The owners of two Iowa City bars will make their final pleas to keep their liquor licenses today — and the state’s decision could set a precedent for how it will handle future denials by the Iowa City City Council.

Today’s hearing marks the first time downtown establishments affected by the city’s new liquor-license criteria face the Iowa Alcoholic Beverages Division.

Following the city resolution imposed over the summer, the two establishments — Et Cetera, 118 S. Dubuque St., and 3rd Base, 111 E. College St. — were the first bars to undergo the new process for renewing liquor-licenses on July 28. The new guidelines directed Iowa City Police Chief Sam Hargadine to recommend license denials to the City Council if bars have a ratio of more than one PAULA per police visit.

Armed with a legal team, Et Cetera and 3rd Base owners will travel to Ankeny today to plead their cases in the hopes of renewing their licenses.

Officials at the state level said they have never dealt with a denial method like Iowa City’s, leaving those involved unable to predict the bars’ future.

“We’re really moving into untouched territory,” said Iowa City Mayor Regenia Bailey.

City officials created the new guidelines to establish a systematic way to monitor underage drinkers.

“If the city is going to make a recommendation for denial, it has to have a basis for that,” he said.

However, state officials wonder if simply judging a bar by its PAULA ratio is sufficient evidence against the bar and its owner.

The high presence of underage drinkers at downtown bars might be a reflection of the bar-owners’ “good moral character,” a key factor in the state’s decision.

In an attempt to prove he can successfully regulate his bar for underage drinkers, Et Cetera owner George Etre has made some changes.

“We’ve been monitoring more closely, using dual wristbands, training staff, and working with the police department,” he said.

Etre’s bar has received zero underage drinking tickets since July, police reports show.

His attempts seem to have paid off so far, and city officials said they are taking notice.

Iowa City police Sgt. Troy Kelsay, who has worked with Etre, said his efforts are “genuine.”

But he said he is also unsure about what the Alcoholic Beverages Division will decide.

“I don’t know what to expect,” he said. “I don’t expect the city to prevail, nor do I expect the bars to prevail.”

After each party makes its case at today’s hearing, the Alcoholic Beverages Division’s administrative law judge will make a decision within 14 days. After that, both the city and the bar owners have another chance to appeal to the division’s administrator, Walding, who would make the final ruling.

The city will also present information at today’s hearing supporting its decision to deny both bars their liquor-licenses.

“The burden is on the bars to prove their case,” said Eric Goers, who will represent Iowa City. “We just need to support the decision of the City Council.”