Ricks Airport Cabaret

8/4/2019 Ricks Airport Cabaret

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SOAH DOCKET NO. 458-ll-2134TABC DOCKET NO. 597776TEXAS ALCOHOLIC BEVERAGE BEFORE THE STATE OFFICECOMMISSION, Petitioner& OTHER CITIZENS, Protestants OF

AIRPORT CABARET,LLC D/B/A AIRPORT CABARET ADMINISTRATIVE HEARINGSRespondent PROPOSALFOR DECISION

Airport Cabaret, LLC /b/a Airport Cabaret, now renamedRCI Dining (DFW), LLC /b/aRicks Cabaret (Applicant) has filed an original application with the Texas Alcoholic BeverageCommission (TABC) staff (Petitioner) for a Mixed Beverage Permit and Mixed Beverage LateHours Permit for the premises located at 15000 Airport Freeway, Fort Worth, Tarrant County,Texas. Protests to the application were filed by Texas State Representative Charlie Geren, City ofFort Worth Mayor Mike Moncrief, Tarrant County Judge Glen Whitley, AMR Corporation,CentrePort Venture, Inc., CentrePort Properties, Inc., KDC CentrePort LP, Dallas-Fort WorthInternationalAirportBoard, Jim Motheral,Kubota ractor Corporation, Venture Encoding Service,and Tonya Anderson Protestants). As grounds, the Protestants alleged that the place or manner inwhich Applicantmay conduct ts business warrants the refusal of he permitsbased on the generalwelfare, health, peace, morals, and safety of the people. Having reviewed the evidence andarguments presented by the parties, the Administrative Law Judge (ALJ) finds there is not asufficient legal basis for denial ofthe permits. Therefore, the ALJ recommends hatTABC ssue therequested permits.


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SOAHDOCKET NO. 458-ll-2134 PROPOSAL FOR DECISION PAGE 3TABC DOCKET NO. 597776

with or without a hearing if t has reasonablegrounds to believe and findsthat any ofthe following circumstances exist:

(8) the place or manner in which the applicant may conduct hisbusiness warrants the refusal of a permit based on the generalwelfare, peace, morals, and safety of the people and on the publicsense of decency.

Petitioner remained neutral on the protest of the application, having determined thatApplicant met all the technical requirements to obtain the permits. In order to deny an alcoholicbeverage permit to a fully qualified applicantwho proposes to operate a lawful business in an areadesignated as "wet" for the purpose of lcoholic beverage sales and to operate in compliance withthe zoning ordinances ofthe city, some unusual condition or situationmustbe shown so as tojustifya finding that the place or manner n which he applicantmay conduct ts business warrants a refusalofa permit.]

III. EVIDENCE

A. Permit Application History for 15000 AirportFreeway

Curtis B. Wise s an investor, developer, and builder ofcommercial roperties. Mr. Wisescompany, Clubwise Finance, LP, purchased the property located at 15000 Airport Freeway, FortWorth, Tarrant County, Texas, several years ago. He posted a sexually-oriented usiness notice atthe location, constructed the current facility, and prepared t for occupancy, .e. it was a "turn key"operation. In August 2010, Mr. Wise iled an application withTABC or a MixedBeverage Permitand Mixed Beverage Late Hours Permit.

Notice of he applicationwas postedon the property for a 60-day time period, and notice by

I TABC . Twenly Wings, LTD. et al, 112 S.W.3d 647, 650 (Tex. App. - Ft. Worth 003); TABC . Mikulenka,510 S.W.2d 616, 619 (Tex. Civ. App. 4 San Antonio 1974, no rit); andBavarian Properties, Inc. v. TABC, 870 S.W.2d686, 689 (Tex. App. Ft. Worth 1994, rehg overruled).


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publication was made in the Commercial Recorder. The application and all notices referencedCurtis Wise as the proposed owner/manager of the premises, Airport Cabaret, LLC as the entityrequesting the permits, and Airport Cabaret as the trade name of the business.

In December 2010, Clubwise Finance, LP ransferredownership of 15000 Airport Freewayto RCI Holdings, Inc. RCI Dining (DFW), LLC became the corporate entity proposingto operatethe sexually-oriented usiness and avail itselfof he use of he requestedTABC ermits. The newtrade name of the business was Ricks Cabaret. Eric Langan became the owner/manager of thepremises. TABC was notified of these changes; however, the public was not notified of theownership change either through posted sign or publication. At the time these changes were made,several protest letters had already been filed with TABC.

In regard to technical requirementsofthe application,both the FortWorth City Secretaryandthe Tarrant County Clerk attested to the fact that the business was located in a wet area and hat thecity and county allowed the sale ofmixed everagesbetweenmidnightand 2:00 a.m. for purposes ofthe "late hours" permit.

B. Applicants Corporate Structure

The property at 15000 Airport Freeway is currently owned by RCI Holdings, Inc. RCIDining (DFW), LLC leases the property from RCI Holdings, Inc. RCI Dining (DFW), LLC s asubsidiary of Ricks Cabaret International, Inc. Ricks Cabaret International, Inc. assists Ricl


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C. Applicants Location and Neighbors

1. Overview

Applicants premises, 15000 Airport Freeway, are near the south entrance to Dallas-FortWorth International Airport, close to two maj r freeways, State Highway (SH) 183 (AirportFreeway) and SH 360. The premises are more specifically located on the service road to AirportFreeway. They are not within 300 feet of a church, public hospital, day care center, child carefacility, or residentialaddress. Further, the premises are not within 1,000 feet ofa private or publicschool.

2. Dallas-FortWorth International Airport

Dallas-Fort Worth Intemational Airport (DFW Airport) accommodates approximately153,000 passengers daily. DFW irport also employs approximately 60,000 people on site. Theairport operates 24-hours a day; seven days per week. Protestants expressedconcern for the safetyand welfare of assengers and employees ofDFW irport, citing the higher riskof raffic accidentsif Applicant received its permit to sell alcoholic beverages.

3. American Airlines

American Airlines corporate headquarters are located in close proximity to Applicantspremises. Several key American irlines facilitiesare also located in the vicinity, including a flighttraining school, a flight attendanttraining school, a system operations center, a reservations center,and the C.R. SmithMuseum. Additionally,a hotel which rovides lodging for incoming rainees islocated near Applicants premises. The system operations center manages all American Airlinesflights throughout the world. In total, American irlines employs approximately4,500 employees tthese facilities. The systems operations center, reservations center, and headquarters operate 24


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hours a day, seven days per week.

Claudia Aguirre, American Airlines corporate representative at the hearing, expressedconcerns regarding the safety of irlinepassengersand employees fApplicant eceives ts requestedpermits. Ms. Aguirre did acknowledge that American Airlines serves alcoholic beverages on itsflights, and that alcoholic beverages are available at various locations throughoutDFW irport.

4. CentrePort

CentrePort Business Park (CentrePort) is a mixed use development located approximatelytwo miles south ofDFW irport. Applicants premises are located on a parcel of land directlyadjacent to CentrePort.

Several maj r businesses are located within CentrePort, collectively employingmore than30,000 employees. CentrePort contains five-million square feet of office space and ten-millionsquare feet of industrial space. CentrePort businesses include OfficeMax, Bank of America,Whirlpool,CUNA utual, Keebler, Kubota ractor,Venture Encoding Service, Motheral Printing,and the United States Small Business Administrations (SBA) Office of Disaster Assistance.Several of hese businesses protested the issuance ofApplicants permits.

The SBAs Office of Disaster Assistance is located less than 150 feet from Applicantspremises. This facility provides loan processingand other financialassistance in response to naturaldisasters. The facility employs approximately 450 regular employees, with increased staffing inresponse to disasters. During disaster aftermaths, the facility operates in 20-hour shifts. AlthoughSBA as not a protestant in this case, the SBA id express its concerns regarding Applicant to theU.S. General Services Administration.

Further, SBA as a largeparking ot immediately adjacent to a relativelysmallparking otonapplicants premises. Protestants expressed concem that the proximity of these parking lots


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increased the likelihood of overflow traffic from Applicants premises using the SBA parking lotand the likelihood that SBA employees and patrons would encounter patrons leaving Applicantspremises. At least one incident occurred regarding a patron from Applicants premises parking inthe SBA arking ot; however, a bufferingfence now ivides the two parking ots. Additionally, theSBA parking lot is five feet below the land level of Applicants premises.

Motheral Printing Company Motheral), a protestantin this case, is located fourblocks fromApplicantspremises. Motheraloperates 24 hours a day; seven daysper week. Motheral expressedconcems regarding increased traffic in the area and the potential for intoxicated patrons drivingthrough CentrePort.

Venture Encoding Service (Venture), a protestant in this case, also operates 24 hours a day,seven days per week, for half of the year. Venture has a large number of female employees whowork late hours. Venture expressed concems regarding increased traffic and the likelihood ofsexually-aroused patrons leaving Applicants premises and harming ts female employees.

Kubota Tractor Company (Kubota), a protestant in this case, distributes and sells heavyindustrial equipment. Kubota has 100 employees and is located directly adjacent to Applicantspremises. Normal hours of peration t Kubota re 5:00 a.m. to as late as 8:00 p.m. However, ruckdrivers awaiting loads often arrive after hours, traveling past Applicants premises on the SH 183service road. Kubota expressed concems regarding driver safety and criminal activity.

In addition to the various office and industrial sites throughout the businesspark, CentrePortis home o 2,000 apartment nits, a day care center, and three hotels. John Dwyer, Vice-PresidentofKDC-CentrePort, expressed concern for the safety and welfare of CentrePort clients. He alsoexpressedconcern that Applicants business was not compatiblewith existingneighborhood ses.

5. Traffic


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Protestantsexpressedmany concerns regarding the increased raffic which ill likely resultifApplicantspermits are granted. Applicantpresented expert witnesses to discuss traffic concernsat the 15000 Airport Freeway premises.

Joe D. Morris s a loss prevention specialist. Mr. Morris holds a BachelorofArts Degree inCriminal Justice and a Master of Arts Degree in Urban Affairs, and he is a former Dallas policeofficer. The following traffic information was provided by Mr. Morris through his report andtestimony. AirportFreeway s a six-lane freewaywhich carriesapproximately200,000 vehicles perday. The serviceroad, where Applicantspremises are located, is not normally used by those exitingthe freeway. According to the Texas Department of Transportation (TXDOT), the service roadpicks up less than2% of he freeway raffic. The raffic in the area is generally unobstructed, andno maj r accidentswere reported in the areaz for six months before the report date. According o theNorth Texas Council ofGovernments,no maj r funds have been allocated for improvements n thisarea during the next two years.

Michael R. Coker provides consulting services to the land planning and land developmentindustries. Mr. Coker s a certifiedplannerby he American nstitute of ertifiedPlamiers. He lsoholds a Bachelor of Science Degree in Law Enforcement and a Masters Degree in PublicAdministration. Mr. Cokerpreviouslyworked s a govemmental xecutivefor three different ities.He testified that Applicants premises are located on the eastbound service road to SH 183. Thisroadway contains two "through" raffic lanes. Applicantspremises ie between an on-ramp and anoff-ramp. TXDOT raffic counts show the total combined 24-hour raffic on that stretch ofSH 183is 200,000. This count includes both freeway and frontage road traffic. Using further TXDOTinformation, the traffic count attributable to the roadway adjacent to Applicants premises s 2,396.Mr. Coker opined that the operation ofApplicantspremises did not adversely impact raffic in thearea.

l

2 Mr. Morris testified that the accident statistics included the area within a 1,000 foot radius of Applicantspremises.


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D. Applicants Business Plan

Mr. Langan rovided he following informationregardinghis businessplan for the premises.Applicant intends to operate this sexually-oriented usiness as Ricks Cabaret(Ricks), cateringto awhite collar, high-end clientele. To this end, Applicant will offer a full-service restaurant withupscale dining and a fine wine selection.

Ricks will employ seven managers, three or four disc jockeys, and 40 to 70 wait staff.Applicants employees will be seller/server trained, and the general manager for a similar RicksCabaret location (with an exemplary track record with TABC) ill oversee operations at the DFWRicks.

Ricks parkingwill be maximized throughthe use of alets. Only a few self-serviceparkingspaces will be provided at the front of he parking lot, and these spaces will be supervisedby thevalets. Ifthe permits are granted, Mr. Langan ntends to use hotel transportationand axi incentiveprograms, reducing the risk of raffic and parking congestion.

In regard to security on the premises, Ricks uses armed security guards. Full camerasystems are also used, and the video footage is maintained for 30-45 days.

lf granted its permits, Ricks intends to operate from ll:00 a.m. to 2:00 a.m. on Mondaythrough Thursday; ll:00 a.m. to 4:00 a.m. on Friday and Saturday (alcoholic beverage servicereplacedwith breakfast service from 2:00 a.m. to 4:00 a.m.); and from noon o 2:00 a.m. on Sunday.

E. Eric Langans Personal History

Protestants offered evidence demonstrating hatMr. Langan had been arrestedonnumerousoccasions; however, Mr. Langanwas only convicted for a traffic offense. There was no evidence ofcurrently pending criminal charges.


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F. Eric Langans Operation History

Mr. Langans company, Ricks Cabaret International, Inc., operates 14 sexually-orientedbusinesses in Texas. Nine of hese operations holdTABC ermits, including three in Fort Worth,one in Dallas, two in Houston, one in Round Rock, one in Austin, and one in San Antonio. Theseoperations use various trade names including Ricks Cabaret, Club Onyx, and Club Cristal.

Protestants offered a summary ofTABC iolationsregarding Mr. LangansTABC ermits.In total, there were 53 violations over a period of several years. The more serious violationsincluded prostitution/soliciting for immoral relations (nine violations), public lewdness, sexualcontact, or obscene act (six violations), intoxicated permittee on premises (three violations),permitting alcohol consumption during prohibited hours (three violations), soliciting an alcoholicbeverageby ermittee (two violations), and selling alcohol to an intoxicatedperson (one violation).None of these violations resulted in a permit revocation.

Protestants also cross-examined Mr. Langan regarding a dancer at one of his licensedoperations who was charged with intoxication manslaughter after leaving the club in 2008. Thedancer later pled guilty to the offense, and a civil suit was filed against the club allegingmanagement xpected dancers to solicit drinks from customers. The outcomeofthe lawsuitwas notavailable at the time of the hearing, and there is no evidence that TABC took action against Mr.Langans permit in regard to that incident.

G. Ricks (DFW) BYOB peration History at 15000 Airport FreewayRicks (DFVW as been operatingon aBYOB "bring your own ottle") basis since January

2011. Applicants expert, Mr. Morris, provided evidence that no criminal incidents were reportedwithin a 1,000 foot radius of Applicants premises during this time period. The closest felonyreported was an auto theft at an apartment complex on SH 360.


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SOAHDOCKET NO. 458-ll-2134 PROPOSAL FOR DECISION PAGE lTABC DOCKET NO. 597776

ComparingBYOB perationsto licensed operations,Mr. Langan estifiedthat sales taxes fortheBYOB ere $15,600 compared o $91,000 for a T BC-licensed Ricks operation. John Busby,a former TABC agent, testified that licensed facilities are preferable to BYOBs due to theheightened regulationwhich comes with the permit.

H. Parties Positions

Protestant American Airlines argued that Applicant: (l) might conduct its business in adetrimental place or manner; (2) lacks good moral character; and (3) failed to give proper publicnotice. American Airlines further alleges that Applicants corporate structure is a businesssubterfuge.

ProtestantCentrePortargued hat Applicantmightconduct ts business in a detrimentalplaceor manner, citing a pattern ofTABC iolations at other locations and the incompatibilitywith thesurrounding community. CentrePort also cited improper notice of RCI Dining (DFW)s permitapplication.

In response, Applicant maintained that it has met all qualifications for issuance of therequestedpermitsand hat Protestants failed to demonstrate an unusual condition tojustify denial ofthe permits.

IV. ANALYSIS

A. Corporate Subterfuge Issue

RCI Dining (DFW), LLC s a subsidiary of icl


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anothersubsidiary,hires all accounting staffand oversees management fthe club. Although therentities play a role in assisting the management of Ricks (DFW), the evidence shows that RCIDining (DFVV), LLC controls the direct management of he premises. Further, as chief executiveofficerof icks Cabaret International, Inc., Mr. Langan ltimatelycontrols the management ofthepremises in any event. The ALJ finds that Applicants business structure is not a businesssubterfuge.

B. Notice Issue

Protestantsargued hat Applicant s not entitled to the permits, due to the fact that the permitswere originally requested, and notice published and posted, by another entity. The originalapplication and requisite notices referenced Curtis Wise as the proposed owner/manager, AirportCabaret, LLC as the entity requesting the permits, and Airport Cabaret as the trade name of thebusiness. After Mr. Langan bought the business from Mr. Wise, he notifiedTABC f he relevantchanges. However, new notice was not provided to the public by posting or publication. At thattime, the protest had already been filed. During the discovery process, American Airlines andCentrePo1twere made aware of he changes. The ALJ does not find evidence that the parties weresubstantiallyharmed because a protesthad already been filed and the partieshad knowledge of heownership change through discovery.

Further,TABC as already made a finding that Applicantmet ll technicalrequirementsforissuance ofthe pennits. Notice is included as one of hose many echnical requirements. The issuefor the ALJ to determine is strictly whether "the place or manner in which the applicant mayconduct his business warrants the refusal of a permit based on the general welfare, health, peace,morals and safety of the people and on the public sense of decency."3

C. "Place or Manner" Issue

3 TEX.ALco. BEV. Com; ANN. 11.46(a).


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The ALJ finds insufficient evidence to demonstrate the existence of an unusual conditionwhich would ustify the refusal of he requested permits.

Applicant currentlyoperates a sexually-oriented usiness, Ricks, in closeproximity oDFWAirport, American Airlines corporate headquarters, and CentrePort Business Park. Severalthousand passengers and employees ofDFW irport, American Airlines, and CentrePort shareroadways with Ricks patrons on a daily basis. In reference to the traffic safety of those citizens,there is no evidence that Ricks has created any traffic safety problems, even though t has been inoperation as a BYOB or several months. If Ricks obtains its requested permits, it is likely thatthere will be increased traffic to and from Ricks. Although the increased number of patronsfrequentingRicks may pose an increased likelihood of raffic safety incidents, the same would betrue for any other establishment requesting a TABC ermit. Further, Ricks business plan showsthat employees will be trained in appropriate alcoholic beverage sales and service, and adequatesecurity will be provided to supervise patrons. Mr. Langan plans to promote hotel van and taxiservice to and from the premises,which ill also decreasethe likelihood of raffic safety incidents.

In regard to traffic congestion issues, 200,000 vehicles per day use the nearby freeway andservice roads. However, only a small percentage of those vehicles exit onto the service road andpassby Applicants premises. CentrePortbusinesses were concemed hat Ricks patrons might usefeeder streets throughout CentrePort after leaving Ricks. However, due to Ricks juxtapositionbetween an on-ramp and off-ramp to the freeway, it is unlikely that most patrons would choose toextend their travel time by cutting through the CentrePort development.

Protestants also expressedconcernregarding insufficientparking. However, Mr. Langansplans include the almost exclusive use of valet parking (allowing only a few self-serve parkingspaces which are supervisedby valet staff) and the promotion of axi and hotel van transportation.Further, the new buffering fence between SBA and Ricks, as well as the five-foot elevationdifferentialbetween he two parking ots, makes t less likely that any significantparking issueswill


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occur.

Protestants also cited the potential for an increase in criminal activity. Yet, during itsoperation as a BYOB, icks has an unblemished ecord. No riminal activitywithin a l,000 foot-radius of ickswas fficially reportedduring the first six months of peration. Further, in order todeter criminal activity, Mr. Langan employs armed security guards and maintains video footage ofactivities occurring on the premises.

RegardingMr. Langanspersonal history,he was only convicted regarding a traffic offense,and no criminal chargeswere shown o be currentlypending. Further,TABC as foundMr. Langanto be a qualified perrnit-holder.

Protestants offered evidence regarding violation histories at several other permittedestablishmentsownedby Mr. Langan. In total, there were 53 total violations among ine permittedoperations, over a period of several years. On verage, there were slightly less than six violationsper operation. None of these violations resulted in a permit revocation. ln order to help ensurecompliance at this Ricks location,Mr. Langan has secured the services ofa general manager whohas maintained an exemplary TABC ecord at one of he other Ricks locations.

Finally, Protestants argued that Applicants operation does not fit with the surroundingcommunity, due to its status as a sexually-oriented usiness. While many itizens, business owners,business patrons, and elected officials may feel that a sexually-oriented business is not a goodneighbor for an international airport, the corporate headquarters of a maj r airline, and a businesspark comprised of illions of quare feet of ffice and ndustrialspace, the City of ort Worth zonedthe area in such a way s to allow this co-existence. Further, Mr. Langan as expressed is intent tocater to a white collar, high-end clientele, and the regulations imposed by TABC will assist inmaking Ricks the best neighbor possible under the circumstances.


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Based on his analysis,the ALJ inds that Protestants failed to demonstrate hat the place ormanner n which Applicantmay onduct ts business warrants refusal ofthe permits. Therefore, theALJ recommends that TABC ssue the requested permits.

V. PROPOSED FINDINGS OF FACT

1. Airport Cabaret,LLC /b/ Airport Cabaret(Applicant) filed an original applicationwith theTexas Alcoholic Beverage Commission (TABC) staff (Petitioner) for a Mixed BeveragePermit and Mixed Beverage Late Hours Permit for the premises located at 15000 AirportFreeway, Fort Worth, Tarrant County, Texas.

2. Curtis Wise was listed as the owner/manager ofan approved sexually-oriented usiness atthis location.

3. Protests to the application were filedby Texas State Representative Charlie Geren, City ofFort WorthMayor Mike Moncrief, Tarrant CountyJudge Glen Whitley,AMR orporation,CentrePort Venture, Inc., CentrePort Properties, Inc., KDC CentrePort LP, Dallas-FortWorth International Airport Board, Jim Motheral, Kubota Tractor Corporation, VentureEncoding Service, and Tonya Anderson (Protestants).

4. Protestants allege that the place or manner in which Applicant may conduct its businesswarrants the refusal of he permits based on the general welfare, health, peace, morals, andsafety of the people.

5. In December 2010, RCI Holdings, Inc. purchased the premises from Curtis B. Wise. RCIDining (DFVW,LLC ecame he corporate entityproposing o operate the businessunder thetrade name, Ricks Cabaret (Ricks).

6. Eric Langanbecame the new owner/manager fthe premises. This informationwas relayedto TABC s an amendment o the original application.

7. Mr. Langan is also the chief executive officer of RCI Dining (DFW), LLCs parentcompany, Ricks Cabaret International, Inc.

8. Applicants premises are in close proximity to Dallas-Fort Worth Intemational Airport,American irlines corporate headquarters, severalkey American irlines facilities (a flighttraining school, a flight attendant training school, a system operations center which managesall American irlines flights throughout the world, a reservations enter, and he C.R. SmithMuseum), and CentrePort Business Park (a mixed use development consisting of five-


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million square feet of ffice space and ten-millionsquare feet of ndustrial space, serving ashome o severaltenants, including OfficeMax, Bank of merica, Whirlpool,CUNA utual,Keebler, Kubota Tractor, Venture Encoding Service, Motheral Printing, the United StatesSmall Business Administrations (SBA) Office of Disaster Assistance, 2,000 apartmentunits, a day care center, and three hotels).

9. The aforementionedbusinesses, including the airport, collectively serve and/or employeeover 200,000 people, and many of these sites operate on a 24-hour, seven-day per weekbasis.

10. Applicantspremises are locatedon he serviceroad to StateHighway 183 (Airport Freeway).1 1. The combined aily traffic count for Airport Freeway and ts frontage roads at that location

is 200,000.

12. The traffic count attributable to the roadway adjacent to Applicants premises is 2,396.13. The SBA arking lot is adjacent to the parking lot on App1icantspremises (Ricks),but the

two are separatedby a buffering fence, and there is a five-foot elevation differential.14. Ricks is a sexually-oriented business which caters to a high-end, white collar clientele,

offering a full service restaurant with upscale dining.

15. Ricks will employ seven managers and approximately 40 to 70 wait staff who will beseller/ erver trained.

16. Ricks parking will be maximized through the almost exclusive use of valets (a limitednumber of self-service parking spaces will be provided; these will be supervised by thevalets).

17. Ricks intends to provide incentives for hotel transportationand taxis, in order to alleviatetraffic and parking concems.

18. Ricks uses armed security guards and full camera systems to monitor activities on thepremises.

19. Ricks has operated as a BYOB ince January 2011.20. While operating as a BYOB, no criminal activityhas been reportedon the premises, and no

major accidents have occurred in the immediate vicinity of the premises.

21. Mr. Langan has been arrested on several occasions; however, he has onlybeen convictedofa traffic offense and no charges are currently pending against him.


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22. Mr. Langan operates nine other TABC-licensed premises in Texas.23. In total, there have been 53 violations attributed to those nine operations over a period of

several years.

24. None ofthose violations resulted in a permit revocation.25. Applicant has met ll TABC equirements for holdingthe requestedpermits at this location.26. No unusual conditions or situations exist that would warrant refusal of he permits.27. On January 7, 2011, Petitioner issued its Notice of Hearing.28. The notice containeda statementofthe time, place, and nature ofthe hearing; a statementof

the legal authority and urisdictionunderwhich the hearingwas o be held; a referenceto theparticular sections of the statutes and rules involved; and a short, plain statement of thematters asserted.

29. On June 14, 2011, a hearing convened before State Office of Administrative Hearings(SOAH) Administrative Law Judge (ALJ) Monica Garza at the Tarrant County 1895Courthouse, 100 West Weatherford,Room 160, Fort Worth, Tarrant County, Texas.

30. Petitionerwas represented at the hearingby John W. Sedbeny, TABC taffAttomey;AMRCorporation(American irlines) was representedby ts attorney,Dee Kelly, Jr.; CentrePortVenture, Inc., CentrePort Properties, Inc., and KDC CentrePort LP (CentrePort) wererepresented by their attorney, Meghan Griffiths; Motheral Printing Company wasrepresented by Jim Motheral; Kubota Tractor Company was represented by MichaeleVardy; Venture Encoding Service was representedby Debbie McClanahan; and Applicantwas represented by ts attorney, Steven H. Swander.

31. Following resentation of vidence, the recordremainedopen ntil July 8, 201 , to allow theparties to file written closing arguments.

VI. PROPOSED CONCLUSIONS OF LAW1. TABC as jurisdiction over this case. TEX. Arco. BEV. CODE ANN. chs. 5, 11, 28, and 29

and 6.01 and 11.46(a).

2. SOAH as jurisdiction over all matters related to conducting a hearing in this proceeding,including the preparation of a proposal for decision with proposed findings of fact andconclusions of law. TEX. GOVT CODE ANN. ch. 2003.


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3. Applicant and Protestants received proper and timely notice of he hearing. TEX. GOVTCODE ANN. 2001.052.

4. Issuance of the requested permits does not adversely affect the general welfare, peace,morals, and safety of he people, or violate the public sense of decency. TEX. ALCO. BEV.CODE ANN. ll.46(a).

5. Applicantsrequest for a Mixed Beverage Permitand MixedBeverage Late Hours Permitforthe premises located at 15000 Airport Freeway, Fort Worth, Tarrant County, Texas shouldbe granted.

SIGNED September , 20ll.

|'r1U|'*i]Cr*.uiumi iuuczJi`T.*`I`}Trwmw r Mimnwnwrn .1*1~..nm ms.


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State Office of Administrative Hearings./|\.__

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1 . 'n'.`F"-..________./

Catbleen ParsleyChief AdministrativeLaw ]udge

2 September 2011

Alan Steen VIA REGULARMAILAdministratorTexas Alcoholic Beverage Commission5806 Mesa DriveAustin, Texas 78731

RE: Docket No. 458-11-2134; Texas Alcoholic BeverageCommission (Petitioner) & ther Citizens (Protestants) v. AirportCabaret, LLC /b/a Airport Cabaret, Tarrant County, Texas(TABC N0. 597776)

Dear Mr. Steen:Please find enclosed a Proposal for Decision in this case. It contains my

recommendation and underlying rationale.

Exceptions and replies may be filed by any party in accordance with 1 TEX.ADMIN. CODE 155.507(c), a SOAH ule which may be found at www.soah.state.tx.us.

Sincerely,I

r.1ur~41c.~. .:,uu;,.innmmisrmrivzmtv cncz`1'.*LÌ`}Z t11=|u;1-:mr \IJ)1IINI3'[Ì|'.*'.Ì`]l'I1'. 11'Ea.R1NsS

MG/cjEnclosure

xc John W. Sedberry, Texas Alcoholic Beverage Commission, 5806 Mesa Drive, Austin, TX 78731 -@REGULARMAILEmily Helm, General Counsel, Texas Alcoholic Beverage Commission, 5806 Mesa Drive, Austin, TX78731- VIA REGULARMAILJudith Kennison, Senior Attomey, Texas Alcoholic Beverage Commission, 5806 Mesa Drive, Austin, TX78731 VIA REGULARMAIL (with Certified EvidentiaryRecord and Hearing CD/s)Dee Kelly, Jr., 201 Main Street, Suite 2500, Ft. Worth, Texas 76102 VIA REGULARMAILMeghan rifiins, 111 Congress Suite 1700, Austin, Texas 78701 VIA REGULARMAILSteven H. Swander, 505 Main Street Suite 250, Ft. Worth, Texas 76102 -VIA REGULARMAIL

300 W. 15* Street, Suite 502, Austin, Texas 78701/ P.O. Box 13025, Austin, Texas 78711-30255124754993 (Main) 5124753445 (Docketing) 5123222061 (Fax)

www.soah.state.tx.us

Ricks Airport Cabaret

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