East Grand Forks City Council members postponed approval of a liquor license renewal for Boardwalk Bar & Grill Tuesday after one member questioned whether the owners deserved a license in light of a decade-old unpaid loan.
Council member Marc DeMers raised concerns over renewing the license of the establishment, saying he thinks it's the council's job to take proprietors' character into consideration when granting or renewing liquor licenses.
"I believe this group is not in good standing, and they do not deserve the privilege of having a liquor license in the city of East Grand Forks," DeMers said.
The application for renewal is signed by Jane Moss, who sat in on a closed meeting in August over a long-unpaid loan from Boardwalk Enterprises, which owns the building that houses Boardwalk Bar & Grill and other restaurants.
A $510,000 loan from the city's Economic Development and Housing Authority Board to Boardwalk Enterprises had gone unpaid for more than a decade. The matter was brought to light last year.
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City Attorney Ron Galstad reminded the council the two businesses are separate entities. He also asked the council to delay any decision so he could conduct legal research on the subject.
Council member Henry Tweten questioned whether the council could deny the license from a legal standpoint based on differences with the owners and the outstanding loan. Galstad said he was not prepared to give a legal opinion at the time of the discussion.
The council will pick up the matter again at its June 2 meeting.
At the meeting, the council approved 15 other liquor license renewals and one new applicant, Tao Garden.
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The council also passed a social ordinance for the city by a vote of 6-1.
The law will prohibit any person from providing an environment for underage people to possess or consume alcohol and requires they take reasonable steps to prevent the consumption of alcohol by minors. Reasonable steps outlined in the law include controlling access to liquor, verifying ages and supervising minors.
Those in violation could face 90 days in jail, a fine of up to $1,000 or both with prosecution costs potentially being added.
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To be in violation, a person must have knowledge that the drinking is taking place. A similar law was passed in Grand Forks last month.
