidavits for John Russell Scudder, and Daniel John Rice, effective January 1, 2020, by letter received January 30, 2020, to its Retail General liquor licenses located at 75-1015 Henry Street, Kailua-Kona, Hawaii, and 325 East Maka`ala Street, Hilo, Hawaii, respectively; seconded by Mr. Sal5ve`a. 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." MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 34 There was no opposition by the Commissioners. Onizuka: Motion carried. Thank you. The motion was carried unanimously. Onizuka: Item 3, Kona, Hawaii, Lodge No. 2616, Benevolent & Protective Order of Elks of the United States of America. 3. Kona, Hawaii, Lodge No. 2616, Benevolent & Protective Order of Elks of the United States of America, dba Kona Elks Club, ratification of Application for Game Permit for an event on February 26, 2020, approved by Director Gerald Takase on February 3, 2020, to its Club liquor license, Category B2, located at 74-5596 Pawai Place, Bays M and N, Kailua-Kona, Hawaii. Hughes: So move. Salave`a: Second. Mr. Hughes moved to ratify the Application for Game Permit for an event on February 26, 2020, approved by Director Gerald Takase on February 3, 2020, to its Club liquor license, Category B2, located at 74-5596 Pawai Place, Bays M and N, Kailua-Kona, Hawaii; seconded by Mr. Salave`a. 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. Thank you. The motion was carried unanimously. Onizuka: Item 4, Hatch Enterprises Incorporated. 4. Hatch Enterprises Incorporated, dba The Temple, ratification of Application for Temporary Increase in Licensed Premises to include the Kaikodo Ballroom on February 14, 2020, approved by Director MARCH S, 2020 - LIQUOR COMMISSION MINUTES 35 Gerald Takase on February 4, 2020, to its Restaurant General liquor license, Category B1, located at 64 Keawe Street, Hilo, Hawaii. Greenwell: Move to ratify. Salave`a: Second. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises to include the Kaikodo Ballroom on February 14, 2020, approved by Director Gerald Takase on February 4, 2020, to its Restaurant General liquor license, Category B1, located at 64 Keawe Street, Hilo, Hawaii; seconded by Mr. Salave`a. 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. Thank you. The motion was carried unanimously. Onizuka: No. 5, O&J LLC. 5. O&J LLC, dba Johnny's at Waikoloa Village, ratification of Application for Temporary Increase in Licensed Premises to include the Ohana Room and Banquet Room on February 1, 2020, approved by Director Gerald Takase on January 28, 2020, to its Restaurant General liquor license, located at 68-1790 Melia Street, Waikoloa, Hawaii. Greenwell: Move to ratify. Hughes: Second. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises to include the Ohana Room and Banquet Room on February 1, 2020, approved by Director Gerald Takase on January 28, 2020, to its Restaurant General MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 36 liquor license, located at 68-1790 Melia Street, Waikoloa, Hawaii; seconded by Mr. Hughes. 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. Thank you. The motion was carried unanimously. Onizuka: Item 6, MNS, Ltd. 6. MNS, Ltd., dba ABC Store #62, Kona Inn Shopping Village, ABC Store #63, 75-5703-C Alii Drive, Kailua-Kona, ABC Store #71, Courtyard by Marriott King Kamehameha's Kona Beach Hotel, and ABC Store #75, Coconut Grove Marketplace, acceptance of the notice of the change of officer/director with the appointment of Mitsunori Blaisdell, as Director; and the Personal History and Affidavit for Mitsunori Blaisdell, Director, effective January 14, 2020, by letter received on February 7, 2020, to its Retail General liquor licenses. Hughes: Move to accept. Greenwell: Second. Mr. Hughes moved to accept the notice of the change of officer/director with the appointment of Mitsunori Blaisdell, as Director; and the Personal History and Affidavit for Mitsunori Blaisdell, Director, effective January 14, 2020, by letter received on February 7, 2020, to its Retail General liquor licenses; seconded by Mr. Greenwell. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 37 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: No. 7, Johnson Brothers of Hawaii, Inc. 7. Johnson Brothers of Hawaii, Inc., dba, Johnson Bros., of Hawaii, Inc., acceptance of the notice of the change of officers, effective January 17, 2020, as follows: Removal of Robert ("Bob") Johnson, President Election of Michael Johnson as President and Treasurer Election of Todd Johnson as Vice President and Secretary and the Personal History and Affidavit for Michael Johnson, President and Treasurer, effective January 17, 2020, by letter received on February 10, 2020, to its Wholesale General liquor license, located at 735 Kanoelehua Avenue, Hilo, Hawaii. Hughes: Move to accept. Thomas: Second. Mr. Hughes moved to accept the notice of the change of officers, effective January 17, 2020, with the removal of Robert ("Bob") Johnson, President; the election of Michael Johnson as President and Treasurer; the election of Todd Johnson as Vice President and Secretary; and the Personal History and Affidavit for Michael Johnson, President and Treasurer, effective January 17, 2020, by Letter received on February 10, 2020, to its Wholesale General liquor license, located at 735 Kanoelehua Avenue, Hilo, Hawaii; seconded by Ms. Thomas. Onizuka: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 38 The Commissioners voted "Aye." Onizuka: Opposed, "Nay." There was no opposition by the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Special Licenses Issued for Ratification. Motion for ratification of Special Licenses, Application Nos. SP -19-099 to SP -19-110, Item Nos. 8(a) to 8(I). Salave`a: So moved. Hughes: Second. Mr. Salave`a moved to ratify the following Special Licenses: 8. Special Licenses Issued for Ratification a. Application No. SP -19-099, Volcano Art Center, dba Volcano Art Center, Inc., for a Special Beer and Wine liquor license, on February 8, 2020, at the Volcano Art Center, located at 19-4074 Old Volcano Road, Volcano, Hawaii. b. Application No. SP -19-100, Friends of Kona Pacific Public Charter School, dba West Hawaii Community Kitchen, for a Special Beer liquor license on February 8, 2020, at the Keauhou Shopping Center, located at 78-6831 Alii Drive, Suite 162, Kailua-Kona, Hawaii. C. Application No. SP -19-101, Waikoloa Dry Forest Initiative Inc., dba Waikoloa Dry Forest Initiative Inc., for a Special Beer and Wine liquor license on February 8, 2020, at the Waikoloa Stables, located at 68-1936 Waikoloa Road, Waikoloa Village, Hawaii. d. Application No. SP -19-102, Christopher Camero Memorial VFW Post 12122, dba Christopher Camero Memorial VFW Post 12122, for a Special General liquor license for the period January 31, 2020, through February 29, 2020, at 74-5543 Kaiwi Street, Suite 185A, Kailua-Kona, Hawaii. e. Application No. SP -19-103, Make Music Foundation, dba Make Music Foundation, for a Special General liquor license on February 7-9, 2020, at Kalani Honua, Inc., located at 12-6860 Kalapana-Kapoho Road, Pahoa, Hawaii. MARCH S, 2020 - LIQUOR COMMISSION MINUTES 39 f. Application No. SP -19-104, Volcano Art Center, dba Volcano Art Center, for a Special Beer and Wine liquor license, on February 15, 2020, at the Volcano Art Center, located at 19-4074 Old Volcano Road, Volcano, Hawaii. g. Application No. SP -19-105, Hawaii Horse Owners, Inc., dba Hawaii Horse Owners, for a Special Beer liquor license on February 15-17, 2020, at the Pana`ewa Equestrian Center, located on Stainback Highway, Hilo, Hawaii. h. Application No. SP -19-106, Cooper Center Council, dba Cooper Center Council, for a Special Beer and Wine liquor license on February 22, 2020, at the Cooper Center, located at 19-4030 Wright Road, Volcano, Hawaii. i. Application No. SP -19-107, North Hawaii Hospice, Inc., dba North Hawaii Hospice, Inc., for a Special Beer and Wine liquor license on February 29, 2020, at the Waiki`i Ranch Clubhouse, located at 67-1026 Pelekaiko Road, Kamuela, Hawaii. j. Application No. SP -19-108, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license on February 13, 2020, at The Palace Theater, located at 38 Haili Street, Hilo, Hawaii. k. Application No. SP -19-109, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license on February 15, 2020, at The Palace Theater, located at 38 Haili Street, Hilo, Hawaii. I. Application No. SP -19-110, Waimea Country School, dba Waimea Country School, for a Special Beer liquor license on February 22, 2020, at the Blue Dragon Tavern, aka Hub Pub, located at 61-3616 Kawaihae Road, Kamuela, Hawaii. The motion was seconded by Mr. Hughes. 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." MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 40 There was no opposition from the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. Onizuka: Transient Vessel Licenses Issued for Ratification. Motion for ratification of Transient Vessel License, Application Nos. TV -19-52 and TV -19-53, Item No. 9(a) and 9(b). Hughes: So moved. Salave`a: Second. Mr. Hughes moved to ratify the following Transient Vessel Licenses: 9. Transient Vessel Licenses Issued for Ratification a. Application No. TV -19-52, Princess Cruise Lines, Ltd., dba Emerald Princess, for a Transient Vessel liquor license, in port at Hilo Harbor, Hilo, Hawaii on February 10, 2020. b. Application No. TV -19-53, Princess Cruise Lines, Ltd., dba Emerald Princess, for a Transient Vessel liquor license, in port at Kona Harbor, Kailua-Kona, Hawaii on February 9, 2020. The motion was seconded by Mr. Salave`a. 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 from the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. IX. Announcements Onizuka: Next Commission meeting. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 41 April 2, 2020, 10:00 A.M., Meeting Room, Department of Liquor Control, West Hawai'i Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawai'i. May 7, 2020, 10:00 A.M., Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. Are there any other announcements? Takase: Yes, Mr. Chairman. Brandon, Stacie and I are going to meet with the ... there's a letter filed with us by a group of musicians or supporters of musicians, complaining about the Commission and the Department about the way we're treating the musicians in Kona. They are saying they feel we are being overly hard on them, that they are trying to stay in business, but we're being overly restrictive. We will meet with them to see what they have. Their primary complaint is that we're listening to a small group, a minority, on these protests, and they're not representative of the broader Kona population. We'll see where it goes. I told them to supply us with ... they could make petitions just as well. But they said we're killing the musicians in Kona right now and there's a big following; people, not only in Kona, come from the mainland to listen to them, and if we keep doing this to their venues, they're going to leave. Onizuka: They're going to leave? Who's going to leave? Takase: The musicians, because they cannot stay in business. Thomas: So what are we doing to them exactly? Takase: Well, I guess, limiting the hours, limiting the amount of sound, things like that. Greenwell: But if you look back on the record, we have been more than ... we have been bending over backward, because... Takase: Yes, that's what we'll explain to them, but you know, it's like everybody has ... on social media, basically. Gonzalez: Complaints were posted on Facebook by musicians who feel like our liquor investigators are going to go out and take sound readings of performances based on noise complaints (and) that we are not enforcing our liquor sound rules fairly; that we are ruining the musicians' vibe, basically, 'which will have a chilling effect on other musicians wanting to come to perform in Kailua-Kona.' It's from the perspective of the musician and performer side of the issue. What they don't realize is that some of the licenses have specific conditions on them for the decibel readings to be taken at the stage and by the speakers instead of on the street, where there's so much other noise and it would be impractical. Takase: Yes, so we'll meet with them and explain what we're doing, and I think we will appease the matter of their complaints. We'll see where it goes from there. I don't think MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 42 the Licensees are complaining as much, but the musicians and supporters that are there seem to feel that we're heavy-handed with them. Masuda: They can come and testify before the Commission, too. Gonzalez: I forgot to add the... Takase: But the Licensees are not going to know, right? That's what I'm telling them. If they want to come in and voice their concerns, we will allow it. Greenwell: But, Gerald, with almost every protest that we've had come before us, we've sided with the business, not the protestors. I can't remember one that we've sided with the homeowners or the condos or the... Takase: Yes, that's part of what... Greenwell: I don't know where these guys are coming from. Takase: I suspect what happens a lot of the time is that the Licensee may say `don't make too much noise.' They'll say `why not?' And they'll say 'because the Liquor Department is going to get after us.' So be it. We will meet with them and try to get a clearer picture and also explain what we've been doing, and maybe we have to do more of it. What we've done in the past on Ali'i Drive, with Huggo's, Laverne's... we set decibel readings on their dance floors or in front of their stages because it was too hard to measure outside. Even in the current rules, we have it at 50 or 60 decibels. Just us talking here, we're at 60 decibels. It wasn't really a manageable number, so that's why we created, with those Licensees, a number inside their facilities that we can both measure. It seems to work. We'll find out which musicians... it's always going to be a balancing act down in that area because it has the most open-air venues. Ibarra: I just want to say something. We listen to both sides and if it comes out that we vote in the way of the protestors or the Licensees, so be it, from the evidence. But I don't think they can say that one way or the other, this Commission is favoring the protestors versus favoring the musicians. I think this Commission is neutral, as we should be, and after making a decision based on the rules, the statutes, and whoever calls it to our attention. Although there have been comments about, and I would agree because evidence shows that in the resort zone, that's why it's a resort zone. I don't think you can say that this Commission is pro -protestors, pro -musicians, pro -Licensees or anything like that. Takase: We'll meet with them and we'll try to allay their fears or concerns. Greenwell: Gerald, is the meeting going to be before our next meeting? Takase: Yes, March 20th Greenwell: Okay, do you think you can send us an email before the (next) meeting to let us know what happened? MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 43 Takase: Sure. Greenwell: Because I'd be interested in coming back to the next meeting and hear, or be prepared... because I don't think they have a leg to stand on. Ibarra: The Licensee hires the musician and the Licensee should make it a condition of the performance. Takase: One of the other concerns was that we don't allow the musicians to drink while they're performing. They're being told (by the Licensee) the Liquor Commission says they're not allowed to drink. Salave`a: I think an important aspect for us to realize is that in the social media world, the statement that you just made, Judge Ibarra, David, is not relevant because, in the social media world, I can claim anything. If I get enough followers, I can turn it into reality. Hughes: There a lot of experts out there. Salave`a: So this is more a PR issue for the Department as well as the Commission. But for them, in social media, perspective is reality. It doesn't matter if we have the evidence to show that we are unbiased. It's a PR issue in social media, which is a whole different apple than what all of us are used to. I don't use social media, but I understand that you have to watch your p's and q's because anything that gains steam on Instagram, Facebook, can become reality. Just food for thought for us. Gonzalez: That's a good point, but how it started was, before the Facebook post, it was an opinion letter in the West Hawai'i Today (newspaper) that was vaguer, and then a specific article, being more specific, in a musicians magazine, an online version of the magazine in February. After that, the articles were posted to a Facebook group, and then... Salave`a: Right, and I'm sure if you look at the articles, there isn't any basis or statistics to show any kind of bias. But, it doesn't matter, right? It's causing my opinion. Then it begins to snowball. People pick up on it and now I have a cause and I become a martyr. Takase: Yes, so we'll meet with them to address their concerns. Salave`a: I think that's a good step. Thomas: I just have a point to make. Sometimes it's the venue itself. Is it a family kind of a place? Is it a nightclub? Is it a bar and grill? You have all these different kinds of venues with different kinds of ambiences and atmospheres, and also different restrictions. A lower decibel level would be more appropriate for some types of restaurants than it is, perhaps, for others that are open later or who may or may not be serving dinner as well. Maybe they're serving pupus. There are so many nuances with this that fall into place. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 44 For musicians to say categorically that ... it just sounds like there's some specific thing that has become a little bit generalized. But, the devil's in the details here, like you said. Takase: Yes... Thomas: What's the restriction? What's the atmosphere? What are the business hours? Takase: I'm thinking it's mostly going to be the nightclubs. But, I will tell them that they all have a place to play now, so obviously, we granted them the licenses. But you're never going to satisfy everybody. Thomas: Yeah. Masuda: Yeah, but that's exactly what it is. It's never loud enough. You have to be able to feel it. Gonzalez: We've had to referee issues between two Licensees before because the ambience for one Licensee impacted what was going on with the other Licensee, and they didn't want to confront each other. The Department has been in that situation before, and we probably will be in the future. Onizuka: Any other ... if not ... don't lose sleep over it. We'll let the Department handle that. We'll look forward to their report to us. Salave`a: Move to close the hearing. Onizuka: Any other announcements? There were no other announcements. X. Adjournment Onizuka: If not, call for adjournment. Salave`a: So move. Raymond: Second. Mr. Salave`a moved to adjourn; seconded by Ms. Raymond. Onizuka: Moved and seconded that we adjourn. Any discussion? There was no discussion from the Commissioners. Onizuka: All those in favor say, "Aye." The Commissioners voted "Aye." MARCH S, 2020 - LIQUOR COMMISSION MINUTES 45 Onizuka: Opposed, "Nay." There was no opposition from the Commissioners. Onizuka: Motion carried. The motion was carried unanimously. The meeting adjourned at 11:23 A.M. er Id Takase Director The March 5, 2020, Liquor Commission minutes were approved as corrected via email/mail on April 30, 2020, by the Liquor Commission of the County of Hawaii on May 7, 2020. MARCH 5, 2020 - LIQUOR COMMISSION MINUTES 46