Norfolk's '09 shuttering of Waterside bars ruled legal

NORFOLK

A two-year bar fight between two former Waterside night clubs and city officials might have finally run its course.

A judge has ruled that the city acted legally when it voted to turn off the taps of Bar Norfolk and Have a Nice Day, then padlocked the doors when the businesses continued to operate as usual.

"It's nice to know that we were correct," said Adam Melita, a deputy city attorney. "We thought we were all along."

Bar Norfolk and Have a Nice Day Cafe, owned by the same Charlotte, N.C.-based corporation, were recruited to Norfolk by city officials more than a decade ago. In August 2009, the City Council voted to deny the clubs special licenses allowing them to serve alcohol and provide entertainment.

The action came after a blanket alcohol license for all Waterside establishments was rescinded. Each restaurant and night club was required to apply for an individual license.

The owners of Bar Norfolk and Have a Nice Day Cafe said they were ambushed and that they had been assured their licenses would be renewed.

At the time, c

ity leaders said they took the action because of repeated violations of state and city codes. Deputy City Attorney Cynthia Hall, who leads the city's Bar Task Force, said the clubs served underage drinkers, had fire code violations, hired a convicted felon as an ABC manager and sold untaxed cigarettes.

The shuttering of the clubs led to half a dozen lawsuits and more than two years of litigation.

It also led to a change in how the council does business. Councilwoman Theresa Whibley, the lone vote in favor of the clubs' permits, said she was disappointed in how the issue was handled and that the club owners were not given enough notice.

Now, the council is supposed to be briefed at least a week ahead of a vote on an alcohol license if the application is controversial.

In this week's ruling, Circuit Judge Norman A. Thomas said the council's "actions fell well within the limits of legitimate governmental action respecting local land use regulation." His opinion came after a three-day trial that concluded in June.

Vice Mayor Anthony L. Burfoot said the decision is good news for the city's efforts to revitalize Waterside.

The city has requested private proposals to take over management of the downtown marketplace. City Manager Marcus Jones has said that might include renovating the building or demolishing it and beginning anew.

Burfoot said: "If the decision had gone the other way, it would have cost us money and could have delayed our ability to move Waterside in the right direction. Now, we can get down to the business of getting Waterside back on its feet and making it the jewel of the city."

The night clubs had filed a $5 million lawsuit against the city but later withdrew it, according to Melita.

Attorneys for the establishments were not available for comment. It was not clear whether they will appeal.

Mayor Paul Fraim said he had not read the opinion but that "we've been confident in our legal position from the beginning. We're glad this matter is now concluded so we can move forward."

A final order is expected to be signed in January.