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Council orders conditional cease-and-desist for restaurant operating with revoked corporate status
Summary
After attorneys said an establishment’s corporate registration and some state filings appeared revoked, council voted to issue a conditional cease-and-desist suspending alcohol service until corporation and insurance are reinstated and asked police to enforce if necessary.
During Feb. 3 license hearings, council members examined multiple establishments that had failed to complete tax, insurance or corporate requirements. On one file — involving an establishment referred to in the hearing as operating while its corporate status was revoked — attorneys advised that a liquor license is issued to the corporate entity and that operation without proper corporate status and insurance raises liability concerns.
Council debated options including conditional suspension. One council member said, “If they do not have a liquor license and they're serving booze, they should not be serving.” After discussion, the council voted for a conditional cease-and-desist order that would suspend alcohol service until the business provided proof of reinstated corporate status and insurance; the council instructed police to assist with enforcement and to deliver the cease-and-desist if necessary.
The motion passed by voice vote. Council members said they typically allow businesses a short period to resolve tax or paperwork issues but will pursue closure if a license holder operates without proper authority.
What’s next: The business was told to file paperwork with the clerk and reinstate corporate filings and insurance; if operations continue without compliance the council directed law enforcement to take action.
