M I N U T E S OF PUBLIC HEARINGS OF THE MANHEIM TOWNSHIP BOARD OF COMMISSIONERS MONDAY, AUGUST 29, :30 P.M.

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1 M I N U T E S OF PUBLIC HEARINGS OF THE MANHEIM TOWNSHIP BOARD OF COMMISSIONERS MONDAY, AUGUST 29, :30 P.M. A public hearing of the Manheim Township Board of Commissioners was held at 7:30 p.m., Monday, August 29, 2005, in the Municipal Building. Members present were: Commissioners Ritter, Bledsoe, Downing, Simpson and Flanagan, and Manager- Secretary James M. Martin. President Ritter announced that there were two Public Hearings this evening. Liquor License Transfer Application: Brinker Penn Trust, A Pennsylvania Business Trust for Chili s Grill & Bar at Manheim Pike and Granite Run Drive President Ritter opened this Public Hearing and introduced the Township Solicitor, Mr. McCarty. Mr. McCarty said this is a Public Hearing required under the Pennsylvania Liquor Code in connection with an application filed by Brinker Penn Trust to transfer a retail restaurant liquor license from Mount Joy Borough to Manheim Township in connection with a proposed restaurant, which he believed was a Chili s, at the intersection of Manheim Pike and Granite Run Drive. The Pennsylvania Liquor Code permits intermunicipal transfers. It does require that a hearing be conducted by the governing body of the municipality where the transfer will occur, at the Board of Commissioners here. He said this hearing has been advertised in compliance with the Liquor Code Department and he believed that Mr. Wolowski, Counsel for the applicant was in attendance, as well as the applicant. He then asked them to make their presentation. Mr. Stan Wolowski, the Liquor License Attorney for Brinker Penn Trust, A Pennsylvania Business Trust introduced himself. He said Brinker Penn Trust would like to open a new Chili s restaurant here in Manheim Township, as they ve heard, at the intersection of Manheim Pike and Granite Run Drive. Brinker Penn Trust would like to sell alcoholic beverages as a complement to a meal at its Chili s restaurant. To that end, Brinker Penn Trust has entered into an agreement to purchase a restaurant liquor license currently issued for Mount Joy Borough here in Lancaster County. As they just heard from the Solicitor, Brinker Penn Trust would like to transfer that restaurant liquor license from Mount Joy Borough here into Manheim Township and use it at its proposed Chili s restaurant on Manheim Pike. He said with him here tonight was Dave Delahan. He said Dave is the Area Director for Chili s restaurant. Dave is thoroughly familiar with all aspects of how this Chili s restaurant will operate here in Manheim Township, if and when it s running. The reason Dave and he were here tonight was to respectfully request that Manheim Township approve the Resolution permitting the transfer of this restaurant liquor license from Mount Joy Borough into Manheim Township. Under the Liquor Code, the standard to be applied by Manheim Township in considering their request was will the transfer of this restaurant liquor license from Mount Joy Borough into Manheim Township, will that transfer adversely affect the welfare, health, peace

2 Page 2 of 6 pages MINUTES August 29, 2005 and morals of Manheim Township or its residents? In order the help this Board apply that standard to their request, he said he would now like to take just a little bit of their time and tell them a little bit about the Brinker Penn Trust Company, a little bit about Chili s restaurant and about the plans that Brinker has for this Chili s restaurant. He said Brinker Penn Trust is the company that will own and operate this Chili s restaurant. Brinker Penn Trust will hold the liquor license. However, Brinker Penn Trust is a wholly owned subsidiary of Brinker International. Brinker International is a public company. Its stock is traded on the New York Stock Exchange. It s headquartered in Dallas, Texas. It was founded in And Brinker International, through its subsidiary companies, such as Brinker Penn Trust, owns and operates six different types of full-service, casual dining, national chain restaurants. Brinker International, through its subsidiary companies, operates over 1600 restaurants world-wide, with sales approaching four billion dollars annually. He said if he could just introduce as his first exhibit just a brief descriptive summary of the Brinker International Company. He said in particular, if he could just direct their attention to the first page, the right hand corner, it lists the six different types of national chain restaurants that Brinker International owns and operates: Chili s, the Corner Bakery Café, On the Border Mexican Grill, Maggiano s Little Italy, Romano s Macaroni Grill, and the Rockfish Seafood Grill. He said with regard to Chili s restaurants, there are currently 1,075 Chili s restaurants operating in 49 states and in 23 foreign countries. In Pennsylvania there are currently five Chili s restaurants operated by Brinker Penn Trust; this will be the sixth Chili s restaurant operated by Brinker Penn Trust in Pennsylvania. He said the concept of the Chili s restaurant is this it s a casual dining, family-oriented restaurant featuring a wide variety menu, from baby back ribs to fajitas, from hamburgers to southwestern egg rolls. He said if he could just introduce as his next exhibit, exhibit number two, just a brief descriptive summary of the Chili s restaurant concept. He said he would now like to just talk briefly about this particular Chili s restaurant for Manheim Township. He said as they ve heard it would be located at the intersection of Manheim Pike and Granite Run Drive. It s going to be located on the pad of the former Eatery Restaurant. He said as they know that s a commercial area; there is a bank close by, a strip shopping area nearby and a hotel across the street. There are no churches, schools or private residences within the immediate vicinity. So, because this Chili s restaurant will be located in a commercial area, the operation of this Chili s restaurant should not disrupt or interfere with the lives of any residents of Manheim Township. He said as far as the restaurant building itself, the restaurant building from the outside will have a very sharp, attractive appearance. Once again, if he could introduce as his third exhibit, two photographs of the exterior of an existing Chili s restaurant, this would give them some idea of what this Chili s restaurant would look like from the outside, if and when it s built here in Manheim Township. He said there would be parking surrounding the restaurant. Currently there are parking spaces for 58 vehicles. As far as the restaurant building itself, inside the restaurant there will be 5877 square feet. Inside there will be a small bar area, and then the dining area. Seating in the dining area will consist of a mixture of tables and chairs and booths. There will be seating inside for 235 people. He said he d like to talk to them about the menu that will be offered at this Chili s restaurant. Chili s restaurants are known for their wide variety menu featuring generous portions and

3 Page 3 of 6 pages MINUTES August 29, 2005 reasonable prices; this Chili s restaurant will be no different. As his next exhibit he said he would like to introduce the menu that will be offered at this Chili s restaurant. President Ritter asked when they would be anticipating opening. Mr. Delahan answered that they weren t clear on that yet; they were still working on bidding everything out. He said he saw some things in the building department come over his in the last couple of days. All that depends on how everything else goes together. President Ritter asked him when he would like to open. Mr. Delahan answered as soon as possible. Mr. Wolowski said as they can see from the menu there is a wide variety of appetizers, soups, salads, entrées, fajitas, sandwiches, burgers, desserts. There is also a Guiltless Grill section of the menu featuring various items with reduced calories, fat and carbohydrates. He said also this Chili s restaurant will have a take-out service; all items on the menu will be available for take-out. As far as the patrons that can be expected to come to this Chili s restaurant, the patrons of a Chili s cover all age ranges; there are young children coming with their parents, senior citizens, a large majority of patrons at a Chili s restaurant are families. That s because Chili s restaurants are very family friendly, very family oriented. This Chili s restaurant will have a children s menu. He said if he could just offer a children s menu. Commissioner Downing joked that he was making them hungry! There was laughter. Mr. Wolowski said although there will be a bar area, and although this Chili s will serve alcoholic beverages, the focus of this Chili s operation will be on the sale of food. The operation of this Chili s is not set up to encourage the consumption of alcoholic beverages. Chili s does not want, nor does it cater to the person who just wants to come in, sit at the bar and consume alcoholic beverages. Rather the purpose of the sale of alcoholic beverages at a Chili s restaurant is as a complement to a meal. Also, in Dave s experience, the bar area of a Chili s restaurant is more of an extension of the dining area and waiting area. The bar area is used a lot by the single individual diner who just wants to come in, get a quick meal and leave. It s also used a lot as the waiting area, where people wait for other members of their party to arrive. Chili s focus on the sale of food is reflected in their sales figures. The sales breakdown at the Chili s restaurants, including the ones in Pennsylvania, is as follows: 85% of their sales come from the sale of food, and only 15% of the sales come from the sale of alcoholic beverages. He said Dave expects that same breakdown here for the Chili s in Manheim Township. This Chili s restaurant, the reason he introduced these exhibits, this Chili s restaurant is going to be a genuine restaurant; it s not going to be a bar. It s not going to have any live entertainment, it s not going to have bands, it s not going to have disc jockeys, and it s not going to sell beer to go. Also, its hours will be consistent with an establishment of a restaurant. It s going to be open Sunday through Thursday 11:00 a.m. to 11:00 p.m. and Friday and Saturday, 11:00 a.m. until midnight. This Chili s restaurant will employ approximately 105 people. With regard to its employees, Chili s has a very extensive training program; a large portion of that training program deals with the responsible service of alcoholic beverages. But there are two fundamental aspects of its in-house alcohol awareness program. One is it s strict company policy that if any

4 Page 4 of 6 pages MINUTES August 29, 2005 patron exhibits any signs of intoxication, they re not served an alcoholic beverage. It s also a strict company policy that if any patron orders an alcoholic beverage and that patron appears to be thirty years of age or younger, they re not served an alcoholic beverage unless they can produce a valid photo ID showing that they re over 21 years of age. He said with that said, in those situations where they have somebody who has too much to drink trying to get service at a Chili s or a minor trying to get service at a Chili s, they very rarely occur because Chili s are a family-oriented restaurant. And, as he stated, there are five Chili s restaurants currently operating here in Pennsylvania by Brinker Penn Trust, the same company as the applicant here. None of those five Chili s restaurants have ever been cited by the Pennsylvania State Police Bureau of Liquor Control Enforcement for sales to minors, sales to visibly intoxicated persons, or have ever been cited for any serious or significant liquor law violation. He said so in conclusion, this Chili s restaurant planned for Manheim Township will be operated by a very reputable, responsible company. It will be operated in a very responsible manner. It s going to employ 105 people. It s going to offer the residents of Manheim Township and the surrounding communities great-tasting, reasonably priced food in a family-oriented atmosphere. It s not the kind of establishment that s going to cause any problems for Manheim Township or its residents. It s not the kind of establishment that s going to place any additional demands on the local Police Department. So, for those reasons, he said they respectfully request that they adopt the Resolution permitting the transfer of this restaurant liquor license from Mount Joy Borough here into Manheim Township. He thanked them for their time and for allowing him to make this presentation. He said if they had any other questions, he would try to answer them, or Dave would try to answer them. Commissioner Flanagan asked how long Brinker Penn Trust has been in existence. Mr. Wolowski said Brinker International has been in existence since Brinker Penn Trust has been in existence since Mr. Delahan said the original three restaurants in Pennsylvania were operated under the franchisee called Best Restaurants from 1987 until In 1993 the parent company, Brinker International bought the franchise rights back from the franchisee and has operated all of the Brinker-owned restaurants in Pennsylvania. He said there are some restaurants in Philadelphia that are operated by Quality Dining, and two restaurants operated in Penn State that are operated by a group called Six Shooter. So they will see other restaurants in other parts, but that s all the ones they operate. Commissioner Flanagan asked where are the five ones that Brinker Penn, the applicant here, operate? Mr. Delahan said three in Pittsburgh, Monroeville, West Mifflin and McKnight Road, one in Johnstown, PA, and one in Greensburg, Pennsylvania. Commissioner Flanagan mentioned that the application mentions a citation history. There were a couple of restaurants, Romano s Macaroni Grill in Fairless Hills, and asked if that was still operated by Brinker Penn Trust. Mr. Delahan said he was sure it was. Commissioner Flanagan agreed and said the citation history that was provided as an exhibit to the application, how far back does this go and does it cover all Brinker Penn Trust restaurants? Mr. Wolowski said first of all, that went as far back as the licenses were issued, and he wasn t sure of the exact date that each license was issued, but it went back from the date that they got the license. And, that is

5 Page 5 of 6 pages MINUTES August 29, 2005 the extent of the citation history, so if there s not a citation for a Brinker location, then it has no citation history. Commissioner Flanagan said OK, but there was a citation for serving minors. Mr. Wolowski said he knew, a Romano s, that was in President Ritter closed the Hearing. Liquor License Transfer Application: Kenny Zhang for Tokyo Diner at 1625 Manheim Pike President Ritter opened this Public Hearing and reintroduced Mr. McCarty. Mr. McCarty said this is the second intermunicipal retail restaurant liquor license transfer application. In this case it s in connection with Mr. Zhang s application, which he believed related to the Tokyo Diner, which is an existing restaurant at 1625 Manheim Pike. He said this license originally came from Elizabethtown Borough. He introduced Mr. Harry Baturin who would be representing Mr. Zhang. Mr. Baturin said he represented Tokyo Diner, which is owned by Kenny Zhang. He said Kenny Zhang is a resident of Manheim Township. He has been a resident for eighteen years. He is a US citizen, is married and has three children. He owns and operates the Tokyo Diner and has done so for five years. He has purchased a liquor license from Lazy Lightning Enterprises, which currently owns the license, and they are located in Elizabethtown. He said they were respectfully requesting to permit the transfer of the liquor license to Tokyo Diner here in Manheim Township. Mr. Baturin said Tokyo Diner is a fine dining establishment. It has been in existence for five years. It closes at 10:00 p.m. It does not intend to cater to those drinking alcohol, but wishes to complement its fine dining with the service of alcohol. Tokyo Diner has not had any citations or violations of any sort since the beginning. There are five Tokyo Diners; one here in Lancaster County. None of the five Tokyo Diners has ever had any problems; no citations, no violations of any sort, ever. He said as stated earlier, the standard is whether the liquor license transfer would adversely affect the health, safety, welfare and morals of the community. He said they respectfully submitted that it would not adversely affect the community at all, but would in fact increase the economic base, revenue, and employment. He said that was all they had. Mr. McCarty said Mr. Baturin previously submitted an application tonight, and indicated there were no prior violations. He said he thought there were no other licenses. Mr. Baturin said there are no other licenses. This would be the first. There are no other issues of any sort. He said he did have the menu, which he would like to introduce. It reflects the closing time of 10:00 p.m. The hours will not be extended with this liquor license. Mr. McCarty asked if there were any questions. Commissioner Flanagan said Mr. Baturin mentioned in his presentation there are five other Tokyo Diners, and asked if they were all owned by Mr. Zhang. Mr. Baturin said no, they are not. Commissioner Flanagan asked how they were affiliated. Mr. Baturin said there is one family that owns

6 Page 6 of 6 pages MINUTES August 29, 2005 all of the diners and they manage different diners, but this is the one solely owned by Kenny Zhang. Commissioner Flanagan asked if any of them had liquor licenses. Mr. Baturin said two had liquor licenses pending, but none of them own any liquor licenses. Another question was asked but it was inaudible. Mr. Baturin said it was a fair question, but they didn t have it at this time. This would be the first liquor license along with the other, so they didn t have any figures on that; the projections were closer to five to ten percent, because they don t anticipate much. Commissioner Simpson asked where they were. Mr. Baturin answered Selinsgrove, Cumberland County, two in Dauphin County and Londonderry Township. Commissioner Simpson said so they were all in the one big family. Mr. Baturin answered yes, exactly. Commissioner Flanagan said Chili s is talking about having a bar in their restaurant; will Tokyo Diner have a bar in the restaurant, or will it be at the table? Mr. Baturin said that was a very good question; there will be no bar in the restaurant. They anticipate having a section where they will serve alcoholic beverages, but they will not have solely a bar area; it will be among the dining area. President Ritter closed this Public Hearing. Respectfully submitted, James M. Martin