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Exotica Intl Club 08-V-077

Exotica Intl Club 08-V-077

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Published by Sarah Mirk

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Published by: Sarah Mirk on Mar 16, 2011
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BEFORE THE LIQUOR CONTROL COMMISSIONOF THE STATE OF OREGONIn the Matter of the Full On-Premises ) FINAL FINDINGS OF FACTSales License Held by: ) CONCLUSIONS OF LAW) AND ORDENorth House Enterprises, LLC. ) OLCC-08-V-077Ghassan Samander, Managing Member ) OLCC-08-V-077APO Box 6649 )Portland, OR 97228 ))dba EXOTICA INTERNATIONAL )CLUB FOR MEN )240 NE Columbia )Portland, OR 97211 )HISTORY OF THE CASE
On September 8, 2008, the Oregon Liquor Control Commission (OLCC or Commission)issued a Notice of Proposed License Cancellation to North House Enterprises, LLC and GhassanSamander, Managing Member (collectively Licensee), dba Exotica International Club for Men,located at 240 NE Columbia, Portland, Oregon. The notice charged Licensee with four violations: (1) failing to use a wand on all patrons entering the premises after 9:00 p.m., inviolation of a restriction on the license, a violation of OAR 845-005-0355(5); serving patronsmore than one drink at a time in violation of a license restriction prohibiting any patron to havemore than one drink for personal consumption at one time, a violation of OAR 845-005-0355(5);(3) having a server under the influence of intoxicants while on duty in violation of OAR 845-006-0345(1); and (4) promoting drink specials after 12:00 a.m. in violation of 
OAR 845-006-0345(11)(b). Licensee timely requested a hearing.On November 24, 2008, OLCC issued an Amended Notice of Proposed LicenseCancellation and Notice of Proposed Refusal to Renew License to Licensee. The amendednotice added a proposal to refuse to renew Licensee’s license pursuant to ORS 471.313(4)(g),because of Licensee’s poor record of compliance with the liquor laws and Commission’s rules.The Commission referred Licensee’s hearing request to the Office of AdministrativeHearings. The case was assigned to Administrative Law Judge Alison Greene Webster.Prehearing conferences were held on May 11, 2009 and August 7, 2008. Case Presenter Kelly Routt represented OLCC, and Attorney Cecil Gill represented Licensee.The contested case hearing was held in this matter in Tualatin, Oregon, on August 24 and25 and September 16, 2009, before Administrative Law Judge Webster. Licensee wasrepresented by Attorney Cecil Gill. Kelly Routt presented the case for the OLCC.The following witnesses testified at hearing on behalf of OLCC: OLCC Inspector Dana
Page 1 of 19 – Final Order 
Tawney; OLCC Inspector Matthew Cobos; OLCC Inspector Jason Tallmadge; OLCC RegionalManager Janice Kindrick; and Portland Police Officer Craig Anderson. The following witnessestestified on behalf of Licensee: Managing Member Ghassan “Gus” Samander; Manager MartelK. Wilson; Manager Donna Thames, William Olson of NW Beverage Control, employeeMichelle Werner, employee Jocelyn Mugot; employee Joel Ayers; employee Dean Jepson;patron Michael Butchee and employee Frank Murchie.The record remained open for written closing arguments, and closed on October 28,2009, upon receipt of OLCC Staff’s Rebuttal Closing Argument.The Administrative Law Judge considered the record of the hearing and the applicablelaw and issued a Proposed Order mailed November 16, 2009
Licensee filed Exceptions to the Proposed Order on December 1, 2009. Staff filedComments on the Proposed Order on December 1, 2009. The Administrative Law Judgeresponded to Licensee’s Exceptions and Staff’s Comments on December 21, 2009.On April 15, 2010, the Commission considered the record of the hearing, the applicablelaw, the Proposed Order of the Administrative Law Judge, Licensee’s Exceptions to theProposed Order, Staff’s Comments on the Proposed Order and the Administrative Law Judge’sResponse to Licensee’s Exceptions and Staff’s Comments. Based on this review and thepreponderance of the evidence, the Commission enters the following:
OLCC Exhibits A1 through A13 were admitted into the record. Licensee’s Exhibits P1through P3, P5 and P6 (pages 1 through 7, 10 and 12), and P8 through P12 were admitted.Licensee withdrew Exhibits P4 and P7, and pages 8 and 11 of Exhibit 6.
1. Whether, on July 5, 2008, Licensee’s employees failed to use a wand on all patronsentering the premises between 9:00 p.m. and closing, in violation of a restriction on the license.OAR 845-005-0355(5).2. Whether, on the night of July 11 and/or the early morning hours of July 12, 2008,Licensee’s employees allowed patrons to have more than one drink for personal consumption ata time, in violation of a restriction on the license. OAR 835-005-0355(5).3. Whether, on the night of July 11 and/or the early morning hours of July 12, 2008,Licensee’s employee Alisha Pearson was under the influence of intoxicants while on duty, inviolation of OAR 845-006-0345(1).4. Whether, on July 12, 2008, Licensee’s employees promoted drink specials after 12:00a.m., in violation of 
OAR 845-006-0345(11)(b).
OAR 845-006-0345, the prohibited conduct rule, was amended and paragraphs were renumbered
Page 2 of 19 – Final Order 
5. If one or more of the violations are proven, what is the appropriate sanction?6. Whether the Commission has grounds to refuse to renew Licensee’s license under ORS 471.313(4)(g) because Licensee did not have a good record of compliance with the liquor laws of this state while licensed.7. If so, whether Licensee has shown good cause to overcome the Commission’s refusalto renew the license.
1. North House Enterprises, LLC and managing member Ghassan “Gus” Samander, dbaExotica International Club for Men, located at 240 N.E. Columbia, Portland, Oregon have held aFull On-Premises sales license since June 22, 1999. (Ex. A1.)2. In September 2005, Licensee violated OAR 845-009-0010(1)(b) when a manager whosupervised employees who mixed, sold or served alcoholic beverages did not have a validservice permit. Licensee paid a civil penalty in lieu of a license suspension. In August 2006,Licensee was charged with a violation of ORS 471.315(1)(c) (a history of serious and persistentproblems at or in the immediate vicinity of the licensed premises). In December 2006, Licenseewas charged with a violation of OAR 845-006-0335(3)(b) (minor in prohibited area). Licenseeadmitted both violations, and in September 2007, entered into a Settlement Agreement with theCommission. Licensee paid a civil penalty of $1,485 for the minor in prohibited area violation,and a penalty of $4,950 for the history of serious and persistent problems violation. As part of the September 2007 Settlement Agreement, OLCC placed restrictions on Licensee’s license.(Ex. A1.)3. In the Settlement Agreement ratified by the Commission on September 17, 2007,Licensee accepted the following restrictions on its license:
(1) Licensee must obtain Commission approval of any and all managers on thelicensed premises.(2) Licensee shall not allow any patron to have more than one drink for personalconsumption at one time. A drink is defined as no more than 16 oz. of a maltbeverage, 6 oz. of wine or 2 oz. of distilled spirits, except that Licensee may allowthe sale of a bottle of champagne for two or more patrons.(3) Licensee will verify the age of minor entertainers before each work shift. Themanager on duty will hold each minor’s identification during the minor 
effective May 1, 2009. The current version of the rule prohibiting price reductions on alcoholicbeverages by the drink after midnight is OAR 845-006-0345(10)(a)(C).
Licensee already had the restriction requiring Commission approval of any and all managers on thelicense prior to the Settlement Agreement. (Ex. A1; test. of Samander.)
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