HomeMy WebLinkAboutReso 1994-17566 RESOLUTION NO. 17566
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA RATIFYING THE SALE AND TRANSFER OF THE
CARDROOM LICENSE HELD BY FRAN AND ROSEMARY BURGER
TO HARVEY SOUZA, CONDITIONALLY APPROVING THE
CONSOLIDATION OF THE TWO INDEPENDENT LICENSES HELD
BY THESE PARTIES INTO A SINGLE LICENSE, AND, APPROVING
THE COLLATERAL PLEDGE OF THE TRANSFERRED LICENSE AS
SECURITY FOR THE ACQUISITION FINANCING ON CERTAIN
TERMS AND CONDITIONS
WHEREAS, the City currently has four valid cardroom licensees and two operating
cardrooms in operation which are the Vegas Club and the Village Club; and,
WHEREAS, it is proposed to transfer the license currently held by Fran and Rosemary
Burger, doing business as the Vegas Club, to Harvey Souza who does business as the Village
Club; and,
WHEREAS, said transfer would result in the consolidation of these two operating
cardrooms, and their respective independent licenses, into a single consolidated license; and,
WHEREAS, provided that he first obtains the necessary Conditional Use Permit, the
consolidated license would permit Mr. Souza to increase his card room operation from 8 tables
to 12 tables; and,
WHEREAS, the Chief of Police has no objection to the application to transfer and
consolidate these two operating cardroom licenses; and,
WHEREAS, the transfer involves the collateral pledge of the transferred license by Mr.
Souza back to the Burgets in order to secure the Burger's seller financing of that transaction;
and,
WHEREAS, the City Attorney has reviewed the proposed transfer and pledge and finds
such transaction to be legal subject to certain terms and conditions.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby ratify the sale and transfer of the cardroom license held by Fran and Rosemary Burger
to Harvey Souza, an individual, approving the consolidation of the two independent licenses
held by these parties into a single license conditioned upon Mr. Souza's acquiring a
Conditional Use Permit in accordance with the Chula Vista Municipal Code.
BE IT FURTHER RESOLVED that the City Council does approve the collateral pledge
of the transferred license as security for the acquisition financing on the following terms and
conditions:
Resolution No. 17566
Page 2
(a) Notwithstanding the City's approval of the pledge, the pledge of the card room license
to the Burgets shall vest no rights in the Burgers to hold and/or operate such license.
In order to obtain such rights, the Burgets would need to reapply with the City for its
approval of the transfer of the license back to the Burgets. No action taken by the
Burgers pursuant to their financing documents which might result in their reacquiring
title to the card room license that they transferred to Mr. Souza will be recognized by
the City as a valid transfer until the Burgers fully comply with the card room license
transfer requirements set forth in Section 5.20.030 of the Code, or any others then
existing transfer requirements.
(b) The City shall retain its rights to amend the Code which regulates card room license
issuance, transfers, operations, revocations, fees and any other matter in its sole
discretion and the City shall retain its right to revoke the pledged license pursuant to
Code Section 5.20,090, or any other then applicable laws or regulations, based upon
the conduct of the party actually holding and operating the license (in this case, the
Souzas) without regard to any actions taken by the Burgers to prevent such
amendment or revocation other than through the normal political process.
(c) Any assignment by the Burgets of their collateral interest in the transferred license
shall itself be considered a transfer of a license subject to the prior approval of the City
in accordance with then applicable laws.
(d) In the event that the City revokes the transferred license from Mr. Souza, prior to any
reissuance of such license to a third party, the Burgets shall be given ninety (90) days
in which, under then existings laws, they may apply with the City for the transfer of
such license to the Burgets. In the event that the Burgers fail to apply for a license
transfer during such 90-day period, or the Burgets' application for transfer is rejected,
the City may dispose of the license as it sees fit in its sole discretion.
Presented by Approved as to form by
Richard P. Emerson Ruth M. Fritsch
Police Chief Assistant City Attorney
Resolution No. 17566
Page 3
PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista,
California, this 12th day of July, 1994, by the following vote:
YES: Councilmembers: Fox, Hotton, Moore, Rindone, Nader
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Tim Nader, Mayor
ATTEST:
Beverl¢~A. A~thelet, City Cl~rk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 17566 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 12th day of July,
1994.
Executed this 12th day of July, 1994.
~Authelet, City Clerk