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Evanston council tables liquor-license transfer amid ownership dispute
Summary
After heated public testimony over who owns a former motel property, the Evanston City Council voted 4–3 to table a transfer of a liquor license until its Aug. 15 meeting so a pending court fight over property ownership can proceed.
The Evanston City Council voted to table action on a proposed transfer of a liquor license after members heard competing claims over who owns the property tied to the applicant.
During a public hearing, proponent John Hazen approached the podium, was sworn and described his business licensing experience. Donna Tolleson, who spoke next and identified herself as an owner of the former Knights Inn, said she is owed money under a promissory note and that ownership is the subject of ongoing litigation. Tolleson told the council: “$3,000,000 is $3,000,000, you know?” and said she expects a district‑court hearing on July 26 at 1:30 p.m. She urged the council not to approve the transfer until ownership is resolved in court.
Another member of the public disputed Tolleson’s account and pointed to a deed before the council, saying the deed “speaks for itself.”
City Attorney Amanda Kirby advised council members that municipal review of a liquor‑license transfer is limited to the city’s statutory criteria and that the license is a distinct piece of property, separate from the real estate. Kirby told the council that private ownership disputes and alleged unpaid promissory notes are civil matters for the courts and that the state liquor authority and secretary of state also review transfers for compliance.
Councilmember Lynch moved to table the transfer until the council’s second meeting in August; the motion was amended to specify August 15 as the return date. After discussion, the council approved tabling the application by voice vote; the mayor announced the result as 4–3. The council did not make a final decision on the license application at the meeting.
What happens next: The council will revisit the transfer at its Aug. 15 meeting or earlier if the parties provide new legal documentation. Tolleson said a district‑court hearing on ownership is scheduled for July 26, and both sides said they are litigating the property question in court. The city attorney said a subsequent court order could require follow‑up with the liquor commission or other administrative bodies, but that the city itself lacks authority to resolve private ownership disputes.
