ACOTT VENTURES, LLC T/A SHADOW ROOM v. DISTRICT OF COLUMBIA ALCOHOLIC BEVERAGE CONTROL BOARD

135 A.3d 80, 2016 D.C. App. LEXIS 50, 2016 WL 1078050
CourtDistrict of Columbia Court of Appeals
DecidedMarch 17, 2016
Docket14-AA-830
StatusPublished
Cited by4 cases

This text of 135 A.3d 80 (ACOTT VENTURES, LLC T/A SHADOW ROOM v. DISTRICT OF COLUMBIA ALCOHOLIC BEVERAGE CONTROL BOARD) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ACOTT VENTURES, LLC T/A SHADOW ROOM v. DISTRICT OF COLUMBIA ALCOHOLIC BEVERAGE CONTROL BOARD, 135 A.3d 80, 2016 D.C. App. LEXIS 50, 2016 WL 1078050 (D.C. 2016).

Opinion

KRAVITZ, Associate Judge:

The Shadow Room nightclub challenges a decision of the District of Columbia Alcoholic Beverage Control Board requiring the club to retain a reimbursable Metropolitan Police Department detail as a condition of the renewal of its liquor license. Shadow Room contends that the Board misallocated the burden of proof and erroneously admitted hearsay and unqualified expert testimony at a contested hearing on its application for the renewal of its license. Shadow Room contends further that the Board lacked legal authority to condition the renewal of its license on its hiring of a police detail and that the Board’s decision was not supported by substantial evidence in the record. Finally, Shadow Room argues that the Board’s decision must be set aside because the neighbors and representatives of the local *83 Advisory Neighborhood Commission who protested its application acted with an unlawful discriminatory motive. We reject the club’s contentions and affirm the decision of the Board. .. v

I. Factual and PROCEDURAL HistoRy

A. Background

Shadow Room is owned and operated by the petitioner, Acott Ventures, LLC. The club is located on the ground floor of a commercial building at 2131 K. Street, N.W., in a mixed downtown neighborhood along with other commercial establishments, office buildings, hotels, apartments, condominiums, and a hospital. The main campus of George Washington University is a few blocks away.

This appeal is the latest installment of a decade-long dispute between Shadow Room’s owners and neighbors oyer the impact of the club’s operations on the area surrounding the club. The dispute began in 2006, when Shadow Room first sought a liquor license from the Alcoholic Beverage Control- Board. The club’s application drew protests from a “group of five or more” neighbors residing in the West End Place condominiums, at 1099 22nd Street, N.W., and from ANC 2A, the local Advisory Neighborhood Commission. See D.C.Code §§ 25-601(2) & (4) , (2012 Repl.).

The Board granted Shadow Room’s application despite the protests and issued the club a Retail Class C/N liquor license in September 2007. See D.C.Code § 25-113(d)(2)(A) (2012 Repl.). To address concerns about unruly patrons making noise late at night, the Board set limits on the club’s hours of operation and maximum number of customers. By law, the club’s license was valid for three years, subject to renewal via application to the Board. See D.C.Code § 25-104(b) (2012 Repl.).

Shadow Room opened for business shortly after it obtained its license. A year later, in September 2008, the club applied to the Board for an extension of its hours of operation and a doubling of its capacity, from 300 to 600-customers. ANC 2A protested the application. Before the matter proceeded to a hearing, however, Shadow Room and ANC 2A reached a settlement agreement under which the club’s hours were extended but its occupancy cap-was maintained at 300; the club also promised to monitor, .the exterior of the premises and the conduct of its incoming and outgoing customers. . See D.C.Code §§ 25-445, -446. (2012 Repl.). The Board issued an order on November 12, 2008 approving the terms of the settlement agreement. See 23 DCMR § 1608.2 (2008).

In 2009, the owners of Acott Ventures, LLC formed a separate limited liability company, Panutat, LLC, and through that entity applied to the Board for a Retail Class C/N liquor license for a nightclub named Sanctuary 21 to be housed in the basement of Shadow Room’s building. A “group of five or more” neighbors and ANC 2A protested the application, arguing that the application was intended as an end-run around the occupancy cap set forth in the settlement agreement between Acott Ventures, LLC and ANC 2A. The parties protesting the application also contended that the presence of a second nightclub at the same address as Shadow Room would adversely affect pedestrian safety, real property values, and the peace, order, and quiet of the neighborhood..

After two contested hearings and an interim trip to this court, the Board issued an order on January 11, 2012 denying the application of Panutat, LLC for a liquor license to open a nightclub in the basement of 2131 K Street, N.W, The Board concluded that it was not appropriate to approve a license for a second nightclub to operate directly beneath Shadow Room because *84 the two clubs together would be able to circumvent the occupancy cap set forth in the settlement agreement, to the detriment of nearby residents. We affirmed the Board’s denial of Panutat, LLC’s application. Panutat, LLC v. District of Columbia Alcoholic Beverage Control Bd., 75 A.3d 269, 272 (D.C.2013).

In the meantime, Shadow Room submitted an application to the Board in 2010 seeking the renewal of its license for a second three-year period, as well as permission to open a summer garden on the sidewalk in front of the club. A “group of five or more” neighbors and ANC 2A protested the application, and the Board held a contested hearing. In an order issued on January 11, 2012, the Board granted Shadow Room’s request for the renewal of its liquor license on the conditions that the club not, .distribute flyers to its patrons on the premises and that it keep the front and immediate vicinity of the establishment free of debris and litter. The Board denied Shadow Room’s request for a summer garden,, concluding that the outdoor lounge envisioned by the club would lead to an increase in the number of disturbances in the neighborhood, caused by the club’s customers.

■ In the matter now before us, Shadow Room applied to the Board in 2013 for yet another renewal of its liquor license. At the time, the club was open for business three' nights each week: Thursdays from 10:00 p.m; until 2:00 a.m. and Fridays and Saturdays from 10:00 p.m. until 3:00 a.m. Featured music at the club was hip-hop on Thursday nights, a piix on Fridays, and “house with a little bit of hip-hop” on Saturday nights. The club advertised its Thursday night offerings as “Instant Chaos,”

A “group of five or more” neighbors and ANC 2A again opposed Shadow Room’s application for renewal. Stating that they were most concerned about loud and unruly behavior in the streets around the club after closing time on Thursday nights, the protestants argued for the denial of Shadow Room’s application or, in the alternative, for an order requiring the club to hire a reimbursable Metropolitan Police Department detail as a condition of the renewal .of its license.

B. The Protest Hearing

■ The Alcoholic Beverage Control Board, with all seven 'of its members present, convened an evidentiary hearing on Shadow Room’s renewal application on March 12, 2014,.

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135 A.3d 80, 2016 D.C. App. LEXIS 50, 2016 WL 1078050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acott-ventures-llc-ta-shadow-room-v-district-of-columbia-alcoholic-dc-2016.