South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
Cynthia Hughes and C.A. Hughes, Inc. vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Cynthia Hughes and C.A. Hughes, Inc.

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
94-ALJ-17-0091-CC

APPEARANCES:
n/a
 

ORDERS:

ORDER AND DECISION

This matter came before the Administrative Law Judge Division upon the application of Cynthia Hughes on behalf of C.A. Hughes, Inc. for an on-premises beer and wine permit for the Travelers Rest Coffee House located at 26 Walnut Lane in Travelers Rest, South Carolina. After notice to all the parties, a hearing was conducted on June 8, 1994. The file of the Department of Revenue and Taxation was made a part of the record without objection. A copy of the file is substituted for the original. Based upon the preponderance of the testimony and evidence presented, I make the following:

FINDINGS OF FACT

1. The applicant, Cynthia A. Hughes, is over the age of twenty-one and has been a resident of South Carolina all of her life. She is the president and sole shareholder of C.A. Hughes, Inc. She is a person of good moral character and has never been convicted of a crime. There are five applications for on-premises beer and wine permits, some of which may still be pending. At the time of the hearing, she did not hold any permits from the Department and has never had any permits suspended or revoked.

2. C.A. Hughes, Inc. owns and/or leases property from which it plans to operate several deli type restaurants. The Travelers Rest Coffee House is currently a game room that serves snacks and sodas. It was previously operated as a lounge. The kitchen will be remodeled and expanded to provide more grills and better exhaust. The hours of operation will be 12 noon to 12 midnight, Monday through Saturday. In the future it may open earlier to accommodate a lunchtime patrons.

3. The building is located on the frontage road of Highway 25 between Asheville, North Carolina and Greenville, South Carolina in a commercial area. It is the main commercial area of Travelers Rest. There are several locations in the area that are licensed for either on-premises or off-premises sale of alcoholic beverages including beer and wine. The location is three-tenths of a mile from a church and approximately six-tenths of a mile from an elementary school. The police station is located within one mile from the proposed location.

4. The applicant began operating this business in December 1992. There will be a manager at the location but that person will have no independent managerial powers. The applicant through her company will supervise and train employees on the laws regarding the sale and consumption of alcoholic beverages.

5. The applicant met with the police chief regarding past problems when the lounge was operated by others. The chief of police appeared at the hearing and vigorously protested the application. The protest was based on problems experienced in the area in the past when the location was licensed for on-premises consumption. The history of the location revealed that types of establishments operating in the past created an environment for unruly behavior involving numerous disturbances and altercations resulting in injury to patrons. The location was a source of constant police investigations. Even when the location became a private club there were still numerous incident reports. At one point the local government revoked business licenses for the operators of the establishment. Ultimately in July or August 1991, the alcoholic beverage license held by that individual was suspended and the lounge closed. Since that time there have been no problems with the location. Since the applicant has been operating the lounge there have been no problems, which the police chief attributes to the inability to sell alcoholic beverages. The problems existed during the time the location was licensed.

6. Walnut Lane Estates, a residential area, is located within 600 feet of the lounge. Also in the vicinity is a residential area called Grandview. Both of these areas border the proposed location but are separated from it by a wooded area and streets. The residents of this area have complained about increased traffic. The police chief expressed concern for kids going to the neighborhood pool and the increased traffic on the streets away from the highway access roads. However, there are many businesses including a shopping center and other restaurants and bars located in the same area and bordering on these residential areas as well.

7. Notice of the application was published in the Travelers Rest Monitor and posted on the premises for the time period prescribed by law.

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). The proposed location is not in close proximity to any of these entities.

5. The applicant meets the statutory requirements for the issuance of an on-premises retail beer and wine license. The location is a suitable one. It is located in a commercial area of Travelers Rest on Highway 25 where a shopping mall and several other restaurants and businesses are located. It is not in close proximity to any churches, schools or playgrounds. The corporation will develop a training program and enforcement policy regarding the sale of alcoholic beverages. There is adequate police protection. The residents are shielded from this commercial area and the possibility of increased traffic is not a serious threat to the community.

ORDER

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

ORDERED, that the applicant, Cynthia A. Hughes and C.A. Hughes, Inc. are entitled to the issuance of an on-premises retail beer and wine permit. The Department shall issue the permit upon the payment of the appropriate fees.

AND IT IS SO ORDERED.

_________________________

ALISON RENEE LEE

Administrative Law Judge



July __, 1994

Columbia, South Carolina


Brown Bldg.

 

 

 

 

 

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