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HomeMy WebLinkAbout2018-06-07 Liquor Commission MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION June 7, 2018 WEST HAWAII CIVIC CENTER, 74-5044 ANE KEOHOKALOLE HIGHWAY, BUILDING B, 2ND FLOOR, KAILUA-KONA, HAWAII I. Call To Order The meeting was called to order by Vice Chair Shelby Nahale-a at 10:00 A.M., in the Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawaii. The following were present and constituted a quorum: Commissioners: Absent and Excused: Others Present: Shelby Nahale-a, Vice Chair Warren Arakaki, Commissioner David Greenwell, Commissioner Stephen Lopez, Commissioner Claude Onizuka, Commissioner Allen Salave`a, Commissioner Art Taniguchi, Chairman Michael Hughes, Commissioner Dawn Raymond, Commissioner Gerald Takase, Director Brandon Gonzalez, Administrative Officer Renee Schoen, Assistant Corporation Counsel Gail Fujimoto, Licensing Officer Stacie Waltjen, Licensing Tech. Dorsi Lim, Secretary to the Board & Commission Nahale-a: Aloha. I'd like to call this meeting of the Liquor Commission to order. I'd like to ask everyone to put their phones on vibrate or silent please. We'II start off with introductions. Brandon, can we start with you, please? Gonzalez: Good morning. Brandon Gonzalez, Administrative Officer. Greenwell: David Greenwell, District 9 Commissioner. Lopez: Steven Lopez, Commissioner. Onizuka: Claude Onizuka, Commissioner. Schoen: Renee Schoen, Assistant Corporation Counsel. Nahale-a: Aloha. Shelby Nahale-a, Commissioner. Arakaki: Warren Arakaki, Commissioner. Salave`a: Allen Salave`a, Commissioner. Takase: Gerald Takase, Director. I want to introduce and welcome Allen Salave`a. He's our new Commissioner from District 6, Volcano, Ka`u... Waltjen: Stacie Waltjen, Licensing Tech. Fujimoto: Gail Fujimoto, Licensing Officer Lim: Dorsi Lim, Secretary to the Board and Commission. 11. Approval of Minutes Nahale-a: Mahalo. The May 3, 2018, meeting minutes were circulated via email/mail on May 24, 2018. Can I get a motion? Onizuka: Move to approve minutes. Greenwell: I second that motion. Mr. Onizuka moved to approve the May 3, 2018, Liquor Commission minutes as circulated; seconded by Mr. Greenwell. Nahale-a: It has been moved and seconded to approve the minutes. Is there any discussion? There was no discussion from the Commissioners. Nahale-a: Being none, call for the question. All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Those opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. June 7, 2018 — LIQUOR COMMISSION MINUTES 2 III. Approval of Addendum and/or Supplemental Agenda Nahale-a: We have addendums to the agenda. Pursuant to Section 92-7, Hawaii Revised Statutes, as amended, Item 1, Nos. 17, 18 and 19 (g and h), are the proposed amendments to the agenda and have 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. 1. New Business, ADD Item Nos. 17 and 18, new paragraphs to read: 17. Pursuant to Section 281-22, Hawai`i Revised Statutes, as amended, notifies the Commission, in writing, of the employee's intent to support, advocate, or aid in the support of political candidates in the upcoming 2018 elections. 18. Young's Market Company LLC, dba Young's Market Company of Hawaii, approval of change of officers, withdrawing Jason Wooler, Executive Vice President General Manager California, and admitting Hugh Pearson Duncan as Executive Vice President General Manager Hawaii, effective February 1, 2018. 19. Special License issued for ratification, ADD Item Nos. 19(g) and 19(h), new paragraphs to read: g. Application No. SP -17-119, Maku`u Farmers Association, dba Maku`u Farmers Association, for a Special General liquor license, held at the Maku`u Farmers Market, located at 15-2155 Kea'au Pahoa Road, Pahoa, Hawaii, on June 1, 2018. h. Application No. SP -17-120, Kahilu Theatre Foundation, dba Kahilu Theatre Foundation, for a Special Beer and Wine liquor license, to be held at the Kahilu Theatre, located at 67-1186 Lindsey Road, Kamuela, Hawaii, on June 9, 28 and 30, 2018. Motion to approve addendums to the agenda? Lopez: So move. Onizuka: Second. Mr. Lopez moved to approve the addendums to the agenda; seconded by Mr. Onizuka. June 7, 2018 — LIQUOR COMMISSION MINUTES 3 Nahale-a: Thank you. It has been moved and seconded to approve the addendums to the agenda. Is there any discussion? There was no discussion from the Commissioners. Nahale-a: Since none, Dorsi, roll call vote please? Lim: Commissioner Arakaki? Arakaki: Aye. Lim: Commissioner Greenwell? Greenwell: Aye. Lim: Commissioner Lopez? Lopez: Aye. Lim: Commissioner Onizuka? Onizuka: Aye. Lim: Commissioner Salave`a? Salave`a: Aye. Lim: Vice Chair Nahale-a? Nahale-a: Aye. Lim: Vice Chair Nahale-a, we have six ayes, no nays. The ayes have it. Nahale-a: Thank you. Moving on to Public Statements. IV. Public Statements on Agenda Items Nahale-a: Is there anyone here wishing to provide public statements on our Agenda today? There were no public statements. Nahale-a: Since none, we will continue with public hearings. June 7, 2018 — LIQUOR COMMISSION MINUTES 4 V. Public Hearings 1. Application No. 17-27 (10:04 A.M.) Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), for an original Retail General liquor license. Michelle Chi -Dickinson, Associate, Carlsmith Ball; Scott Nair, General Manager; Spencer Wong, Chief Financial Officer; and, Jason Knable, Paralegal, Carlsmith Ball, were present. Nahale-a: Good morning. Could you please identify yourselves and state your relationship to the business? Chi -Dickinson: Good morning Commissioners. I am Michelle Chi -Dickinson of Carlsmith Ball. Nair: I am Scott Nair, General Manager at Kukio. Wong: Spencer Wong, Chief Financial Officer, Kukio Golf and Beach Club. Knable: I am Jason Knable, a Paralegal with Carlsmith Ball. Nahale-a: Thank you. Are there any changes to the report submitted? Wong: No, no there are not. Nahale-a: Could one of you describe the business? Wong: Good to see everyone again, (since) a couple of months ago at the preliminary hearing. Kukio Golf and Beach Club is a private equity country club located in Kona. It was established in 2002. We currently have 278 members of the club, predominately Northern California based. They've made substantial investments into the project from a real estate standpoint and their membership contributions, and with that they're able to only come out on the average two and a half, maybe three weeks a year. We attempt to be as full-service of a provider as possible and that's why we're here, for the application of our retail liquor license. Nahale-a: Wonderful. Thank you. Mr. Director, are there any reports of protests? Takase: Madame Chairman, the Applicant mailed 21 out of 21 notices within 100 feet, 40 out of 40 within 500 feet, and two notices to cooperative apartment owners. There were no protests to this Application. Nahale-a: Thank you. Any public testimony regarding this Application? There was no testimony. June 7, 2018 — LIQUOR COMMISSION MINUTES 5 Nahale-a: Seeing none, Commissioners discussion or questions? Onizuka: Regarding this delivery service, is that from the Pro Shop down to the residents? Nair: That is correct. From the location that the retail will be working out of to the residents within the community. Takase: No, it's not the Pro Shop. It's going to be the resort club down at the Beach Club. Nair: Yes, where the retail is going to be operating out of. Wong: Yes, the Beach Club House is Makai of the Queen Ka`ahumanu Highway, so within the area where the residential (area) is located. They will be operating out of that retail store. Nahale-a: Any other questions from the Commissioners? There were no questions from the Commissioners. Nahale-a: It seems pretty close, from the picture, from where the location is to where the residential area is. Wong: Yes, Kukio Golf and Beach Club is literally a golf club and a beach club. It's two clubs in one. The Beach Club is on the Makai side of Queen Ka`ahumanu Highway. The Golf Club is above the highway. All of the residential components are on the Makai side, by the Beach Club where the Retail operation is going to operate out of. Nahale-a: Okay, great. Anything else, Commissioners? There was nothing further from the Commissioners. Nahale-a: Can I have a motion to close public hearing? Onizuka: Move to close public hearing. Nahale-a: Thank you, Claude. Greenwell: Second. Mr. Onizuka moved to close the public hearing; seconded by Mr. Greenwell. Nahale-a: Thank you, Kawika. Discussion on the motion? There was no discussion from the Commissioners. June 7, 2018 — LIQUOR COMMISSION MINUTES 6 Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Onizuka: Move to approve Application No. 17-27, pending final inspection. Greenwell: Second. Mr. Onizuka moved to approve Application No. 17-27, Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), for an original Retail General liquor license, located at the 87 Mile Marker on Queen Ka`ahumanu Highway, Ka`upulehu, North Kona, Hawaii, TMK: 7-2-016: Por. of 003, CPR 0019, 72-250 Kukio Nui Drive, Kailua-Kona, Hawaii, pending final inspection; seconded by Mr. Greenwell. Nahale-a: Thank you. It's been moved and seconded. Is there any discussion on the motion? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor of the motion say, "Aye." The Commissioner voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: This Applicant is also on the Agenda under New Business Items 1, 2 and 3, so if there is no objection, we'll take it out of order and address New Business Items 1, 2 and 3 now. There was no objection by the Commissioners. June 7, 2018 — LIQUOR COMMISSION MINUTES 7 Takase: Madame Chairman, Item No. 1 is a little about what was discussed earlier. It's about approval of delivery service for their retail general store, and basically it would be just to residential members of Kukio and their delivery area would be within the Kukio Beach Club area. It won't be outside of that. They will be following our standard protocols. Their customers will be registered prior and they will ensure that deliveries are made to persons twenty one years or older. 1. Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), approval for delivery service to its pending Retail General liquor license, located at the 87 Mile Marker on Queen Ka'ahumanu Highway, Ka`upulehu , North Kona, Hawaii. Item No. 2 is an Application for Outside Storage. Their retail store is upstairs in the lobby area. They will maintain a storage area downstairs where they have storage for their Club operation. They will segregate the current storage area to be partly for their Retail operations and the rest for their Dispenser operations. 2. Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), approval of Application for Outside Storage Permit, for a warehouse, located at 72-250 Kukio Nui Drive, Kailua-Kona, Hawaii, to its pending Retail General liquor license, located at the 87 Mile Marker on Queen Ka`ahumanu Highway, Ka`upulehu, North Kona, Hawaii. Item No. 3 is an Application for Reduction of the Beach Club retail store, now taking it out of the Club license area and that will allow for it to become a separate license as a retail establishment. 3. Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc., approval of Application for Reduction in Licensed Premises to its Beach Club House Retail Store, located at the 87 Mile Marker on Queen Kaahumanu Highway, Ka`upulehu, North Kona, Hawaii. Nahale-a: Commissioners, do you have any questions regarding any of the three New Business items? Lopez: I have a question. I heard the Director say, "members and residents." Of the residential facilities in Kukio, can they have guests and not have a member present and if so, is the license affected in any way if it's not a resident or a member? Takase: Maybe I misspoke. For the Club license, you have to be a member to charge there. The Retail license, maybe we can ask how they would handle that. Nair: Right. We are a limited access, as far as our membership, so all of our billing goes to our membership accounts. If a guest of a member is on -island, the member has to be present, on -island and in-house for them to have access to Club facilities. We would allow them to buy or purchase products through the retail, but it would go through June 7, 2018 — LIQUOR COMMISSION MINUTES 8 the member's account. There is no outside residential component where, if somebody was not a member of the Club, they would be able to come to our facility and purchase, just as they,can't purchase dinner, (from the) bar, or use any of the facilities. Lopez: Okay, that answers my question. Thank you. Nahale-a: Anyone else? There was no other question from the Commissioners. Onizuka: Chair, move to approve Item 1 under New Business, approval of delivery service to its pending Retail General liquor license. Nahale-a: Can I get a second? Arakaki: Second. Mr. Onizuka moved to approve delivery service for Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), to its pending Retail General liquor license, located at the 87 Mile Marker on Queen Ka`ahumanu Highway, Ka`upulehu , North Kona, Hawaii; seconded by Mr. Arakaki. Nahale-a: Thank you. All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Can I get a motion for Item No. 2? Onizuka: Move to approve the Application for Outside Storage Permit for a warehouse located at Kukio Nui Drive. Lopez: Second. Mr. Onizuka moved to approve the Application for Outside Storage Permit, submitted by Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), for a warehouse, located at 72-250 Kukio Nui Drive, Kailua-Kona, Hawaii, to its pending Retail General liquor license, located at the 87 Mile June 7, 2018 — LIQUOR COMMISSION MINUTES 9 Marker on Queen Ka`ahumanu Highway, Ka`upulehu, North Kona, Hawaii; seconded by Mr. Lopez. Nahale-a: Thank you. It's been moved and seconded. All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: I apologize, Commissioners. I realize I forgot to ask for discussion. Any discussion? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Onizuka: Move to approve Application for Reduction in Licensed Premises. Lopez: Second. Mr. Onizuka moved to approve the Application for Reduction in Licensed Premises, submitted by Kukio Golf and Beach Club, Inc., dba Kukio Golf and Beach Club, Inc. (Retail), to its Beach Club House Retail Store, located at the 87 Mile Marker on Queen Ka`ahumanu Highway, Ka`upulehu, North Kona, Hawaii, to its pending Retail General liquor license; seconded by Mr. Lopez. Nahale-a: Thank you. Any discussion? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. June 7, 2018 — LIQUOR COMMISSION MINUTES 10 Nahale-a: Motion carried. The motion was carried unanimously. Nair: Thank you. Nahale-a: Thank you very much. Wong: Thank you very much. Knable: Thank you very much. Nahale-a: Returning to public hearings, Application No. T17-28, Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge, for a sale and transfer of the Restaurant General liquor license, Category A, held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant. 2. Application No. T17-28 (10:15 A.M.) Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge, for a sale and transfer of the Restaurant General liquor license, Category A, held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant, located at 19-3948 Old Volcano Road, Volcano, Hawaii, TMK: 1-9-004:055. Sam Eiseman, Regional Director of Operations, Kilauea Lodge, was present. Eiseman: Good morning. How are you? Nahale-a: Good morning. Good, how are you? Eiseman: Excellent, thank you. Nahale-a: Please identify yourself and relationship to the business. Eiseman: Most certainly. My name is Sam Eiseman. Good morning everyone, and thank you for taking the time and having us here. I am the Regional Director of Operations overseeing the Kilauea Lodge. Nahale-a: Thank you. Are there any changes to the report? Eiseman: No, ma'am. Nahale-a: Could you please, for the record, describe the business? Eiseman: Sure, most certainly. Kilauea Lodge is a 16 -unit lodge located in Volcano. Twelve units are on-site, four off-site cottages, the liquor license pertains to the three -meal period restaurant that we'll host full service on-site. June 7, 2018 — LIQUOR COMMISSION MINUTES 11 That's the transfer from the existing operation. Our company is acquiring the asset from Albert and Lorna Jeyte. We've only (inaudible) since the late 80's, such as the transfer (of) the existing business and looking forward to continuing the existing operation for continued prominence and success. Nahale-a: Great, thank you. Mr. Director, are there any reports of protests? Takase: Madame Chairman, this is a sale and transfer application. There is no public notification. Our notification was made by publication and there were no protests to this Application. Nahale-a: Thank you. Any public testimony regarding this Application? There was no testimony. Nahale-a: Seeing none, Commissioners, any questions for the business representative? There were no questions from the Commissioners. Nahale-a: Can I please have a motion? Greenwell: I make the motion to approve Application No. T17-28. Onizuka: Second. Mr. Greenwell moved to approve Application No. T17-28, Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge, for a sale and transfer of the Restaurant General liquor license, Category A, currently held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant located at 19-3948 Old Volcano Road, Volcano, Hawaii, TMK: 1-9-004:055, pending final inspection; seconded by Mr. Onizuka. Nahale-a: Thank you. It's been moved and seconded, any discussion? Schoen: It's pending final inspection. Greenwell: ...pending final inspection. Nahale-a: Thank you, David. Greenwell: Yes, ma'am. Nahale-a: Looks like no discussion on this. All those in favor of the motion say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? June 7, 2018 — LIQUOR COMMISSION MINUTES 12 There was no opposition by the Commissioners. Nahale-a: Motion carried. Thank you very much. The motion was carried unanimously. Eiseman: Thank you kindly. Nahale-a: If you don't mind, please stay there since you have the next one on the agenda. Eiseman: Understood. Nahale-a: Application No. T17-29, Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge (Retail), for a sale and transfer of the Retail Beer and Wine liquor license, currently held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant (Retail). 3. Application No. T17-29 (10:17 A.M.) Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge (Retail), for a sale and transfer of the Retail Beer and Wine liquor license, currently held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant (Retail), located at 19-3948 Old Volcano Road, Volcano, Hawaii, TMK: 1-9-004:055. Sam Eiseman, Regional Director of Operations, Kilauea Lodge, was present. Nahale-a: If you don't mind, please identify yourself and again and your relationship to this business. Eiseman: Sure, most certainly. My name is Sam Eiseman, Regional Director of Operations overseeing the Kilauea Lodge Hotel and Restaurant. Nahale-a: Thank you, Sam. Any changes to this report? Eiseman: No. Nahale-a: If you could, also for the record describe the business. Eiseman: Sure, most certainly. Kilauea Lodge is a 16 -unit lodge located in Volcano. Twelve on-site units, four off-site cottages, three -meal restaurant and then retail space which a beer and wine license is up for discussion. Beer and wine is sold out of that retail space over a front desk area in the main lodge. Nahale-a: Thank you. Mr. Director, any report of protest? June 7, 2018 — LIQUOR COMMISSION MINUTES 13 Takase: Chairman, once again, this is a (sale and) transfer application. Notification was made by publication and there were no protests to this Application. Nahale-a: Thank you. Any public testimony regarding this application? There was no testimony. Nahale-a: Since none, Commissioners, any discussion or questions for testifier? There was no discussion from the Commissioners. Nahale-a: May I have a motion please? Lopez: Move to approve Application No. T17-29, pending final inspection. Greenwell: Second. Mr. Lopez moved to approve Application No. T17-29, Hawaii High Country Lounge, LLC, dba Hawaii High Country Lounge (Retail), for a sale and transfer of the Retail Beer and Wine liquor license, currently held by Kilauea Lodge, Ltd., dba Kilauea Lodge & Restaurant (Retail), located at 19-3948 Old Volcano Road, Volcano, Hawaii, TMK: 1-9-004:055, pending final inspection; seconded by Mr. Greenwell. Nahale-a: Thank you. Moved and seconded, any discussion of the motion? There was no discussion from the Commissioners. Nahale-a: Being none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. Thank you very much. The motion was carried unanimously. Eiseman: Thank you. I appreciate your time. VI. Preliminary Hearings Nahale-a: Application No. T17-34... Greenwell: Thirty-two? Thirty-two. June 7, 2018 — LIQUOR COMMISSION MINUTES 14 Nahale-a: I'm sorry, T17-34, Makalei... Takase: Madame Chairman, may we skip Application No. T17-32? The Applicant isn't here, yet. They're trying to get someone here. Nahale-a: Okay. We'II move forward with Application No. 17-33, Sakura Japanese Restaurant III Inc., dba Sakura Japanese Restaurant, original Dispenser Beer and Wine liquor license, Category A. 2. Application No. 17-33 (10:19 A.M.) Sakura Japanese Restaurant III Inc., dba Sakura Japanese Restaurant III, for an original Dispenser Beer and Wine liquor license, Category A, located at the Waiakea Square Warehouse, 200 Kanoelehua Avenue, Suite 100A, Hilo, Hawaii, TMK: 2-2-032:095. Keith Kiuchi, Attorney for the Applicant; and, Shi Feng Zhang, Owner, were present. Nahale-a: Good morning. Please identify yourself and your relation to the business. Kiuchi: Good morning, Commissioners. My name is Keith Kiuchi. I'm the attorney for the Applicant. Zhang: My name is Shi Feng Zhang. I'm the Owner for the Sakura Japanese Restaurant. Nahale-a: Good morning. Are there any changes to the report? Kiuchi: No changes to the report. Nahale-a: Could you briefly describe the business? Kiuchi: This is Mr. Zhang's third restaurant. He has one in Kailua-Kona, one in Mililani, and the theme is they're all Japanese restaurants, they all feature sushi. This particular restaurant has actually been operating since 2010, in Waiakea Square Warehouse. It was initially operated as a Chinese restaurant. He's changed the format, hence he's applying for a liquor license for this place. Nahale-a: Thank you. Any public testimony regarding this application? There was no testimony. Nahale-a: Since none, Commissioners, discussion? Questions? There was no discussion or questions from the Commissioners. Nahale-a: In that case, may I have a motion? June 7, 2018 — LIQUOR COMMISSION MINUTES 15 Onizuka: Move to approve Application No. 17-33, if approved, public hearing to be held August 2, 2018, in Kona. Nahale-a: Thank you. Lopez: Second. Mr. Onizuka moved to approved Application No. 17-33, Sakura Japanese Restaurant III Inc., dba Sakura Japanese Restaurant III, for an original Dispenser Beer and Wine liquor license, Category A, located at the Waiakea Square Warehouse, 200 Kanoelehua Avenue, Suite 100A, Hilo, Hawaii, TMK: 2-2-032:095, if approved, public hearing to be held on August 2, 2018, in Kona, Hawaii; seconded by Mr. Lopez. Nahale-a: Thank you. Any discussion on the motion? There was no discussion from the Commissioners. Nahale-a: Since none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Since none, motion carried. The motion was carried unanimously. Kiuchi: Thank you. Zhang: Thank you very much. Nahale-a: Thank you. Application No. T17-34, Makalei Properties LLC, dba Makalei Golf Club, for a sale and transfer of the Dispenser General liquor license, Category B2, currently held by RLF Makalei Properties, LLC, dba Makalei Golf Club. Good morning. 3. Application No. T17-34 (10:21 A.M.) Makalei Properties LLC, dba Makalei Golf Club, for a sale and transfer of the Dispenser General liquor license, Category B2, currently held by RLF Makalei Properties, LLC, dba Makalei Golf Club, located at 72-3890 Hawaii Belt Road, Kailua-Kona, Hawaii, TMK: 7-2-007:001. Robert Ueoka, Attorney and Authorized Agent for the Applicant, Mike Cortes, General Manager, were present. June 7, 2018 — LIQUOR COMMISSION MINUTES 16 Ueoka: Good morning, Chair and members of the Commission, Mr. Takase. My name is Robert Ueoka on behalf of Makalei Properties LLC. I'm the Attorney and Authorized Agent. ,Present to my right, Mr. Mike Cortes. He's the General Manager. Last name is spelled C -o -r -t -e -s. At this time we have a couple of changes to the investigative report. Number one, the closing date was changed to June 29, 2018. Thank you to the staff for accommodating me on those changes. Originally, it was on June 1, 2018, and we made a couple of changes. Also, we submitted the notarized personal history that's mentioned in the report. The nature of our business is an 18 -hole golf course with a restaurant called Peacock Grill" and we have a beverage cart that goes throughout the golf course. Nahale-a: Thank you very much. Looks like there's no public to provide testimony, so moving on to Commission discussion. Any questions? There was no discussion or questions from the Commissioners. Nahale-a: Since none, may I have a motion, please? Onizuka: Move to approve Application No. 17-34, if approved, public hearing to be held August 2, 2018, in Kona. Arakaki: Second. Mr. Onizuka moved to approve Application No. 17-34, Makalei Properties LLC, dba Makalei Golf Club, for a sale and transfer of the Dispenser General liquor license, Category B2, currently held by RLF Makalei Properties, LLC, dba Makalei Golf Club, located at 72-3890 Hawai`i Belt Road, Kailua-Kona, Hawaii, TMK: 7-2-007:001, public hearing to be held on August 2, 2018, in Kona, Hawaii; seconded by Mr. Arakaki. Nahale-a: Thank you. Any discussion on the motion? There was no discussion from the Commissioners. Nahale-a: Since none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Since none, motion carried. Thank you very much. The motion was carried unanimously. June 7, 2018 — LIQUOR COMMISSION MINUTES 17 Ueoka: Thank you very much. Cortes: Thank you. Takase: May we take a five minute recess? Nahale-a: Okay. The Commission recessed for five minutes and reconvened at 10:25 A.M. Nahale-a: I would like to call the meeting of the Commission back to order. We will return to Preliminary Hearings, Application No. 17-32, MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, for an original Restaurant General liquor license, Category B2. 1. Application No. 17-32 (10:36 A.M.) MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, for an original Restaurant General liquor license, Category B2, located at the Kings' Shops, 69-250 Waikoloa Beach Drive, Space C-01, Waikoloa, Hawaii, TMK: 6-9-008:005. Deborah Fulcher, Manager, was present. Nahale-a: Please identify yourself and your relation to the business. Fulcher: I'm Manager at Foster's Kitchen, Deborah Fulcher. Nahale-a: Thank you. I know you just got called in to represent the Applicant at the last minute. Fulcher: Thank you for that. Yes, I did. Nahale-a: Do you know if there are any changes to the report that was submitted? Fulcher: None, there's not any. Nahale-a: Wonderful. Please briefly describe the business for us. Fulcher: Okay. Foster's Kitchen is a family -style, full-service restaurant making food from scratch using fresh local ingredients, (inaudible) artists, and live entertainment during the evening. Dining area will include inside and outside. Nahale-a: No one is here for public testimony. There was no public testimony. Nahale-a: Commissioners, any discussion or questions? June 7, 2018 — LIQUOR COMMISSION MINUTES 18 Lopez: I have a question. I went there for lunch last weekend and I saw "Coming ,Soon." Will this be using the same format as the Kona location? Fulcher: Yes. It's just larger. There will be more tables. Lopez: Okay, but the operation will be the same? Fulcher: Same, identical. Lopez: Okay, thank you. Takase: Deborah, can I ask you about your entertainment? What are those plans? Fulcher: Yes. At Ali`i Drive's Foster's Kitchen, it's every evening from 6:00 P.M. to 9:00 P.M. It's low-key music, not loud. Takase: It's dinner music? Fulcher: Yes. Takase: So, is that the same here (at the Waikoloa location)? Fulcher: Exactly the same. Takase: The reason I ask is because the previous applicants have seen the garnered attention from the condominiums across the way, but they were also looking at late night entertainment, which doesn't sound like you're going to have. Hopefully, it won't be a problem. Fulcher: No. It's very low-key. We want guests to be able to communicate, talk. Takase: Regarding sending out the notices, your category will say just live entertainment. If you can tell them what kind of entertainment you'll have, you can probably avoid that problem. Fulcher: It's just a live, single musician. It's not even a band. Takase: It's dinner music. Fulcher: Dinner music, yes. Perfect. Takase: Okay. Nahale-a: Thank you, Director. Any other discussion or question? There was no further discussion or question from the Commissioners. June 7, 2018 — LIQUOR COMMISSION MINUTES 19 Nahale-a: Since none, may I have a motion please? Greenwell: I make the motion to approve Application No. 17-32, if approved, public hearing to be held on August 2, 2018, in Kona, Hawaii. Lopez: Second. Mr. Greenwell moved to approve Application No. 17-32, MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, for an original Restaurant General liquor license, Category B2, located at the Kings' Shops, 69-250 Waikoloa Beach Drive, Space C-01, Waikoloa, Hawaii, TMK: 6-9-008:005, if approved, public hearing to be held on August 2, 2018, in Kona, Hawaii; seconded by Mr. Lopez. Nahale-a: Thank you. It's been moved and seconded. Any discussion of the motion? There was no discussion from the Commissioners. Nahale-a: Being none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Since none, motion carried. Thank you very much. The motion was carried unanimously. Fulcher: Thank you. Come and see us. VII. Unfinished Business Nahale-a: There is no unfinished business. VIII. New Business Nahale-a: New Business, No. 4, Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii, approval of the Personal History and Affidavit for Celine Dupuis, as Chief Financial Officer, North & Central America and Treasurer; Wayne Buckingham, as Senior Vice -President, Operations; and Jeffrey Wong Cho, as Director. June 7, 2018 — LIQUOR COMMISSION MINUTES 20 4. Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii, approval of the Personal History and Affidavit for Celine Dupuis, as Chief Financial Officer, North & Central America , and Treasurer; Wayne Buckingham, as Senior Vice -President, Operations; and Jeffrey Wong Cho, as Director; received on May 16, 2018, to its Hotel liquor license, located at One North Kaniku Drive, Kohala Coast, Hawaii. Nahale-a: Motion to approve? Onizuka: Move to approve. Arakaki: Second. Mr. Onizuka moved to approve the Personal History and Affidavit for Celine Dupuis, as Chief Financial Officer, North & Central America and Treasurer; Wayne Buckingham, as Senior Vice -President, Operations; and Jeffrey Wong Cho, as Director, submitted by Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii; received on May 16, 2018, to its Hotel liquor license, located at One North Kaniku Drive, Kohala Coast, Hawaii; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 5, WHR LLC, dba Grand Naniloa Hotel, a Doubletree by Hilton, ratification of Application for Temporary Increase in Licensed Premises, to the entire golf course, for a golf tournament, held on May 3, 2018. 5. WHR LLC, dba Grand Naniloa Hotel, a Doubletree by Hilton, ratification of Application for Temporary Increase in Licensed Premises, to the entire golf course, for a golf tournament, held on May 3, 2018, approved by Director Gerald Takase on April 30, 2018, to its Hotel liquor license, located at 93 Banyan Drive, Hilo, Hawaii. June 7, 2018 — LIQUOR COMMISSION MINUTES 21 Lopez: Move to ratify. Arakaki: Second. . Mr. Lopez moved to ratify the Application for Temporary Increase in Licensed Premises submitted by WHR LLC, dba Grand Naniloa Hotel, a Doubletree by Hilton, to the entire golf course, for a golf tournament, held on May 3, 2018, approved by Director Gerald Takase on April 30, 2018, to its Hotel liquor license, located at 93 Banyan Drive, Hilo, Hawaii; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: Being none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 6, Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, ratification of Application for Temporary Increase in Licensed Premises, to the parking lot on Kauhale Street, Pahoa, Hawaii, for a beer garden on May 5, 2018. 6. Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, ratification of Application for Temporary Increase in Licensed Premises, to the parking lot on Kauhale Street, Pahoa, Hawaii, for a beer garden on May 5, 2018, approved by Administrative Officer Brandon Gonzalez on May 1, 2018, to its Restaurant General liquor license, Category B2, located at 15-2942A Pahoa Village Road, Pahoa, Hawaii. Lopez: Move to ratify. Arakaki: Second. June 7, 2018 — LIQUOR COMMISSION MINUTES 22 Mr. Lopez move to ratify the Application for Temporary Increase in Licensed Premises submitted by Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, to the parking lot on Kauhale Street, Pahoa, Hawaii, for a beer garden on May 5, 2018, approved by Administrative Officer Brandon Gonzalez on May 1, 2018, to its Restaurant General liquor license, Category B2, located at 15-2942A Pahoa Village Road, Pahoa, Hawaii; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 7, Los Habeneros, Inc., dba Los Habeneros, ratification of Application for Temporary Increase in Licensed Premises, to storefront parking stalls for overflow seating, for event held on May 5, 2018. 7. Los Habeneros, Inc., dba Los Habeneros, ratification of Application for Temporary Increase in Licensed Premises, to storefront parking stalls for overflow seating, for event held on May 5, 2018, approved by Director Gerald Takase on May 4, 2018, to its Dispenser General liquor license, Category B1, located at the Keauhou Shopping Center, 78-6831 Ali`i Drive, #405, Kailua-Kona, Hawaii. Lopez: Move to ratify. Greenwell: Second. Mr. Lopez moved to ratify the Application for Temporary Increase in Licensed Premises submitted by Los Habeneros, Inc., dba Los Habeneros, to storefront parking stalls for overflow seating, for event held on May 5, 2018, approved by Director Gerald Takase on May 4, 2018, to its Dispenser General liquor June 7, 2018 — LIQUOR COMMISSION MINUTES 23 license, Category B1, located at the Keauhou Shopping Center, 78-6831 AIi`i Drive, #405, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 8, Masaki Miyazawa, ratification of Application for Solicitor's Permit for Wismettac Asian Foods, Inc. pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations. 8. Masaki Miyazawa, ratification of Application for Solicitor's Permit for Wismettac Asian Foods, Inc. pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on May 7, 2018, approved by Director Gerald Takase on May 7, 2018. Lopez: Move to ratify. Arakaki: Seconded. Mr. Lopez moved to ratify the Application for Solicitor's Permit for Wismettac Asian Foods, Inc. submitted by Masaki Miyazawa, pursuant to Rule 3-2-D-4 of the Liquor Commission's Rules and Regulations, submitted on May 7, 2018, approved by Director Gerald Takase on May 7, 2018; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. Any discussion? Greenwell: Gerald? Can you explain this? Takase: A solicitor's permit is for those who represent wholesalers that are not on the island. Wismettac is a Honolulu wholesaler, but rather than opening a wholesale June 7, 2018 — LIQUOR COMMISSION MINUTES 24 operation here, usually they're not big enough, so what they'll do is send solicitors over to visit the stores. They will take orders and they'll ship it from Honolulu to here. They're basically salesmen for that company. The law allows them, if they have a wholesale license within the State, to go to the other islands to sell. That's what this person is registered to become. Greenwell: How long is that license or permit good for? Takase: It's good for one year. They'll just renew it after this, so they don't really come before you like this. Greenwell: Okay. Takase: We have about 30 or 40 solicitors. Some of them live here, others come in. It's a way for them to conduct business. It's usually the smaller wholesalers (who do this). Their operation is not big enough to house an operation on -island, so they will start off like this. If they do well, maybe they'll deal with branches here. Greenwell: Thank you. Nahale-a: Anyone else? There was no further discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 9, Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii, ratification of Application for Game Permit for Poker Game held in the Plaza I Ballroom, on May 9, 2018. 9. Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii, ratification of Application for Game Permit for Poker Game held in the Plaza I Ballroom, on May 9, 2018, approved by Director Gerald Takase on May 8, 2018, to its Hotel liquor license, located at One North Kaniku Drive, Kohala Coast, Hawaii. June 7, 2018 — LIQUOR COMMISSION MINUTES 25 Lopez: Move to ratify for Fairmont Hotels & Resorts. Greenwell: Second. Mr. Lopez moved to ratify the Application for Game Permit submitted by Fairmont Hotels & Resorts (U.S.) Inc., dba The Fairmont Orchid, Hawaii, for Poker Game held in the Plaza 1 Ballroom, on May 9, 2018, approved by Director Gerald Takase on May 8, 2018, to its Hotel liquor license, located at One North Kaniku Drive, Kohala Coast, Hawaii; seconded by Mr. Greenwell. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: Since none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 10, Minit Stop Holdings LLC, approval of change in officers, removing Eric D. Van Andel, Manager, and Joseph B. Pipinich, Manager, effective May 9, 2018, to its Retail General liquor licenses for Minit Stops located at the Ginger Patch, Hawi, Kamuela, Kawaihae, Keaau, Kohanaiki, Laupahoehoe, and Leilani. 10. Minit Stop Holdings LLC, approval of change in officers, removing Eric D. Van Andel, Manager, and Joseph B. Pipinich, Manager, effective May 9, 2018, to its Retail General liquor licenses, for MS Ginger Patch, LLC, dba Minit Stop (Ginger Patch); MS Hawi, LLC, dba Minit Stop (Hawi); MS Kamuela, LLC, dba Minit Stop (Kamuela); MS Kawaihae, LLC, dba Minit Stop (Kawaihae); MS Keaau, LLC, dba Minit Stop (Keaau); MS Kohanaiki, LLC, dba Minit Stop Kohanaiki; MS Laupahoehoe, LLC, dba Minit Stop (Laupahoehoe); and MS Leilani, LLC, dba Minit Stop (Leilani), located at 26 Kekela Street, Hilo, Hawaii; 55-503 Hawi Road, Hawi, Hawaii; 64-964 Mamalahoa Highway, Kamuela, Hawaii; 61-3657 Akoni Pule Highway, Kawaihae, Hawaii; 16-119 Orchidland Drive, Kea'au, Hawaii; June 7, 2018 — LIQUOR COMMISSION MINUTES 26 73-4041 Hulikoa Drive, Kailua-Kona, Hawaii; 36-2266 Hawaii Belt Highway, Laupahoehoe, Hawaii; and 763 Leilani Street, Hilo, Hawaii; respectively. Arakaki: Move to approve. Nahale-a: Is there a second? Lopez: Second. Mr. Arakaki moved to approve the change in officers submitted by Minit Stop Holdings LLC, for MS Ginger Patch, LLC, dba Minit Stop (Ginger Patch); MS Hawi, LLC, dba Minit Stop (Hawi); MS amuela, LLC, dba Minit Stop (Kamuela); MS Kawaihae, LLC, dba Minit Stop (Kawaihae); MS Keaau, LLC, dba Minit Stop (Keaau); MS Kohanaiki, LLC, dba Minit Stop Kohanaiki; MS Laupahoehoe, LLC, dba Minit Stop (Laupahoehoe); and MS Leilani, LLC, dba Minit Stop (Leilani), located at 26 Kekela Street, Hilo, Hawaii; 55-503 Hawi Road, Hawi, Hawaii; 64-964 Mamalahoa Highway, Kamuela, Hawaii; 61-3657 Akoni Pule Highway, Kawaihae, Hawaii; 16-119 Orchidland Drive, Kea'au, Hawaii; 73-4041 Hulikoa Drive, Kailua-Kona, Hawaii; 36-2266 Hawaii Belt Highway, Laupahoehoe, Hawaii; and 763 Leilani Street, Hilo, Hawaii, respectively; seconded by Mr. Lopez. Nahale-a: It's been moved and seconded. Is there any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor, say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 11, Waikoloa Village Lessee LLC, dba Hilton Waikoloa Village, submits for approval, conversion of its Member, Park US Lessee Holdings LLC to Park US Lessee Holdings, Inc., effective December 30, 2016. Is that right? June 7, 2018 — LIQUOR COMMISSION MINUTES 27 Secretary indicated the effective date was correct. 11. Waikoloa Village Lessee LLC, dba Hilton Waikoloa Village, approval of conversion of its Member, Park US Lessee Holdings LLC to Park US Lessee Holdings, Inc., effective December 30, 2016, by letter dated May 15, 2018, to its Hotel liquor license, located at 69-425 Waikoloa Beach Drive, Waikoloa, Hawaii. Nahale-a: Okay. Motion to approve? Lopez: Motion to approve. Arakaki: Second. Mr. Lopez moved to approve the conversion submitted by Waikoloa Village Lessee LLC, dba Hilton Waikoloa Village, of its Member, Park US Lessee Holdings LLC to Park US Lessee Holdings, Inc., effective December 30, 2016, by letter dated May 15, 2018, to its Hotel liquor license, located at 69-425 Waikoloa Beach Drive, Waikoloa, Hawaii; seconded by Mr. Arakaki. Nahale-a: Thank you. Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor, say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 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, for reception to be held on June 12, 2018. 12. Tommy Bahama Beverages, LLC, dba Tommy Bahama's Tropical Cafe, of Application for Temporary Increase in Licensed Premises to the Courtyard fronting the restaurant and store, for reception to be held on June 12, 2018, approved by Director Gerald Takase on May 14, 2018, June 7, 2018 — LIQUOR COMMISSION MINUTES 28 to its Restaurant General liquor license, Category B2, located at The Shops at Mauna Lani, 68-1330 Mauna Lani Drive, Suite 101, Kamuela, Hawaii. . Lopez: Move to ratify. Greenwell: Second. Mr. Lopez moved to ratify the Application for Temporary Increase in Licensed Premises to the Courtyard fronting the restaurant and store, for reception to be held on June 12, 2018, approved by Director Gerald Takase on May 14, 2018, 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. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor, say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 13, Report of Gross Revenues for Class 2 restaurant licensees regarding requirement that thirty percent (30%) of gross revenues are derived from food sales pursuant to Rule 4-7-A-5 and 3-1-C. 13. Report of Gross Revenues for Class 2 restaurant licensees regarding requirement that thirty percent (30%) of gross revenues are derived from food sales pursuant to Rule 4-7-A-5 and 3-1-C: Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill; Ohana Lea, Inc., dba Bamboo, JNG Investment Corporation, dba Barcode Karaoke & Grill; Ocled Pacific LLC, dba Bianelli's Gourmet Pizza & Pasta; Big Island Grill Inc., dba BIG ISLAND GRILL INC.; Big Island Pizza Inc., dba BIG ISLAND PIZZA; Maluhia Nahele Enterprises, LLC, June 7, 2018 — LIQUOR COMMISSION MINUTES 29 dba BLACK ROCK CAFE; Big Island Group, dba BONGO BEN'S ISLAND CAFE; Bubba Gump Shrimp Co. Restaurants, Inc., dba BUBBA GUMP SHRIMP CO. RESTAURANT & MARKET; Cafe it Mondo, LLC, dba CAFE IL MOND(); Kawaihae Pizza, Inc., dba CAFE PESTO HILO BAY; Charley's Thai Cuisine Inc; dba CHARLEY'S THAI CUISINE (WAIKOLOA); Savannakhet Element LLC; dba CHARLEY'S THAI CUISINE (WAIMEA); Paradise Hospitality Group, Inc.; dba COCONUT GRILL; Pubtime, Inc., dba COQUIS HIDEAWAY RESTAURANT AND SPORTS BAR; Layne T. Oki, Inc., dba CRONIES; Daylight Mind, Inc., dba DAYLIGHT MIND; DCH, Inc., dba DON'S GRILL; Fishhopper, LLC, dba FISHHOPPER (THE); B & S Aburamen Inc., dba FREDDY'S RESTAURANT; Fumi's Kitchen, LLC, dba FUMI'S KITCHEN; Honokohau Food Service, Inc., dba HARBOR HOUSE; HSC Hilo LLC, dba HAWAIIAN STYLE CAFE — HILO; Hilo Trading Co., Ltd., dba HILO BAY CAFE; Hilo Burger Joint LLP, dba HILO BURGER JOINT; Lam Yim Sin Corporation, dba HONG KONG CHOP SUEY; Olu Kai, Ltd., dba HUGGO'S; Big Island Alehouse, LLC, dba HUMPY'S BIG ISLAND ALEHOUSE; PAJ, Inc., dba JACKIE REY'S OHANA GRILL; JROG, LLC, dba JACKIE REY'S OHANA GRILL HILO; Grand 88, LLC, dba JADE PALACE CHINESE RESTAURANT; Pahoa Productions LLC, dba KALEO'S BAR AND GRILL; Pashmina's & Gift Inc., dba KAMANA INDIAN CUISINE #2 (HILO); Hilo Noodle Bar, LLC, dba KANPAI; Kona Stop 'N Shop, Inc., dba KEEI CAFE; Kenichi Pacific, Inc., dba KENICHI PACIFIC; Kilauea Lodge, Ltd., dba KILAUEA LODGE & RESTAURANT; Kim Mukai LLC, dba KIM'S AT HILO MUNI; Wind & Sea Restaurants, Inc., dba KONA CANOE CLUB; Wind 5 & Sea Restaurants, Inc., dba KONA INN RESTAURANT; Kona Taeng-On Thai Food, dba KONA TAENG-ON THAI FOOD; ANAHKAHNA, Inc., dba KORNER POCKET BAR & GRILL (THE); Last Call Saloon LLC, dba LAST CALL SALOON; Lava Lava, LLC, dba LAVA LAVA BEACH CLUB; Lemongrass Express Waikoloa LLC, dba LEMONGRASS EXPRESS; Gormando LLC, dba LUNA RESTAURANT; MAI GRILLE BY CHEF ALLEN HESS INC, dba MAI GRILLE BY CHEF ALLEN HESS; Contemporary Restaurant Corporation, dba MERRIMAN'S; Dubidee LLC, dba MI'S WATERFRONT BISTRO; Glory Nani Mau LLC, dba NANI MAU GARDENS; Honoka'a Brothers, LLC, dba NAPUA AT THE MAUNA LANI BEACH CLUB; Nori's Saimin & Snacks, Inc., dba NORI'S; Ohelo Cafe LLC, dba 'OHELO CAFE; Outback Steakhouse of Florida, LLC, dba OUTBACK STEAKHOUSE; Kailua-Kona Restaurants, Inc., June 7, 2018 — LIQUOR COMMISSION MINUTES 30 dba PANCHO AND LEFTY'S CANTINA & RESTAURANTE; GEC Holdings, LLC, dba PARADISE BREWING COMPANY TAP AND GRILL; Rick Appel, dba PATZ PIES; Pau Restaurant & Catering, LLC, dba PAU RESTAURANT; Pineapples Island Fresh Cuisine, LLC, dba PINEAPPLES, LLC; Ponds Hilo, Inc., dba PONDS HILO; Pueo's Osteria, LLC, dba PUEO'S OSTERIA; JTJ Enterprises, Inc., dba QUINN'S; Rebel Kitchen LLC, dba REBEL KITCHEN; Hawaii Gourmet Society LLC, dba RED WATER CAFE (THE); West Wind Hawaii, Inc., dba RESTAURANT HAYAMA; Reuben's Mexican Restaurant I, LLC, dba REUBEN'S MEXICAN RESTAURANT; Italian Restaurant #2, LLC, dba ROMANO'S MACARONI GRILL; RY-5, Inc., dba ROY'S WAIKOLOA BAR & GRILL; The Royal Jade Garden, Limited Liability Company, dba ROYAL JADE GARDEN; Chatcharat, LLC, dba ROYAL THAI CAFE (THE); Kona Daze, LLC, dba SAM CHOY'S KAI LANAI; The Seaside, Inc., dba SEASIDE RESTAURANT (THE); Maruhiro Enterprise Co., Ltd., dba SHIONO AT MAUNA LANI; Jasmin International LLC, dba SKY GARDEN RESTAURANT AT IMILOA; Sodexo America, LLC, dba SODEXO AMERICA, LLC; South Side Shaka Restaurant & Bar Inc., dba SOUTH SIDE SHAKA RESTAURANT & BAR; Coggins Inc., dba SPLASHERS GRILL (PALANI); TTG, LLC, dba SUNSET TERRACE; Maruhiro Enterprise Co., Ltd., dba SUSHI SHIONO; Maurice Thomas, dba THAI THAI BISTRO & BAR; Tommy Bahama Beverages, LLC, dba TOMMY BAHAMA'S TROPICAL CAFE; Umekes, LLC, dba UMEKE'S KUAKINI CENTER; O&J LLC, dba WAIKOLOA RESTAURANT AND BAR; Waikoloa Village Association, dba WAIKOLOA VILLAGE GOLF COURSE. Takase: This is the annual requirement. We're coming up on the renewal period July 1. All the Licensees that are restaurants have to meet this thirty percent food requirement as part of their sales to maintain their restaurant license. These are all the ones who did. I don't believe we had any that didn't meet the requirements this year. Last year we had one. Most of them are not close. Basically, they're saying you're accepting that they will be able to renew as restaurants for the upcoming year. Lopez: I have a question. Nahale-a: Well, let's motion first. Motion to approve? Lopez: Move to approve. Nahale-a: Second? June 7, 2018 —LIQUOR COMMISSION MINUTES 31 Greenwell: Second. Mr. Lopez moved to approve the Report of Gross Revenues for Class 2 restaurant licensees regarding requirement that thirty percent (30%) of gross revenues are derived from food sales pursuant to Rule 4-7-A-5 and 3-1-C, submitted by the Department of Liquor Control of the County of Hawai`i; seconded by Mr. Greenwell. Nahale-a: Thank you. So moved and seconded. Any questions? Lopez: I see there's two that did not meet their thirty percent. Gonzalez: Yes. Lopez: So, how do we treat them? Are they part of this approval? Gonzalez: Basically, the action is to accept the report. So, within the report there are two that didn't meet and the Department works with those Licensees to see how they want to act. One of the options is they lose their restaurant designation and become a dispenser. Lopez: Okay. But that's independent of this action? Gonzalez: Correct. Takase: I guess I wasn't sure. So, Laverne's fell below, and King's Course just got a new person to run the restaurant for them. They were just holding the liquor license as a "remnant" for the golf course in case they have special events. So we have spoken with both of them and they realize they have not met the requirement. They will lose their restaurant designation, but they can remain operating as a Dispenser General. In effect, not much difference from what they're doing, since they're not selling much food anyway. Basically, the difference between a Restaurant license and a Dispenser General is, one, they're going to be allowed to cater. That's probably the primary difference for them. Secondly, is when they transfer their license, Dispenser Generals have to go through the whole process of mailing notifications, etc. That was, not so much for these Licensees, but it was done to slow down the Korean bar trade in Honolulu. They required all the Dispenser Generals to go through the whole licensing process when they transfer rather than, as we see when we do transfers there's no written notification to any surrounding property owners. There's just notice by publication. That's going to be the two primary differences between holding a Restaurant license and a Dispenser General. Now, if they come back and they do meet the requirements, they can again re -apply for a Restaurant license. We've spoken to them. They know what they have to do. June 7, 2018 — LIQUOR COMMISSION MINUTES 32 Laverne's is in concert with Humpy's, so they're running most of their restaurant operations out of Humpy's rather than through Laverne's. Lopez: Okay. Thank you. Nahale-a: Any other questions? There were no questions from the Commissioners. Nahale-a: All those in favor of the motion, say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 14, O&J LLC, dba Waikoloa Restaurant & Bar, ratification of Application for Temporary Increase in Licensed Premises to its Banquet Room, for a private party, held on May 19, 2018. 14. O&J LLC, dba Waikoloa Restaurant & Bar, ratification of Application for Temporary Increase in Licensed Premises to its Banquet Room, for a private party, held on May 19, 2018, approved by Director Gerald Takase on May 15, 2018, to its Restaurant General liquor license, Category B2, located at 68-1790 Melia Street, Waikoloa, Hawai`i. Greenwell: Move to ratify. Nahale-a: Is there a second? Arakaki: Second. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises submitted by O&J LLC, dba Waikoloa Restaurant & Bar, to its Banquet Room, for a private party, held on May 19, 2018, to its Restaurant General liquor license, Category B2, located at 68-1790 Melia Street, Waikoloa, Hawaii; seconded by Mr. Arakaki. June 7, 2018 — LIQUOR COMMISSION MINUTES 33 Nahale-a: Moved and seconded. Any discussion? There were no discussion from the Commissioners. Nahale-a: All those in favor of the motion, say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 15, The North West Company (International) Inc., dba Cost -U -Less, approval of Personal History and Affidavit of Amanda Elizabeth Sutton as Vice President, Legal and Corporate Secretary, effective September 7, 2017. 15. The North West Company (International) Inc., dba Cost -U -Less, approval of Personal History and Affidavit of Amanda Elizabeth Sutton as Vice President, Legal and Corporate Secretary, effective September 7, 2017, received May 15, 2018, to its Retail General liquor license, located at 715 Kinoble Street, Hilo, Hawaii. Arakaki: Move to approve. Lopez: Second. Mr. Arakaki moved to approve the Personal History and Affidavit submitted by The North West Company (International) Inc., dba Cost -U -Less, of Amanda Elizabeth Sutton as Vice President, Legal and Corporate Secretary, effective September 7, 2017, received May 15, 2018, to its Retail General liquor license, located at 715 Kino`ole Street, Hilo, Hawaii. Nahale-a: Moved and seconded. Any discussion? There were no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." June 7, 2018 — LIQUOR COMMISSION MINUTES 34 Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 16, KBXtreme LLC, dba KBXtreme, approval of changes to its managing member, WLW Development Methods, Inc., withdrawing Lauren M. Smith, as an officer or stockholder, effective January 1, 2018; and, the election of Calvin C.M. Higa, Jr., as Vice President of WLW Development Methods, Inc. 16. KBXtreme LLC, dba KBXtreme, approval of changes to its managing member, WLW Development Methods, Inc., withdrawing Lauren M. Smith, as an officer or stockholder, effective January 1, 2018; and, the election of Calvin C.M. Higa, Jr., as Vice President of WLW Development Methods, Inc., by letter dated May 14, 2018, received May 17, 2018, to its Dispenser General liquor license, Category B2, located at 75-5591 Palani Road, Kailua-Kona, Hawaii. Lopez: Move to approve. Greenwell: Second. Nahale-a: Moved and seconded. Any discussion? There were no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. June 7, 2018 — LIQUOR COMMISSION MINUTES 35 Nahale-a: Item No. 17, Pursuant to Section 281-22, Hawaii Revised Statutes, as amended, notifies the Commission, in writing, of the employee's intent to support, advocate, or aid in the support of political candidates in the upcoming 2018 elections. 17. Pursuant to Section 281-22, Hawaii Revised Statutes, as amended, notifies the Commission, in writing, of the employee's intent to support, advocate, or aid in the support of political candidates in the upcoming 2018 elections. Takase: The Liquor Commission is under special jurisdiction, so 281-22 used to prohibit Liquor Commission or Liquor Department employees from engaging in political campaigns. But, that was challenged by the union as violating their rights. It has since been amended to say that any employees that are going to take part in any campaign, whether it be fundraising or signing petitions or things of that nature, need to notify the Commission of their intent to do so. Prior to the political season coming up, I will poll the employees and, not that they're going to do it, but if they think they might get involved, then we need to notify the Commission. That's what this letter is doing basically, that we may be involved in campaigning or contributing to campaigns. Really, it came out of "olden days," when they used to tap the liquor employees to provide liquor. It went from all employees were prohibited from getting involved but then the unions pushed back on that, so that's where we are now. All of our employees realize that they're not supposed to be, and I don't think any of them are, using their position to aid political candidates through using their position to request favors, etc. from our Licensees. Greenwell: Does 281-22 say anything about commissioners? Takase: No. Schoen: No. It's just employees. Takase: It's just the employees; not prohibiting Commissioners. I think it's realized that commissioners and board members are political appointees, so it doesn't go that far. Greenwell: On that note, maybe a blanket letter for all the employees, instead of naming them, might be a better route? Takase: That's the requirement. I'm supposed to name who may be involved. Nahale-a: HRS states "the employee's intent" so (inaudible) name the employee. Can I get a motion to accept the notification? Lopez: So move. Greenwell: Second. June 7, 2018 — LIQUOR COMMISSION MINUTES 36 Mr. Lopez moved to accept, Pursuant to Section 281-22, Hawaii Revised Statutes, as amended, the notification, in writing, of the employee's intent to support,. advocate, or aid in the support of political candidates in the upcoming 2018 elections; seconded by Mr. Greenwell. Nahale-a: Thank you very much. Any further discussion? There was no further discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 18, Young's Market Company LLC, dba Young's Market Company of Hawaii, approval of change of officers, withdrawing Jason Wooler, Executive Vice President General Manger California, and admitting Hugh Pearson Duncan as Executive Vice President General Manager Hawaii, effective February 1, 2018. 18. Young's Market Company LLC, dba Young's Market Company of Hawaii, approval of change of officers, withdrawing Jason Wooler, Executive Vice President General Manger California, and admitting Hugh Pearson Duncan as Executive Vice President General Manager Hawaii, effective February 1, 2018, to its Wholesale General liquor license, located at 73-4854 Kanalani Street, Kailua-Kona, Hawaii. Lopez: Motion to approve. Greenwell: Second. Mr. Lopez move to approve the change of officers submitted by Young's Market Company LLC, dba Young's Market Company of Hawaii, withdrawing Jason Wooler, Executive Vice President General Manger California, and admitting Hugh Pearson Duncan as Executive Vice President General Manager Hawaii, effective February 1, 2018, to its Wholesale General liquor license, located at 73-4854 Kanalani Street, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. June 7, 2018 — LIQUOR COMMISSION MINUTES 37 Nahale-a: Thank you. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 19, Special license issued for ratification. Could I request a motion for ratification of Special Licenses, Application No. SP -17-111 to SP -17-112, SP -17-114 to SP -17-116 and SP -17-118 to SP -17-120, Item Nos.18(a) to 18(h) on the Agenda? Lopez: Motion to ratify. Greenwell: Second. Mr. Lopez moved to ratify the following Special Licenses: 19. a. Application No. SP -17-111, Kona Cacao Association Inc., dba Kona Cacao Association Inc., for a Special General liquor license, held at the Hapuna Beach Prince Hotel Ballroom and Courtyard, located at 62-100 Kaunaba Drive, Kohala Coast, Hawaii, on April 27, 2018. b. Application No. SP -17-112, Hawaii Unlimited Athletics, dba Hawaii Unlimited Athletics, for a Special Beer liquor license, to be held in the lobby of the Palace Theater, located at 38 Haili Street, Hilo, Hawaii, on May 28, 2018. c. Application No. SP -17-114, Rotary Club of South Hilo Foundation, dba Rotary Club of South Hilo Foundation, for a Special General liquor license, held on Coconut Island, Hilo, Hawaii, on May 6, 2018. June 7, 2018 — LIQUOR COMMISSION MINUTES 38 d. Application No. SP -17-115, Agricultural Leadership Foundation of Hawaii, dba Agricultural Leadership Foundation of Hawaii, for a Special Beer and Wine liquor license, held in the Mokupapapa Discovery Center, located at 76 Kamehameha Avenue, Hilo, Hawaii, on May 5, 2018. e. Application No. SP -17-116, Kalani Honua Inc., dba Kalani Honua Inc., for a Special General liquor license, to be held on the first floor patio of Hale Aloha, located at 12-6860 Kalapana Kapoho Road, Pahoa, Hawaii, on May 25, 2018. f. Application No. SP -17-118, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, to be held in the lobby, located at 38 Haili Street, Hilo, Hawaii, on May 31, 2018, and June 21, 2018. 9. Application No. SP -17-119, Maku`u Farmers Association, dba Maku`u Farmers Association, for a Special General liquor license, held at the Maku`u Farmers Market, located at 15-2155 Kea'au Pahoa Road, Pahoa, Hawaii, on June 1, 2018. h. Application No. SP -17-120, Kahilu Theatre Foundation, dba Kahilu Theatre Foundation, for a Special Beer and Wine liquor license, to be held at the Kahilu Theatre, located at 67-1186 Lindsey Road, Kamuela, Hawaii, on June 9, 28, and 30, 2018. Nahale-a: Thank you. It's been moved and seconded. Is there any discussion? Greenwell: Gerald, on "a." did they miss a deadline? I noticed the date was April 27. Takase: No, I don't think so. We issued it on April 25, and we maybe missed putting it on last month's agenda. Greenwell: Thank you. Nahale-a: Any other questions, Commissioners? There were no other questions from the Commissioners. Nahale-a: All those in favor of ratifying "a." through "h." signify by saying, "Aye." The Commissioners voted "Aye." June 7, 2018 — LIQUOR COMMISSION MINUTES 39 Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carried. The motion was carried unanimously. Nahale-a: Item No. 20, Transient Vessel Licenses issued for ratification. There is none. No action needed on that one. IX. Announcements Nahale-a: The next meeting of the Liquor Commission is July 5, 2018, at 10:00 A.M., in the Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, Unit 230, Hilo, Hawaii. The next one following that is August 2, 2018, at 10:00 A.M., in the Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74 5044 Ane Keohokalole Highway, Building B, 2nd Floor Kailua-Kona, Hawaii. Any other announcements before we adjourn? There were no other announcements X. Adjournment Nahale-a: Motion to adjourn? Lopez: Motion to adjourn this meeting. Nahale-a: Thank you. Second? Greenwell: Second. Mr. Lopez moved to adjourn the meeting; seconded by Mr. Greenwell. Nahale-a: Those in favor? The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. June 7, 2018 — LIQUOR COMMISSION MINUTES 40 Nahale-a: Motion carried. The motion was carried unanimously. The meeting was adjourned at 11:02 A.M. 24 ,,A - Gerald Director The June 7, 2018, Liquor Commission minutes were approved as circulated via email on July 3, 2018, by the Liquor Commission of the County of Hawai'i on July 5, 2018. June 7, 2018 — LIQUOR COMMISSION MINUTES 41