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Vickie A.

P. O. Box 137
506 Lincoln Drive
Alcester, SD 57001
Statement of Facts
The city of Alcester is the owner of the real property and all improvements
located within the City of Alcester, Union County, South Dakota, specifically
described as:
The North 55 feet of the West 10.5 feet of Lot Nine (9) and the North
55 feet of Lots Ten (10), Eleven (11) and Twelve (12), Block
Nineteen (19), Original City of Alcester, Union County, South Dakota
according to the record plat thereof, subject to easements and
restrictions of record as set out under I. SUBJECT AND PURPOSE of
the Lease and operation agreement signed and dated November 6,
2014, between and by the City of Alcester and Deem Enterprises
LLC, Theresa A. Deem, managing member.
The residents of the City of Alcester voted to allow the city, under existing
terms and conditions at the time of the vote to own and operate a bar or liquor
The City of Alcester issued retail on-sale Liquor License #RL5428 and
package off-sale Liquor License #PL4431 for the sale of alcoholic beverages in
South Dakota at the annual sum of $1200.00 for the use of its on-sale liquor license
and the annual sum of $250.00 for the use of its off-sale package liquor license.

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The city of Alcester and Deem Enterprises, LLC are subject and answerable
to the laws and statutes of the United States of America and South Dakota.
The City of Alcester entered into a Lease and Operating agreement with
Theresa Deem and Deem Enterprises, LLC, 30294 South Dakota Highway 11,
Alcester, South Dakota, 57001, on November 6, 2014, defining and enumerating
terms and conditions placed upon both parties to the agreement with the term of
the lease commencing on January 1, 2015, and continuing until the last day of
December, 2015.
In the July 6th, 2015, Alcester city council meeting during public input,
Theresa Deem representing Deem Enterprises, LLC asked for clarification of state
law regarding hours of operation as a result of actions by Alcester Police Chief
Ryan Knutson. Present and witnesses during the July 6th, 2015, meeting were
Mayor Tom Glas, Council members Mark Dysktra, Mike Burke, Lance Johnson,
David Larsen, and Audri Carlson with council member Kama Johnson absent. Also
present during the public input were Vickie Larsen, Mike Kezar, Dale Pearson,
Lonnie Johnson, Alcester Police Chief Ryan Knutson as well as certain members
of the gallery having business before the Alcester City Council. A discussion took
place with exchanges between Theresa Deem, Alcester Police Chief Knutson,
members of the Alcester City Council and acting Alcester City legal counsel
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Gillespie of Gubbrud, Haugland and Gillespie during which Theresa Deem made
certain statements regarding to her operation of Alcester Bar and her over twenty
years experience as a bar operator.
Claim I
Hours of sale for on-sale Liquor License RL5428 are 7 a.m. to 2 a.m. with
days of sale Monday through Saturday. Hours of sale for off-sale Liquor License
PL4431 are 7 a.m. to 2 a.m. with days of sale Monday through Saturday. Alcester
According to the statements made at the July 6th council meeting, Theresa Deem
operator of the Alcester Bar complained Alcester Police Chief Ryan Knutson
confronted and broke up group of people at the Alcester Bar at 2 a.m. Alcester
Police Chief alleged the group was in the bar after hours and loitering. Acting
Alcester counsel Gillespie dealt with the question of loitering stating the
legislature had not defined the term loitering. However, Official South Dakota
Attorney General William J. Janklow wrote Opinion 77-35 and defined loitering
as, "... for the purposes of this provision, the commonly accepted and understood
meaning of the term must be applied (SDCL 2-14-1). Webster's New Collegiate
Dictionary defines loiter as, 'to delay an activity aimless idle stops and pauses; to
remain in area for no obvious reason.'...therefore...without a common or incidental
to an on-sale establishment is loitering and guilty of misdemeanor..." Additionally
Black's 6th Abridged Edition Law Dictionary , published by West Publishing on
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July 1991, defines loitering as, " stand around or move slowly about; to stand
idly around, linger or spend time idly...'
September 17, 2015, City of Alcester Answer
"I am sending this letter based upon your request for a response to the
Complaint that your delivered to Mayor Thom Glas..."
Rebuttal of answer
A formal, signed and notarized complaint was made to the city of Alcester
and as such required action on the part of the city council. The very least action
being an open, public discussion of the facts evidenced by the public discussion
July 6, 2015, between Police Chief Ryan Knutson and Theresa Deem and
witnessed by the council. The council was apprized of a defect.
Historically the present council has adopted a protectionist attitude toward
Theresa Deem and Deem Enterprises as lessees and operators of the Alcester Bar.
When faced with the admissions made by lessee Theresa Deem on July 6, 2015,
the council took no action to launch an objective investigation of illegal acts
admitted to by lessee Theresa Deem. On August 3, 2015, there was no agenda
item to discuss the allegations by Police Chief Ryan Knutson, despite body cam
evidence, admissions by Theresa Deem and witnessed by the council. The
September 9, 2015, Alcester city council agenda did not contain any agenda line

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item addressing an objective investigation of the August 3, 2015, complaint other

than my request to be placed on the agenda to discuss my complaint.
During my discussion of the complaint, Mayor Glas remarked, "...Police
Chief Ryan Knutson has been instructed to follow the law..." which in effect was
an insulting pat on my head and run along dismissal. Alcester city council has
witnessed a defect and Alcester city council has received a written complaint
advising them of a defect and yet it appears they will fail to cure the defect.
September 17, 2015, Alcester City Answer
"...Your Claim I dealt with people being in the Alcester Bar after hours. I
believe that at the September council meeting, you brought up a comment
about the Dillion rule implying that the City exceeded the authority that has
been granted by the State of South Dakota to them regarding the operation
and sale of alcoholic beverages in their town...The Alcester Ordinance
however went on to be somewhat more restrictive, not as it relates to the
sale or consumption alcohol, but as to the presence in a licensed
establishment. Our Ordinances make it unlawful for any person, including
employees, managers, and owners to remain on the licensed premises after
2:30 o'clock a.m. without permission of a law enforcement office. This in no
way modifies the hours of operation of the bar.."
Rebuttal of answer
On the contrary, in the September 9, 2015, council meeting I did not imply
the City exceeded its authority I stated the City did not have the authority to waterdown state statute as it related to hours of operation. I used Article VI of the US
Constitution, paragraph two (2) regarded as the Law of Supremacy and Dillon's

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Rule as justification of my position the City did not have the authority to broaden
state law. Article VI, paragraph two(2) of the US Constitution states,
"This Constitution, and the laws of the United States which shall be made in
pursuance thereof; and all treaties made, or which shall be made, under the
authority of the United States, shall be the supreme law of the land; and the
judges in every state shall be bound thereby, anything in the Constitution or
laws of any State to the contrary notwithstanding." U.S. Constitution
and Dillon's Rule,
"is used in interpreting state law where there is a question of whether or not
a local government has a certain power. Judge Forest Dillon, the chief
justices of the Iowa Supreme Court expounded this famous rule, which was
quickly adopted by state supreme courts around the nation." (U.S. Legal,, Dillon's Rule Law & Legal Definition)
"...municipalities have some local autonomy...regarded as sub-ordinate
status within the absence of state constitutional provisions to
contrary, they are subject wholly to state legislative control." (William &
Mary Law Review, Vol.10, Winter 1968 Number 2)
The state of South Dakota does not allow all and sundry municipalities
within its scope of authority to arbitrarily and with self-serving intent re-write state
statutes. Chaos would reign within South Dakota if all cities from Artas to
Yankton were allowed to tinker with state and federal statute to suit their own
purposes to benefit a favored lessee.

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In addition, it is my understanding the City ordinance was broadened to

accommodate Alcester Bar because they just couldn't clear the bar when they had
bands. Alcester Bar under the management of Deems has had live bands maybe
four times a year which could have been accommodated under a special permit
rather than an ordinance change. In my experience, the bands I had contact with
were more than ready to head home before 2:00 a.m. In fact, usually their contracts
specified the performance start and end time and normal bar management usually
has clean up/close up routines commence around last call.
Claim II
Alcester Police Chief Ryan Knutson continued on in his argument that
Theresa Deem, Deem Enterprises, LLC was allowing minors in the bar. Managing
member Theresa Deem stated that, "...the kids were in the habit of ordering pizzas
and were coming in to pick up the pizzas or wait for the pizzas to be baked..."
When questioned about parental presence of these underage minors managing
member Theresa Deem stated, ", the kids were just ordering pizza to take
out...". Alcester Police Chief Ryan Knutson bolstered his argument stating that, "I
have this incident on body cam..."
Alcester Bar is allowing underage minors to be present in the bar without
parental presence violating state statute as well as the terms and conditions of the
lease and operating agreement with the city of Alcester.
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September 17, 2015, City of Alcester Answer

"...It would appear to me that whether or not a minor is in the bar and is
loitering is really a fact questions to be determined on a case-by-case basis.
I have spoken with Chief Knutson concerning this matter. I know he has had
discussions with the operators of the on-sale premises in Alcester and they
have cleared the air. To my knowledge, they have reached some
understanding about what is permitted and what it not."
Rebuttal of Answer
SDCL 34-4-79 is very clear in the first line of the statute,
"Persons under twenty-one years old barred from on-sale premises..."
In the July 6, 2015, regular Alcester City Council meeting Theresa Deem
referred to her twenty some years experience in the bar business as a quasi defense
of her practices punctuated by her comment,
" you mean the kids can't wait in the bar for their pizzas?"
Assuming Theresa Deem has indeed twenty some years in the bar business,
over the course of time she certainly should have a reasonable grasp on the statutes
and practices that apply to her and her operation of a bar, much like the trades that
use apprentices, journeymen and master/experts. The first three to six years she
would have apprenticed or educated in the craft of publican or bar tending, then
she should have moved to journeywoman practicing what she learned as an
apprentice so by the time she was educated and working the business for six to
nine years she should be considered an expert. So after twenty some years Theresa
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Deem should be conversant with all state laws applicable to her craft as publican
and the operation of a pub or bar and with that vast experience Theresa Deem
knew full well she was violating South Dakota statute when she allowed underage
minors in the Alcester Bar.
In addition, Alcester Police Chief Ryan Knutson stated he had witnessed
underage minors in the Alcester Bar and stated,
"...I have this incident on body cam..."
The council has been advised of the violation and they have had more than ample
opportunity to view the video.
Claim III
Alcester Police Chief Ryan Knutson brought up the fact that
Theresa Deem and Alcester Bar had called out the Alcester Police Department to
help her load an inebriated customer into Mrs. Deem's vehicle from transport to his
home where Theresa Deem again, called out the Alcester Police Department to
help her load the same inebriated customer into his home.
Alcester Bar and Deem Enterprises, LLC violated SDCL 35-2-6.6 which
states, "Intoxication not to be permitted on licensed premises. No licensee may
permit any person to become intoxicated on the premises described on the license."
Violation of South Dakota statute violates the terms and conditions in the Lease
and Operating Agreement, specifically items XV and XVI.
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September 17, 2015, City of Alcester Answer

"...There is no question that a licensee may not permit a person to become
intoxicated on the premises or to sell alcoholic beverages to someone who is
obviously intoxicated, The problem comes in the determination as to
whether or not a person is intoxicated and when that state of intoxication
occurs. The City of Alcester does not tolerate and would not tolerate
violations of either SDCL 35-2-6.6 nor SDCL 35-4-78 Again, I have spoken
with Police Chief Knutson concerning these code sections and they have
been discussed with the operators of the licensees in Alcester."
Rebuttal of answer
Once again using the analogy of the apprentice, journeyman and
master/expert, one who has been in a craft or business for the twenty some years as
Theresa Deem announced in the July 6, 2015, Alcester City Council meeting she is
well qualified to determine signs and symptoms of intoxication when she observes
it. As an EMT candidate I learned the signs and symptoms of strokes, heart
attacks and altered mental status within six months so it shouldn't take a
publican/bar operator more than a year to recognize signs and symptoms of
So after twenty some years experience, Theresa Deem should have expert
status in recognizing intoxication, therefore negating the need for local police force
to help her load a customer into her vehicle and then unload her customer at his
home. As I understand it, she called dispatch to summon our office not once but

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twice. Once to help her load and then again when she arrived at the customer's
residence to unload him into his house. There should be a record of her call.
Additionally, it seems Theresa Deem and Alcester Bar celebrate the tradition
of 21Run as Exhibit A. 21 Run is the practice of serving an individual who is
celebrating his 21st birthday, 21 shots of alcohol. Not only will 21 shots of alcohol
most assuredly take the individual to intoxication but if the individual does in fact
consume all twenty one shots can induce alcohol poisoning and the risk of death.
I cannot and will not applaud or condone anyone who knowingly supplies
alcohol to an individual to the point of intoxications. As to calling the local police
department for a barstool to bed service for Theresa Deem and the Alcester Bar,
this is not a valid expenditure of our tax dollars. The officer responding should
have arrested the intoxicant and hauled him to jail, not tuck him into bed.
Claim IV
Theresa Deem, Deem Enterprises, LLC allows smoking in the Alcester Bar
contrary to South Dakota statute banning smoking in bars alleging ventilation
allows her exemption.
Theresa Deem, Deem Enterprises, LLC has violated South Dakota statute
35-46-14 and 34-46-15 including the terms and conditions of the lease/operating
license with the City of Alcester. When the smoking ban became effective, the
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functioning were removed and no new smoking ventilation devices were installed
because they were no longer relevant.
As evidenced by copies of on-line photos on the Alcester Bar Face book
page, it appears Theresa Deem, Deem Enterprises, LLC has failed to placard the
bar in prominent places as No Smoking notifying patrons the bar is no smoking
and as required by statute. Additionally, screen-shots of packages of cigarettes
provided show patrons with openly displayed cigarettes on counters within reach
on the counters and behind the counters of Alcester Bar. Once again, violating
South Dakota Statute and Lease and Operating Agreement.
September 17, 2015, City of Alcester answer
"...In your Claim IV, you cited SDCL 34-46-14 and SDCL 34-46-15 which
deals with smoking. Violations of either of these code sections constitutes a
petty offense. Section 14 applies to the smoker-the person who is smoking
in a public place or place of employment. Section 15 applies to the owner,
manager or operator of the public place and requires them to inform
persons who may be smoking in there premises that this violates SDCL3446-14..."
Rebuttal of answer
SDCL 34-46-15 requires owner, manager or operators of public places to
inform persons who may be smoking violates SDCL 34-46-14. Per the article,
"South Dakota Smoking: What you need to know" (http:// They (owners,
managers, or operators are responsible for informing people that smoking is
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prohibited and for posting signs at building entrances that smoking is not allowed
much like council meetings must be posted so the public is informed, no parking
areas are posted so the public is informed and council meeting minutes are posted
in the newspaper so the public is informed.
September 17, 2015, City of Alcester answer
"... I also wanted to advise you that at least two City Council members have
made separate unannounced visits to the Alcester Bar. These visits were
done at various times. Neither member observed any smoking in the Bar,
although they did observe cigarettes in the Bar. One Council member
reported that there was no smell of smoke in the air. The other Council
member reported that when in the Bar, three patrons came from the smoking
area. No ask trays were observed and all the patrons in the bar appeared to
be well over the age of 21 years..."
Rebuttal of answer
I would make the observation that neither of the City Council members were
named inviting the concern the Alcester Bar bartender/Alcester City
Councilwoman was one of the two reporting members and the pejorative attitude
in favor of her employer. Having grown up in a smoking household, I recognize
someone around cigarette smoke can become nose blind to the smell of cigarette
smoke just as anyone who comes into my manufacturing facility will immediately
notice the smell of plastic where I do not notice the smell of plastic having contact
with it daily.

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I question the 'smoking area'. Alcester Bar can have no smoking area
within the confines of the building or in front of any doorway where smoke can
drift back into the building. SDCL 34-46-13 outlines the definition and description
of public place.
As to the inference misdemeanors or petty offenses do not count, the state
was serious enough about an issue they took the time to enact a statute whether it
is was petty offense, a misdemeanor, a serious misdemeanor or any class of felony
they expected the law to be followed. The habitual nose thumbing violations of
city bar lessee Deem should vacate the bar lease with the city.
Remedy, Relief and Demand
I ask Alcester City Council view the body cam recordings of Alcester Police
Chief Ryan Knutson and his officers.
Due to the continual, self-serving violations of Theresa Deem and Deem
Enterprises, LLC, I ask the Lease and Operating Agreement be vacated for cause
with no re-instatement of Liquor Licensing or Bar Lease to Theresa Deem or
Deem Enterprises.

Vickie A. Larsen
October 5, 2015

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Exhibit A
Screen Shot with apparent 21 Run

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