State says Dairy Mart's liquor license won't be revoked over multiple sales to minors

On Aug. 2, one day after the township learned Hamati's license could not be revoked, one of his employees was accused of selling to a minor again, police said.

Because Hamati’s employees at his Grove Road Dairy Mart sold to minors during Washtenaw County Sheriff's Department sting operation three times between December 22, 2009, and June 10, 2010, the township requested the LCC revoke Hamati's license for that store.

Instead, the LCC suspended his license for 60 days. But an LCC commissioner at the penalty hearing told township officials they could independently request the LCC revoke the license after the hearing.

That process required the Township Board of Trustees to hold an informal hearing with Hamati and his lawyers. At the July 26 hearing, Hamati’s lawyers argued that the state statute says a license could only be revoked if there were three violations within an actual calendar year, between Jan. 1 and Dec. 31.

The sales at Hamti’s Grove Road store occurred on Dec. 21, 2009; Dec. 30, 2009, and June 10, 2010. Because two sales occurred on June 10, the LCC processed them as one violation. Even though all the violations occurred within a six-month period, Hamati’s attorneys said, they didn’t occur within a calendar year, therefore his license couldn’t be revoked.

Township officials said they had anticipated that argument and checked with the LCC to ensure they weren’t wasting their time by pursuing the revocation. Mike Radzik, director of the office of community standards, said he spoke with LCC analyst Kelly Straka in the LCC’s licensing division and inquired specifically about the legislation and the intent of the phrase “three separate occasions in one calendar year.”

Straka consulted with the director of the licensing division and was told the intent was to mean any three violations within a consecutive 12-month period. An e-mail provided to AnnArbor.com shows Straka confirming that with Radzik.

Following the July 26 hearing, Township officials again sought clarification from the LCC. This time, with two new commissioners on the LCC board, the earlier opinion was reversed.

An aide told Township Attorney Doug Winters the new commissioners, appointed by Rick Snyder, reviewed LCC rules and came to the new opinion.

“That must be part of the pro-business reinvention of Michigan - we now allow sale of alcohol to minors, and when someone’s hand gets caught in cookie jar, we’ll reinterpret our rules," Winters said.

Julie Wendt, director of executive services for the LCC, told AnnArbor.com there had been a miscommunication among the LCC employees. She said the division of licensing supervisor who told Straka “a calendar year” was intended to mean any consecutive 12-month period didn’t recall having that conversation.

She said the mixup was “regrettable.”

Township officials scoffed at the idea that the director “didn’t remember” having a conversation about the issue.

“I don’t buy that,” Winters said. “Shame on them for not owning up to giving out incorrect information. I don’t know whether they came to the new opinion because that’s sincerely their interpretation or because they have new commissioners, but to pretend you don’t remember a conversation isn’t a very stand up thing to do.”

A new sale to a minor

On Aug. 2, just a day after the LLC's ruling, an employee at a Dairy Mart Hamati owns on Textile Road allegedly sold alcohol to a minor, township and Sheriff's Department officials said.

According to police officials, a 17-year old girl reported she thought she was buying iced tea and a candy bar, but was actually buying Crazy Stallion Malt Liquor. She called for her mom after taking a drink and her mom dialed 9-1-1. Police are continuing to investigate. A complaint was sent to the LCC, and township attorneys are seeking criminal charges.

Hamati said the sale was a mistake and blamed the girl for telling the clerk the drink was iced tea.

"Mistakes happen, we try our best to do the right thing. I don't know what else to say," he said.

Township officials said the latest offense shows that Hamati will not follow the law or run a respectable establishment.

“It’s shocking, but it’s not surprising,” Radzik said. “It’s interesting because this last violation was not part of a police sting operation. This was brought to our attention by a ... parent who called 911 because her kid came home a with a candy bar and 24-ounce can of malt liquor, for God’s sake.”

Wendt said the LCC hasn’t yet received a complaint about the latest incident, but said Hamati holds a different liquor license for each store.

She noted that the LCC had taken action against Hamati’s Grove Road license by suspending it for 60 days.

The LCC revoked 124 licenses last year, information from the agency indicates. But Wendt said she could not find another example of a municipality requesting a license be revoked because of three sales to a minor that were not within a calendar year.

Radzik said the LCC is allowing municipalities to seek action only under a very narrow set of circumstances.

“I understand this comes down to legal interpretation of a state statute, but it seems like the legislators' intent or LCC’s intent is to protect minors. If you sell to a minor three times in a year, that’s bad enough to allow the municipality where you operate to ask that the license be revoked. If that's the case, then I certainly don’t think that three violations in six months that don’t fall within artificial parameters of Jan. 1 to Dec. 31 shouldn’t be a problem.

“As long as you’re only selling to minors two times a year or less in a calendar year, then get a free pass; your slate is wiped clean. From a practical point of view, it makes no sense.”

The Grove Road store has also been the center of crime concerns and both stores have had numerous code violations and at one point were declared a public nuisance. Winters said he is most shocked that no one is taking more action after a store employee attempted to bribe an officer not to write up a report after one of the sting operations in 2010.

“As if selling alcohol to minors all the time isn’t bad enough, attempting to bribe an officer is just as bad, if not worse, than selling to minors,” Winters said. “That’s how corrupt these people are, and if you’re willing to do that, there are no boundaries to where you’re willing to go.”

The Township's next move

The township can do little at this point except lobby state legislators to change the statute's wording, Winters told the Board of Trustees at its meeting Tuesday.

"I would encourage this board to be extremely vocal and involved with state representatives to make it clear that it's common sense that (the statute) should read '12 consecutive months,'" he said.

Hamati and his attorneys were in the audience but declined to address the board. Several of his Grove Road customers spoke during public comment about how much the store has improved recently and thanked Hamati for his service to the public. None of them mentioned the sale of alcohol to minors.

Angela Barbash, president of the New West Willow Neighborhood Association, told the Board the store was the center of numerous problems in the area.

"I'm very disappointed to hear the LCC changed their minds through a technicality and I hope you guys continue to pursue (the case)," she said.

Township Supervisor Brenda Stumbo addressed Hamati during the meeting. She said she understood he never personally sold alcohol to minors, but said it was his responsibility to ensure his employees also weren't selling to them.

"We’ve talked to you, brought you in for meetings and you're very nice," Stumbo said. "You seem to say the right things, but the actions of your employees are wrong. You continue to violate the law and sell liquor to minors and our children.

"It’s unfortunate that Gov. Snyder and the State of Michigan don’t want to protect our youth ... and it’s a shame that you are happening to get off on sa technicality. I do you hope you try to do better. If not, there's going to be a death."