Danes Hall, La Margarita also applied in Waupaca
By Angie Landsverk
When a liquor license was surrendered to the city of Waupaca last month, it was with the condition that it go to the successor of the business.
Mayor Brian Smith and the common council learned this in a Sept. 16 memo they received from Attorney Steven Sorenson.
That successor is BC Royalton.
The common council voted 7-3 on Sept. 17, to give BC Royalton the license.
Lori Chesnut, Steve Hackett and Paul Hagen voted no.
All council members were present.
“How did this misunderstanding happen in the first place? How we can help it from not occurring again?” Ald. Dmitri Martin asked before the vote.
Multiple permit applications
Danes Hall of Waupaca and Johanna G. Neujahr (La Margarita) also applied for the liquor license after it was surrendered.
La Margarita is proposed at 970 Furman Drive.
Danes Hall of Waupaca wants a Class B Liquor and Class B Fermented Malt Beverage License for its business on North Main Street.
Permit’s surrender had conditions
Attorney Bill Fischer said it was either the provision of Crystal Mentzel or Attorney Tom Hart that the license go to BC Royalton.
Fischer and Sorenson are both with the firm von Briesen and Roper.
Mentzel most recently ran Mentzel’s Club 22 at 1822 Royalton St.
Bob and Christine Faulks own the property.
They contacted Hart after their land contract with Mentzel expired.
Hart is also Waupaca’s city attorney.
As a result, he recused himself from the discussion on Sept. 3.
The council wanted legal counsel present for the Sept. 17 discussion.
Sorenson conducted an investigation regarding the license, and Fischer attended the meeting.
Fischer said Wisconsin law provides for the conditional surrender of a license.
Martin apologized to the others who applied for something that was not available.
“It’s unfortunate that we’re here,” he said.
Fischer said if the council failed to follow the condition precedent, the license would be returned to Mentzel and she would have six months to reopen the business.
“Does six months start when she closed?” Chesnut asked.
Mentzel said her last day was around Aug. 9.
“We would have to know that,” Ald. Mary Phair said.
Hagen asked what form of documents need to be provided when surrendering a liquor license with conditions.
“We don’t have any forms,” City Clerk Sandy Stiebs said. “Attorney Hart brought in Crystal’s actual license.”
Application received before license was surrendered
The mayor said Sorenson’s memo noted the application to transfer the license to BC Royalton was brought to City Hall before the actual surrender of the license so that made it a condition.
Stiebs said city staff heard Mentzel closed her bar.
“So when the application came in from Christine and the license from Attorney Hart, we assumed it was available.”
Chesnut asked how the license did not come in with some type of explanation.
Hart said he received the license after the application was made.
The city requires the license to process the application, he said.
Phair asked if it is common for people to apply for a license before it is available.
The mayor said it is when the license is being transferred.
“What makes this really a difficult situation now – and besides where we came from – is both of the projects brought forward are good projects and we want them to be successful,” Smith said. “We plan to work diligently in the future to make them work.”
The mayor said he hopes to see both of them in the future.
He apologized for the “misunderstanding at City Hall” and also apologized to the Faulks.
“It’s OK,” Bob Faulks said.