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License request invokes conflict

Business owners dispute necessity of liquor permits

January 15, 2004

An East Lansing Planning Commission meeting Wednesday night was met with controversy after a number of residents voiced concerns about a request for a new downtown liquor license.

Harry Saites, owner of adjacent restaurants Lou & Harry's Five Star Deli and LH Grille Room, addressed the commission in hopes of receiving a recommendation for a special-use permit. If recommended by the commission and approved by the city council, Saites could begin serving alcohol as long as his state liquor license is approved.

The two restaurants, located at 245 and 235 Ann St., are jointly operated and have a 124-person combined seating capacity. The adjoining locations would share the liquor license.

A group of citizens, including many downtown East Lansing business owners, voiced complaints and presented a petition with dozens of opposing signatures about the permit application. Many argued that another downtown liquor license is the last thing the area needs.

"The area has too many bars right now, and another one isn't going to help," said David Ladd, owner of Earport, 310 M.A.C. Ave., a neighboring jewelry store that Ladd has owned for 22 years. "It would be bad for my business if my jewelry was jumping off the wall," he said.

Saites denied requests to speak directly to reporters. Saites' attorney, George Brookover, said he wouldn't comment on the business owners, adding that they were entitled to their opinions.

If the city allows Saites to serve liquor, only waitstaff would serve the drinks to the LH Grille patrons. In the Five Star Deli, however, customers could order alcoholic beverages from the counter.

"This is a very controllable room," said Brookover, in regards to the Five Star Deli. "This is a restaurant. There is no way to pretend this is a bar."

East Lansing Planning and Community Development Director Jim van Ravensway said the permit is only applicable to Saites' establishment's current setup.

"If he wanted to add a bar or extended hours, he would have to come back to the city and get those changes approved," van Ravensway said.

Also present at Wednesday's meeting was Tony Lagalo, co-owner of Tony's Restaurant, 350 Albert Ave. Lagalo said he had an interest in this matter and was happy to sign the petition.

Lagalo's restaurant once stood in the area where Saites' LH Grille Room is now operating. Tony's moved in June 2003 to its present location.

In 1998, a year after Tony's opened, Lagalo requested a special-use permit from the city to serve beer and wine. Although the Planning Commission voted to recommend the permit's approval, the Downtown Development Association voted unanimously against it.

Saites served on the development association that voted against the approval, which decided that the permit "would not offer any diversity to the downtown." Also, St. John's Student Parish opposed the permit. The city council agreed with the development association and denied Lagalo the permit.

"They said that there were too many licenses in the area," Lagalo said. "How has that changed since then?"

Lagalo said he thinks Saites might have an easier time getting the special-use permit that he was denied.

"He'll probably get it," Lagalo said. "Harry is pretty political and he has ties to the council."

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