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:
Ann R. Varnadore, d/b/a The Cozy Room vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
Ann R. Varnadore, d/b/a The Cozy Room

Respondents:
South Carolina Department of Revenue

Protestor-Intervenor:
Reverend Michael Sollers
 
DOCKET NUMBER:
95-ALJ-17-0658-CC

APPEARANCES:
Kenneth Allen, Esquire for Petitioner

Reverend Michael Sollers for Protestor-Intervenor

No appearance by the Respondent
 

ORDERS:

ORDER AND DECISION

STATEMENT OF THE CASE


This matter comes before me pursuant to S.C. Code Ann. § 61-1-55 (Supp. 1995) and S.C. Code Ann. § 1-23-310, et seq. (Rev. 1986 & Supp. 1995) upon the application of Ann R. Varnadore for an on-premises beer and wine permit for The Cozy Room located on Highway 200 in Fairfield County, South Carolina. After notice to the parties, a hearing was conducted on November 29, 1995. At the hearing, Reverend Michael Sollers moved, without objection, to be made a party. The issued considered was the suitability of the proposed business location. Based upon the evidence presented, the permit is denied.

FINDINGS OF FACT

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

1. The applicant, Ann R. Varnadore, is over the age of twenty-one and is a resident of South Carolina and a legal resident of the United States.

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

3. Currently, she has another beer and wine permit for a location in Chester County. No permit has been revoked.

4. The Cozy Room is located in the Mitford community in Fairfield County. The proposed location is one mile from Great Falls, located in Chester County.

5. The proposed location is a leased space in a large building called The Gold Nugget Mall. The building is owned by McDonald Amusement which leases nine spaces to persons who operate video amusement games. Petitioner leases one space.

6. The Cozy Room is open 24 hours a day only to persons over the age of 21. A security guard patrols the premises begining at 5:00 p.m. The other businesses are also open 24 hours a day.

7. Across the highway from The Gold Nugget Mall is a wooded area. On each side of the building, there are residences. Near the rear of the building and next door is Buddy's Garage, an automobile paint and body shop and garage business.

8. The area is rural residential. There are no other businesses in the vicinity. There are several locations in the Mitford community that sell beer and wine.

9. There are no schools or playgrounds in the area. The closest church, Evangel Temple Assembly of God, is located 698 feet from the proposed location.

10. Numerous protests were filed against the location. There was a petition signed by over two hundred persons in the community presented by Rev. Michael Sollers. Letters from six churches, the sheriff, and the county magistrate all object to the issuance of any beer and wine permits in the Mitford community because it is a rural community covering seven miles that already has five businesses licensed to sell beer and wine or alcohol. They feel the only reason for the sale of any type of alcohol in the community is because of video poker and the use of alcohol to promote gambling. The petition is not specific to the proposed location but expresses objections to any additional permits in the community.

11. Only two protestors appeared at the hearing. Reverend Sollers, pastor of the Evangel Temple Assembly of God, represented the persons who signed the petition. One resident of the community appeared to voice objections to the application.

12. The resident lives less than one-tenth of a mile from the proposed business and expressed concerns about the proximity of the business to his home, the extra traffic to the area from neighboring counties, increased crime, and the effect of alcohol on a person's judgment.

13. Reverend Sollers echoed these same sentiments adding that the residents of the community are elderly and that there have been motor vehicle accidents in the area one of which involved an intoxicated person. He also emphasized there are five other locations in the community which sell beer and wine and the increased traffic from neighboring counties and from outside South Carolina.

14. Notice of the application was posted at the location and published in the Herald Independent in Fairfield County for the time period required.

15. Chester and Lancaster Counties voted in the local referendum to prohibit the playing of video poker within the county. Residents of the county who want to play these video games must go to a county that does not prohibit playing these games. Fairfield County allows the playing of video poker.

16. The proposed location is located in Fairfield County just across the county line from both Chester and Lancaster Counties.

DISCUSSION

The Administrative Law Judge is vested with broad discretion in determining the suitability of a location and the issuance of a beer and wine permit. See Fast Stops v. Ingram, 276 S.C. 593, 281 S.E.2d 118 (1991); Byers v. S.C. ABC Comm'n, 281 S.C. 566, 316 S.E.2d 705 (Ct. App. 1984). The legislature has provided factors which may be considered in determining the unsuitability of a location. The courts have recognized that a variety of considerations relating to the nature and operation of the business should be evaluated including the impact upon the community.

Mitford is in a predominately rural area of the county. Photographs and a map show that the residences are in close proximity to each other and the proposed location. The Golden Nugget Mall is the only commercial venture in the immediate area with the exception of Buddy's Garage. It is not located in a commercial district of Mitford nor is it in the vicinity of other commercial businesses. The only reason to go to the Golden Nugget is for entertainment in the form of video games. The playing of video games, in particular video poker, is a regulated activity by the state. It is also a regulated form of gambling. See Reyelt v. S.C. Tax Comm'n, C/A No. 6:93-1491-3 and C/A No. 6:93-1493-3 (D.S.C. 1993).

The prohibition of video poker in a neighboring county, the proximity of the Golden Nugget Mall to those counties, and the effect on the community should be considered. Although the playing of video poker is legal in Fairfield county, the location chosen by the proposed business at the county line increases the likelihood that persons from the neighboring counties will travel to play video poker. The law does not prohibit its location. However, the increased traffic in the community will change the character of the community especially since the businesses are open 24 hours a day. The sale of beer and wine for on-premises consumption at a business opened 24 hours for the playing of adult video games in close proximity to the residents in the community would have a negative impact on this community. The existence of the proposed location in this area of Mitford changes the character of the community. Its proximity to the residences is a factor contributing to its unsuitability for the sale of beer and wine.

CONCLUSIONS OF LAW

Based upon the Findings of Fact, I conclude, as a matter of law:

1. The Administrative Law Judge is vested with the powers, duties and responsibilities 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. 1995).

2. S.C. Code Ann. § 61-9-320 (Supp. 1995) provides the statutory requirements for the issuance of beer and wine permits. It provides:

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 of Laws (Supp. 1993).

3. The determination of suitability of the proposed location is not necessarily a function solely of geography. It may involve an infinite variety of considerations related to the nature and operation of the proposed business and its impact on the community within which it is to be located. Kearney v. Allen, 287 S.C. 324, 338 S.E.2d 335 (1985).

4. 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 Comm'n, 305 S.C. 243, 410 S.E.2d 653 (1991).

5. The location of the proposed business is not suitable for the issuance of an on-premise beer and wine permit because of its close proximity to residences and the adverse impact it would have upon this community.

ORDER

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

ORDERED, that the application of Ann R. Varnadore for an on-premise beer and wine permit for The Cozy Room located on Highway 200 in Fairfield County is DENIED.

AND IT IS SO ORDERED.











__________________________

ALISON RENEE LEE

Administrative Law Judge



February _____, 1996

Columbia, South Carolina.


Brown Bldg.

 

 

 

 

 

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