SC Administrative Law Court Decisions

These cases come before me on the application for renewal of licenses and permits held by George S. Dreher for these locations. Because the applications are for locations in Lexington, South Carolina and involve the same witnesses and issues, the cases were consolidated for the hearing. After notice to the parties and protestors, a hearing was conducted on December 12, 1994. Based upon the testimony and evidence presented, I make the following:

1. The applicant, George S. Dreher is over the age of 21 and is a legal resident of the United States and of South Carolina.

2. He has never been convicted of a crime and is a person of good moral character.

3. Currently, he holds a retail liquor license and off-premises beer and wine permit for Dreher Party Shop and ABC Package Store located at 929 Hendrix Street in Lexington, South Carolina. These permits have never been suspended or revoked. The party shop has been licensed for at least thirteen years.

4. He also holds an on-premises beer and wine permit for the Cozy Oaks located at 107 Thompson Street in Lexington, South Carolina. This permit has never been suspended or revoked. Dreher has held this permit since 1985.

5. Cozy Oaks is open from 6:00 p.m. to 11:00 p.m. Monday through Thursday. On Friday and Saturday, it closes at 12 midnight. It has parking in front of the building and outdoor lighting that lights the parking lot.

6. Both locations are within a few blocks of each other in an area of town which has a history of illegal drug activity. This area of the Town of Lexington was annexed in 1992 upon the request of the neighborhood in order to obtain better police protection.

7. When the permits and licenses were renewed two years ago, the Police Chief for the Town initially objected. The protest was withdrawn upon certain conditions being met. These conditions related to installing outside lighting, removal of outside telephones, and placing "No Loitering" signs around the property and adding a fence to prevent access to the rear of the party shop property.

8. The persons protesting the application were the Chief of Police and a narcotics detective. Their protest is based upon the increase in criminal activity particularly at the Cozy Oaks location. In 1993, there was one police incident report for the party shop location and 31 reports for the Cozy Oaks location. Most of the reports involve complaints of assault, assault and battery, distribution of crack cocaine, and disorderly conduct. In 1994, there were 78 reports for the two locations; only 18 involved the party shop. Most of these 60 reports at the Cozy Oaks involve assault and battery and drug sales. Less than a dozen calls were initiated by Cozy Oaks itself. The Cozy Oaks location has been the target of several undercover narcotics investigations. The investigations involved the location and not Dreher personally.

9. A majority of the incidents were reported between 3:00 to 4:00 p.m. and 1:00 to 2:00 a.m. Both locations are closed during the early morning hours.

10. Employment of a security guard to patrol Cozy Oaks would not alleviate the problems with drug sales or other criminal activity unless the person patrolling has jurisdiction to arrest any person violating the law. The police are not equipped to continue the heavy patrolling and response to calls for this area to the detriment of other areas of town.

11. There are other businesses in the vicinity that sell beer and wine for off-premises consumption and others for on-premises consumption.

12. The locations are not near any churches, schools or playgrounds.

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 sets forth eight criteria before a permit is issued. To renew a permit issued by the Department, the applicant must met the same criteria. The applicant is entitled to renew the permit absent evidence to show a sufficient change in the business to warrant refusal. 3. The evidence produced in this case shows by a preponderance of the evidence that there is an increase in criminal activity occurring on the property of the Cozy Oaks. In fact, incident reports doubled in a one year period. The majority of the complaints to the police department involved violent crimes and drug sales. The increase in this activity produces a drain on the police protection for the town. Although several witnesses testified that the drug problem has always existed in the neighborhood, the weight of the evidence reveals that there is an increased problem at this location and that the increase is a sufficient change in the operation of the business to warrant refusing to renew the permit for the Cozy Oaks. The Cozy Oaks is not a proper location for an on-premises beer and wine permit.

4. The sole and exclusive power to grant a retail liquor license in a contested and protested matter rests in the discretion of the Division. S.C. Code § 61-3-410 (Supp. 1993); Wall v. S.C. Alcoholic Beverage Control Commission, 269 S.C. 13, 235 S.E.2d 806 (1977). Section 61-3-420 lists the criteria for determining when a person who will have actual control and management of the proposed business is ineligible for a retail license. To be eligible, a person must be 21 years of age; a legal resident for at least thirty days before the date of the application; of good repute; or must not have had a license for the sale of alcoholic liquors revoked in the five years preceding the application. Petitioner meets these requirements. The applicant meet the statutory requirements for the issuance of a license.

5. No new retail liquor licenses may be granted if the place of business is within three hundred feet of any church, school or playground if the business is situated within the municipality or within five hundred feet if the business is outside the municipality. S.C. Code of Laws § 61-3-440 (Supp. 1993). The proposed location is not within proximity to any of these structures.

6. Although there have been incident reports to the retail liquor store and party shop, the operation of this location has not impacted the community to the extent that it is no longer a suitable location.

Based upon the foregoing Findings of Fact and Conclusions of Law, the application to renew the retail liquor license and off-premise beer and wine permit for the Dreher Party Shop and ABC Package Store are GRANTED. The application to renew the on-premises beer and wine permit for Cozy Oaks is DENIED.

AND IT IS SO ORDERED.

_________________________

ALISON RENEE LEE

Administrative Law Judge

January _____, 1995

Columbia, South Carolina.