STATE OF WISCONSIN cicurr court BELL GREAT LAKES, LLC, P.O. Box 507 West Linn, Oregon 97068 Plains, CITY OF MADISON clo Michael May, Cty Auomey 210 Marin Luther King,Jr. Boulevard Room 401 ‘Madison, Wisconsin 53703, MADISON COMMON CO_INCIL. fo Maribeth Witzel-Beh, City Clerk 210 Maria Luther King,Jr. Boulevard Room 103 Madison, Wisconsin 53703, and MAYOR PAUL SOGLIN 210 Matin Luther King,Jr. Boulevard Room 403 Madison, W $3703 Defendants ‘SUMMONS DANE emus — Honorable Pete © ase No, Case Code: 30703 “THE STATE OF WISCONSIN fo the above named Defendants You ate hereby notified thatthe Paint? named above has filed a lawsuit o other legal action against you. The Complaint which i attached states the nature and basis ofthe legal ‘uss soos 8271Within 20 days of ecivng this Srmmeons, you must espond with weten answer, as that tem is wed in Chapter 602 ofthe Wisconsin Statutes, othe Complain The Court may reject or disregard an answer that doesnot follow the requiements ofthe statutes. The answer ust be sent or delivered tothe Cou, whose aes is Clerk of Circuit Court, Dane County {Circuit Count, 215 S. Hamiton Stet, Madison, WI 33703, and © Gregory T. Evens, Quarles & Brady LLP, Paintf's attorney, whose address is 33 East Main Stet, Suite 900, Maison, WL 453708, You may have an alorey help or represent you Ifyou do no provide a proper answer within 20 days, the Court may grant judgment against you forthe award of money or other legal ation requested in the Complaint, and you ‘may lose you ight to object to anything that is or may be incorrect inthe Complaint, A judgment may be enforced as provided bylaw. A judgment awarding money muy become lien gains any real extate you cn now inthe fate, and my also be enforeed by garnishment or seizure of property. Dated this 13th day of Apri, 2018, (QUARLES & BRADY LLP Blectronially signed by Js Gregory T. Everts Gregory 7, Bvers State Bar No, 1001636 Douglas S. Buck State Bar No, 1021453, Rikaela Greane State Bar No. 1104420 33 Fast Main Street Suite 900 Madison, WI 53701 608-251-5000 Attorneys for Plaintitt opus omossi7in | MADISON CITY CLERKSTATE OF WISCONSIN cRcurr court BELL GREAT LAKES, LLC, P.O. Box 507 West Linn, Oregon 97068 Psi, CITY OF MADISON lo Michael May, City Attomey 210 Martin Luther King e.Boulevard Room 401 Madison, Wisconsin 53703 MADISON COMMON COUNCIL «lo Maribeth Witzel-Behl, City Clerk 210 Martin Luther King Boulevard Room 103 Madison, Wisconsin 53703 and MAYOR PAUL SOGLIN 210 Martin Luther King Jt. Boulevand Room 403 Madison, WI 53703, Defendants, COMPLAINT DANE eptavanssr1 : Honorabi Peter Case No, ‘Case Code: 30703 ‘Anderson Pini, Rell Great Lakes, LLC (*PlaintfP ar “Rel) thresh couneel, Quarles & Brady L P, files this Complaint for review ofthe City of Madison's denial of Planti('s application for a liquor license for Taco Bell Cantina onthe $00 lock of State Steet in ‘Madison, and allege agains these Defendants as follows: cose. MADISON CITY CLERKSUMMARY OF THE CAS 1. This is an acion pursuant to Wis. Sat. §125.12(0)2) for reversal of Defendants” arbitrary capricious, isrinsnatry, and unreasonable denial of Plant's application fora Fiquo iense for a new davatown Madison restaurant, Defendants denial was unlawful and diseiinatry in ight o¢ he Cl’ prior resturant liquor eens approval, etent City pie, andthe fac that thtce weeks afer denying Paints License Applicaton the Cy approved a tienae for another new resturant acros the street. Thete was no meaning or material éitfrence between Plant's application and the applications the City erie an Iter approved the disparate resent is arbitrary, unlvfl, and uni. ‘Tie PARTIES 2, PlinifrBellGret Lakes, LLC isa Delaware limited liability company, formed to owe and manage resturnts incung a Taco Bell Cantina (“Restaurant”) in Madison, 3. Defendant City of Maison the City") is a municipal corporation organized and esting under the statutes and constitution af the State of Wisconsin that may sue and be sued 4, Defendant Madison Common Counc ive branch of the City of isthe legis Madison. 5. Defendant Pau Soglin is Mayor ofthe City of Madison, sued herein his oficial capacity FACTUAL BACKGROUND Plains Restaurant 6 Taco Bell Canina re anew Taco Bel restaurant concept intended for wan eas, with no drive-thru 1. Taco Bell Cantina typically feature trendy décor, music, and tapas-style appetizers, as well s serve aleoho mE fsesss2 MADISON city CLERK8, Currently, there are fewer than dozen Taco Bell Cantinas across the United | States, They ar located in leading cites such as Boulder, Colorado; Austin, Texas; Newport Beach, California; Las Vega, Nevada; and Chicago, tino. 9, Plain Bell was formed, among other things, to open, own, and manage a Taco ‘Hell Cantina at 354 State Swet in downtown Madson. ‘This Restaurant recently opened upand operating, albeit without serving aleohol Maisons Regulaery Regine for Liquor Licensing 10. Liquor licensing inthe City of Madison is governed by the Wisconsin Statutes, Ch 125 (Alcohol Beverages. 11, Liquor licensing is further governed by Chapter 38 of the City of Mason's Code of Oninanes (Alcohol Heverages Regulated), 12, The ity of Maison also has an Alcohol Overlay Dstt (the “AOLD"), which includes the $00 block of State tet, MGO, § 28127 13. The Cityadeped the AOLD to regulate and control the density of liquor licenses inthe State Stet Area 14. AOLD represents the Cig policy and law with egard to liquor iense density on Sate Sweet 15. The City's AOLD forbids new brewpubs, ightlubs or taverns without speci permits, but permits new licuor licenses for restau that predominantly serve fod, ele Liquar License Application 16, Bel apliedto the City of Madison fora Class B liquor license on October 5, 2017 (the “License Applicion”, fnisssss217. Bell's liquor license pplication was fra resturant andl complied with the City's AOLD. 18, Bell's Licese Application sought a license for the sale of beer, and wine/iquor, but Bell amended the Appisation afte it was Gled, limiting its request to beer and wine only. 19. Beil met wi me Cty of Madison Foice Deparment to scus the Restaurant and address any concer hat might be raise. 20, Following cussions with the Police Department, and the City's Alcohol Licensing Review Commits (the“ALRC") Bell agreed to limit the hous during which aleohol ‘would be sol, with no sale of alohol ater 10 pam. on weekdays (Sunday through Thursday) ano sale of alcoho afer 1 p.m. om Friday’ and Saturday. 21, ell further agreed to numerous changes to its Restaurant that would increase public safety. These changes included installing additonal video cameras o st, using an ID scanner, proving aditional employee taining and increasing lighting on Sate treet, which increase the visibility athe Restaurant’ entrance Common Councit Approval of Bell's License Application 22. On Novembsr 15,2017, the ALRC approved Bells application subject othe | agred-upon restitons the (1) Bel would not sel alcoho after 10pm. on weekdays (Sunday to Thursday) orafter 11 pas on Friday and Saturday; (2) the Resturant would predominantly serve food, and not aleoho: (3) food service would be availabe at all times; and (the Restanenne ta wold repnlarly pata the premises al discourage loitering, 23, On December 2017, the Common Counel held hearing on Bells License Application, csuassi2 L | apison cir CLERK2A, Jason Freed, Captain ofthe City Police Departments Central Distt, tetfed atthe hearing that Bell was“very amenable othe concems that we had and the changes that we requested—for more antenable han many other applicants in tems of ther alaeiy and willingness to adjust their business model.” 25, Atthe December 5, 2017 hearing on e's License Applicaton, Captain Freedman also stated that Bl “demonstrated level of due diligence, of planning of understanding of the busines that s certainly in total and absolutely, not only reatvely, in compared to previous applicants who had been granted licenses, but justin terms of an absolte sense they clearly met he standards fom my’ standpoint that there were nore as that they were going to be practicing sand ete” ue diligen 26, tthe Decenber 5, 2017 hearing on Bell's License Applicaton, Captain ‘Freedian further stated: “We didnot see any security concems with this applicant, an they have appeared to present very cogent, well thought-out, and flexible plan, and they have met very condition that, erat, we ave requested, my team requested healers, s well asthe ALRC.” 27. Ball's Lion Applisaton was approved by the City’s Common Council on December 5, 2017, on vor of 16 ~ 28. By approving Bell's License Applicaton, the Common Counel necessarily determined that Bell had ccamplied with Cty Ordinance and met all other requirements 28. Further, by spproving Bells License Appicaian, the Comma Counei necessarily determined, among other things, that granting Bell's liquor iense equest would be consistent withthe City's pit liquor license approvals inthe State Steet Area: (1) in 2015, the City Council overturned the Mayor's velo of a liquor license inthe area for Mad City Fries sseasit.2 ISON CITY CLERK{which has since gone out of business; (2) in 2016 the City Council overtamed the Mayor's veto of iquor isense for Lotsa Stone Fired Pia, also onthe SO0 block of Sate Stet (3), in 2017, the City Council oveturedthe Mayor's veto ofan almost dential iquor license to forthe Koi Sushi restaurant at 502 State Stet. The Mayor’ Veto of Plainas License Appiation 30, On December 11, 2017, Mayor Paul Soglin vetoed Bell's License Application. 31, With his vet, Mayor Soglin sued message, stating that Bell's License Applicaton, if ranted, would have “enormous costs fr the residents of Madison and our city government” by contributing the alcohol-related problems downtown, potentially including violence, andtising the cos of policing” Adding more liquor outlets othe are, even if they lose ctl, makes ite ses." Sogin state, further asserting: “The violence at downtown locations associated wih leur i only growing~gowing in terms of frequency, in tems of location, ad in ers of seer.” 32, Mayor Soglin's veto message cited, a a second concern, his belie that Plant's License Application was just the edge ofthe wedge, that other fast fod chains (Starbucks or BurgerKing) would make similar requests, and that PlantifP would be back asking for “all Aiquo.” 33, On anwary, 2018, the Madison Common Council held a hearing o consider wether to override the Mayors veto 3A Mayor Sls, whn wns absent fom the ecembe 5, 2017, Council vate, sppcored tthe January 2, 218 hearing and opposed Bel’ License Application. Issuing the license to Bell, Soglin told fhe Common Coun, woul ado aleoholueled violence on State ‘Street, stating: “All we eoatine to dois add tothe toa of liquor.” fsa MADISON CITY CLERK35. Mayor Sogln showed the Council a video depicting late night disturbances that, be siserted, were elated 10 sleohol. 436, The dstubances shown in the video did not occur at any restaurants and, fr the nos pat, wore at even elated to Sat Srct but tthe to bars and tavems on Unversity Avenue 37. Mayor Sogtin presented “police call” data tothe Council, arguing that this data showed that Plant's License Application would contibuteto late night problems downtown. 38. In act the dsturbances shown inthe Mayor's Police Department data were primarily related to bars anc avers, not restaurants, and mosty occurred well afer the eutofT hours in Bel’ License Application (10 pm. on weeknights, 11 pm. on weekends), 39, Atthe January 2, 2018 hearing andor subsequent January 16,2018 Counc meeting, Mayor Soglin proposed a moratorium on liquor Heenses inthe State Steet Area. The Mayor disparaged fis food argued that even one more license would be detrimental, an futher proposed tha, following ths moratorium, the City should implement policies more restive than the eusent AOLD. 40. On January and 16,2018, Alders expressed concer tha! the Mayor was singing ot Bll for dei 41. On Janay Zand 16,2018, Ader expressed the view that denial of Bell's license aplication would be ait in light oF the Citys liquor ordnance, cure in place, and the City's approval of previcusrestauant heer Hrenges 42, Alder Matthew Phair (District 20) stated“ don't ks how we ea call ‘ourselves ‘policy makers” and vote [to uphold] the veto, with the Mayor, because we'd be fomstesst2 MADISON CITY CLERKmaking a decision with the absence ofa policy a the detriment of business, regardless ofa national chain or whatever.” 43. Refering tothe Mayor's videotape of disturbances on University Avenue, Alder Phaie went on to state: “I dent know how anyone could believe that by allowing this Cantina to 0 Forward, thal somehow, 1's going to make the issues [oF violenee] we saw on tha screen beter oF worse” | 44, Alder Phair aso stated: "We need to stop holding certain businesses hostage, | regardless of who they are—smal, stom & pop ke two years ago, national chain—untl ‘we figure out bigger, broaler policy.” 45. A:majory ofthe Common Council voted to override the Mayor's veto and to approve Bel’ License Apliaton on January 2, 2018. The Council's 9-7 vote in favor ofthe license, however, was less han the touts majority votes required to override the Mayor's veto, Aecordingly, Bell's icense was denied ‘The Common Councils Reconsideration of Plains License Application considered the PlaitfP's License Applicaton once again 47. During debae on this motion to reconsider, multiple Alders again expressed concer that denial of Bell's license was arbitrary and als inconsistent with the alcoho rules currently in place for State Street and the City of Madison, 48, Doring he debate on Paine Facemee A ton on Fanuary 16, Alder Mare4 ranged, especially fom the development community tall Kinds ‘of busines that rid to operate or begin operating in our city. ‘And many, many people on this eouneil curently, many of our predecessors, many, many city staff, many citizens worked to epir tat reputation, bath trough actions, many of which had to ‘da with sur development review process. But also just through ‘eating an environment, and a climate, and an attitude that Madisor appreciates is businesses, that they are part of out commurtyeand that our ways of regulating, and licensing, and ‘operating businesses may be more strict than other communities, but they were no, as we were so often accused of, they're not arbitrary. And I'm very concemed that the kindof vetoes we've ‘seon ffom the Mayor ever this and other establishments create ‘that king of arbitrariness agai, and do significant damage to our eptatin asa place to do business. Think thats extremely hharmfulto our ety. We've talked a lot about how, ifyou want to create a different poliey—and se thatthe Mayor has introduced ‘something, and I Took forward to actually seeing something when its on Legistar—let’s have a debate abou that policy. But let's not change arbitrary rules On January 16,2018, a significant majority ofthe Common Council voted to approve Bells license. However, the vote in favor was 12-7, whieh once again was not the «wo-thirds majority (14 votes) required to override the Mayor's vet, ‘The Ciy’s Stated Reasons for Denying Plaintiff's License Application 0 (On January 22,2018, as required by Wis. Sat. § 125.12(3m), the City sent Bella leer explaining its denial of Bell's License Application (the “Denial Letter"), I 32. sass The City’s Denial Letter stated [issuing a ioense to this locaton would have adverse effects on public hzalth, safety and welfare because this business i located Iinan area oF high density for alcobol licenses. Thus, issuing this Hisense would place additions tino poten and pie safety "s Denial Letter stated ‘Adding another licensed establishment] to this area would seriously undermine the ability of public safety agency to provide MADISON CITY CLERKservieesto your business and to other businessesesidences in the Ste Stret area ‘The Cty Grants Liquor Lcense to a Similarly Situated Restaurant 53, Thos wosksafter denying Plant's Liense Application, the City granted a ‘istualy identical quo Hiesnse to anew restaurant across the stret. SA. On February 6, 2018, the City granted a Cass B liquor license to Chen's Dumpling House (“Chen’s*), a new restaurant, for beer and wine. 55, Chen’ is located in the $00 block of State Steet; indeed it is across the street, fiom the Toso Bel Contin 56. The impact granting liquor license to Chen's is not tert, rationally o¢ soaterially, than the impact of granting Pins License Appliation 137. A previous restaurant inthe sume locaton as Chen's, since shut down, had a record of igor license inactions 38. tthe Febrany 6,2018, Common Couns mesting, where the Chen's iense ‘vas approved, multiple Alors expressed concern about granting a license to Chen's when it had denied a license to Bel 59. Atte hearing on the Chen's license, Alder Shiva Bidar-SielafT, District stated | don't ow what i going fo happen with it.once it. -poes to the Mayor's desk... 'm going t think about this and how we going to justify any level of...equitable decision-making if ‘we do give ito this one [Chen's and didn't give itto Taco Bll... But thsi exactly what | was talking about when | sic ‘ha wea jst pk an hance 60. Atthe hearing on Chen's license, Alder Bidar-Silaf state From the ALRC perspective, we recommended both of them {the Bell and Chen's license applications). We were actually consistext in recommending both of them othe Council for omsteasnn2 MADISON CITY | aS CLERKapproval, with pretty much exaely the same conditons....Agai, wwe neeto make sure that we are consistent (61, Alder Batbata Harrington-MeKinney, District I also expressed concern about the issue of arbitrary denial, asking: What ithe difference between. .this applicant inthe $00 block of Slate Steet andthe [applicaton} ofthe Cantina in the 300 block of State Street if a the reason fr the vote is that we want to Timit he license othe 300 block area? I mean, there ha tobe some consistency. 62, Despite these restaurants being similarly located and similarly situated, Mayor Soglin did ot veto Chen's Dumpling House's application for the same typeof liquor license. 163. Despite the similarities, Mayor Soglin made no public objection an, in fact, spoke in support ofthe Che's license at he February 6, 2018 Common Council meeting. 64. Theci 1's approval ofthe Chen's application proves that there is no evidence or rational bass fr the nding that ranting Bell's License Application would undermine public safety or harm the City’ ability to provide services to Plainti's business or other businesses in tho State Stoo aa, CLAIM FOR RELIEF 65. Bell seeks review of Defendants’ denial ofits Liquor License Application pursuant to Wis, Stat § 125.12) 66. Denial of Bll saprieious,diseriminatory and icense Application was arbitrary, ‘uvessonable in the circumstances 67. The Councils grant of thre other similar Hicenses (overturning the Mayor's veto in each instance) shows that its denial of Bel’ license was arbitar, capricious, and unreasonable fwsess2 MADISON CITY CLERK68. The Ciy's gant ofthe license to Chen's three weeks after denying an identical license to Bell shows that ts denial of Bell's Hoenses was arbitrary, capricious, and unreasonable, 69, Denial of Bell's License Application was the result of impermissibly applying & ‘iterent standard to Hell han the standard set by odnanee applied 0 previous applicant ad applied 10 Chen 70. There are nomeaningfldstintions between Bell and Chen's that would justify denying Bel’ license while granting Chen's license the Citys grant ofthe license to Chen's ‘onsite differential eaten of vo similany stated businesses, TI. The inconsistent approach o these similar applicants demonstrates that the Defendant's devsion was so unreasonable tat it shosks the sense of justice and indicates lack of fair and careful eonsiderton ‘72. Indeed, to the extent thereat fferences between Bell and Chen the differences favor Bell's License Applicaton over Chen's application, including tha AB jeense Application was first-fled. B. Bell's association with a national ch n is major advantage in terms of Tiquor controls. As Police Captain Preedman testified, Bell's application was superior in terms of security and liquor controls: “They demonstrated a level of due diligence, of planning, of understanding of the business that i certainly in otal nd absolutely, not ‘only relatively, in compared to previous applicants who had been granted licenses, they clearly met the standard fom my standpoint hat there were nore flags, that they ‘were gong tobe preteing due diligence and et.” sessco formation and belief, Chen's was not proposing, nor does it have, the level of security Hel was offering (exta streat ighting, video cameras, ID scanner D. On information and belief; Chen's is et up inthe same way asthe prior business a the same location, which had significant liquor viol 13. By falling toappy the AOLD and Chy tquorHcense ordinances Bel the City ced outside ofits jurisdiction 74, Indenying Bell's License Application, the City fled to apply the AOLD and City iquor ordinance and, eters, filed 0 act according to lw. 75. The Mayor's veto of Bell's License Applica 2, despite the Common Couneil’s approval by majority vote on multiple occasions, was arbitrary, oppressive, discriminatory and ‘unreasonable, and represented the Mayor's will and not his judgment. 76, The City’s denial oF Bell's Lizense Application asa whole was arbitary, oppressive, discriminatory and unreasonable, nd represented is will and not its judgment 77. ‘The City’s denial oF Bell's License Application, and the dtineton it drew between Bell's Applicationand Chen's application, was iatonal,unawfl, an without an evidentiary basis, WHEREFORE, Pi demands ‘A. A finding fom the Cour tha denial of Plant's application fora Liquor license was arbitrary, capricious, unreasonable, discriminatory and contrary to law B, Anodes granting Plaintiff's application for Class B Tiuor license inthe formnegotated withthe City of Maison and applied for ©. Recoverable costs and disbursements; and fomsteasni2 Mapison CITY CLERKD. _Allsich other relief as may be just and necessary. Respectilly submited this 13th day of April, 2018 ‘QUARLES & BRADY Lu Blectroncally signed by sf Gregory 1 bverts Gregory 1. Everts State Bar No. 1001636 Douglas S. Buck State Bar No. 1021453, Riksela Greane State Bar No. 1104420 33 East Main Steet, Suite 900 ‘Maison, WI $3701 608-281-5000 Attorneys for Plaintitt ol aeons twapisON CITY CLERK