South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
Gerald R. Brooks, Hooters of Greenville, Inc., d/b/a Hooters vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Gerald R. Brooks, Hooters of Greenville, Inc., d/b/a Hooters

Respondents:
South Carolina Department of Revenue

Protestor:
Reverend Allen Edmisten
 
DOCKET NUMBER:
95-ALJ-17-0076-CC

APPEARANCES:
Kenneth Allen, Esquire and James Dirr, Esquire for Petitioner

Malane Pike, Esquire for Respondent

Stephen Brown, Esquire for Protestor
 

ORDERS:

ORDER AND DECISION

This matter comes before me on the application of Gerald R. Brooks and Hooters of Greenville, Inc. for an on-premises beer and wine permit. The application was protested by the Department of Revenue and Taxation and Reverend Allen Edmisten, pastor of Laurel Street Baptist Church. Reverend Edmisten requested to be made a party without objection. After notice to the parties, a hearing was conducted on March 28, 1995. At that time, the Department and Reverend Edmisten moved to dismiss the application on the basis that the applicant listed in the newspaper advertisement was not Gerald Brooks and therefore the public did not have adequate notice regarding the applicant.

The motion was denied on the basis that the parties failed to raise it in a timely manner waiting until the date of the hearing; that the Department in the past has allowed the applicant to cure any defect in the notice and republish it; and on the basis that judicial economy required the hearing to go forward because the notice did provide the correct address of the proposed location and a number of people objecting to the location appeared at the hearing. Numerous members from the public provided protests with respect to the location. Any defect with respect to the applicant could be cured by allowing the applicant to re-advertise properly showing the correct applicant and allowing the public an opportunity to provide any comments with respect to the character of the applicant. Therefore it was ordered that the applicant publish notice showing the correct applicant and allowing the public to make comments on the suitability of the applicant to hold an on-premises beer and wine permit. The record was held open for that limited purpose only.

A post trial hearing was held on May 15, 1995 for the limited purpose of accepting evidence relating to the character of the applicant and his suitability to hold a beer and wine permit. At the hearing, the affidavit of publication showing the proper applicant and requesting comments from the public was accepted. No comments were received from the public relating to the character of the applicant and the record was closed.

FINDINGS OF FACT

I make the following findings of fact, taking into consideration the burden on the parties to establish their cases by a preponderance of the evidence and taking into account the credibility of the witnesses:

1. Gerald R. Brooks is over the age of twenty-one and is a resident of South Carolina. He is also a legal resident of the United States.

2. He has never been convicted of a crime and is a person of good moral character. He currently holds three beer and wine permits for other Hooters locations in South Carolina. None of these permits have been suspended or revoked.

3. Notice of the application was posted at the location and was advertised in The Greenville News for the time period required.

4. Hooters is part of a chain of restaurants operating under Hooters of America, Inc. since the 1980's when founded by Robert Brooks, a former South Carolina resident and brother of the applicant. The beer and wine application is for a restaurant located at 2401 Laurens Road in Greenville. The restaurant is currently open for business selling seafood, sandwiches, chicken wings and other items. Its hours of operation are Monday through Thursday, 11:00 a.m. to 12 midnight; Friday and Saturday 11:00 a.m. to 1:00 a.m.; and Sunday 12 noon to 11:00 p.m.

5. The restaurants are either franchises or co-owned facilities. Hooters of America sets a standard that approximately sixty-five percent of the restaurant's revenue must be derived from food; thirty percent from the sale of beer and wine; and five percent from merchandise. Each restaurant is monitored to assure that it meets this standard.

6. Hooters of America provides alcohol awareness and training for all employees. Conducted by certified trainers, the program focuses on the recognizing how and when to intervene to prevent service to persons who may be intoxicated and identifying the proper persons for service. Training is provided through manuals and other information developed by the restaurant industry relating to the service of alcoholic beverages. All employees are required to be certified in responsible alcohol service to ensure that the sale of beer and wine to patrons is conducted in an appropriate manner.

7. The proposed location is at the intersection of Laurens Road, Haywood Road, and Old Woodruff Road, a heavily travelled commercial area. At the time of the hearing, Laurens Road was under construction to widen the road to seven lanes and to create turn lanes from Laurens Road to Haywood Road. In 1993, the traffic count revealed that an average of approximately 26,000 vehicles past the property at issue on a daily basis. This count was determined by measuring the daily traffic flow at designated points four times in a year, not on a weekend, and averaging the number of vehicles crossing that point.

8. There is residential housing in the area bordering on the commercial areas. There are no schools in the vicinity. Gower Park is located 505 feet from the front door of the location. Discovery Zone, an indoor play facility, is located in a mall to the rear of Hooters through its parking lot and the mall parking lot, 785 feet away. From the front door of Hooters to the nearest entrance of Laurel Street Baptist Church, which is across the street from Hooters, is 363 feet. The church is located on the same side of the street as Hooters on the other corner of the three street intersection. The parking lot of the church is located farther away from Hooters. The measurements were made by a measuring wheel using the shortest distance of pedestrian travel, crosswalks and pedestrian signals were not always used.

9. The sale and consumption of any beverage with an alcoholic content is abhorrent to the teaching of the Baptist faith at this church. The sale of beer and wine at Hooters directly across from the church is an affront to the teachings of the church. There are activities at the church daily.

10. There are many other locations within a few blocks of the church that sell beer, wine and alcoholic beverages. The church does not object to some of these because they are not in direct view of the church. From the church parking lot Hooters is visible but the building is constructed so that there are no windows facing the church or its parking lot.

11. Over a fifteen month period from January 1994 to March 1995, there were 165 accidents reported in the vicinity of the intersection of Laurens Road and Haywood Road. The exact location of the accidents could not be pinpointed. There are concerns that the sale of beer and wine at this location will cause additional traffic problems at this intersection. There is no evidence to establish that any of these accidents were related to the consumption of beer, wine or alcoholic beverages.

12. Hooters obtained the permits required by the City of Greenville in order to construct and operate the restaurant.

13. The Department of Revenue and Taxation is protesting the application on the same basis as Reverend Edmisten, i.e. proximity to the church, the park, and traffic.

CONCLUSIONS OF LAW AND DISCUSSION

1. The Administrative Law Judge Division is vested with the powers, duties, and responsibilities exercise by the former Alcoholic Beverage Control Commission and hearing officers pursuant to Chapter 23 of Title 1. S.C. Code Ann. § 61-1-55 (Supp. 1994)

2. S.C. Code Ann. § 61-9-320 (Supp. 1994) provides the statutory requirement for the issuance of beer and wine permits. It states:

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

(1) The applicant, any partner or co-shareholder of the applicant, and each agent, employee, and servant of the applicant to be employed on the licensed premises, are of good moral character.

(2) The retail applicant is a legal resident of the United States and has been a legal resident of this State for at least thirty days before the date of application and has maintained his principal place of abode in South Carolina for at least thirty days before the date of applicant.

(3) The wholesale applicant is a legal resident of the United States and has been a legal resident of this State for at least thirty days before the date of application and has maintained this principal place of abode in South Carolina for at least thirty days before the date of application or has been licensed previously under the laws of this State.

(4) The applicant, within two years before the date of applicant, has not had revoked a beer or a wine permit issued to him.

(5) The applicant is twenty-one years of age or older.

(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.

(7) Notice of application has appeared at least once a week for three consecutive weeks in a newspaper most likely to give notice to interested citizens of the county, city, or community in which the applicant proposes to engage in business. The department shall determine which newspapers meet the requirements of this section based on available circulation figures. However, if a newspaper is published within the county and historically has been the newspaper where the advertisements are published, the advertisements published in that newspaper meet the requirements of this section. Applicants for a beer or wine permit and an alcoholic liquor license may use the same advertisement for both if it is approved by the department.

(8) Notice has been given by displaying a sign for fifteen days at the site of the proposed business.

The sign must:

(a) state the type of permit sought;

(b) tell an interested person where to protest the application;

(c) be in bold type;

(d) cover a space at least eleven inches wide and eight and one-half inches high;

(e) be posted and removed by an agent of the department.

Section 61-9-320, S.C. Code Ann. (Supp. 1994).

3. 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, 410 S.E.2d 653 (S.C. 1991).

4. Any decision on the issuance of a beer and wine permit is not based upon the religious or moral convictions expressed by the protestants. Although the rights of an individual or congregation to abstain from the purchase or consumption of alcoholic beverages is respected, the standards for judging the suitability of a proposed location is not to be determined by the local community's religious or moral convictions. The sale of beer and wine and its consumption is lawful within the State of South Carolina as long as it conforms to the standards and restrictions set by the State. The presence of a restaurant that sells beer and wine for consumption by its patrons across the street from a church does not mandate denial of the license simply because such activity may conflict with the teachings of that religion. There is no evidence to show that the business activity of Hooters interferes with the attendance, activities, or spiritual nourishment of the parishioners. The location also does not interfere with the enjoyment and patronage of Gower Park or Discovery Zone.

5. Although Laurens Road is heavily travelled and there have been accidents near the location, there is no evidence to suggest that the accidents were caused by person who were intoxicated. The evidence reveals an average of eleven accidents a month near the vicinity of Hooters. Hooters has only been operating since February 1995, only one month during the time frame of the recorded accidents. There is no evidence that Hooters' patrons caused any accidents or that the number of accidents increased during the month Hooters opened. There is no evidence that the number of accidents occurring is unusual given the heavy flow of traffic. In addition, with the construction in the area there may be a temporary increase in the number of accidents occurring. The number of accidents has no bearing on the business located at that intersection.

6. Reverend Edmisten tried to demonstrate through a number of witnesses that Hooters is not a suitable location because it has not complied with the local ordinances relating to the number of parking spaces and because Hooters improperly used the public right of way to attain the necessary parking spaces. Whether the business has complied with the local ordinances is a matter left to the local authorities. Building and construction permits were issued by the City of Greenville, the South Carolina Department of Transportation, and other authorities having jurisdiction over particular aspects of the building and property. If during the course of construction Hooters committed some error or violated the conditions of those permits, resolution of those issues is left for the local or state authority issuing the permit. As a general rule, courts will not interfere with, or control or supervise, acts of a municipal corporation, nor will they substitute their judgment for that of the proper municipal authorities. 62 C.J.S. Corporations §199 (1949). This Division will not interfere in these purely local issues and will not make findings of fact relating to those matters especially when the City has not had an opportunity to specifically address this issue. For purposes of determining whether to issue a beer and wine permit, however, the location has adequate parking.

7. Pursuant to Administrative Law Judge Division Rule 29B, issues raised in the proceedings but not addressed in this Order are deemed denied.

ORDER

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

ORDERED, that the application of Gerald R. Brooks of Hooters of Greenville, Inc. for an on-premises beer and wine permit for Hooters restaurant located at 2401 Laurens Road in Greenville is GRANTED. The Department shall issue a permit upon the payment of the appropriate fees.

AND IT IS SO ORDERED.







__________________________

ALISON RENEE LEE

Administrative Law Judge

June _____, 1995

Columbia, South Carolina.


Brown Bldg.

 

 

 

 

 

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