TO: Mike Wildgen, City Manager
CC: Dave Corliss, Assistant City Manager/Director of Legal Services
FROM: Frank S. Reeb, Administrative Services Director/City Clerk
DATE: February 12, 2004
RE: Henry’s on Henry Street Drinking Establishment License
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Henry’s on Henry’s Street, 11 East 8th, has submitted a renewal application for a drinking establishment license. The current license expired on January 11, 2004 (we called to remind them to renew on January 5th) and the renewal application was filed on February 3rd. The applicant submitted all information requested including a valid State license, Kansas Liquor Drink Tax Returns for the past twelve months, a menu, and the $250.00 fee.
Regarding the applicant’s compliance with the C-3 zoning district 55% food sales requirement, the liquor drink tax returns indicate annual non-alcohol sales of 56% for the twelve-month period ending December 2003. While obviously this percentage is very close to the minimum food sales percentage, following a tour of the establishment and several phone calls with the owner, I am confident the establishment has met the 55% food sales requirement. I’m confident because the returns reflect sales for a one year period with gross receipts of almost $400,000 and therefore it would take nonfood, nonalcohol sales of approximately $15,000 before the assumption that annual nonalcohol sales equals food sales is no longer valid. It is unlikely that Henry’s has nonfood, nonalcohol sales approaching $15,000 because the only such merchandise that is sold on the premises is postcard photographs of Lawrence scenes and landmarks and various art pieces. According to the owner, the proceeds from these sales go directly to the artist or photographer and Henry’s does not charge a commission from these sales.
The owners of Henry’s recognize they are close to the minimum food sales percentage and are taking steps to increase the food sales numbers. The first floor coffee shop is now staying open 24 hours a day and they are looking to add additional food items on the menu.
Lastly, I have not heard any complaints or concerns from neighboring businesses about Henry’s. In fact the opposite is true. The owner of Henry’s, along with other business owners on that section of 8th Street and in that area of downtown seem to be working together to make their part of downtown Lawrence an entertainment and retail destination point.
For these reasons we recommend that the City Commission approve the drinking establishment license for Henry’s on Henry Street.
If you have any questions, please let me know.