LIQUOR LICENCE ACT, R.S.O. 1990
In the Matter of: LEAMINGTON DOCK RESTAURANT
500 Erie Street South
Leamington, Ontario
N8H 3W1
Licensee: Leamington Dock Restaurant Inc.
Licence Number: 22654
Notice of Proposal: To REVOKE a licence
Dated January 8, 2007
The Proposal alleges that:
(a) Having regard to its financial position, the licence holder cannot reasonably be expected to be financially responsible in the conduct of its business;
(b) The past/present conduct of the licence holder or if a corporation the present/past conduct of its officers or directors, or of a shareholder who owns or controls 10% or more of its equity shares, or of a person having beneficial interest in the business of the licence holder; or of a person having responsibility for the management or operation of the business of the licence holder affords reasonable grounds for belief that its business will not be carried on in accordance with the law and with integrity and honesty;
(c) The licence holder is carrying on activities that are in contravention of the Liquor Licence Act (the “LLA”) or the Regulations.
Hearing: Alcohol & Gaming Commission of Ontario
Ramada Inn
201 Erie Street North
Leamington, Ontario
April 11, 2007
Presiding
Board Members: David C. Gavsie, Chair
Guy Maurice, Member
Counsel for the
Registrar: Brad Alton
Attendance: Michael Vourakes, on behalf of the corporate licensee
DECISION and ORDER
A hearing of the Board of the Alcohol and Gaming Commission of Ontario (“AGCO”) was held on Wednesday, April 11, 2007, at the Ramada Hotel in Leamington, Ontario, pursuant to a Notice of Proposal issued January 8, 2007, by the Deputy Registrar (the “NOP”) proposing to revoke the liquor licence of Leamington Dock Restaurant Inc. operating as LEAMINGTON DOCK RESTAURANT (the “Licensee”), 500 Erin Street South, Leamington, Ontario (the “Premises”), licence number 22654 (the “Licence”).
Evidence was presented to the Board at the hearing that the Licensee had not paid retail sales tax for some number of months and as a result currently owes $23,265.31 in tax, interest and penalties to the Minister of Finance. The Licensee’s principal, Michael Vourakes, confirmed that the money was owing, but that he had located a potential buyer for his business to whom the Licence could be transferred, and if that happened, the debt could be paid by the proposed transferee.
The Board discussed various possibilities how this could occur with all present, including the License’s principal, Michael Vourakes, Registrar’s Counsel, Ms. Gauthier from the Ontario Ministry of Finance (“MOF”) and with Angelo Lada, a principal of the proposed transferee, 745950 Ontario Inc. (the “Proposed Transferee”). As a result of those discussions at the hearing, and with the assistance of the participants in the discussions, the Board made the following Order. It should be noted that while there was discussion of an immediate revocation of the Licence which could only become effective at a later date, that alternative, on reflection by the Board, might create undesirable difficulties and therefore is not part of the Order.
The Board ORDERS that the Licence is suspended immediately and shall be subject to being revoked after a hearing, if the following terms are not met. If all of the terms set out below are met, then it is understood by the Board and by all parties that the NOP shall be withdrawn.
The terms to be met are the following:
The Licensee and the Proposed Transferee shall file with the AGCO on or before April 19, 2007, a fully completed application to transfer the Licence from the Licensee to the Proposed Transferee, and shall forthwith notify Registrar’s Counsel and MOF that same has been done;
On or before April 19, 2007, the Proposed Transferee shall enter into a memorandum of understanding (the “MOU”) with MOF containing terms and conditions acceptable to both calling for, on condition that the Licence is approved for transfer to the Proposed Transferee by the AGCO on or before July 9, 2007, the Proposed Transferee to pay any and all current and future retail sales tax plus interest and/or penalties thereon owing by the Licensee which total as of April 10, 2007, $23,265.31 (consisting of tax of $20,455.25, a penalty of $1,623.71 and interest of $1,186.35). Included in the MOU will be a provision which states that on signing of the MOU, the Proposed Transferee shall provide MOF with a cheque for $5,000 to be held by MOF and not cashed until the Licence is approved for transfer by the AGCO to the Proposed Transferee. But if that does not occur by 5 p.m. on July 9, 2007, or if the application for transfer of the Licence is withdrawn for any reason, the uncashed cheque shall be returned by MOF forthwith to the Proposed Transferee. Further, the MOU when signed is to be added as a condition on the licence, to the effect that its terms shall be fulfilled;
Provided the terms in paragraphs 1 and 2 above are met, the Licensee may under the Licence hold the 7 events set out on the “2007 Commitments” schedule attached hereto. The MOU shall provide that any and all sales tax in respect of the 7 events shall be reported and paid to MOF by the Proposed Transferee on a timely basis; and
In the event that, (a) any of the terms in paragraph 1 or 2 have not been met, or (b) the AGCO does not approve the transfer of the Licence to the Proposed Transferee by 5 p.m. on July 9, 2007, or (c) the application for transfer is withdrawn for any reason, a hearing of the Board with Messrs. Gavsie and Maurice as the panel shall be held within 10 days of the earlier of April 19, 2007, if the terms in paragraph 1 or 2 are not met, or the date on which the Application is withdrawn, to consider the revocation of the Licence as stated in the NOP, or July 9, 2007 if the NOP is not withdrawn.
DATED AT TORONTO THIS 16^TH^ DAY OF APRIL, 2007.
DAVID C. GAVSIE, CHAIR GUY MAURICE, BOARD MEMBER
Attachment
DCG/rb