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HomeMy WebLinkAbout2018-08-02 Liquor Commission MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION August 2, 2018 WEST HAWAII CIVIC CENTER, 74-5044 ANE KEOHOKALOLE HIGHWAY, BUILDING B, 2ND FLOOR, KAILUA-KONA, HAWAII Call To Order The meeting was called to order by Chair Art Taniguchi 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, Hawai'i. The following were present and constituted a quorum: Commissioners: Absent and Excused: Others Present: Art Taniguchi, Chairman Shelby Nahale-a, Vice Chair David Greenwell, Commissioner Michael Hughes, Commissioner Stephen Lopez, Commissioner Claude Onizuka, Commissioner Dawn Raymond, Commissioner Allen Salave'a, Commissioner Warren Arakaki, Commissioner (Arrived 10:04 A.M.) Gerald Takase, Director Brandon Gonzalez, Administrative Officer Craig Masuda, Deputy Corporation Counsel Gail Fujimoto, Licensing Officer Stacie Waltjen, Licensing Tech. Dorsi Lim, Secretary to the Board & Commission Taniguchi: Aloha. I'd like to call the meeting of the County of Hawaii Liquor Commission to order. First order of business though, I'd like to ask everyone to put their cell phones on either vibrate or silent. We appreciate it. We'II start with introductions. Lim: Dorsi Lim, Secretary to the Board and Commission. Waltjen: Stacie Waltjen, Licensing Tech. Fujimoto: Gail Fujimoto, Licensing Officer Takase: Gerald Takase, Director. Raymond: Dawn Raymond, Commissioner. Taniguchi: Art Taniguchi, Commissioner. Masuda: Craig Masuda, Counsel Nahale-a: Shelby Nahale-a, Commissioner. Onizuka: Claude Onizuka, Commissioner. Greenwell: David Greenwell, District 9 Commissioner. Lopez: Steven Lopez, Commissioner. Hughes: Mike Hughes, Commissioner. Gonzalez: Good morning. Brandon Gonzalez, Administrative Officer. Taniguchi: Thank you very much. II. Approval of Minutes Taniguchi: The July 5, 2018, minutes were circulated via email/mail on July 26, 2018. Can I get a motion to approve? Nahale-a: So move. Greenwell: Second. Ms. Nahale-a moved to approve the July 5, 2018, Liquor Commission minutes as circulated; seconded by Mr. Greenwell. Taniguchi: It has been moved and seconded. Is there any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. August 2, 2018 — LIQUOR COMMISSION MINUTES The motion was carried unanimously. III. Approval of Addendum and/or Supplemental Agenda Taniguchi: We have several changes and corrections, so if you will allow me to read it and it can be approved all at once. Pursuant to Section 92-7, Hawaii Revised Statutes, as amended, Item 1, No. 13, and Items 2 through 4, 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. Add new item no. 13 under New Business: 13. Request from the Office of the County Clerk, Legislative Research Branch, for Commission input as to how the County Charter affects its role and operations, and any proposals it may have to amend the Charter. 2. To the Agenda Notice published in the Hawaii Tribune -Herald and the West Hawaii Today newspapers on July 22, 2018, under Item V. Public Hearings: Application No. 17-32, should read "MF Waikoloa, LLC, ..." (not "MF Wal Waikoloa, LLC, and the address should read, 250 Waikoloa Beach Drive." (not "69-250 Waikoloa Beach Drive") To the posted Agenda, under Item No. V. Public Hearings: Application No. 17-32, MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, again, the address should read "250 Waikoloa Beach Drive." 4. Under Item No. VIII. New Business: Item No. 2., should read "Ulu Development LLC, dba Magics Beach Grill, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission (not "Commissioner") of the Department of Liquor Control ..." Item No. 3., Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, Inc., the Application for Temporary Increase in Licensed Premises is for the period July 16 to 21, 2018. (not July "22," 2018) August 2, 2018 — LIQUOR COMMISSION MINUTES Item No. 5., Running Wolf, LLC, dba Fujihara Store, the effective date of the Personal History and Affidavit for Rosemary Maleka Takaki Medeiros as Manager, should be "April 2014." (not "April 14, 2014") Item No. 9., Poi Dog Deli LLC, dba Poi Dog Deli, the Application for Entertainment Permit for a grand opening event, should read "held on July 28, 2018." (not "held on August 28, 2018") Nahale-a: Move to approve. Greenwell: Second. Ms. Nahale-a moved to approve the addendums to the agenda; seconded by Mr. Greenwell. Taniguchi: Is there any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, Dorsi, roll call vote please? Lim: Commissioner Arakaki is absent. Commissioner Hughes? Hughes: Aye. Lim: Commissioner Lopez? Lopez: Aye. Lim: Commissioner Nahale-a? Nahale-a: Aye. Lim: Commissioner Onizuka? Onizuka: Aye. Lim: Commissioner Raymond? Raymond: Aye. Lim: Commissioner Salave'a? Salave'a: Aye. August 2, 2018 — LIQUOR COMMISSION MINUTES 4 Lim: Chair Taniguchi? Taniguchi: Aye. Lim: Chair Taniguchi, we have eight ayes, no nays... Greenwell: Do I get to vote? Lim: I'm so sorry, Mr. Greenwell. Commissioner Greenwell? Greenwell: Aye. Lim: We have eight ayes, no nays. The ayes have it. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. IV. Public Statements on Agenda Items Taniguchi: Are there any public statements on the agenda items? There were no public statements. Taniguchi: Since none... Masuda: The record will reflect Commissioner Salave'a appeared after the introduction, but was present for the roll call vote. Commissioner Salave'a entered the meeting at 10:04 A.M. V. Public Hearings Taniguchi: Application No. 17-30, Umekes, LLC, dba Umeke's Kuakini Center, submits Application for Increase in Licensed Premises to include an outside dining area facing the common area parking lot, to its Restaurant General liquor license, Category B2. A 0 Iication No. 17-30 (10:06 A.M.) Umekes, LLC, dba Umeke's Kuakini Center, submits Application for Increase in Licensed Premises to include an outside dining area facing the common area parking lot, to its Restaurant General liquor license, Category B2, located at the Kuakini Center, 74-5563 Kaiwi Street, Unit 112, Kailua-Kona, Hawaii TMK: 7-4-010:005. August 2, 2018 — LIQUOR COMMISSION MINUTES 5 Taniguchi: Director? Takase: Mr. Chairman, the reason this matter is appearing on today's agenda again, is they had missed their filing of notification deadline last month, so it was'actually supposed to be for today. I realize you took the vote, but to make it official, I think you should vote again today to approve it. I had asked the applicant to come but I don't see them. However, nothing has changed. Taniguchi: This is the one about the outside area? Takase: Yes, the outside area. Masuda: Do you want to pass, or... Takase: No, they may not be here anyway. Taniguchi: Should we go through the motion process again? Takase: Yes. Taniguchi: Can I have a motion to approve Application No. 17-30? Nahale-a: Move to approve. Raymond: Second. Ms. Nahale-a moved to approve Application No. 17-30, Umekes, LLC, dba Umeke's Kuakini Center, for an Increase in Licensed Premises to include an outside dining area facing the common area parking lot, to its Restaurant General liquor license, Category B2, located at the Kuakini Center, 74-5563 Kaiwi Street, Unit 112, Kailua-Kona, TMK: 7-4-010:005, pending final inspection; seconded by Ms. Raymond. Taniguchi: Any other discussion? Mr. Lopez? Lopez: I was hoping someone would be here. In the previous meeting in Kona, when they asked for this space, I pointed out that I thought they were not being forthright with their use of that expansion room by doing their regular taco events. It was supposed to be for certain activities like parties or gatherings that would be incidental and they told me that they were losing the lease on that space in July. Do we know if that's still open? Takase: If you are familiar with Umeke's, originally we had granted their license for the use of an enclosed area that was a gym prior. !don't know why, but Planning was giving them such a hard time (saying) it could only be used as a gym and not as a restaurant. August 2, 2018 — LIQUOR COMMISSION MINUTES 6 They were basically using their restaurant license to cater into that area. But since then, they have given back that space. The increase in area that we're talking about right now is on the parking lot side, they re -configured the parking lot and they created a deck right outside where their entrance is. It has about five tables maybe, and that's the area they're asking for the increase for now. You did approve it at the last meeting. That being said, in talking to them, I understand that they may be leaving that location altogether in the not too distant future. I think they've outgrown that space and there's not enough room for the other tenants and parking (inaudible). I think they are actively looking for another location. Lopez: But their license hasn't been changed yet to eliminate that extra space, has it? Takase: The extra space is still on there but it was never approved for permanent use. Lopez: And they're going to be leaving? Parking is a horrendous problem there. Thank you for that. Taniguchi: Anybody else? There was no other discussion Taniguchi: Since none, call for the question. All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Application No. 17-32, MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, for an original Restaurant General liquor license, Category B2. 2. Application No. 17-32 (10:10 A.M.) MF Waikoloa, LLC, dba Foster's Kitchen Waikoloa, for an original Restaurant General liquor license, Category B2, located at the Kings' Shops, 250 Waikoloa Beach Drive, Space C-01, Waikoloa, TMK: 6-9-008:005. Jeffrey Foster and Sarah Foster, Stockholders were present. August 2, 2018 — LIQUOR COMMISSION MINUTES 7 Taniguchi: Good morning. J. Foster: Good morning. Taniguchi: Can you identify yourselves and your relationship to the business please? J. Foster: Yes, I'm Jeffrey Foster, Stockholder. S. Foster: Sarah Foster, Stockholder. Taniguchi: Thank you and good morning. Have you seen your report and are there any changes to it? J. Foster: No changes. Taniguchi: Can you briefly describe your business? J. Foster: We're a full-service family restaurant (inaudible). Taniguchi: Director? Any reports of protests? Takase: Mr. Chairman, the applicant mailed one out of one notices within 100 feet, seven out of seven within 500 feet. There were no notices to condominium property owners. There were seven properties entitled to protest, and there were no protests to this application. Taniguchi: Is there any public testimony regarding this application? There was no public testimony. Taniguchi: Since none, Commissioners? Nahale-a: Move to close public hearing. Lopez: Second. Ms. Nahale-a moved to close public hearing; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any other discussion? Takase: I have a question for them. Mr. Foster, you have two exterior seating areas right now; one in the front and one in the back. J. Foster: Yes, sir. August 2, 2018 — LIQUOR COMMISSION MINUTES 8 Takase: You're not planning to use those? Foster: Those were on our map with what we turned in. Takase: I guess the map that was submitted to us did not include those areas as part of your premises. Did you want to include those? J. Foster: Yes, I'm sorry if we missed that. I thought it was on that area already. The previous tenants there had been serving, had enclosed spaces up front and back. Takase: I'm looking at this map (referred to Exhibit 3 of the Report to Commission). If you look at this map, he has seating areas in the front and in the back, but right now, it's being shown as non... Taniguchi: Yes, it's excluded from the... Nahale-a: Excluded from the shaded area. J. Foster: Oh, so I have to shade that? I thought by listing it as exterior seating outside, it would be included. We need to make a change to that. Takase: We'll make the change, but I wanted to make sure that that's what you wanted. J. Foster: Yes, sir. Thank you for bringing that up. Fujimoto: Is the lanai included in your lease? J. Foster: Yes. Fujimoto: Exclusive use? J. Foster: Yes. Fujimoto: So you plan to serve liquor. J. Foster: Yes. There'll be tables out in the front and in the back, yes. Taniguchi: Any other questions? There were no other questions from the Commissioners. Taniguchi: Since none, all those in favor to close public hearing signify by saying, "Aye." The Commissioners voted "aye." August 2, 2018 — LIQUOR COMMISSION MINUTES 9 Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Now, a motion to approve Application No. 17-32? Nahale-a: Move to approve Application No. 17-32, with the amendment of the map to include the additional exterior seating areas, pending final inspection. Lopez: Second. Ms. Nahale-a 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, 250 Waikoloa Beach Drive, Space C-01, Waikoloa, Hawaii, TMK: 6-9-008:005, with the amendment of the map to include the additional exterior seating areas, pending final inspection; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any other discussion? There was no other discussion. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. J. Foster: Thank you. Taniguchi: 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. August 2, 2018 — LIQUOR COMMISSION MINUTES 10 Application No. 17-33 (10:15 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, TMK: 2-2-032:095. Fujimoto: This is to be continued. Masuda: Continued to when? Fujimoto: September 6, 2018. Taniguchi: Defer this to September's meeting? Fujimoto: Yes. Nahale-a: Move to continue Application No. 17-33 to September 6, 2018, in Hilo. Lopez: Second. Ms. Nahale-a moved to continue 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, to September 6, 2018; seconded by Mr. Lopez. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you. The motion was carried unanimously. Taniguchi: 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. August 2, 2018 — LIQUOR COMMISSION MINUTES 11 4. Application No. T17-34 (10:15 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, Hawai'i, TMK: 7-2-007:001. Takase: Mr. Chairman, they are withdrawing their application. Taniguchi: Application is being withdrawn. VI. Preliminary Hearings Taniguchi: Application No. T18-01, Pat'z Pies L.L.C., dba Pat'z Pies L.L.C., for a sale and transfer of the Restaurant General liquor license, Category Bl, currently held by Rick Appel, dba Patz Pies. 1. Application No. T18-01 (10:16 A.M.) Pat'z Pies L.L.C., dba Pat'z Pies L.L.C., for a sale and transfer of the Restaurant General liquor license, Category Bl, currently held by Rick Appel, dba Patz Pies, located at 82-6127 Mamalahoa Highway, Suite 2, Captain Cook, Hawaii, TMK: 8-2-015:029. Nicole War, General Manager was present. Taniguchi: Good morning. War: Hi. Taniguchi: Can you identify yourself, please, and your relationship to the business? War: My name is Nicole War and I'm the General Manager. Taniguchi: Have you seen the report and are there any changes to it? War: This one? Taniguchi: Yes. War: Yes and there are no changes. Taniguchi: Can you briefly describe the business? War: It's a little pizza place in Captain Cook and we have two areas that we got approved, in the front of the building and in the back of the building, is our back deck. We serve pizza and salads and it's a family restaurant. August 2, 2018 — LIQUOR COMMISSION MINUTES 12 Taniguchi: Any public testimony regarding this application? There was no public testimony. Taniguchi: Since none, Commissioners? Gerald, you have any... Takase: This is a change in business entity. War: Yeah, it's a change from the dba to the IIc. Takase: Operation will remain the same. War: Yeah. We have a lot of things going on there, so I wasn't sure... Nahale-a: Move to approve Application No. T18-01, and if approved, public hearing to be held September 6, 2018, in Hilo. Greenwell: Second. Ms. Nahale-a moved to approve Application No. T18-01, Pat'z Pies L.L.C., dba Pat'z Pies L.L.C., for a sale and transfer of the Restaurant General liquor license, Category B1, currently held by Rick Appel, dba Patz Pies, located at 82-6127 Marnalahoa Highway, Suite 2, Captain Cook, Hawaii, TMK: 8-2-015:029, public hearing to be held September 6, 2018, in Hilo; seconded by Mr. Greenwell. Taniguchi: Any other discussion? There was no other discussion. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. War: Thank you. August 2, 2018 — LIQUOR COMMISSION MINUTES 13 Taniguchi: Application No. T18-02, EI Maguey Mexican Restaurante LLC, dba El Maguey Mexican Restaurante, for a sale and transfer of the Dispenser Beer and Wine liquor license, Category B1, currently held by Rogelio Guzman -Figueroa, dba El Maguey Mexican Restaurante. 2. Application No. T18-02 (10:18 A.M.) El Maguey Mexican Restaurante LLC, dba El Maguey Mexican Restaurante, for a sale and transfer of the Dispenser Beer and Wine liquor license, Category B1, currently held by Rogelio Guzman -Figueroa, dba El Maguey Mexican Restaurante, located at the Kuakini Center, 74-5563 Kaiwi Street, Space 128, Kailua-Kona, Hawari, TMK: 7-4-010:005, Ana Rosa Guzman, Member and Owner was present. Taniguchi: Good morning. Guzman: Good morning. Taniguchi: Can you identify yourself, please and your relationship to the business? Guzman: Ana Rosa Guzman, and I am a member and owner of it. Taniguchi: Have you seen the report? Are there any changes to the report? Guzman: No, everything is the same. Taniguchi: Can you describe your business? Guzman: It's a restaurant with Mexican food and we just have beer and wine. Taniguchi: Any public testimony regarding this application? There was no public testimony. Taniguchi: Since none, Commissioners, any questions? There were no questions from the Commissioners. Takase: Mr. Chairman, in this application, Ana's taking over for her father. He's retiring. Guzman: More like mom is. Takase: Anyway, it's a family restaurant and she's taking over for the parents. Guzman: They are located close in proximity to Umeke's. August 2, 2018 — LIQUOR COMMISSION MINUTES 14 Nahale-a: Move to approve Application No. T18-02, if approved, public hearing to be held October 4, 2018, in Kona. Lopez: Second. Ms. Nahale-a moved to approve Application No. T18-02, El Maguey Mexican Restaurante LLC, dba El Maguey Mexican Restaurante, for a sale and transfer of the Dispenser Beer and Wine liquor license, Category B1, currently held by Rogelio Guzman -Figueroa, dba El Maguey Mexican Restaurante, located at the Kuakini Center, 74-5563 Kaiwi Street, Space 128, Kailua-Kona, TMK: 7-4-010:005, public hearing to be held on October 4, 2018, in Kona; seconded by Mr. Lopez. Taniguchi: Any other discussion? There was no other discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Thank you very much. Guzman: Thank you. Nahale-a: Thank you. Taniguchi: Application No. T18-03, SNS LLC, dba Aloha Vista Bar & Grill, for a sale and transfer of the Restaurant General liquor license, Category Bl, currently held by Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill. 3. Application No. T18-03 (10:20 A.M.) SNS LLC, dba Aloha Vista Bar & Grill, for a sale and transfer of the Restaurant General liquor license, Category B1, currently held by Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill, located at 78-7000 Ali`i Drive, Kailua-Kona, TMK Nos: 7-8-010:036, 003, 034, 042, 051, 077, and 082. August 2, 2018 — LIQUOR COMMISSION MINUTES 15 Taniguchi: Is there any representative here? Takase: No, can we pass it? Taniguchi: We will pass it and go on. Application No. 18-04, Chapter 27 LLC, dba Chapter 27 LLC, submits application for a Change to Class 11, Cabaret to its Dispenser General liquor license, Category B1, located at 216 Kamehameha Avenue, Hilo, Hawaii, TMK: 2-3-007:018. 4. Application No. 18-04 (10:20 A.M.) Chapter 27 LLC, dba Chapter 27 LLC, submits application for a Change to Class 11, Cabaret to its Dispenser General liquor license, Category B1, located at 216 Kamehameha Avenue, Hilo, Hawari, TMK: 2-3-007:018, Gary Napoleon, Jr., Owner was present. Taniguchi: Good morning. Napoleon: Good morning. Taniguchi: Can you identify yourself and your relationship to the business? Napoleon: Gary Napoleon, Jr. and I am the Owner. Taniguchi: Any changes to the report? I guess you updated your floor plan? Napoleon: Yes. Taniguchi: Received July 30, 2018. Any other changes? Napoleon: No. Taniguchi: Can you briefly describe your business? Napoleon: I am a bar and lounge open Tuesday through Saturday, 4:30 P.M. until 2:00 A.M., serving food until midnight. Taniguchi: Is there any public testimony on this application? There was no public testimony. Taniguchi: Since none, Commissioners, any questions? August 2, 2018 — LIQUOR COMMISSION MINUTES 16 Lopez: I'm trying to read the changes. You just identified the DJ area and the dance floor? Napoleon: Yes. Gonzalez: What are the dimensions of the dance floor? Napoleon: Ten feet. Gonzalez: Ten feet by what? Napoleon: Ten by ten. Takase: Gary, right now you stop food service at 12:00 (midnight)? Napoleon: Yes. But for cabaret you have to keep it going. Takase: Yes. Napoleon: Yes. Taniguchi: Commissioners, any questions? I have a question. When we approved it, we didn't approve that area? Is that what it is? Takase: No. As he moves from a Dispenser to a Cabaret license, he's required to have a dance floor available when they operate as a Cabaret. This was his original floor plan that he submitted, but we wanted him to identify where the dance floor was going to be and try to get the dimensions. He has since come back, and though it's not quite to scale, but his dance floor is probably going to be in that area between the women's bathroom and the bar. As you can see, it's kind of narrow. It's only a 15 -foot frontage, so I talked to him about moving his dance floor all the way to the wall on the right-hand side and leaving a clear space for a walkway front to back. I guess there is sufficient area and we'll monitor it and see how it goes. I'm not sure if the Commission is aware or not, but Karma, who was our only other Cabaret at this time, has since closed. He (Gary Napoleon) is trying to fill the niche there. Taniguchi: But that's within the original area we approved before? Takase: Yes. Taniguchi: It's just now you're adding a dance floor? Takase: Yes, and extending their hours. That's what they're asking for. Taniguchi: Questions? August 2, 2018 — LIQUOR COMMISSION MINUTES 17 Lopez: After what you just said, do we really care where the dance floor is going to be in this (inaudible)? Because if there's 15 feet and a DJ area, I don't see anywhere people would walk in the front entrance. Takase: Yes. What he's delineated here is probably not exactly correct so that's why I've asked him to move his dance floor all the way over to one wall, to leave where the front entrance is a corridor to walk through. Lopez: Okay, so, oh, in front of the bar? Between the bar and the DJ area? Takase: Yes. It's a long, skinny premises right now. Along with the dance floor, the question we asked him was (because) he would have to serve food until he closes as well. I guess he will do that. Lopez: So, it's being adjusted. It's a non -issue for us at the moment? Takase: At this point, no. Lopez: Thank you. Taniguchi: Anyone else? There were no other questions from the Commissioners. Taniguchi: Since none... Nahale-a: Move to approve Application No. 18-04, if approved, public hearing to be held October 4, 2018, in Kona. Greenwell: Second. Ms. Nahale-a moved to approve Application No. 18-04, Chapter 27 LLC, dba Chapter 27 LLC, for a Change to Class 11, Cabaret to its Dispenser General liquor license, Category B1, located at 216 Kamehameha Avenue, Hilo, Hawaii, TMK: 2-3-007:018, public hearing to be held on October 4, 2018, in Kona; seconded by Mr. Greenwell. Taniguchi: Any other discussion? There was no other discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." August 2, 2018 — LIQUOR COMMISSION MINUTES 18 Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you. The motion was carried unanimously. Napoleon: Thank you. Taniguchi: Application No. 18-05, Kuleana Spirits, Inc., dba Kuleana Rum Shack, pursuant to Rule 3-1-R(9) of the Rules and Regulations of the Liquor Commission, under its original application for a Small Craft Producer Pub liquor license, Category A, submits application for a second location as a Category Bl. 5. Application No. 18-05 (10:26 A.M.) Kuleana Spirits, Inc., dba Kuleana Rum Shack, pursuant to Rule 3-1-R(9) of the Rules and Regulations of the Liquor Commission, under its original application for a Small Craft Producer Pub liquor license, Category A, submits application for a second location as a Category B1, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Spaces H5, H6, and H7, Waikoloa, TMK: 6-9-008:017. Stephen Jefferson, Founder and CEO; and Art Deacons, Acting Beverage Director were present. Taniguchi: Good morning. Jefferson: Good morning. Taniguchi: Can you identify yourself, please, and your relationship to the business? Jefferson: Yes, I'm Steve Jefferson, Founder and CEO of Kuleana Spirits, Inc., which is the holding company for these. Deacons: Art Deacons, and I'll be the Acting Beverage Director for Kuleana. Taniguchi: Thank you. Have you seen your report? Any changes? Jefferson: No, looks good. Taniguchi: Can you briefly describe the business again? August 2, 2018 — LIQUOR COMMISSION MINUTES 19 Jefferson: Yes. This is going to be the, sort of, public face. We have a distillery we're making rum from Hawaiian sugar cane. The producer license that we are working on allows public to go there, but instead what we decided to do is sort of a first-class place where people can actually come to a bar and restaurant and not interact With the distillery operations directly. That allows us to fully utilize the potential of this license. This will be a family restaurant right at Queens' MarketPlace, next to Sansei. It's a spot that's never been developed, so you can walk past it a million times and not even know it's there. Taniguchi: Is there any public testimony regarding this application? There was no public testimony. Taniguchi: Since none, Commissioners? There were no questions from the Commissioners. Nahale-a: Move to approve Application No. 18-05, if approved public hearing to be held October 4, 2018, in Kona. Onizuka: Second. Ms. Nahale-a moved to approve Application No. 18-05, Kuleana Spirits, Inc., dba Kuleana Rum Shack, pursuant to Rule 3-1-R(9) of the Rules and Regulations of the Liquor Commission, under its original application for a Small Craft Producer Pub liquor license, Category A, for a second location as a Category B1, located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Spaces H5, H6, and H7, Waikoloa, Hawari, TMK: 6-9-008:017; seconded by Mr. Onizuka. Taniguchi: Moved and seconded. Any other discussion? There was no other discussion. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you. The motion was carried unanimously. August 2, 2018 — LIQUOR COMMISSION MINUTES 20 Taniguchi: Application No. 18-06, Kona Haven USA Corp., dba Havenbrew, for an original Small Craft Producer Pub liquor license, Category A. 6. Application No. 18-06 (10:28 A.M.) Kona Haven USA Corp., dba Havenbrew, for an original Small Craft Producer Pub liquor license, Category A, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Suite 7, Kailua-Kona, TMK: 7-5-005:005. Eric Kim, Vice President was present. Taniguchi: Good morning. Kim: Good morning. Taniguchi: Can you identify yourself, please, and your relationship to the business? Kim: Eric Kim and I'm the Vice President of Kona Haven USA Corp. Taniguchi: Did you see the report? Any changes? Kim: The dba says Havenbrew that we corrected. Taniguchi: Havenbrew? That's correct, right? Did we misspell it? Fujimoto: They are two separate words. Kim: Two separate words. Taniguchi: Two separate words, Haven Brew. So two words instead of one word? Fujimoto: Yes. Taniguchi: Can you briefly describe the business? Kim: Yes. It's about 800 square feet in size, of space. We try to create a small producing facility for wine and brandy we're making out of the coffee cherry and skins. There's going to be some manufacturing (inaudible), taking about 600 square feet, and the remaining square feet will be a tasting room where the local people can come and taste the wine and stuff. Taniguchi: Is there any public testimony regarding this application? There was no public testimony. August 2, 2018 — LIQUOR COMMISSION MINUTES 21 Taniguchi: Since none, Commissioners, any questions? I have a question. You're using the coffee what? What did you say? Kim: Coffee cherry skins. Taniguchi: The skin of the... Kim: Yes, we own a small coffee farm in Captain Cook and cherry skins are mostly thrown away or used for fertilizer. But, I met someone overseas and he (inaudible) that cherry skins, going through the fermenting process, we can make wine out of that. It has all kinds of (inaudible) and antioxidants (inaudible). This is kind of an investment risk because we don't know how the...I've tasted the wines because they're already producing in Korea. It's pretty popular in Korea so I'm trying to bring their technology and products to Kona and try to introduce it to people. Hughes: So you'll be selling the product out of your tasting room? Kim: Yes. It'll be bottled. I don't know how the business is going to go, but it's our property, so we'll just have to try. Takase: Mr. Kim, I had a couple of questions. Kim: Yes. Takase: On this map, you show all these tables and seating outside. Is that going to be your seating? Kim: There's a balcony in between the space. We're going to put some tables there, you're talking about the area there (referring to map)? Takase: Yes, all around the exterior. Kim: There's a balcony all the way around and there's a Thai restaurant next to our space. They already put some tables around there, too. We just drew the tables there because there's no seating or tables inside. That's why we put some tables out there for the tourists. Takase: I realize you're the owner of the whole building, right? Kim: Yes, sir. Takase: So, I'm going to assume that getting permission is not too hard, but, for some of the tables, I guess if you're going to allow consumption outside, will all of these seats be visible from the interior or will you have somebody outside to monitor? August 2, 2018 — LIQUOR COMMISSION MINUTES 22 Kim: Yes. If you look at it, this is all window. It's see-through so we can monitor activity outside, from the inside. Takase: Is your personnel going to be where the bar is? That's going to be their bar area? Kim: If you look at it, the tastings will be right here (referring to map) in the bar. Actually, our architect kind of over drew here, but actual serving area is this part only. This has windows and the people coming in will see the processing of the wines and brandy. The actual bar or serving area we're looking at is right here. Taniguchi: So, right inside the door? Kim: Yes. Takase: It's hard to tell in a drawing like this, but how big are your fermenting containers? Kim: It's just a regular, one barrel...I have pictures of it...which is about this size...I'm not really sure of the exact dimensions. Takase: How high is that? Kim: The exact same...I'd say about three and a half, three feet. Lopez: You can see over the top of it. Takase: Okay, okay. Taniguchi: So the public is just going to be in this front area? In the empty area here, right (referring to map)? Kim: Yes, sir. Taniguchi: They're not going to be in the back where you have this (referring to map). Kim: No. Onizuka: Where's your restroom facilities on the upstairs? Kim: Restaurant facility? We're not really creating any hot food. Takase: No, restroom. Kim: The restroom is going to be...we have a new location. It's inside a hall area where the K's House and Chinese restaurant in there, there's another space where we're building a new restroom right now. There's men's and ladies' room. I don't have any space planned for that property there. August 2, 2018 — LIQUOR COMMISSION MINUTES 23 Onizuka: Will that work? Takase: Where will the entrance be? From that hallway or will you have to go around that building? Kim: It's going to be around the building facing Kuakini Highway. So there's ADA access and all that. Takase: I think you have to be 150 feet from your facility. Kim: It's definitely. because you have to go all the way down the hall, so it should be 150 feet... Takase: You might check with the Department of Health, because I'm familiar with your layout, and I think if you have to walk around the building, that...I'm not sure about your distances. Kim: We're doing a lot of renovations to the property right now. Our tenant moving in there, about 8,000 square foot restaurant, so we confirmed with the Planning Department and Building Department, so that's the only location we can move and locate the new restroom there. So, our facilities facing the ocean side of it, there's a hallway down there and around that. Takase: What I'm saying is just check with the Department of Health before you get too far, because I know that you're still doing construction in there and if you have to put an entrance from the hallway side... Kim: Not hallway side. It's just around that area. Takase: I know when K's came in, we had talked about this. Kim: But K's House has their own restroom inside. Takase: But from their location, they were closer. But from this one, just measure it off with Health. Check to make sure. Kim: If the distance is too far, then I guess since we're the owner of the property, then we will remake it. Takase: Maybe you'll have to make another entrance from the hallway side. Kim: We'll just lose another 200 square feet size of one of the spaces, but I'll make it work. Takase: Yes, so check on that. I'm just "eyeballing" your distances, I don't know for sure. If you're within the distances, then fine. August 2, 2018 — LIQUOR COMMISSION MINUTES 24 Kim: You said 150 feet? Takase: I think that's the requirement right now. Kim: Okay. Taniguchi: Any other question? Lopez: Yes, following up on Director's concern over monitoring the outside, I see when Mr. Chang, correct? Takase: Kim. Kim: My name's Eric. Chang is my brother... Lopez: When you discuss where the serving area is going to be in that corner of the tasting bar, that means the backs are to the tables in the rear and they have to look across where you have the bottling and packaging area, and then over in the other corner, you have a distilled water cooler. I'm asking how visible are those table out there that you can monitor them effectively, with all this... Kim: If you look at it, this is all window area. Lopez: Well, yes, but I'm talking about the attention of whoever's serving at the tasting bar. They're the ones that are going to be monitoring? Kim: Yes. Lopez: So they have to look behind them? Kim: No, not really, because he's going to be facing, looking through all the. .this is the main serving area right here (referring to map). We're not putting any tables here actually. This is where the Thai restaurant is putting their tables. What our server will be monitoring right in the front. Lopez: I'm not sure I'm seeing it. Nahale-a: The tables along this straight side are for the Thai restaurant? Lopez: This is the serving... Nahale-a: ...where the register is. Kim: Right here, so the server is going to be right here and they'll be looking through here. August 2, 2018 — LIQUOR COMMISSION MINUTES 25 Lopez: Okay. So what about this one here? Kim: This is not our area. Lopez: So these table are not yours? Kim: These are the Thai restaurant's. Lopez: Oh, that's what I see. So, how about this side? Is this yours? Kim: No, just right here. Lopez: So, not this area? Kim: No, not this area. Lopez: So, you're looking this way? Kim: Yes. Lopez: Thank you. Masuda: So you're going to amend the diagram later? Lopez: Yes, it's very confusing where these tables are. Kim: Sorry about the drawing, but we're doing the construction drawing right now so it'll be more correct here. Yes, it's pretty confusing about the tables. Takase: We will... Taniguchi: You will check on this? Takase: Yes, when they do final inspection, they'll go through with them. I'm just thinking that the containers were high, but if they're only two or three feet, then they'll still have a line of sight over them. Lopez: But they'll be looking the other way, anyway, from what he just said. Takase: Yes. And... Lopez: ...on the left side of this drawing, all those tables are really not his. They don't belong on this drawing. Takase: ...won't be there. We can work that out with them on the final inspection. August 2, 2018 — LIQUOR COMMISSION MINUTES 26 Lopez: Yes, I understand now. Taniguchi: Any other questions? There were no other questions from the Commissioners. Nahale-a: Move to approve Application No. 18-06, if approved public hearing to be held October 4, 2018, in Kona. Raymond: Second. Ms. Nahale-a moved to approve Application No. 18-06, Kona Haven USA Corp., dba Haven Brew, for an original Small Craft Producer Pub liquor license, Category A, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Suite 7, Kailua-Kona, TMK: 7-5-005:005; public hearing to be held on October 4, 2018, in Kona; seconded by Ms. Raymond Taniguchi: Moved and seconded. Any other discussion? There was no other discussion. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you. The motion was carried unanimously. Kim: Thank you. Nahale-a: Thank you. VII. Unfinished Business Taniguchi: There's no unfinished business. August 2, 2018 — LIQUOR COMMISSION MINUTES 27 VIII. New Business Taniguchi: Item No. 1, VERIPELE INC., dba Mad Marlin Sports Bar, submits Application for Reduction in Licensed Premises, to its stage area, back bar and concert area. 1 VERIPELE INC., dba Mad Marlin Sports Bar, submits Application for Reduction in Licensed Premises, to its stage area, back bar and concert area, located at 74-5484 Kaiwi Street, Suite 1-A120, Kailua-Kona, Hawaii, to its Dispenser General liquor license, Category B2. Nahale-a: Move to approve the Application for Reduction in Licensed Premises. Lopez: Second. Ms. Nahale-a moved to approve the Application for Reduction in Licensed Premises, submitted by VERIPELE INC., dba Mad Marlin Sports Bar, to its stage area, back bar and concert area, located at 74-5484 Kaiwi Street, Suite 1-A120, Kailua-Kona, Hawari, to its Dispenser General liquor license, Category 62; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any discussion? Why are they doing this? Takase: They're going to give up that area they had around their bar that included a special events area. They're going to give up the lease on that area. Taniguchi: Okay. Lopez: And they just walled it off. Takase: Yes. Nahale-a: In the drawing it's the area on the top, not including the aquarium shop and no longer including the red shaded area? Is that right? Lopez: Yes. Taniguchi: Yes. Any other questions? There were no other questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." August 2, 2018 — LIQUOR COMMISSION MINUTES 28 The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 2, Ulu Development LLC, dba Magics Beach Grill, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawail, requests permission to extend the time issuance of its approved application for a Dispenser General liquor license, Category B2. 2. UIu Development LLC, dba Magics Beach Grill, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, requests permission to extend the time issuance of its approved application for a Dispenser General liquor license, Category B2, located at the Kona Magic Sands, 77-6452 Ali`i Drive, Kailua-Kona, Hawaii, for an additional six months from August 3, 2018, to and including February 3, 2019, by letter dated and received June 28, 2018. Taniguchi: There's a letter in file, right? Takase: Yes. Nahale-a: Move to approve request for permission to extend the time. Lopez: Second. Ms. Nahale-a moved to approve the request for permission to extend the time issuance of its approved application for a Dispenser General liquor license, Category B2, submitted by Ulu Development LLC, dba Magics Beach Grill, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, located at the Kona Magic Sands, 77-6452 Drive, Kailua-Kona, Hawaii, for an additional six months from August 3, 2018, to and including February 3, 2019, by letter dated and received June 28, 2018; seconded by Mr. Lopez. August 2, 2018 — LIQUOR COMMISSION MINUTES 29 Taniguchi: Moved and seconded. Gerald, the reason? Takase: This is the old Jameson location. They're running into the same problems everybody else has with getting through the building process. I don't think it's a big problem to extend it. Taniguchi: There was a restaurant there already, right? Takase: Yes, but I think he gutted the whole thing and tried to make it nice. Masuda: Gerald? This is for the original license? Takase: Yes. Masuda: So, we have to do a finding of good cause? Takase: No, this is just to extend the issuance of license. Masuda: Okay. Taniguchi: Anybody else? There were no other questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 3, Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, Inc., ratification of Application for Temporary Increase in Licensed Premises, to the parking lot on Kauhale Street, Pahoa, Hawai'i, from July 16 to 21, 2018, for liquor purchase and deliveries for a beer garden held on July 21, 2018, approved by Director Gerald Takase on July 17, 2018, to its Restaurant General liquor license, Category B2. 3. Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, Inc., ratification of Application for Temporary Increase in Licensed Premises, to the parking lot on Kauhale Street, Pahoa, Hawail, from July 16 to 21, 2018, for liquor purchase and August 2, 2018 — LIQUOR COMMISSION MINUTES 30 deliveries for a beer garden held on July 21, 2018, approved by Director Gerald Takase on July 17, 2018, to its Restaurant General liquor license, Category B2, located at 15-2942A Pahoa Village Road, Pahoa, Hawaii. Nahale-a: Move to ratify. Lopez: Second. Ms. Nahale-a moved to ratify the Application for Temporary Increase in Licensed Premises, submitted by Luquin's Mexican Restaurant, Inc., dba Luquin's Mexican Restaurant, Inc., to the parking lot on Kauhale Street, Pahoa, Hawaii, from July 16 to 21, 2018, for liquor purchase and deliveries for a beer garden held on July 21, 2018, approved by Director Gerald Takase on July 17, 2018, to its Restaurant General liquor license, Category B2, located at 15-2942A Pahoa Village Road, Pahoa, Hawaii; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 4, Erika Kuhr, HIP Agriculture LLC, ratification of Application for Alcohol Purchase Permit, from Alchemical Solutions, for herbal bulk tincture for medicinal uses, approved by Director Gerald Takase on July 16, 2018. 4. Erika Kuhr, HIP Agriculture LLC, ratification of Application for Alcohol Purchase Permit, from Alchemical Solutions, for herbal bulk tincture for medicinal uses, approved by Director Gerald Takase on July 16, 2018. August 2, 2018 — LIQUOR COMMISSION MINUTES 31 Greenwell: Move to ratify. Nahale-a: Second. Mr. Greenwell moved to ratify the Application for Alcohol Purchase Permit, from Alchemical Solutions, submitted by Erika Kuhr, HIP Agriculture LLC, for herbal bulk tincture for medicinal uses, approved by Director Gerald Takase on July 16, 2018; seconded by Ms. Nahale-a. Taniguchi: Any discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 5, Running Wolf, LLC, dba Fujihara Store, submits Personal History and Affidavit for Rosemary Maleka Takaki Medeiros, Manager, effective April 2014, received on July 11, 2018. 5. Running Wolf, LLC, dba Fujihara Store, submits Personal History and Affidavit for Rosemary Maleka Takaki Medeiros, Manager, effective April 2014, received on July 11, 2018, (Licensee will submit verification of addition of Manager), to its Retail General liquor license, located at 85-4524 Mamalahoa Highway, Kealia, South Kona, Hawaii, Nahale-a: Move to accept. Taniguchi: Second? Greenwell: I have a question. Taniguchi: May we have a second, first? August 2, 2018 — LIQUOR COMMISSION MINUTES 32 Greenwell: Second. Ms. Nahale-a moved to accept the Personal History and Affidavit for Rosemary Maleka Takaki Medeiros, Manager, effective April 2014, submitted by Running Wolf, LLC, dba Fujihara Store, received on July 11, 2018, to its Retail General liquor license, located at 85-4524 Marnalahoa Highway, Kealia, South Kona, Hawaii; seconded by Mr. Greenwell. Taniguchi: Discussion? Greenwell: I still don't understand why this came about in April 2014, as long ago as that was, why it took so long for this to come about. Takase: I think he put her on, but he didn't notify anybody. Only last year, he actually put her on DCCA and that's how we picked it up on the renewal. Now that she's on the DCCA list, but we had no record of her. This is him explaining how she got on, but they never notified us. Greenwell: She's been on since 2014? Takase: Technically, yes. He never notified anybody and I guess only last year, he added her on his DCCA filings, and that's how we picked it up. Greenwell: Okay. Taniguchi: Any other questions, anybody else? There were no other questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 6, Tommy Bahama Beverages, LLC, dba Tommy Bahama's Tropical Cafe, ratification of Application for Temporary Increase in Licensed Premises, to The Shops at Mauna Lani courtyard and stage, for a concert held on July 21, 2018, approved by Director Gerald Takase on July 17, 2018. August 2, 2018 — LIQUOR COMMISSION MINUTES 33 6. Tommy Bahama Beverages, LLC, dba Tommy Bahama's Tropical Cafe, ratification of Application for Temporary Increase in Licensed Premises, to The Shops at Mauna Lani courtyard and stage, for a concert held on July 21, 2018, approved by Director Gerald Takase on July 17, 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. Greenwell: Move to ratify. Nahale-a: Second. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises, submitted by Tommy Bahama Beverages, LLC, dba Tommy Bahama's Tropical Cafe, to The Shops at Mauna Lani courtyard and stage, for a concert held on July 21, 2018; seconded by Ms. Nahale-a. Taniguchi: Discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 7, Waikoloa Boys Club LLC, dba Sansei Seafood, Steak & Sushi Bar, ratification of Application for Alteration Permit for renovation of its drink bar, submitted on July 17, 2018, approved by Director Gerald Takase on July 17, 2018, to its Dispenser General liquor license, Category B2. 7. Waikoloa Boys Club LLC, dba Sansei Seafood, Steak & Sushi Bar, ratification of Application for Alteration Permit for renovation of its drink bar, submitted on July 17, 2018, approved by Director Gerald Takase on July 17, 2018, to its Dispenser General liquor license, Category B2, located at Queens' MarketPlace, 69-201 Waikoloa-Beach Drive, Spaces H1, H2, H3, and H4, Waikoloa, August 2, 2018 — LIQUOR COMMISSION MINUTES 34 Nahale-a: Move to ratify. GreenwelP: Second. Ms. Nahale-a moved to ratify the Application for Alteration Permit for renovation of its drink bar, submitted by Waikoloa Boys Club LLC, dba Sansei Seafood, Steak & Sushi Bar, on July 17, 2018, approved by Director Gerald Takase on July 17, 2018, to its Dispenser General liquor license, Category B2, located at Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Spaces H1, H2, H3, and H4, Waikoloa, Hawai`i; seconded by Mr. Greenwell. Taniguchi: Discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 8, Kim & Kang LLC, dba K's House, requests change of entity's name to K's House Kona LLC, effective June 25, 2018, to its pending Dispenser General liquor license, Category Bl. 8. Kim & Kang LLC, dba K's House, requests change of entity's name to K's House Kona LLC, effective June 25, 2018, to its pending Dispenser General liquor license, Category B1, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Suite #9, Kailua-Kona, Nahale-a: Move to accept change. Lopez: Second. August 2, 2018 — LIQUOR COMMISSION MINUTES 35 Ms. Nahale-a moved to accept the change of entity's name to K's House Kona LLC, effective June 25, 2018, to its pending Dispenser General liquor license, Category B1, located at the King Kamehameha Mall, 75-5626 Kuakini Highway, Suite #9, ° Kailua-Kona, Hawai`i; seconded by Mr. Lopez. Taniguchi: Questions? We can just approve like this? Takase: Yes. It's just changing their dba really. Taniguchi: So, anytime they change name, they can just... Takase: You can just approve, but they need to notify the Commission that they're changing names. Taniguchi: Any other questions? There were no other questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 9, Poi Dog Deli LLC, dba Poi Dog Deli, ratification of Application for Entertainment Permit for a grand opening event held on July 28, 2018, approved by Director Gerald Takase on July 25, 2018, to its Retail Beer and Wine liquor license. 9. Poi Dog Deli LLC, dba Poi Dog Deli, ratification of Application for Entertainment Permit for a grand opening event held on July 28, 2018, approved by Director Gerald Takase on July 25, 2018, to its Retail Beer and Wine liquor license, located at 75-1022 Henry Street, Suite 3, Kailua-Kona, Nahale-a: Move to ratify. Greenwell: Second. August 2, 2018 — LIQUOR COMMISSION MINUTES 36 Ms. Nahale-a moved to ratify the Application for Entertainment Permit for a grand opening event held on July 28, 2018, submitted by Poi Dog Deli LLC, dba Poi Dog Deli, approved by Director Gerald Takase on July 25, 2018, to its Retail Beer and Wine liquor license, located at 75-1022 Henry Street, Suite 3, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 10, The Agency Inc., dba The Agency, requests reinstatement of the license whereby, the current licensee Karma HI, LLC, dba Karma HI, Cabaret liquor license, located at 124 Maka'ala Street, Hilo, Hawaii, TMK: 2-2-060:026, defaulted on the Lease and discontinued its business, effective June 30, 2018. 10. The Agency Inc., dba The Agency, requests reinstatement of the license whereby, the current licensee Karma HI, LLC, dba Karma HI, Cabaret liquor license, located at 124 Maka'ala Street, Hilo, Hawaii, TMK: 2-2-060:026, defaulted on the Lease and discontinued its business, effective June 30, 2018. Nahale-a: Move to approve request of reinstatement. Taniguchi: Second? Greenwell: Second. Ms. Nahale-a moved to approve the request for reinstatement of license, submitted by The Agency Inc., dba The Agency, whereby, the current licensee Karma HI, LLC, dba Karma HI, Cabaret liquor license, located at 124 Maka'ala Street, Hilo, TMK: 2-2-060:026, defaulted on the Lease and discontinued its business, effective June 30, 2018; seconded by Mr. Greenwell. August 2, 2018 — LIQUOR COMMISSION MINUTES 37 Takase: In this case, what happened is Karma went out of business, and actually The Agency is owned by Ivan Mochida. His daughter, Summer, was running Karma, but she wasn't making payments back to the dad, I guess, so he removed her and he's back in it. What we did is we reinstated his license, so he has a license but it's inactive. He's now in the process of trying to sell that location. To allow them to renew the license and keep going without the daughter there, we reinstated his old license. Karma's license actually came from The Agency's license. It's sort of a related transaction. He's not actually in business, he's inactive right now. He's really just keeping the license active so he can sell both the business with the license. He tells me he has a couple interested parties. Hopefully, they'll find somebody to take over the location for him. That's where we're at right now. Masuda: Gerald, he never gave up his original license? Takase: No. He did a sale and transfer to his daughter, to Karma. Every once in a while we get one of these where they default and we allow...like if it was a bank, we would allow the license to transfer to the bank to be held during the time that they're trying to find a new buyer. It's a similar procedure that we're doing here. Nahale-a: So, no intention to run business out of there? Takase: Yes. He has no intention of going back into the bar business, but it's easier for him to sell sort of a "package," location with a license if possible. So we're sort of putting it on hold and we allowed him to renew the license under the old license. Taniguchi: Is he a principal of Karma, too? Takase: He was. There's an argument over whether he was the 51 or 49 percent. But, he was the underlying lease holder, so we use that... Taniguchi: But, technically if he wanted to open, based on this, he can? Takase: Yes. He would have to come in get all his inspections lined up again. But... Taniguchi: He wouldn't, but... Nahale-a: Should someone decide to purchase, that comes back to us for a sale and transfer? Takase: Correct. If they want to...they could say they don't want to deal with the old license (audible). Taniguchi: Any other questions? There were no other questions from the Commissioners. August 2, 2018 — LIQUOR COMMISSION MINUTES 38 Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Taniguchi: Item No. 11, Special Licenses Issued for Ratification. Can I have a motion to ratify Application SP -18-4 to SP -18-9, Item No. 11(a) to 11(f), please? Nahale-a: So move. Lopez: Second. Ms. Nahale-a moved to ratify the following Special Licenses: 11. Special Licenses Issued for Ratification a. Application No. SP -18-4, Ku'ikahi Mediation Center, Inc., dba Ku'ikahi Mediation Center, for a Special Beer and Wine liquor license, held in the Edith Kanakaole Multi -Purpose Stadium, on July 12, 2018. b. Application No. SP -18-5, The Food Basket Inc., dba Hawaii Island's Food Bank for a Special General liquor license, to be held in the Kona Brewing Co. parking lot, located at 74-5617 Pawai Place, Kailua-Kona, Hawail, on August 4, 2018. c. Application No. SP -18-6, Aloha Performing Arts Company, dba Aloha Theatre, for a Special Beer and Wine liquor license, held in the Aloha Theatre Building, located at 79-7384 Marnalahoa Highway, Kainaliu, Hawaii, on July 11, 2018. d. Application No. SP -18-7, Aloha Performing Arts Company, dba Aloha Theatre, for a Special Beer and Wine liquor license, held in the Aloha Theatre Building, located at 79-7384 Mamalahoa Highway, Kainaliu, Hawaii, on July 20 and 21, 2018. August 2, 2018 — LIQUOR COMMISSION MINUTES 39 e. Application No. SP -18-8, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, held in the Lobby, located at 38 Haili Street, Hilo, Hawari, on July 19, 2018. Application No. SP -18-9, 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 and Theater, located at 38 Haili Street, Hilo, Hawaii, on August 3, 16, and 24, 2018. The motion was seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 12, there's no transient vessel licenses. At this time, Suresh Neupane was addressed by the Chairman. Taniguchi: Are you with... Waltjen: Aloha Vista. Neupane: Aloha Vista Bar & Grill. Taniguchi: Okay, that is the one we passed. Please have a seat. Page No. 6, Item No. 3, Application No. T-18-03, SNS LLC, dba Aloha Vista Bar & Grill, for a sale and transfer of the Restaurant General liquor license, Category Bl, currently held by Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill. August 2, 2018 — LIQUOR COMMISSION MINUTES 40 Application No. T18-03 (10:55 A.M.) SNS LLC, dba Aloha Vista Bar & Grill, for a sale and transfer of the Restaurant General liquor license, Category Bl, Currently held by Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill, located at 78-7000 Alii Drive, Kailua-Kona, TMK Nos.: 7-8-010:036, 003, 034, 042, 051, 077, and 082. Suresh Neupane, Owner was present. Taniguchi: Can you state your name and your relationship to the business, please? Neupane: My name is Suresh Neupane, and I'm the new owner of the Aloha Vista Bar & Grill. Gonzalez: You can sit down. You don't have to stand up. Neupane: Okay, thanks. Taniguchi: Have you seen the report? Any changes to your application? Neupane: No, no changes. Taniguchi: Can you briefly describe the business? What kind of business? Neupane: We have a full restaurant with a full bar. We do sell beer (bottles and cans) on the golf course from the cart. Taniguchi: No one is here to testify. There was no public testimony. Taniguchi: Commissioners? Is this the one at the golf course? Neupane: Yes, sir. Nahale-a: So, you're taking over Amici's, right? Neupane: Yes. Taniguchi: Any questions? Nahale-a: This is the one that has lots of conditions from prior, right? Takase: Yes. August 2, 2018 — LIQUOR COMMISSION MINUTES 41 Nahale-a: Brandon, those conditions were pre-Amici's, too, right? Gonzalez: Yes, the conditions date back to 1987, as far as we can tell. Lopez: Is he open everyday, seven days per week? (inaudible) Takase: Yes, I believe it's a seven-day operation. Neupane: Yes, Takase: Your wife is related to Kamana Kitchen? Neupane: Yes, yes. Takase: So, they have some prior restaurant/bar experience. The conditions that you see were from quite a while ago. They would have to stay in place since it's a sale and transfer. Are you planning to have entertainment there? Do you know? Neupane: No (inaudible). Takase: (The conditions) would be moot then. Taniguchi: It's in a residential area. Takase: Yes, but we haven't had a problem for a while now. He's going to be the third or fourth owner since these conditions were imposed. Nice location. Lopez: Are you operating this already? Neupane: Yes, sir. Taniguchi: What kind of food? Neupane: We have Italian and American food. Taniguchi: Any other questions, Commissioners? There were no other questions from the Commissioners. Nahale-a: Move to approve Application No. T18-03, if approved, public hearing to be held September 6, 2018, in Hilo. Lopez: Second. August 2, 2018 — LIQUOR COMMISSION MINUTES 42 Ms. Nahale-a moved to approve Application No. T18-03, SNS LLC, dba Aloha Vista Bar & Grill, for a sale and transfer of the Restaurant General liquor license, Category B1, currently held by Amici Italian Bar & Grill, L.L.C., dba Amici Vista Bar & Grill, located at 78-7000 AIN Drive, Kailua-Kona, Hawai`i, TMK Nos: 7-8-010:036, 003, 034, 042, 051, 077, and 082, public hearing to be held on September 6, 2018, in Hilo; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any other discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. Nahale-a: Thank you. Neupane: Thank you. Taniguchi: Item No. 13, Request from the Office of the County Clerk, Legislative Research Branch, for Commission input as to how the County Charter affects its role and operations, and any proposals it may have to amend the Charter. Director? Takase: The Charter Commission is coming up on its 10 -year review of the Charter and they've sent notices out to everybody that's affected by it, both the Department, Commission and Adjudication Board. On the Department side, I don't see anything that we're going to ask the Charter Commission to make any changes to. I don't anticipate anything from the Commission or Board, but I'll leave it up to you. If there are items that you want looked at, this is your chance. You don't have to tell me today. If you think of something in the interim, let me know. The only problem is, if it comes from a Commissioner, we're going to have to send it back to the Commission to approve, but we can work that out. If you come up with something, and everything looks good, I'll just submit it as part of our package. Think about it in the next couple of days and if you think of anything (let me know). Other than that, I think things have worked well with what we have in the Charter already for the Department, the Board and Commission. But, if you do have anything, now is the time to bring it forward. August 2, 2018 — LIQUOR COMMISSION MINUTES 43 Lopez: What section of the Charter would the Liquor Commission be in? Masuda: Chapter three. Lopez: Thank you. Masuda: It's in 7-3... Gonzalez: 7-3.2. Taniguchi: My recommendation would be to make this a semi -autonomous department. Would that be politically wrong? Takase: I think if it came from the Commission, it would be okay. Taniguchi: Yes, that would be my recommendation. Nahale-a: What was that? Lopez: What's that? Taniguchi: To make this a semi -autonomous department. Lopez: Like the Water Department. Nahale-a: Oh, yes. Taniguchi: You don't get any general funds, right? Lopez: It's self-funded. Taniguchi: Yes, it's self-funded, so when you think about it, it makes more sense. Nahale-a: I'd be in support of that. Lopez: So, Gerald, the restriction where in the last year of your term, you can't travel, is that in the Charter? Or who or where is that governed by? Takase: No, that is the Finance Director's interpretation. Taniguchi: If you're semi -autonomous, it's just the department. Like Water (referring to the Department of Water Supply). Lopez: Okay, I'd vote for that. Takase: They sent a couple notices that they want to stop all travel, because of the ... August 2, 2018 — LIQUOR COMMISSION MINUTES 44 Lopez: ...budget crunch. Takase: Yes, but I said we're not getting.... Taniguchi: But you're not getting money... Nahale-a: ...to propose semi -autonomous for... Takase: Well, we will put it...maybe we should... Gonzalez: For the September meeting? Or do you want take a break right now? Takase: I'm not sure about the deadlines are. Why don't you talk about it and vote on it now, if you want to. It's just going to be a recommendation. Taniguchi: You're not getting any general funds, so it's just like Water, and so... Mr. Greenwell? Greenwell: You said they have tried to curtail travel. Does that mean for all the departments, and they're talking about the Council as well? Takase: Well, I don't know about the Council, but yes, all the departments. Taniguchi: I think whenever you have a budget thing, all that kind of stuff comes out. Takase: They're kind of using the lava event as the basis. We don't know how long it's going to take or who's going to fund it, so therefore, I said, "Well, it's not like we could give you back money anyway." Taniguchi: But I think that's the kind of stuff that makes sense, if you're getting funding, you're part of the process. But, you're not. You're not getting funding so it's just like Water. It's important that you have some autonomy and like Mr. Greenwell and I were on Water (Board), so we know (inaudible) it's a lot easier to get things done. But, maybe it's not politically the right thing to do. I don't know. Takase: We have received some requests to work with the other jurisdictions about our conference. Everybody was there and we received a lot of compliments from them. It was said it was the best ever, and it wasn't just the venue, but all the things we did, the people. So, we have received some requests to share the information with them. I was trying to get the staff to be able to go, like we did on the front end, promote it. We did things that they never really looked at before. We had a plan from about two years out to promote the event. For those of you who went to locations prior we tried to set up booths to promote the event and I think that went well. During the event, we did a lot of things that they never really thought about before. They want us to share our information with them, so I was trying to get them to go. I don't know if it's going to happen, but I told them it's a limited duration type of thing. We couldn't do it two or three years from now. It'II probably be too late. August 2, 2018 — LIQUOR COMMISSION MINUTES 45 YMMIMMIYIVIVIMIYIWIM10111011M,MIRMY, Greenwell: Art? Getting back to (this) travel again, if we are a member of an organization, a national organization, we're a bit committed to show up and travel as they do. In order to do that, if we're going to be tied by the Administration of what we can do, where we can go, and being a member of these national organizations, maybe that would lead to semi - autonomy. Takase: I think there are a lot of good... Greenwell: We have an obligation to go and be a part (of). Takase: There's a lot of good arguments about it, so maybe it's a good topic to at least be brought up. Taniguchi: As long as you don't think it's going to hurt the Department. Lopez: About the funds this organization raises, does the Administration have any opportunity to raid those? Takase: No. The way the law is written right now, whatever funds we collect are just for our operations. Any funds that we don't expend have to be returned to the licensees. The way we do that, is at the end of the year...Well, as a quick lesson in our budgeting process, we set our budget so that it was approved in June, to start July 1. After we establish our budget, then we will go back and assess all of the licensees so they are turning in their gross liquor sales which was due July 31st. Between July 31st and about October, we will figure out what our budget is and then we'll go back and figure out a percentage for each of the licensees to pay. That's how all of them pay. They pay a flat fee for the license, but over and above that, they pay a percentage which has been about...it used to be one percent, but we're down to about three quarters of a percent now. We will send that assessment out in October to be collected in November; some of them will extend the time. Usually, by about January -February we will collect our entire fees. As part of the collection process, we will take whatever surplus we have, I think this year we had about $300,000 to $400,000 surplus, and write that off the top, deduct that from our budget and whatever we're going to collect from the licensees. Say if our budget is two million dollars now, we'll drop it down to 1.6 (million dollars), and we will make our assessments based on the 1.6. We don't return it directly to them, but indirectly, we return it to the licensees through a reduction in their fees. That is all set out in Chapter 281. Although the Council in every county would like to get the funds, they're not able to and I believe the industry lobbyists are still strong enough that they won't let that change. Lopez: So is that codified in our Charter? Masuda: No. Takase: No, in (HRS Chapter) 281 which is a State law. August 2, 2018 — LIQUOR COMMISSION MINUTES 46 Mill M11.41W Lopez: That's why the Commission can't change that. Masuda: Yes, and that's why it's important to note that it's a good reason why you'd want to be semi -autonomous. It is statutory, it's State law, it's nbt County law. Greenwell: So, after what you've said, and I know you've been commended on the tight ship that you've run in the past, in order for us to keep any of that money away from the future County Council grabs, this is the time we should go to semi -autonomy. Taniguchi: But, they can't grab the money. Greenwell: Well, they might try Taniguchi: It's State law, right? Takase: Yes, but they could change State law. Greenwell: If they see the money there, they might try something, they're going to want to grab it. If we went to semi -autonomy, we'd be protected now. Taniguchi: I think that, and then also administratively, if you're semi -autonomous, you have more...decision-making tasks are easier than if you're not. As long as you don't think it's going to be detrimental to your department. We don't want to bring it up and all of a sudden everything comes down on you. Greenwell: Look into it, Gerald, we'll back you up. Takase: I was going to say it's good for you and Art and now we have Dwayne and Riley, we have a lot of former Water Board members, maybe I'll meet with you and you can give me the pros of semi -autonomy or the pitfalls and we can go from there. Taniguchi: Bryan Lindsey was (too). Salave'a: What would converting...or would it be a County Charter amendment to become semi -autonomous? Takase: Yes. Masuda: And they're doing that already. This is part of their 10 -year cycle to be reviewed by the Charter Commission. What's going to be important for the (Liquor) Commission is not only to take a vote saying, "Yes, this is our position," but it will be more important if this is something you truly want, then you as well as the members of the Adjudication Board have to appear before the Charter Commission and testify. Nahale-a: And take a look at your committee members that are listed on this letter and see who you know that you can also have discussions with. August 2, 2018 — LIQUOR COMMISSION MINUTES 47 Taniguchi: Mr. Lopez? Lopez: If it's proper, I'll put a motion on the floor that this body make recommendation to the Charter Commission to create a semi-autonot-nous organization of the Department of Liquor. Taniguchi: Any second? Nahale-a: Second. Mr. Lopez moved that the Liquor Commission of the County of Hawaii, State of Hawaii, make the recommendation to the Charter Commission to create a semi -autonomous organization of the Department of Liquor Control; seconded by Ms. Nahale-a. Taniguchi: Good. Any other discussion? There was no other discussion from the Commissioners. Taniguchi: Since none, call for the question. All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: No need to roll call (vote) since there was no one opposed. Motion carried. The motion was carried unanimously. Hughes: What other departments are semi -autonomous? Takase: The only one is the Water Department. Taniguchi: Only Water. Takase: And Water and Liquor are the only two that raise their own funds. IX. Announcements Meetings of Liquor Commission Taniguchi: Next meeting is September 6, 2018, in Hilo. Then on October 4, 2018, West Hawaii, again. August 2, 2018 — LIQUOR COMMISSION MINUTES 48 September 6, 2018, 10:00 A.M., Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. October 4, 2018, 10:00 A.M., Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor Kailua-Kona, Hawaii. Taniguchi: Can we have a motion for adjournment? Nahale-a: So move. Takase: One other (announcement), October 7-10, 2018, is the State Conference on Kauai. We still have approval for that. Taniguchi: We have a motion. Second for adjournment? Lopez: Second. Ms. Nahale-a moved to adjourn the meeting; seconded by Mr. Lopez. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. The meeting was adjourned at 11:20 A.M. The August 2, 2018, Liquor Commission minutes were approved as circulated via email/mail on August 30, 2018, by the Liquor Commission of the County of Hawaii on September 6, 2018. 'raid Takase Director August 2, 2018 — LIQUOR COMMISSION MINUTES 49