Report Summary for December 2009 Commission Meeting Fat Jack’s, LLC Sherri Doss, Managing Member Tracy Doss, Member FAT JACK’S SALOON / MYNT GENTLEMEN’S CLUB 3390 NE Sandy Blvd Portland, Or 97232 Full On-Premises Sales New Outlet Issue The City of Portland gave the applicant an unfavorable recommendation based on what it believes is the applicant’s problems at another licensed location. The Laurelhurst Neighborhood Association also gave an unfavorable recommendation, also based on the reason cited by the City of Portland. Other neighbors are opposed to the application based on problems that occurred under the prior owner. Discussion 1. Applicant’s problems at another licensed premises: OAR 845-005-0326(1) The City of Portland and the Laurelhurst Neighborhood Association mistakenly believe that applicant Tracy Doss was previously licensed at another premises called Fusion. Mr. Doss was a manager of Fusion; however, he was not a licensee of the Commission at that premises so this reason does not provide a basis to deny this license. 2. History of problems at the premises: ORS 471.313(5) Regarding the incidents involving noise complaints, since there were no citations issued by the City of Portland for violating its noise ordinance, the incidents involving noise complaints can’t be considered under ORS 471.313(5). Regarding the incidents other than those involving noise, the last incident occurred in January 2008. The passage of time since this incident is approximately two years; this by itself is sufficient to show that the history of serious and persistent problems is no longer current at this premises. In addition, the applicant submitted an operating

Fat Jack’s, LLC Report Summary for December 2009 Commission Meeting Page 2 of 2

proposal that, if followed, should go towards preventing the problems that the prior licensee was unable to prevent. Executive Director Statement I advise that the application is consistent with the criteria to grant the license. ___________________________________ Stephen A. Pharo Executive Director

OREGON LIQUOR CONTROL COMMISSION Liquor License Investigation

Subject: Full On-Premises Sales/Commercial Date: November 7, 2009 New Outlet Fat Jack’s, LLC Sherri Doss, Managing Member Tracy Doss, Member Fat Jack’s Saloon/Mynt Gentlemen’s Club 3390 NE Sandy Blvd Portland, OR 97232 Regulatory Issue The City of Portland and the Laurelhurst Neighborhood Association gave unfavorable recommendations for this application. This report also examines whether or not there is a history of serious and persistent problems at the premises. Applicant Fat Jack’s LLC is an Oregon limited liability company formed April 2009. The limited liability company lists Tracy Doss and Sherri Doss (husband and wife) as its members. They each own 50% membership interest in the LLC. Information Regarding Tracy Doss The license application lists both Tracy Doss and Sherri Doss as premises managers. Tracy Doss was employed as a manager for Doss Consulting, Inc, dba Fusion Lounge; which later changed its trade name to Spyce Gentleman’s Club. Doss Consulting, Inc is wholly owned by Walter Doss, and currently holds a Full On-Premises Sales license at Spyce Gentleman’s Club. Walter Doss is Tracy Doss’ father. Tracy Doss was not a licensee at Fusion Lounge/Spice Gentleman’s Club. The City of Portland recommendation (see below) incorrectly identifies Tracy Doss as a licensee at Fusion Lounge/Spyce Gentleman’s Club.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 2 of 9 Premises The premises is a 7,900 square feet commercial establishment with dining seating for approximately 100 plus bar seating for 17. The premises has three stages along with a DJ booth. The proposed menu consists of soups, salads, burgers, sandwiches and four steak dinner entrees. The premises also has a 10,000 square feet parking lot located immediately on the east side of the premises Entertainment When this application was originally submitted, the applicant’s proposed entertainment format was Country & Western music and dancing. The applicant recently changed the proposed entertainment format to nude dancing. Minor posting The premises is posted with a #1 Minor Posting, prohibiting minors from the entire premises during all hours of operation. OLCC Licensing History at the Above Premises The premises was previously licensed to Bobayo-Guerra, Inc., d.b.a. La Fortuna Mexican Bar & Grill (La Fortuna) from November 2004 through July 2008. During the time the premises was licensed as La Fortuna, there were numerous residential complaints about patron noise, disorderly activity, and noise from amplified music at the premises (for details, see criterion below.) Bobayo-Guerra, Inc. had one OLCC violation in April 2007 for permitting a minor in an area prohibited to minors, OAR 845-006-0335(3)(b). On 5-30-08, OLCC Compliance Staff issued a Notice of Warning Ticket (NWT) to Bobayo-Guerra for having a History of Serious and Persistent Problems, ORS 471.315(c). Information from Neighbors The Commission received 25 letters from neighboring residents objecting to this application. The basis of their objections relate to incidents that occurred when the premises was previously licensed to Bobayo-Guerra, Inc. and includes late night patron noise, neighborhood litter, late night operation (past 2:00 a.m.), disturbing amplified music from the premises, parking, and a disorderly incident that resulted in an early morning homicide in the premises parking lot. The Commission also received a petition with 67 signatures from area residents opposing this application. The petition did not cite a basis for the opposition.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 3 of 9 Information from Eighth Church of Christ, Scientist The Eighth Church of Christ, Scientist submitted a letter objecting to this application. The church is located at 3505 NE Multnomah and within 500 feet of the Fat Jack’s Saloon/Mynt Gentlemen’s Club. The basis of the Church’s opposition is prior disorderly conduct that resulted in a homicide at La Fortuna, parking late night noise, litter and prostitution. City of Portland Recommendation The City of Portland gave an unfavorable recommendation for this application based on OAR 845-005-0326(1)(a), which gives the Commission the authority to deny a license that is not demanded by the public interest and convenience based on a finding that the applicant has had repeated problems at another location during the two years preceding this application or has had a license cancelled or renewal refused because of problems with disturbances, unlawful activities or noise. The City’s unfavorable recommendation letter dated September 2, 2009, states “Tracy Doss is one of the licensees in this application” and “Mr. Doss was a prior licensee (emphasis added) at Fusion, a night club previously located in the Old Town Neighborhood of Portland.” According the letter, “while Mr. Doss was the licensee at Fusion the business committed a City of Portland Time, Place and Manner violation due to the high incidence of assaults and other nuisance related activities. Mr. Doss was eventually able to reduce the problems by changing the name to Spyce Gentleman’s Club, and changing the format from a night club to an adult entertainment establishment.” The City of Portland cites six incidents that occurred between June 1, 2008 and July 26, 2008 at the Fusion location as evidence of problems that happened while Tracy Doss was allegedly the licensee. The city states that since Fat Jack’s Saloon/Mynt Gentlemen’s Club’s proposes a night club format, it believes the high incidence of assaults and other nuisance activities that occurred while Mr. Doss was allegedly licensed at Fusion will occur at this premises. The City of Portland requests that the OLCC consider imposing a license restriction should it grant the license. The recommended restriction is:

1. The licensee is required to follow the business operating plan it submitted to the OLCC.

As noted above, Tracy Doss was not a licensee at the Fusion Lounge/Spyce Gentleman’s Club. There is no basis to deny or restrict the license based the City’s concerns about problems at Fusion Lounge/Spyce Gentleman’s Club.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 4 of 9 Laurelhurst Neighborhood Association Recommendation Fat Jack’s Saloon/Mynt Gentlemen’s Club is located within the boundary of the Laurelhurst Neighborhood Association (LNA). In its letter to the Commission (un-dated), the LNA wrote “At its general meeting on September 29, 2009, the Laurelhurst Neighborhood Association voted to support the Portland Police Bureau’s September 2, 2009 unfavorable recommendation.” The LNA gave the same reasons the City of Portland gave as the basis for its unfavorable recommendation. After receiving notice from the applicant about the proposed change in their entertainment format, OLCC representatives attended a Laurelhurst Neighborhood Association meeting on November 24, 2009. Neighbors at the meeting raised additional concerns, including general concerns about a nude dancing establishment in their neighborhood. During the meeting, one of the neighbors commented that there are two organizations near the above premises that could be adversely affected if the Commission approved this application. The two organizations mentioned were Full Life and Christian Outdoor Leadership Training, a.k.a. COLT. Several days following the meeting, I surveyed the immediate area of the above premises. I visited the organization Full Life, located at 3331 NE Sandy Blvd, which is one block west and within 500 feet of the above premises. According to Rachael Bloom, President of Full Life, her organization offers a 10-day vocational assessment program for mentally challenged youth and adult individuals. Full Life also has a day program that operates from 8:00 a.m. to 5:00 p.m., five days a week offering classes in art, science, music, life skills, and dance. Full Life is not an elementary or secondary school or a children-oriented recreational facility. And while it may enhance the lives of the individuals it serves, it is not a facility as described in OAR 845-005-0326(2)(a). I was unable to find the COLT organization. I found their web page and contacted Ray Baier at their western Montana headquarters. According to Mr. Baier, there is no COLT organization in the state of Oregon. Applicant Operating Proposal After informing the applicants of the past problems at La Fortuna, they provided me with a 15 point operating plan designed to prevent the problems that occurred at La Fortuna from re-occurring. The operating plan consists of the following:

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 5 of 9 1. Will have on-site DPSST certified security staff at all times from 6:00 p.m.

to approximately 2:45 a.m., or until the parking lot is cleared. One DPSST security staff will monitor the parking lots at all time and will increase to 4 to 8 depending on the size of the crowd.

2. Tracy Doss, a certified DPSST executive manager with over 20 years experience in night club, restaurant and bar operations will oversee all security matters.

3. DPSST security staff will conduct random parking lot checks every 10 to 20 minutes after 10:00 p.m.

4. Will always have a ratio of 1 DPSST security staff to every 25 patrons. 5. Will maintain a 16 camera DVR monitoring system for all areas of the

premises and premises parking lot. 6. Sherri Doss will be on-site four nights a week from 7:00 p.m. to 3:00 a.m. 7. No loitering, verbal/physical altercation, loud noise or other types of

disturbances or criminal activity will be tolerated inside or in the premises parking lot area.

8. Will encourage and cooperate with Portland Police to do a walk through of the premises during peak hours of operation.

9. Alcohol Monitors, Bartenders, Management, Servers and Security staff will check for intoxicated persons, remove drinks of patrons if necessary.

10. Will maintain an incident log capturing dates, identifying information, staff involvement, types of incidents, etc.

11. Will have an electronic I.D. checker at the entrance to detect false I.D. 12. No admittance of anyone after 1:30 a.m. 13. Will initiate a “Soft Closure” from 2:00 a.m. to 2:15 a.m. that includes last

call, and changing the music and lighting to facilitate an orderly exit. 14. All premises employees will be required to park their personal vehicles

bordering the perimeter fencing to create a sound and barrier to prevent litter and loud noise from interfering with neighborhood livability.

15. Tracy Doss will be at the premises three nights a week (most likely Wednesday & Thursday, & Saturday nights).

The applicant’s operating plan provides for the use of security that are DPSST certified. Problems with disorderly activity at the premises when it was licensed as La Fortuna occurred when the licensee did not have DPSST certified security. Properly trained and certified security can help prevent those problems. The applicant’s plan includes security staff to monitor the parking lot, security cameras to monitor activity outside the premises, and frequent checks of the parking lot after 10:00 pm. These measures should help the licensee respond to and prevent noisy, unlawful, or disorderly patron activities in the parking lot. If properly implemented, these measures will address some of the concerns expressed in the citizen letters objecting to this application.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 6 of 9 CRITERION ORS 471.313 – The Oregon Liquor Control Commission may refuse to license any applicant under the provisions of this chapter if the Commission has reasonable ground to believe the fol lowing to be true (paraphrased): (5) That there is a history of serious and persis tent problems involving disturbances, lewd or unlawful activities or noise either in the premises proposed to be licensed or involving patrons of the establishment in the immediate vicinity of the premises if the activitie s in the immediate vicinity of the premises are related to the sale or service of alcohol under the exercise of the license privilege. Behavior which is grounds for refusal of a license under this section, where so related to the sale or service of alcohol, includes, but is not limited to obtrusive or excessive noise, music or s ound vibrations; public drunkenness; fights; altercations; harassment; unla wful drug sales; alcohol or related litter; trespassing on private p roperty; and public urination. Histories from premises currently or pr eviously operated by the applicant may be considered when reasonable inferen ce may be made that similar activities will occur as to the premise pro posed to be licensed. The applicant may overcome the history by showing that the problems are not serious or persistent or that the applicant demonst rates a willingness and ability to control adequately the premises proposed to be licensed and patrons’ behavior in the immediate vicinity of the premises which is related to the licensee’s sales or service of alcohol under the licensee’s sale or service of alcohol under the licensee’s exercise of the license privileges. … 471.329 Serious and persistent problems involving n oise as grounds for discipline of licensee or applicant. (1) For the purpose of determining whether there is a history of serious and persistent problems involving noise under the provi sions of ORS 471.313 (5) and 471.315 (1)(c), or whether the licensee mai ntains a noisy establishment in violation of the provisions of ORS 471.425: (a) Noise from the inside of a licensed premises lo cated within the boundaries of a city or county that has an ordinanc e regulating excessive noise may be considered obtrusive or excessive only if the noise violates the ordinance.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 7 of 9 FACTS RELATED TO CRITERION 1. On 2-26-06 at 2:45 a.m., security personnel at La Fortuna became

involved in an altercation with several patrons. Security personnel used pepper spray to stop the disorder. One of the patrons was intoxicated. OLCC compliance staff gave the premises manager VI on visible intoxication and Disorder.

2. On 9-16-06 at 1:55 AM, a female patron was assaulted by her ex-

boyfriend across the street from the bar. The ex-boyfriend struck the women in the back of the head with a beer bottle causing physical injury. Security personnel immediately ran to the woman’s aid and telephoned the police. OLCC compliance staff issued verbal instructions to the licensee to ensure all security personnel are DPSST certified, and the regulations regarding disorder.

3. On 01-20-07 at 2:15 AM, a Portland Police Officer saw a patron exit La Fortuna restaurant and walk and stumble east on Sandy Blvd. The patron went alongside of a building and urinated. The police officer contacted the patron and notice he had slurred speech and a strong odor of alcohol on his breath. The police officer took the patron to detox. OLCC compliance staff contacted the licensee and issued verbal instructions for sale/consumption of a visibly intoxicated person. 4. On 5-06-07 at 2:20 AM, Portland Police responded to the La Fortuna Restaurant regarding an assault call. An employee telephoned the police and said he was assaulted and sustained injury by an intoxicated patron. The employee decided not to press criminal charges against the patron. The police took the patron to detox for his own safety. 5. On 12-15-07 at 1:12 AM, a Portland Police Neighborhood Response

Team (NRT) Officer went to the premises to evaluate noise. The NRT Officer noted he could hear music coming from the bar, especially the bass tone from over 50 feet away.

6. On 01-05-08 at about 2:40 PM as patrons left the premises at closing, a man was shot dead in the premises parking lot. Subsequent to the homicide, OLCC compliance staff met with the licensee and fully evaluated the circumstances leading up to the shooting and what if any opportunity the club had to intercede in preventing the incident. OLCC compliance staff concluded the licensee had failed repeatedly to ensure its security personnel obtained DPSST certification.

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 8 of 9 7. On 01-11-08 a Portland Police Officer responded to a noise complaint at La Fortuna. Security staff immediately turned the volume of the music down. 8. On 01-19-08 at 2:45 AM, a Portland Police Officer received a noise complaint. “Due to a heavy caseload, the police responded at 3:30 AM after the bar was closed. The Police found the business closed and the area quiet.” 9. On 01-20-08 at 1:16 AM, Portland Police responded to a noise compliant.

The police officer looked at a noise meter used by the business and observed .68 decibels. Under the City of Portland’s noise ordinances, the legal limit after 10:00 PM is .55 decibels. The premises assistant manager turned the music down.

10. On 02-20-08 at 12:28 AM, a Portland Police Officer responded to loud

music coming from the premises. The officer noted he could plainly hear loud thumping from the bass of the music.

11. On 02-22-08 at 11:46 PM, Portland Police Officers responded to the La

Fortuna concerning a loud noise complaint. The police officer did not determine there was excessive noise. The officer wrote “noise is kept down for the most part.”

12. On 03-16-08 at 1:29 AM, a Portland Police Officer was dispatched to La

Fortuna Restaurant concerning a loud noise compliant. At 1:15 AM, the officer parked his vehicle in the neighborhood approximately 167 feet from the rear of the premise. The officer noted he could plainly hear the loud thumping of bass from the direction of the premises. The office arrived at the premises and confirmed that this was the same thumping bass he has listened to in the neighborhood. The police referred the incident to the NRT officer for follow-up.

13. The City of Portland has adopted noise ordinances under Title 18 of the

City Code. On 01-29-08, the City of Portland’s Bureau of Development Service wrote a letter to El Poncho’s LLC and Poncho’s, Inc., property owner and landlord of La Fortuna, advising of a noise violation for amplified music, based on the 1-20-08 incident listed in fact #9 above. None of the other incidents involving noise were charged as violations of the City’s noise ordinances.

14. On 5-30-08, OLCC Compliance Staff wrote a Notice of Warning Ticket

(NWT) to the licensee of La Fortuna for History of Serious and Persistent Problems, ORS 471.315(c).

Fat Jack’s, LLC Fat Jack’s Saloon/Mynt Gentlemen’s Club November 7, 2009 Page 9 of 9 ANALYSIS OF FACTS AS APPLIED TO CRITERIA We must determine if there is a history of serious and persistent problems at the licensed premises. Seven of the 12 incidents (facts 5, 7, 8, 9, 10, 11, 12) listed above were complaints from nearby residents about late night noise from amplified music. The incidents listed in facts 5, 7, 8, 11, and 12 did not result in citations for violations of the City Code regarding excessive noise. While the City of Portland put the licensee on notice about a noise violation related to fact #9 above, the City never issued a citation for violation of the City Code for excessive noise. Since there were no citations issued by the City of Portland for violating its noise ordinance, the noise complaints cannot be considered under History of Serious and Persistent Problems under ORS 471.313 (5). The remaining five incidents occurred during the 22 month period from 2/26/2006 and 1/5/2008. One incident involved a shooting and homicide in the premises parking lot. This is a serious incident. Two incidents involved assaults that resulted in injuries. These are serious incidents. One incident involved staff security using pepper spray to stop disorderly activity. This is a serious incident. Once incident involved public intoxication and an act of public urination. This is a less serious incident. In all, there were four serious incidents at the premises during a 24 month period. The Commission has previously found that seventeen incidents in 24 months (10 involving illegal drugs) was a history of serious and persistent problems. The Commission has also found that eight incidents in one year (five were serious), and seven incidents in one year (three were assaults) was a history of serious and persistent problems. Although the five incidents in 22 months, with four serious incidents including a homicide, are a cause for concern, the problems do not appear to rise to the level of problems that the Commission has determined are serious and persistent in other cases. The criterion does not apply. CONCLUSION The criterion does not apply. ____________ Charles L Ellis

.EGON LIQUOR CONT RO L COMMISShLI CENSE INV ESTI GATION REPORT

Date App lica tion Recei ved' 07-15-09,License Applied For : Type of Action:

FULL ON-PREMISES SALES, COMMERCIAL NEW OUTLETESTABLISHMENTApplicant s 1: o Masterfile App licant 112: o Master file

FAT JACK'S LLC

Applicant 113: o Masterfile Applicant 114 : o Masterfile

New Trade Name: Liq uor Liability Insurance: Phone II:

FAT JACK'S SALOON TBD 503-539-9670

For mer Tracie Name: Former Licensee : Former License Typ e:

Address: City : County: Zip:

3390 NE SANDY PORTLAND MULTNOMAH 97232

Mai ling Addre ss (if di fferent from abo ve): C ity : State: Zip:

Loca l Government: Public Notice Date: Checklist:

o 90 Day Temp, Au tho rity -Exp:City of Portland 05-27-09 [8J Ve rified Legal Entity( ies)

o 0 C lerk BrochuresRecommendation: No tification of Fac ilities within 500 Fee l: [8J Law Orientation- Date: 05-14-09o Favorab le o Cate ring Pre-Approva l (S ma ll)[8J Unfavorable- See Report Yes o Cate ring Pre-Ap pro val (La rge)o Ne utralo No ne Prov ided

o Tasting Privileges

Restrictions: Minor Posting:o RVP Information Give n to Applicanto Same Day Delivery Approval

None No.1 o Ne xt Day Delivery Approvalo Verifica tion o f Zo ning

o Other:

Holds: License Process Office Use Only:

1. Fees2 Verification of Funding3. LLI4. ASE by Sherri Doss

Server 's Educa tion Desig nee: Sherri Doss Invest igators Recommendation : Grant w/Letter of Caution toDate of Birth: 06-21-1971 oPj/:te as~OStdDate of Class: - /1 ",~ - f (2L,

~~I NP;l1e\ Charles L Ellis Date: if -10 °f) qOkay to Issue: Yes / No Supervisor Rec~ Refuse

"--.A ~lf\i' A A fIIIJ~~ lDate:Initial: Summary Shce@NO Superv iso r Sfgnature I bate:

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09-08-2001 10:09 T DOSS 7028220083

A OREGON LIQUOR CONTROL COMMISSION

~ Bl)SINESS INFORMATION

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Applicant Name: mt ~ fll:ILs ~ Phonel 6D?J) 53~ ..·qlD.IDTrade Name(dba):~ 6lr=t:!19r!.!O'S CJ,a,g,,"olIooCb:....-. -----

Business Location Address;~ll O~ ~_.;;;;;;(!,;.;.\ u_d_. _City: &-)1 ood ZIP Code: C)ry 9.3 Ql

DAYS AND HOURS OF OPERATION

Business Hours:Sunday S f·ro. to~~~J·m.Monday Jf' to~~..J!.II\

.Tuesday • to '. .'(YlWednesday m to 3;!E_t 01 I

Thursday ijkO).'to~'D A tn.Friday m to Q1' *,'ll'1Saturday to ,..... }l,m

Outdoor Area Hours:Sunday to _Monday to _Tuesday to _Wednesday to _Thursday to _Friday to _Saturday to _

Theoutdoor area Is used for:U Food service Hours: __, to _

o Alcohol service Hours: to _CIEnclosed. how. __• _

The oxtoriar area Is adequately viewed and/orsupervised by Service Permittees._ (Investigator's Initials)

Seasonal Variations: 0 Yes [J No If yes, explain: _

ENTERTAINMENT

o Live Music

~ Recorded Music

)}( OJ Music

o Dancing

1iJ Nude Entertainers

Restaurant: -...__

Restaurant::Go:.,~

Lounge:. ~_

Banquet:

Check all that apply:

o Karaoke

o Coin.aperated Games

)2!l Video Lot1ery Machines

o Social Gaming

o PoolTables

o Other: _

Outdoor: _

Outdoor: _

Other (explain):

Totalseating:.d!lifi-L/5

DAYS & HOURS OF LIVE OR OJ MUSIC

Sunday . to a:3D A··mMonday ~F--'-.z.;..-to dY3D A· mTuesday .(t).. to 6l~2lD Ii .In .Wednesday -i'tt'-~~tom'fT\Thursday • to , &4. m'Friday to .' ~. ((\Saturday to ~ 0 ;q. fl\

eieeuse ONLY

Investigator Verified 8eat,ng:hU (N)

eieeuse ONLY

Investigator Verified 8eatlng:~(N)

In"~UlnR~~:C-~ 9Date: - ( ~ .,.,

I undarsland If my answers are not true and com~. the OLCCmay deny my license application.

Applicant Signature:~ =d. bd~ Date:--iJ.....( .z.O.....I;,:;o,J..=(jJ---..1~ _1·800-452·0LCC (6522)

www.oregon.govlolcc (ff1V. 12/07)

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PAGE209-08-2001 10: es T DOSS 7028220083

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