CASABLANCA OWNER MAKES DEAL WITH ABC BOARD

The owner of the Casablanca restaurant at 6 E. Grace St. has agreed to
surrender his licenses to sell alcoholic beverages in exchange for a
promise by the Alcoholic Beverage Control Board to promptly process a
license application for another business at the property.

A hearing officer for the department revoked the restaurant's licenses last
month because of alleged drug trafficking there.

The owner, Michael Laten Pace, said then he would appeal the officer's
ruling to the board but abandoned that effort as part of what the
department called an offer in compromise.

In the offer, Pace acknowledged the department's enforcement division had
substantiated charges the restaurant had become a meeting place for drug
users and Pace had allowed drug use at the restaurant.

The board agreed not to invoke what is known as the "12-month rule." Under
the rule, the board can refuse to issue a liquor license for an address for
12 months if it concludes the location of the business was the reason for
violations of ABC regulations.

The effect of the agreement is to allow Pace to sell his business.

"I am pleased that the ABC Board accepted the offer in compromise in
settlement of the matter," said Pace's attorney, Michael P. Lafayette.

Two other downtown restaurants have come under recent ABC scrutiny.

A hearing officer ordered the revocation of the ABC licenses of Cafine's at
Fourth and Grace streets after concluding the owners were aware of and
encouraged the use of Ecstasy during rave nights at the club.

The owners have appealed the revocation to the ABC board, and a hearing is
set for Aug. 14. Despite the appeal, Cafine's is out of business because
the landlord evicted the owners.

The same hearing officer, Michael Oglesby, found Fahrenheit Restaurant and
Club at 119 N. 18th St. was a meeting place for drug users and dealers.

He suspended the club's alcohol licenses for 60 days but said it could
reduce the suspension to 45 days by paying a $2,000 fine.

The enforcement division appealed the ruling to the board, which concluded
revocation was the proper penalty for the drug use.

Fahrenheit's attorney, Paul T. Buckwalter II, has vowed to challenge the
board's decision. He can request a hearing before the board and appeal the
case to Richmond Circuit Court.