00001 1 2 CITY OF MILWAUKEE 3 UTILITIES & LICENSES COMMITTEE 4 September 9, 2003 5 6 * * * * * * * * * * * * * * * * * * * * * * * * * * * In the Matter of Legislative Agenda Item 4 7 Centers for the Visual and Performing Arts 8 File No. 9 * * * * * * * * * * * * * * * * * * * * * * * * * * * 10 COMMITTEE MEMBERS 11 ALD. JAMES BOHL - Chairman ALD. FREDERICK GORDON 12 ALD. JOSEPH A. DUDZIK ALD. TERRY WITKOWSKI 13 14 LICENSING DIVISION by JAMES COPELAND LEGISLATIVE REFERENCE BUREAU by JAMES OWCZARSKI 15 POLICE DEPARTMENT by DEPUTY INSPECTOR RAYMOND SUCIK OFFICE OF THE CITY ATTORNEY by ATTORNEY BRUCE SCHRIMPF 16 17 18 Proceedings had in the above-entitled 19 matter, before the UTILITIES & LICENSES COMMITTEE OF 20 THE CITY OF MILWAUKEE, on the 9th day of September, 21 2003. 00002 1 P R O C E E D I N G S 2 CHAIRMAN BOHL: The final item on our 3 legislative agenda this morning is Item No. 4, File 4 No. 030720, an ordinance relating to the Centers for 5 the Visual and Performing Arts, and we are joined by 6 - - again by Mr. Owczarski from the Legislative 7 Reference Bureau, and Deputy Raymond Sucik from the 8 Milwaukee Police Department. 9 Mr. Owczarski, we will let you start off on 10 this. 11 MR. OWCZARSKI: Thank you, Mr. Chairman. 12 The committee members who were here at the time will 13 remember that we introduced into Section 90 or Chapter 14 90 of our code, a definition of a Center for the 15 Visual and Performing Arts some week ago. Currently 16 in state statutes there is this concept called Center 17 for the Visual and Performing Arts. Unfortunately, 18 the statutes does not provide a definition. That is 19 important, because being a Center for the Visual and 20 Performing Arts confers certain benefits on the 21 operator of a Class B establishment relating to the 22 presence of underage persons on the premises. They 23 can be there mingling with adults, with people who can 24 drink in a situation which they otherwise could not 25 be. Concerns were expressed by Licensing Division, by 00003 1 individual alderpersons, that this was an unacceptable 2 set of circumstances. So our first effort was to try 3 and craft a definition. Unfortunately, after further 4 consultation with the City Attorney's office, there 5 was a concern about due process, making sure that 6 people were treated fairly on the legal - - and 7 frankly in a court defensible manner. And so we went 8 back to the drawing table and result is the ordinance 9 you see in front of you. What it does is requires any 10 person who wishes to be so designated for their 11 establishment to present themselves for an 12 application, they have to submit a plan of operation, 13 they have to demonstrate, according to the terms you 14 see set forth in analysis, that they met that 15 criterion. These are reflective of what was 16 originally put into our definition, and then we afford 17 them the opportunity of a due process hearing in front 18 of this body and in front of the Common Council. It 19 is hoped, therefore, that everyone who would want this 20 would have a fair shot of getting it. However, I 21 would note that there are two exemptions. One is 22 non-profit organizations that operate a Center for the 23 Visual and Performing Arts will not have to get this 24 license. And in addition, those organizations that 25 are now designated as Centers for the Visual and 00004 1 Performing Arts will have until December 31st of 2004 2 to comply with the terms of this ordinance. They 3 will, however, at that time have to be in compliance. 4 CHAIRMAN BOHL: Okay. Thank you Mr. 5 Owczarski. 6 Mr. Schrimpf, before we get to any 7 questions, certainly your hand is heavily weighed in 8 this. Is there anything else that you would like to 9 add? 10 ATTORNEY SCHRIMPF: I guess that put some of 11 the blame on me. No, I have no other comment. I 12 think Mr. Owczarski has summed it up quite well. 13 CHAIRMAN BOHL: Mr. Owczarski, we've sort of 14 bantered this draft around and there are a couple of 15 changes from the previous draft that was floating 16 around, and if you could just take a moment and 17 expound on them. I know that the stage is - - the 18 size of stage that would be required, as one of the 19 two criteria, along with the either/or works of art. 20 MR. OWCZARSKI: Yes. 21 CHAIRMAN BOHL: The additional thing is in 22 terms of licensing fees for non-profit organizations 23 has been omitted. Can you just expound on that? 24 Briefly. 25 MR. OWCZARSKI: By all means. The original 00005 1 definition, the one that in fact you will see in 2 Chapter 90 of our code right now says that you must 3 now have an eleven hundred foot stage to qualify - - 4 or a thousand foot stage - - square foot to qualify 5 for this. We have increased that to twelve hundred 6 square feet in size. Frankly, there was a concern 7 that one thousand square feet was not normative for a 8 center like this. If you follow the legislative 9 intent of the statute, it was clearly intended to deal 10 with such things as the Marcus Center for the 11 Performing Arts and the Riverside Theater, which are 12 well in compliance with that. A thousand foot stage, 13 although no small thing, we felt it was simply 14 inadequate to encompass what was intended by a Center 15 of the Visual and Performing Arts. 16 As the Chairman said, we have also crafted a 17 exemption, as I mentioned earlier, for non-profit 18 organizations, and we are defining them as the 19 Internal Revenue does, as 501C3 corporations, trying 20 to provide them an exemption. 21 And one of the other things that we took 22 a look at and decided to - - there was some concern 23 expressed about the "either/or" and this is a little 24 tricky to follow, and I do apologize for that. But 25 the way it works is you must fulfill these criterion. 00006 1 You must have either that stage or a collection of 2 works of art recognized by a panel. In addition, you 3 must demonstrate that if you are a theater and a 4 Center for the Visual and Performing Arts, that 5 alcohol is incidental to what you are doing. You 6 can't be a bar that incidentally has performances. 7 You are supposed to be a Center for the Visual and 8 Performing Arts that incidentally serves alcohol. 9 How do we demonstrate that? Well, in the 10 code it indicates that the service of alcohol 11 beverages no earlier than two hours before - - before 12 a given day's scheduled performance, and no later than 13 two hours after a given day's scheduleD performance, 14 and only in a designated lobby. 15 ATTORNEY SCRIMPF: Mr. Chairman, if I could 16 - - 17 CHAIRMAN BOHL: Go ahead. 18 ATTORNEY SCRIMPF: - - - - can just chime 19 in one more thing on that. 20 CHAIRMAN BOHL: Sure. 21 ATTORNEY SCRIMPF: I do believe there is a 22 requirement that anyone seeking one of these licenses 23 has also obtained a cabaret license. 24 MR. OWCZARSKI: That is correct. 25 CHAIRMAN BOHL: And essentially these two 00007 1 parallel themselves, hand in hand? 2 ATTORNEY SCRIMPF: Right. 3 CHAIRMAN BOHL: Are there questions - - 4 questions by anyone of the committee of Mr. Owczarski 5 or Schrimpf at this point? 6 ALDERMAN GORDON: Mr. Chairman? 7 CHAIRMAN BOHL: Go ahead, Alderman Gordon. 8 ALDERMAN GORDON: Thank you. I just had a 9 question as to the origin of the definition of a 10 Center of the Visual and Performing Arts. Is that 11 clarified in a statute, and is there any specific 12 definition that is being relied on with this 13 legislation? 14 MR. OWCZARSKI: Quite candidly, Alderman, if 15 there were one, we wouldn't been here. The state 16 statute mentions Centers for the Visual and Performing 17 Arts. It does not provide us any definition. One of 18 the first things I did, at the request of Mr. 19 Copeland of the License Division, was to conduct a 20 survey across the country trying to find out how other 21 agencies deal with this. Well, the fact is, we have a 22 unique situation in the State of Wisconsin because of 23 this concept that exists in the statutes. It simply 24 sits in a section of the statute and is undefined. 25 ATTORNEY SCRIMPF: Mr. Chairman, if I could 00008 1 chime in on that - - 2 CHAIRMAN BOHL: Go ahead Mr. Schrimpf. 3 ATTORNEY SCRIMPF: - - just a bit. The 4 definitional qualities of the Center for the Visual or 5 Performing Arts exist really in two places in the 6 statutes. One is in 125.07 which generally prohibits 7 underage persons from being on a Class B premises, and 8 then the "or" Center for Visual and Performing Arts 9 exist as an exception to the otherwise stated policy 10 of no underage persons on a Class B. The other place 11 that it exists in the statute is in 125.51, and there 12 again it's an exception. 125.51 creates intoxicating 13 liquor, Class Bs, and once again, it's one of the 14 those exception that exist. So parallel with that 15 policy that this is an exception to an otherwise 16 general policy, 125.10 of the statutes gives authority 17 to governing bodies of local municipalities to create 18 other regulations not inconsistent with Chapter 125, 19 therefore, using the Council's power under 125.10 you 20 can create a definition that does not otherwise exist 21 in state statutes. Now, if the state were to come 22 along and create a definition, then obviously our 23 legislation would have to either comply with that or 24 fall under it or be appropriately amended. 25 CHAIRMAN BOHL: Alderman Gordon, does that 00009 1 adequately address that for you? 2 ALDERMAN GORDON: Yes. 3 ALDERMAN DUDZIK: Mr. Chair? 4 CHAIRMAN BOHL: Alderman Dudzik. 5 ALDERMAN DUDZIK: If I may, Mr. Owczarski 6 you spoke of a panel to decide what is a collection of 7 recognizable art. 8 MR. OWCZARSKI: If the general consensus 9 was, and if you take a look at the actual definition, 10 it's a collection of recognized works of art placed on 11 regular public display, and if you take a look on page 12 3 of the ordinance and Section 3, minimum 13 qualifications, that is again 3B.2, a collection of 14 recognized works of art placed on regular public 15 display as testified to before the licensing committee 16 by recognized experts or art critics. 17 ALDERMAN DUDZIK: So we don't really have a 18 panel at this point in time? 19 MR. OWCZARSKI: Correct. 20 ALDERMAN DUDZIK: Thank you. 21 CHAIRMAN BOHL: We do have an arts board, 22 but one person's recognized piece of art is another 23 person's junk. 24 ALDERMAN DUDZIK: That's just what I wanted 25 to get to. Okay, thank you. 00010 1 ATTORNEY SCRIMPF: My wife tells me that 2 all the time. 3 CHAIRMAN BOHL: I am sure of that. I am 4 sure of that. 5 Other questions by committee at this point? 6 And just for the committee's edification, one of the 7 reasons why we need to do this is because otherwise we 8 do certainly risk having dance clubs, gentleman clubs, 9 all sorts of other type of liquor license venues open 10 up the slippery slope where we co-mingle 18 through 11 21-year-olds with those who are eligible to drink 12 alcohol. And it could run the gamut. 13 So Deputy Inspector, you have been patient. 14 DEPUTY INSPECTOR SUCIK: Good morning, Mr. 15 Chairman. 16 CHAIRMAN BOHL: Good morning to you. 17 DEPUTY RAYMOND SUCIK: Deputy Inspector 18 Raymond Sucik on behalf of the police department. We 19 have and continue to have concerns about the Centers 20 for the Visual and Performing Arts. In particular, 21 now that my questions about art have been somewhat 22 addressed, but it's underage drinking, quite clearly. 23 With the best intention of even the premises who 24 continue to now enjoy this privilege granted, not 25 every adult person can be watched to ensure that they 00011 1 don't make a purchase and then supply to an underage. 2 This particular ordinance doesn't even cite an age 3 where theoretically then someone from infancy through 4 the age of 20 years and three hundred sixty-four days 5 can be there and being supplied with alcoholic 6 beverages by a reasonable - - not a responsible adult, 7 but an adult. In a perfect world, one would expect 8 when confronting a juvenile or someone underage with 9 alcohol, that they would admit it was supplied by 10 someone else, but invariably I would suspect that they 11 are going to be pointing their finger toward the 12 premises, saying that's where we got it. In the past 13 year, over 75 premises have been found to service 14 underage individuals resulting in numerous citations. 15 So the - - this concern that we do have is directly 16 related to underage drinking. 17 CHAIRMAN BOHL: Okay. Mr. Owczarski, would 18 you concur with me and in terms of addressing some of 19 the concerns expressed by Deputy Inspector Sucik is 20 that our hands are essentially tied by the state in 21 this regard and this is, simply speaking, an attempt 22 to try to regulate or provide a definition so as to, 23 in many respects, avoid and avert some of the 24 co-mingling and efforts that inevitably may happen 25 based on the rather broad and efficientless, 00012 1 definitionless legislation that we have sitting there 2 from the State of Wisconsin. 3 MR. OWCZARSKI: From the first time I was 4 asked to do a research project on this piece, Mr. 5 Chairman, it has been my understanding that all things 6 being equal, the City of Milwaukee has not desired to 7 get in the business of defining this, to get in the 8 business of regulating this and to leave the Marcus 9 Amphitheaters and Riverside Theaters and wherever 10 else, to go about their business as they have been and 11 very successfully and - - and legally. Unfortunately, 12 there have been other establishments that I believe-- 13 it's been my understanding, are beginning to force the 14 City's hand, that are attempting to take advantage, as 15 you say, this lack of definition of statutes and are 16 fairly well forcing us to this end. 17 ATTORNEY SCRIMPF: Mr. Chairman, if I 18 could - - 19 CHAIRMAN BOHL: Go ahead Mr. Schrimpf. 20 ATTORNEY SCRIMPF: - - expand on that just 21 a bit. First of all, I certainly concur with the 22 remarks of Deputy Inspector Sucik and Mr. Owczarski. 23 The issue always in this matter is the regulation and 24 prohibition of underage drinking, and it is certainly 25 true that by creating this exemption in the statutes, 00013 1 which is otherwise undefined, it puts the City of 2 Milwaukee in a case - - in a position where without 3 some sort of standards in place to guide the 4 committee decision making and Council decision making, 5 you run the risk of standardless decisions, which is a 6 per se violation of law. And this is some effort, 7 perhaps not the - - not the easiest to understand, 8 perhaps not even the most creative that we can arrive 9 at, to put standards where none exist, and to address 10 exactly those concerns. Make certain, and I think 11 there is something in this particular ordinance that 12 specifically says it is the intention that this 13 designation shall be infrequently and rarely 14 determined and given out. As further guidance to 15 committee and the Council that this is a rare thing, 16 that there are obviously some places like the Marcus 17 Center and Riverside Theater and those sort of places, 18 that very clearly would fall under this definition, 19 and the problem is to try to come up with a definition 20 of the closer cases and to give the committee and the 21 Council some guidance on that and to express the 22 policy that this is not something to be willy-nilly 23 given out to anybody who files an application. That 24 it is a rare thing and that it is precisely aimed at 25 the business of prohibiting underage drinking, which 00014 1 is the general policy of the state law. 2 CHAIRMAN BOHL: Thank you. Any other 3 questions by committee at this point? 4 Is there a motion? 5 ALDERMAN GORDON: I'd move approval at this 6 time. 7 CHAIRMAN BOHL: Okay, the motion by Alderman 8 Gordon is to pass the ordinance. 9 Is there any objection to that? Hearing 10 none, so ordered. 11 * * * * * 00015 1 STATE OF WISCONSIN) 2 MILWAUKEE COUNTY ) 3 4 I, JEAN M. BARINA, of Milwaukee Reporters 5 Associated, Inc., do certify that the foregoing 6 transcript was reduced to writing under my direction 7 and that it is a true and accurate transcription of 8 the audio tape from the Utilities and Licensing 9 Hearing Item No. 4 held on September 9, 2003. 10 11 12 JEAN M. BARINA - COURT REPORTER 13 Dated this day of October, 2003. 14 15