Chris and Penny Windgate planned to open the Broad Street Downtown Market on May 22, in the building that Broad Street Market occupied until it closed at the end of March. But their liquor license cannot take effect as long as former owner Ed Vajda still posses a liquor license connected to the same building, a dilemma that could delay the new store's opening indefinitely, Mayor Michael Sessions said.
The Windgates recently slowed down building renovations that began April 1 until the issue is resolved, Penny Windgate said.
She said they tried to buy Vajda's license, but after finding Vajda unreachable, they bought a liquor license from John Savarino, who recently sold Savarino's Restaurant.
"We've made every attempt to purchase this license, we thought that would make more sense, but we couldn't get him to reply to us, return phone calls - nothing," she said.
Chris Windgate said Vajda finally contacted them at the end of March, but it was too late.
Last Friday, Savarino called Michigan's Liquor Licensing Commission to check on the status of the transfer of his license from Savarino's to the Windgates. He found out the council had revoked the transfer, Penny Windgate said.
The state does not allow more than one liquor license within a half-mile and must be within a commercial zone, City Manger Michael Mitchell said.
Penny Windgate said city council members started working on the problem by Friday afternoon.
Sessions said the city discovered Vajda's license comes up for renewal on April 30. If the state commission grants him a renewal, it will last for five years. The Windgates said they will not open the store unless they posses an active license because they will depend on the profits from alcohol sales.
"This is really paralyzing the property," Sessions said. "Without a liquor license the Broad Street Market can't go."
Yesterday, Sessions and Mitchell drove to Lansing to urge the commission to deny Vajda's application for renewal. Sessions said he will not release any information about their meeting for a week or longer.
Meanwhile, Vajda suffered a heart attack last Wednesday and only left the hospital two days ago. He missed the city's repeated attempts to contact him, and he could not attend Monday night's city council meeting, at which the council discussed the liquor issue.
He still plans to apply to renew his license, though, he said. He said he can either terminate the license or give it back to the state, but he doesn't want to lose a license he can sell later.
"My liquor license is good for the city of Hillsdale," he said. "I can still open a store somewhere else."
Sessions said the state commission may reject his application because his business has racked up 17 violations with the commission, including selling alcohol to minors and writing insufficient checks to the commission. Seven violations have occurred since 2006. Additionally, the commission will take the city's recommendation into serious account, Sessions said.
This, however, was not the first time city and county officials went to the Liquor Licensing Commission.
The Windgates said they went before the commission with Sessions, both State Senator Cameron Brown's and State Representative Ken Kurtz's chiefs of staff, and the city of Hillsdale's Director of Economic Development Christine Bowman, to make sure no problems would arise.
"And they said not a problem, we'll push it through for you," Penny Windgate said.
She said Sessions even asked the commission specifically if there would be a conflict with Vajda's license. She said the commission stated that when Vajda ceases to do business at Broad Street Market the license would not present a problem.
The new store will benefit the whole community, Penny Windgate said.
"We can be a vital part to helping to grow this economy," she said. "I was planning to hire 15 people - there's 15 jobs lost because I can't open the store."
Chris Windgate said he had to slow the construction of Broad Street Downtown Market, and plans to lay off workers.
Councilperson Bruce Sharp agreed with Penny Windgate's assessment.
"It's going to be a cornerstone," he said. "It's not just going to benefit the community, but the college too because it will give the college students something to do Thursday night."
Sharp called this business an essential part of Blueprint for Downtown, an extensive program aimed at revitalizing downtown Hillsdale's economy.
"Whatever we can do we need to move forward on this and not delay this," he said to the Windgates. "We're counting on you guys."
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