ANKENY, Iowa — After a seven-hour hearing, it is still unclear whether the state will uphold Iowa City’s guidelines for denying liquor licenses to bars with high underage drinking tickets.
The intense discussion took place before an administrative judge at the state’s Alcoholic Beverages Division building on Oct. 23, as legal teams from two Iowa City bars fought city attorneys for their businesses.
Administrative Law Judge Margaret LaMarche did not issue a ruling. Instead, she is focusing on the language of the new city guidelines and bars’ ability to comply, and will review last week’s arguments and evidence, as well as taped discussions between city councilors from when they developed the new guidelines in February.
The owners of Et Cetera, 118 S. Dubuque St., and 3rd Base, 111 E. College St., must wait up to a month to hear LaMarche’s decision. The two downtown bars were the first to be denied under the new regulations, which require Iowa City police to recommend license denials if bars have more than one underage drinking ticket per police visit.
Eric Goers, an assistant city attorney, argued that Iowa City has battled a reputation for binge drinking, adding the PAULA-per-visit ratio is the city’s attempt to curb this image.
But the businesses’ attorneys shot back, stating the new guidelines are unclear and should not be the sole reason for denying liquor-license renewals.
“The city of Iowa City is relying on an illegitimate standard,” said Matthew Adam, who represented 3rd Base. “The data it has compiled is inaccurate and misleading; evidence will show its resolution is vague.”
Police base their decision on the number of “bar checks,” not “police visits,” Adam said, noting the definitions are different.
Iowa City Police Chief Sam Hargadine said police use “the number of times a police officer enters an establishment with a purpose to see if it is in compliance with the state law” when calculating the ratio. Hargadine also said officers decide how many visits certain establishments receive based on the likelihood of finding underage drinkers.
The city also called Sarah Hansen, the director of assessment and strategic initiatives for UI Student Services, to testify.
She said UI students typically know where it’s easier to obtain alcohol as a minor.
“They learn from each other where to access alcohol,” she said. “Our goal as an institution is to have our students succeed. Alcohol affects that.”
But bar owners contend they’re doing what they can to control underage boozers.
“We have a zero-tolerance policy for illegal activity,” said Rafer Mateer, the general manager of 3rd Base.
Despite questions raised about the city’s guidelines on Oct. 23, city councilors still support the new standard and its effectiveness.
“I think the guidelines are fair,” said Councilor Matt Hayek. “The PAULA ratio is [just] one piece of the renewal process.”
After LaMarche’s hands down her decision, both parties will have the option of appealing to Alcoholic Beverages Division Administrator Lynn Walding, who would make his decision based on the Oct. 23 hearing.