South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

CAPTION:
Balkar S. Sandhu, d/b/a Kater Keg Party Shop vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Appellant:
Balkar S. Sandhu, d/b/a Kater Keg Party Shop

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
94-ALJ-0022

APPEARANCES:
n/a
 

ORDERS:

ORDER AND DECISION

This matter came before the Administrative Law Judge Division on the application of Balkar Sandhu for an on-premises beer and wine permit for a store located at 2500 Two Notch Road in Columbia. Pursuant to notice a hearing was conducted on May 5, 1994 during which the file of the Department of Revenue and Taxation was made a part of the record. A copy is substituted for the original. The issue presented was whether the location for Kater Keg Party Shop is a proper one. Based upon the testimony and evidence presented, I make the following:

FINDINGS OF FACT

1. The applicant is a legal resident of the United States and has been a resident of South Carolina for over twenty years. He is over the age of twenty-one.

2. The applicant does not have any criminal background and is a person of good moral character.

3. Notice of the application was published in The State newspaper and was posted at the location for the requisite period of time.

4. No beer and wine or alcoholic beverage permits have been issued to the applicant in the past and there are no violations of any laws relating to beer and wine or alcoholic beverages.

5. The proposed location is 2500 Two Notch Road in Columbia and is a convenience store that also serves food and has coin-operated food vending machines. The applicant wants to change the character of the store to enlarge the grocery supplies and the menu for take out food.

6. The location has been in existence as a store for over twenty years and is currently licensed. The licensee is Llewelyn Poole. There is no evidence of any violations against Mr. Poole on this license.

7. The applicant began operating the location in October 1992 and the hours of operation are Monday from 10 o'clock in the morning to midnight and Tuesday through Saturday from 9 o'clock in the morning to midnight.

8. The location has experienced numerous problems with the police and the applicant met with the local police to try to resolve some of the problems.

9. The police requested that several items be done. These are: to have a security guard patrol the area; remove the pay phones located outside of the building; add more outside lighting; remove curtains hanging on the inside windows to allow visibility inside the building; and not to employ Terry Bracee because of suspected criminal activity by him inside the store.

10. The applicant did all the items requested of him. He has two security guards under contract to patrol the area, the outside phones were removed to discourage loitering and prevent the use of the phones for suspected drug activity, additional lights were installed, the curtains were removed, and the employee was terminated after his arrest for alleged drug activity.

11. The complaints by the police department all focused on loitering and on suspected drug activity on the property. Some arrests were made outside of the building and the employee was arrested inside the building after an alleged sale of drugs. There were a few incidents of damage to the property for windows broken from the outside possibly caused by gunshots.

12. Area residents have been burglarized by some former patrons of the Kater Keg.

13. This area of Two Notch Road has been a constant source of police complaints over several years not all related to the operation of this establishment.

14. The location is not within close proximity of any churches, schools or playgrounds.

CONCLUSIONS OF LAW

1. The Administrative Law Judge Division is vested with the powers, duties and responsibilities exercised by the former Alcoholic Beverage Control Commission and hearing officers pursuant to Chapter 23 of Title 1. S.C. Code of Laws § 61-1-55 (Supp. 1993).

2. S.C. Code § 61-9-320 (Supp. 1993) provides the statutory requirements for this issuance of beer and wine permits. It states in part:

No permit authorizing the sale of beer or wine may be issued unless:

...

(6) The location of the proposed place of business of the applicant is in the opinion of the department a proper one. The department may consider among other factors, as indications of unsuitable location, the proximity to residences, schools, playgrounds, and churches. This item does not apply to locations licensed before its effective date.

S.C. Code § 61-9-320 (6) (Supp. 1993).

3. Although "proper location" is not statutorily defined, "rather broad discretion is vested in the Commission in determining the fitness or suitability of a particular location." Fast Stops, Inc. v. Ingram, 276 S.C. 593, 281 S.E.2d 181 (S.C. 1981). This determination of suitability is not solely a function of geography, but involves an infinite variety of considerations related to the nature and operation of the proposed business and its impact upon the community where it is to be situated. Kearney v. Allen, 287 S.C. 324, 338 S.E.2d 335 (S.C. 1985); Schudel v. S.C. ABC Commission, 276 S.C. 138, 276 S.E.2d 308 (S.C. 1981).

4. In addition, proximity of a location to a church, school, playground, or residence is a proper ground, by itself, on which the location may be found unsuitable for a permit to sell beer and wine. Byers v. S.C. ABC Commission, 305 S.C. 243, 401 S.E.2d 653 (S.C. 1991).

5. Inherent in the ability to grant a license is the ability to place restrictions on the operation of the business for the license issued.

DISCUSSION

The location has experienced numerous problems with the police in the past. However, the applicant is working with the police to resolve some of the problems. The main problem is the loitering outside of the building which possibly leads to other illegal activity involving the sale of drugs. It is not unreasonable for the police to make requests of the applicant to assist in reducing the loitering and other possible criminal activity. Continued criminal activity on the premises and in the area immediately surrounding the building must be considered in determining the continued suitability of the location for any type of permit for the sale of beer and wine. No one can insure that criminal activity will not take place but steps to reduce it must be favorably considered. If the problems are not resolved then the protests can be renewed when it is time to renew the permit.

The applicant would agree to certain restrictions on the permit. These include continuing security patrolling the area, posting "No Loitering" signs, and taking other steps to discourage loitering on the premises. The applicant would like to rehire Terry Bracee if he is not convicted of any criminal activity because he was a good employee. However, the presence of Mr. Bracee on the premises as an employee may disrupt the progress that is being made to change the character of the location. It would not be prudent to disregard the cooperative efforts that have been established with the local police authorities by rehiring a person who is suspected of illegal drug activity on the premises.

On a trial basis the applicant should be granted a license provided that he continues to work with local law enforcement, that security guards continue to patrol the area, and that signs be erected prohibiting loitering on the property. Continued complaints of illegal activity on the property and incident reports from the local police authorities must be a factor in determining whether to renew the permit.

ORDER

Based upon the Findings of Fact, Conclusions of Law, and Discussion above, it is

ORDERED that an on-premises beer and wine permit be granted to the applicant, Balkar Sandhu upon the condition that he continue to work with the Columbia Police Department to reduce suspected criminal activity on the property, that security guards continue to patrol the property, that signs be posted to discourage loitering, and that Mr. Terry Bracee not be re-employed on the premises. A violation of any of the restrictions placed on the license may be used by the Department as a basis for suspension or revocation of the license.

AND IT IS SO ORDERED.

_________________________

ALISON RENEE LEE

Administrative Law Judge



June __, 1994

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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