January 7, 2009

LaVon Van
dba LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
3530 N Vancouver
Portland, OR 97212
CERTÌFÌED MAÌL

NOTICE OF PROPOSED LICENSE CANCELLATION

Pursuant to ORS 471.315, the Commission may cancel or suspend your license or
assess a civil penalty for any violation. The Public Safety Program proposes that the
Commission cancel your license for the following violation:

There is a history of serious and persistent problems involving disturbances, lewd or
unlawful activities or noise either in the premises or involving patrons of the
establishment in the immediate vicinity of the premises, including but not limited to
excessive noise, public drunkenness, fights, altercations, harassment and public
urination. This is a violation of ORS 471.315(1)(c). The problems include the following:

On February 4, 2007 between about 1:35 AM and 1:45 AM, a Portland Police Bureau
(PPB) officer responded to the premises to investigate an assault. A male patron tried
to reach into a female patron's pants pocket while inside the licensed premises. The
female patron pulled away and pushed him back. The male patron grabbed her ponytail
and pulled her head down. Security staff evicted the female patron and told officers,
who had earlier been dispatched to the premises regarding a fight and a woman
screaming in the area, that there were no problems at the premises.

On February 25, 2007 at about 2:18 AM, a PPB officer in the parking lot across the
street from the licensed premises saw and heard a male and female shouting at each
other. The patrons had been inside the licensed premises. The patrons engaged in a
verbal altercation, and as they were leaving, the male slapped the female's face twice,
causing scratching and bleeding to her nose and pain to her face and head. The male
patron was kicked in the stomach by the female. The female was placed in police
custody due to an outstanding warrant.

On March 12, 2007 at about 2:56 PM, PPB received information that a patron was in
possession of stolen items and was trying to sell them at the licensed premises. When
PPB officers arrived to the premises, they observed a patron leaving the premises who
was under the influence of a controlled substance and became aggressive towards
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January 7, 2009
Page 2

police. Police observed tissue in the patron's hand fall the ground as they took the
patron into custody. The tissue contained crack cocaine. The patron was trespassed
from the business and charged with Unlawful Possession of Cocaine and Tampering
with Evidence.

On April 20, 2007 at about 1:53 AM, a PPB officer responded to the premises on a
report of vandalism. An intoxicated patron became angry after security staff personnel
evicted him from the licensed premises and refused him reentry. The patron threw a
softball-sized piece of concrete through the front window of the licensed premises,
causing the glass to break.

On April 22, 2007 at about 1:55 PM, PPB officers responded to a report of vandalism at
the licensed premises. An employee of the licensed premises told officers that between
about 12:35 PM to about 12:45 PM, a window of her car had been broken in the parking
lot of the licensed premises.

On May 24, 2007 at about 2:10 AM, PPB officers responded to the premises regarding
a fight. Security staff personnel reported that a physical fight occurred inside the
licensed premises. Some employees were not cooperative or willing to answer
questions. Two sisters engaged in a physical fight with two other female patrons and
threw a glass at them. The fight then moved outside to the parking lot for a short time,
more patrons got involved and the fight moved back inside the licensed premises.
Ìnside the premises, patrons knocked over furniture and broke glasses. All patrons
involved in the fight were evicted. One patron received a deep cut to his hand. One of
the female patrons had small cuts on her hand and blood on her clothes.

On June 8, 2007 at about 1:21 AM, PPB officers observed multiple patrons running from
the licensed premises. Three to four females were yelling, screaming and causing a
disturbance in the middle of the parking lot. One of the females was yelling because
she had been pepper-sprayed inside the licensed premises by another patron. Security
staff personnel refused her reentry, which angered her further. A few minutes later,
PPB officers heard the DJ announce that the club was closing and "to leave guns and
pepper spray at home next time.¨ A PPB officer noted that earlier in the evening during
a bar check he observed that the metal detector went off and a patron was not checked
for weapons. The officer noted that this has occurred multiple times during walk-
throughs of the premises.

On July 8, 2007 at about 2:00 AM, a PPB officer responded to a report of a fight in the
parking lot of the licensed premises. An intoxicated female patron who had been
LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
Page 3

drinking at the premises was yelling and screaming while walking in the middle of the
road. The patron was taken to a detoxification facility (detox).

On July 12, 2007 between about 9:00 PM and 12:00 AM, a female patron reported to a
PPB officer that her purse was stolen from inside the licensed premises. She said the
purse was stolen from the top of the bar when a physical fight broke out inside the
licensed premises.

On October 6, 2007 at about 2:03 AM, a PPB officer responded to the premises
regarding a report of vandalism. An employee reported that a male jumped on the roof
of his car and severely dented the roof. Damage was estimated at approximately
$2,000.00.

On October 8, 2007 at about 2:25 AM, a PPB officer responded to a report of a fight at
the licensed premises between a male and female patron. Security staff personnel
evicted the female patron. Once outside, the male patron entered the female patron's
car, which was parked in the premises parking lot, and took her purse. The female
patron was pushed and hit on the right side of her jaw and shoved on the right side of
her shoulder, causing her pain.

On November 17, 2007 at about 2:14 AM, PPB officers responded to a report of a
robbery that occurred in the parking lot of the licensed premises. Two patrons, one of
whom was intoxicated, left the premises. Once outside, the patrons were hassled by a
group of patrons. The patrons got into a verbal altercation and a gun was pulled. One
patron ran back into the club, leaving the intoxicated patron in the car with the car
running and the door open. Security kept the other patron inside the premises. The
person in the car was kidnapped, assaulted and then dumped. When he was
recovered, he had missing and damaged teeth and multiple lacerations as a result of
the assault. The patron was transported to the hospital for treatment. When PPB
officers tried to contact employees at the premises in order to review video footage, the
doors to the premises were locked and officers received no response after knocking on
the door.

On March 23, 2008 at about 1:44 AM, PPB officers responded to the premises on a
complaint of shots fired. Security staff personnel informed the officers that there was a
fight inside the licensed premises. One patron threw a chair and another patron was
punched. A patron went outside and then came back with a gun through a door
intended for exit only. The patron chased four people out of the premises and shot six
rounds at them.

LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
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On April 2, 2008 at about 10:08 PM, PPB officers in the immediate vicinity of the
licensed premises contacted a patron regarding reported drug activity. The patron, who
had been drinking at the licensed premises, was found in possession of a crack pipe
and a stolen vehicle.

On April 12, 2008 at about 4:00 PM, a known drug dealer told a PPB officer that drugs
are readily available at the licensed premises.

On April 17, 2008 at about 6:32 PM, PPB officers arrested a male patron who was
leaving the licensed premises for possession of cocaine.

On May 5, 2008 at about 7:58 PM, PPB officers responded to the licensed premises
regarding a report of suspected drug activity in the parking lot. Officers smelled
marijuana coming from a vehicle in the parking lot.

On May 25, 2008 at about 1:27 AM, PPB officers responded to the licensed premises
regarding a fight between two female patrons. One of the patrons was pushed and then
punched in the face inside the licensed premises. She fell to the floor and was kicked.
She received a cut by her right ear, two abrasions on the right side of the forehead and
bruising and red marks around her right eye.

On June 4, 2008 at about 1:20 AM, PPB officers responded to the licensed premises
regarding a report of vandalism to a vehicle in the premises parking lot. PPB
determined that the car was vandalized when someone kicked it. The car had three
dents on the driver side front quarter panel which had partial shoe prints in the dent.

On June 6, 2008 at about 6:42 PM, PPB officers observed a passenger exit a vehicle in
the parking lot of the licensed premises and then enter the licensed premises for a few
minutes. Police searched the vehicle and found a crack pipe and cocaine. The
passenger told a PPB officer that he went in to the licensed premises to get his cell
phone.

On June 7, 2008 at about 2:00 AM, a PPB officer responded to a complaint of a theft
and assault that occurred at the licensed premises. A male patron took a $100.00 bill
from a female patron inside the premises and then went outside. The female followed
him outside to retrieve the money. The male grabbed the female patron by the throat
and strangled her, at which point she fell on the ground and he kicked her on the right
side approximately three times and then left. She had pain and light bruising on her
right side.

LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
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On June 12, 2008 at about 9:57 PM, an employee called police to report that patrons,
who were possible gang members, were loitering in the parking lot. A PPB officer
reported that upon arrival to the licensed premises, he did not note any gang activity but
did observe several known crack cocaine users who frequented the licensed premises
standing in the parking lot.

On June 13, 2008 at about 9:30 PM, PPB officers responded to a report of an assault
inside the licensed premises. A female patron started making threats to another female
patron and then threw a glass, which broke and the glass shards hit another patron.
The victim, who was spit on and hit on the back of the head, tried to call 911 in the
parking lot but the other patron kept attacking her.

On June 27, 2008 at about 1:45 AM, PPB officers responded to the licensed premises
because of a reported assault. A female patron told police that she was assaulted in
the licensed premises by her ex-boyfriend, who was very intoxicated. Security staff
personnel attempted to remove the intoxicated patron from the licensed premises after
he threw a lit cigar at the female patron but the intoxicated patron slipped out of the
security staff member's grasp and pushed the female patron.

On July 7, 2008 at about 7:50 PM, PPB officers responded to a report of a fight in the
parking lot of the licensed premises. The caller said that four patrons were involved and
that he could see and hear a female patron getting hit. The caller reported that the fight
broke up when he started hearing sirens. A PPB officer noted that upon arrival to the
licensed premises, several known drug users were standing in the parking lot. An
employee told a PPB officer that "nothing was going on.¨

On July 30, 2008 at about 9:30 PM, PPB officers responded to a report of malicious
mischief at the licensed premises. A female patron's car was damaged during an
altercation that occurred in the parking lot of the licensed premises.

On July 31, 2008 at about 1:54 AM, a female patron reported to a PPB officer that a
group of several females attempted to assault another female patron inside the licensed
premises. The victim left the location and went to another bar in the area, where a fight
took place.

On August 12, 2008 at about 1:10 AM, a female patron told a PPB officer that she was
attacked inside the licensed premises by three to four females. The patron was hit from
behind and had minor swelling on the right side of her face and swelling on the upper
left corner of her lip.

LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
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On October 4, 2008 at about 1:41 AM, PPB officers responded to a large crowd outside
the premises. Calls to police stated that 75 people were involved with throwing beer
bottles and possible gun involvement. Police described the scene as "nothing short of
chaotic¨ and 20 police units responded. PPB tried to break up two patrons who were
physically fighting but an officer was struck in the face. Patrons had to be tased into
custody. One officer sustained a sprained thumb and a skinned knee. Police learned
that the fight started as a verbal argument inside the licensed premises and the licensee
evicted the involved parties.

Willingness and Ability

There have been at least 29 documented incidents at the licensed premises in 20
months. Ìncidents have included physical altercations involving fighting, kicking,
punching, slapping, guns and shots fired, pepper spray, throwing objects and verbal
assaults. These incidents have occurred inside the licensed premises, in areas that
licensee controls outside the premises, and in the immediate vicinity of the licensed
premises. Patrons, premises staff, and police officers have sustained injuries as a
result of these incidents, and some incidents have resulted in damage to property,
including damage to doors, chairs, and windows, as well as numerous incidents of
vandalism to vehicles parked in the parking lot of the licensed premises. Ìn addition,
there have been instances of public drunkenness and drug possession in the immediate
vicinity of the licensed premises.

The licensee has been warned about the disturbances on several occasions. On
August 3, 2005, licensee submitted a control plan to the Commission during an
intervention meeting regarding a history of serious and persistent problems at the
premises. Licensee agreed as part of the control plan to install lighting on the sides of
the building, obtain DPSST certification for security staff, install video surveillance and
post video surveillance signs, and post house rules.

Problems resumed in February 2007 and have persisted to the present. Verbal
instructions were issued by Public Safety Program staff on April 3, 2007; May 22, 2007;
June 6, 2007; July 6, 2007; July 20, 2007; and February 27, 2008 for unlawful drug
activity, knowingly making alcohol available to visibly intoxicated persons, permitting
disorderly activity and permitting unlawful activity by allowing private security personnel
to provide private security services without being certified to do so. On October 15,
2008, Licensee was issued a Notice of Proposed License Suspension/Civil Penalty for
permitting unlawful activity by allowing private security personnel to provide private
security services without being certified to do so.
LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
Page 7

Numerous incidents occurring between February 2007 and October 2008 have involved
visibly intoxicated patrons and have occurred after 12:00 AM. Security staff members
wait too long after an incident occurs to call police, if at all, despite directions from police
to call sooner. Staff do not convey the severity of the incidents, including gun threats,
asserting that they can handle the incidents themselves. PPB officers have reported
that security staff are not cooperative during the investigations of incidents occurring at
the licensed premises.

Security staff were to be DPSST certified as part of the 2005 control plan and to
become compliant with the law, but a Notice of Violation issued on October 15, 2008
regarding uncertified staff shows that this portion of the plan has not been followed.
This leads to escalated situations which put patrons, premises staff and police at an
increased risk of harm. On August 15, 2008, Licensee told OLCC staff that he has
positioned a temporary fence around the parking lot in order to control the entry and exit
of patrons in the parking lot, but problems have continued.

Despite Public Safety Program staff's and local law enforcement's efforts to intervene,
problems continue to occur. As a result, Licensee has not demonstrated willingness or
ability to maintain adequate control of the premises.

DETERMINING THE PENALTY

OAR 845-006-0500 defines the violation as a Category Ì violation and recommends
license cancellation for the first violation of this type within two years. This is your first.

PROPOSED PENALTY

The Public Safety Program recommends that the Commission cancel Licensee's Full
On-Premises Sales license for the violation listed above.

Ìf a licensee's interest in the license should expire or be transferred before the
Commission issues a final order, the Public Safety Program recommends that under the
authority of ORS 471.030, 471.040, 471.313, and 471.730, the Commission issue the
licensee a Letter of Reprimand. This reprimand will become a permanent part of the
licensee's Commission file and would be considered in any future application for a liquor
license by the licensee.

RESPONSIBILITY FOR VIOLATIONS

Licensees are responsible for the acts and omissions of their employees and
representatives in violation of any law affecting its license privileges (OAR 845-006-
LV'S SPORTS BAR RESTAURANT & LOUNGE (F-COM)
January 7, 2009
Page 8

0362).

HEARINGS RIGHTS

You have the right to a hearing to dispute the charge or the proposed cancellation. Ìf
you want a hearing, please sign and date the enclosed form and return it to the address
listed on the form by January 27, 2009. Ìndividuals have a right to be represented by an
attorney.

Hearings are conducted by the Office of Administrative Hearings under the jurisdiction
of the Oregon Liquor Control Commission, according to the Administrative Procedures
Act (ORS Chapter 183), Attorney General's Rules for the Office of Administrative
Hearings (OAR Chapter 137) and Commission Administrative Rules (OAR Chapter 845
Division 03).

Ìf you do not request a hearing, or if you request a hearing and then withdraw your
request, a final order by default will be issued by the Commission Administrator. Ìf you
fail to appear at a scheduled hearing, a final order by default will be issued by either the
Administrative Law Judge or the Commission Administrator, as authorized by OAR 845-
003-0670.

Ìn each of these instances, the Commission designates its file or files in this matter,
including all materials you have submitted, as part or all of the record supporting its final
order by default.

Once a final order by default is issued, your license will be cancelled.

OREGON LÌQUOR CONTROL COMMÌSSÌON



Stephen A. Pharo
Executive Director

SAP:KKR
Enc.

Ìf you have any questions, call 503-872-5128 or 800-452-6522, x5128.