February 6, 2009 Touch of Athens, Inc Anthony Gianopoulos, President/Stockholder Dionysious Tzakis, Vice President/Director/Stockholder dba SANTORINI WEST (F-COM) 11525 SW Bames Road Portland, OR 97225 CERTIFIED MAIL SECOND AMENDED NOTICE OF PROPOSED LICENSE CANCELLATION AND PROPOSED REFUSAL TO RENEW LICENSE This notice amends and supersedes the Amended Notice of Proposed License Cancellation and Proposed Refusal to Renew License dated June 26, 2008. Substantive changes fram that letter appear underlined after the (*) | LICENSE CANCELLATION Pursuant to ORS 471.315, the Commission may cancel or suspend your license or assess a civil penalty for any violation. The Public Safety Program proposes that the Commission cancel your license for the following violations: Violation Number One There is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises or involving patrons of the establishment in the immediate vicinity of the premises, including but not limited to excessive noise, public drunkenness, fights, altercations, harassment and public urination. This a violation of ORS 471.315(1)(c). The problems include the following: On June 18, 2006 at about 3:00 AM, there was a verbal altercation between two female patrons, followed by a physical altercation. One female patron grabbed another female patron’s hair, and then a physical altercation took place on the dance floor. Atleast one of the patrons was visibly intoxicated. One of the females was bitten on her hand and kicked in the head, and sustained bruises on her hands, arms and thighs On November 18, 2006 at about 2:38 AM, BPD officers responded to a complaint of a female patron assaulting another female patron in the premises bathroom. The patron had a swollen eye and scratches on her face and stated that employees were not being cooperative with her.SANTORINI WEST (F-COM) February 6, 2009 Page 2 On December 24, 2006 at about 2:23 AM, a male patron called police after he had been evicted from the premises. He reported that underage females were at the licensed premises. The dispatcher who took the call nated that the male sounded intoxicated On February 11, 2007 at about 2:17 AM, a female patron called police to report that security was attempting to evict approximately eight to ten male patrons who had been drinking. The confrontation became physical while the caller was an the phone with police On March 4, 2007 at about 1:23 AM, a male patran approached a female patron inside the premises and yelled at her. Another male patron, the female patron's fiancé, engaged in a physical altercation with him. One of the male patrons received a bleeding 1-inch cut near his right eyebrow and a quarter-sized bump near his left temple while defending the female patron, who was slapped in the face. The male patron who initiated the confrontation was arrested for Assault IV and Harassment On March 31, 2007 at about 2:12 AM, a patron called police to report that another patran, who was visibly intoxicated, was punched in the face inside the premises. BPD officers located the patran on the floor of the licensed premises bleeding from his face and head The patron had sustained a cut to his face and the back of hishead. Premises staff told police that twa graups of males, many of wham were visibly intoxicated, were fighting with each other and that staff were unsuccessful in separating them. On May 12, 2007 at about 2:00 AM, a physical altercation occurred between three different groups of patrons, totaling about 15 people. One female patron was bleeding from her head after being punched and hit in the head with a beer bottle by a male patron following a verbal altercation with another female patron. BPD officers arrived to find chaos in the parking lot and no premises staff outside trying to control the situation. Premises staff were uncooperative with BPD officers. Multiple patrons were visibly intoxicated. Some patrons told police that premises staff were allowing patrons to bring guns onto the premises. On June 24, 2007 at about 2:40 AM, a patron called police and reported that security staff were detaining a patron who had a gun. The patron stated that he had been threatened with the gun in the bathroom of the premises. He also reported that the same person had threatened to shoot others. On July 8, 2007 at about 1:52 AM, an irate patron who stated he was intoxicated called palice claiming he was overserved and/or overcharged and that premises staff refused to get hima cab. The caller refused an offer from police to call a cab.SANTORINI WEST (F-COM) February 6, 2009 Page 3 On July 8, 2007 at about 3:12 AM, a verbal argument occurred between patrons inside the licensed premises. One of the patrons, who was visibly intoxicated, called police and reported that her car was broken into On July 21, 2007 at about 5:54 AM, a BPD dispatcher received a call from a hospital reporting that a patron was stabbed at the licensed premises and required emergency surgery for a punctured intestine. The injured patron told BPD officers that a physical altercation occurred inside the licensed premises between his cousin and another male patron araund clasing time. A large physical fight erupted and security staff forced all of the patrons into the parking lat. While driving away from the premises, the injured patran realized he had been stabbed during the altercation On July 31, 2007 at about 12:13 AM, a visibly intoxicated minor patron entered the licensed premises and admitted to drinking alcohol inside. After being told to leave, he instigated a physical altercation in the parking lot and then was punched in the face by another male patron. BPD officers arrested the second patran for a prabation violation for being on the premises and consuming alcohol On August 12, 2007 at about 12:02 AM, a person called police to repart that a male was urinating in the parking lot of the licensed premises On September 8, 2007 at about 12:83 AM, a patron called police to report a physical fight at the premises. Approximately ten male patrons were involved in a physical altercation inside the premises and one male patron was bleeding from a cut above his eye. The caller also reported that a security staff member kicked a patron in the head while attempting to evict the patrons. On September 22, 2007 at about 2:42 AM, BPD received a call to respond to the licensed premises an a report of gang activity and physical altercations involving approximately 150 people occurring both inside and outside the licensed premises, including patrons standing on the tops of cars. When police responded, witnesses were nat cooperative On October 6, 2007 at about 3:06 AM, a female patron called police and reparted that another female patron punched her in the face and a male patron reached under her skirt. On October 20, 2007 at about 2:53 AM, the premises manager called police to report that numerous patrons were hanging out in the parking lot and asked police to respond to the premises in order to make the patrons leaveSANTORINI WEST (F-COM) February 6, 2009 Page 4 On October 20, 2007 at about 2:56 AM, a person called BPD dispatch to report that approximately ten males who had been drinking were physically fighting in the parking lat. On October 30, 2007 at about 1:23 AM, a female patron called police to report that she was attacked by five other female patrons inside the premises. She also reported that her purse was stolen. The physical altercation started when she engaged in a pushing match with another female patron On November 1, 2007 at about 2:08 AM, Hillsboro Police Officers arrested a minor female for driving under the influence of intoxicants. The female told officers she had last consumed alcohol at Santorini West. Her bload alcohol content was .16% On November 3, 2007 at about 2:53 AM, premises staff called palice to report a"big brawl” in the parking lot of the licensed premises and to request an ambulance. When BPD officers responded, they encountered a physical fight between a large group of patrons, some of whom were self-described gang members. The fight ended when gunshots were fired. One visibly intoxicated male patron was beaten and kicked until he was unconscious. Patrons continued to kick and stomp an the male patron despite security's efforts to stap them. Another male patron was stabbed with a knife in the left hip and poked in the eye, causing swelling of the eye, and a third male patron was hit in the head and received a small cut across the bridge of his nose, and his left cheekbone was bloody and scratched. One of the male combatants, who was visibly intoxicated, was 17 years old. BPD officers located multiple bottles of liquor in the premises parking lot. Four patrons were arrested for several counts of Riot, Disorderly Conduct Ill, Providing False Information to Police, and Assault II On November 17, 2007 at about 1:34 AM, BPD officers responded to a call about a physical altercation between several female patrons inside the premises. As officers arrived, they abserved several female patrons yelling at security staff as the females were walking away. One female patron was waving her shoe in the air and another female patron had her purse ripped off of her shoulder and stolen. Another female patron's hand was bleeding after she had fallen onto a piece of glass. On November 25, 2007 at about 1:29 AM, BPD officers faund several open containers of alcohol in the parking lot of the licensed premises, and observed a graup of approximately ten males passing a half-gallon bottle of vodka to each other. A visibly intoxicated male tried to hand it off to another male, and then dropped the bottle. As he was being placed into custody he escaped and ran off. A BPD officer sustained a dislocated finger in the altercation. The male patron was apprehended by BPD officers and charged withSANTORINI WEST (F-COM) February 6, 2009 Page § Resisting Arrest, Escape Ill and Drinking in Public. There were numerous containers of alcohol in the parking lot, along with vornit and broken glass. On December 16, 2007 at about 1:29 AM, a BPD officer faund two males urinating in the parking lot of the premises. The male patrons were arrested for Indecent Exposure and one male was charged with Possession of Marijuana Willingness and Ability Licensee has not demonstrated willingness or ability ta maintain adequate control of the premises. There have been at least 23 documented incidents at the licensed premises in 18 months. Incidents have included physical altercations involving fighting, kicking, punching, stabbing, shots fired and threats of guns, and verbal assaults. These incidents have occurred inside the licensed premises, in areas that licensee controls outside the premises, and in the immediate vicinity of the licensed premises. Patrons and police officers have sustained injuries ranging from bruises and cuts to concussions, stab wounds and a punctured intestine as a result of these incidents, some of which required hospitalization. Some incidents have resulted in damage to property. In addition, there have been instances of public drunkenness, open containers of alcoholic beverages, broken glass, and public urination in the immediate vicinity of the licensed premises. The licensee has been warned about the disturbances on several occasions. Verbal instructions were issued by Public Safety Program staff on January 19, 2006, March 2, 2006, February 9, 2007, March 20, 2007, May 18, 2007 and August 1, 2007 regarding visibly intoxicated patrans, minors, disorder and permitting security staff to provide private security services without the required certification. The majarity of incidents occurring between June 2006 and November 2007 have invalved visibly intoxicated patrons. Despite the high occurrence of overservice at the licensed premises, the licensee has not made any efforts to reduce the amount of alcohol provided to patrons. Licensee relies on police to contral crowds and deal with issues that arise in the parking lot of the premises. Security staff are unable to control the crowds that accumulate in the parking lot of the premises and, on accasion, security staff have responded with mare force than is necessary to control the situation. On at least one occasion security staff have been uncoaperative with police officers On November 14, 2007, BPD officers met with the licensee to discuss the problems at the premises, On November 21 and November 28, 2007, OLCC Public Safety Program staffSANTORINI WEST (F-COM) February 6, 2009 Page 6 and BPD officers held intervention meetings with the licensee to discuss ways to control disorderly and unlawful activity at the premises. Despite these meetings, incidents continued to occur. The premises manager pravided staff with a compliance plan but has nat made efforts to update it based on suggestions made by OLCC staff and BPD officers Licensee provided OLCC staff with only a portion of the incident log entries requested, and the incident log entries that were provided did not reflect the problems that occurred at the premises. Violation Number Two On or about January 31, 2008, February 8, 2008, April 10, 2008, and April 11, 2008, checks were issued by Touch of Athens, Inc. to a wholesale licensee to pay far alcoholic beverage products. The checks were returned for non-sufficient funds. This sa violation of OAR 845-006-0365(1) *) Violation Number Three From July 24, 2007 until March 27, 2008 and from December 29, 2008 until January 12 2009, you failed to maintain liquor liability insurance or a bond with a corporate surety in the amount of not less than $300,000.00 for Santorini West. This is a violation of OAR 845-005-0400(1 *) Violation Number Four On January 9, 2009, your employee Helen Tzakis made a false representation or statement to the Oregon Liquor Control Commission in order to prevent action by the Commission when she misrepresented that the licensee had valid liquor liability insurance This is a violation of ORS 471.425(1 DETERMINING THE PENALTY OAR 845-006-0500 defines Violation Number One as a Category | violation and recommends cancellation for the first violation of this type within two years. This is your first. OAR 845-006-0500 defines Violation Number Two as a Category V violation and recommends a three-day suspension or $495.00 civil penalty far the first vialation of this type within two years. This is your first.SANTORINI WEST (F-COM) February 6, 2009 Page 7 (*) OAR 845-006-0500 defines Violation Number Three as a Category | violation and recommends cancellation for the first violation of this type within two years. This is your second (*) OAR 845-006-0500 defines Violation Number Four as a Category II violation and recommends a 30-day suspension for the first violation of this type within two years. This is your first. If the license is cancelled pursuant to (*) Violation Number One or Three, no separate penalty will be imposed for (*) Violation Numbers Two and Four Ifthe Commission finds aggravating or mitigating circumstances, it may assess a greater or lesser sanction than that listed in the administrative guidelines. Agagravating Circumstances Licensee received a prior warning regarding checks returned for insufficient funds. Licensee issued checks that were returned for insufficient funds on more than one occasion. (*) Licensee was without liquor liability insurance for more than six months PROPOSED PENALTY The Public Safety Program propases that the Commission cancel your Full On-Premises Sales license If a licensee's interest in the license expires before a Final Order is issued, the Commission's Public Safety Program recommends that under the authority af ORS 471,030, 471.040, 471.313 and 471.730, the Commission issue the licensee a Letter of Reprimand. This reprimand will become a permanent part of the licensee's Commission file and may be considered in any future application for a liquor license by the licensee Il REFUSAL TO RENEW LICENSE A. Not a Good Record of Compliance Pursuant to ORS 471.313(4)(g), the Commission may refuse to license any applicantif the Commission has reasonable grounds to believe that the applicant did not have a good record of compliance with the alcoholic liquor laws af this state and the rules of the Commission when previously licensed. The Public Safety Program proposes that the Commission refuse to renew your license for the following adjudicated and pendingSANTORINI WEST (F-COM) February 6, 2009 Page 8 Violations which demonstrate that the applicant does not have a good record of compliance Adjudicated Violations Violation Number One On the dates indicated below, Licensee permitted the indicated employees to sell, mix, or serve alcoholic beverages, or manage those who do, without valid service permits issued by the Commission. This is a violation of ORS 471.360(1)(b). (Fine paid March 26, 2007) Larbi Benmoussa From December 1, 2003 to March 2, 2006 Dionysious “Denny” Tzakis From September 9, 2003 to March 2, 2006 Violation Number Two From about January 19, 2007 to about April 21, 2007, Licensee permitted Dezra Reszelto sell, mix, or serve alcoholic beverages, or supervise those who do, without a valid service permit issued by the Commission. This is a violation of ORS 471 360(1)(b). (Fine paid August 30, 2007 and two-day suspension served from September 1, 2007 to September 3, 2007) Pending Violations Violation Number One There is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises or involving patrons of the establishment in the immediate vicinity of the premises. This a violation of ORS 471.315(1)(c). The problems listed on pages 1-5 are incorporated into this section by reference Violation Number Two On or about January 31, 2008, February 8, 2008, April 10, 2008, and April 11, 2008, checks were issued by Touch of Athens, Inc. to a wholesale licensee to pay far alcoholic beverage products. The checks were returned for non-sufficient funds. This sa violation of OAR 845-006-0365(1)SANTORINI WEST (F-COM) February 6, 2009 Page 9 *) Violation Number Three From July 24, 2007 until March 27, 2008 and from December 29, 2008 until January 12, 2009, you failed to maintain liquor liability insurance or a bond with a corporate surety in the amount of not less than $300,000.00 for Santorini West. This is a violation of OAR 845-005-0400(1 *) Violation Number Four On January 9, 2009, your employee Helen Tzakis made a false representation or statement to the Oregon Liquor Control Commission in order to prevent action by the Commission when she misrepresented that the licensee had valid liquor liability insurance This is a violation of ORS 471.425(1 B. History of Serious and Persistent Problems Pursuant to ORS 471 313(5), the Commission may refuse to license any applicantif thas reason to believe that there is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises ar involving patrons of the establishment in the immediate vicinity of the premises. The Public Safety Program proposes that the Commission refuse to renew yaur license for the problems described in Violation Number One of this Notice, which constitute a history of serious and persistent problems. The problems listed on pages 1-5 are incorporated into the section by reference RESPONSIBILITY FOR VIOLATIONS Licensee" is defined as including the principal officers of a corporation and stockholders who own or contral 10% or mare of any class of stack (OAR 845-006-0301 and OAR 845- 006-0475(1)(d)). Atthe time of the incidents, the licensee included Anthony Gianopoulos, President/Stockholder and Dionysious Tzakis, Vice President/Director/Stockhalder of Touch of Athens, Inc. As af March 6, 2008, the licensee includes Anthony Gianopoulos, President/Secretary/Director/Stackholder and Dionysious Tzakis, Directar of Touch of Athens, Inc, Additionally, Touch of Athens, Inc. is responsible for the acts and omissions of its employees and representatives in violation of any law affecting license privileges (OAR 845-006-0362) HEARINGS RIGHTS You have already requested a hearing on these violations as previously charged. We will consider your earlier request for a hearing on these violations as valid and continue theSANTORINI WEST (F-COM) February 6, 2009 Page 10 hearings process unless you withdraw from the hearing or this matter is otherwise resolved. Per OAR 137-003-0550, corporations must be represented by an attorney. Hearings are conducted by the Office of Administrative Hearings under the jurisdiction of the Oregon Liquor Control Commission, accarding to the Administrative Procedures Act (ORS Chapter 183), Attorney General's Rules for the Office of Administrative Hearings (OAR Chapter 137) and Commission Administrative Rules (OAR Chapter 845 Division 03). Ifyou withdraw a request for a hearing, this notice will be presented to the Commissioners for ratification and adoption as a final order by default at the next scheduled Commission Meeting, If you fail to appear at a scheduled hearing, a Proposed Order by Default will be issued by the Administrative Law Judge, to be followed by a Final Order by Default issued by the Commissioners In each of these instances (a hearing request was made but either withdrawn or the scheduled hearing was not attended), the Commission will designate its file or files in this, matter as part or all of the record supporting its final order by default. OREGON LIQUOR CONTROL COMMISSION Stephen A. Pharo Executive Director SAP:KKR If you have any questions, please call 503-872-5007