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TASTY BREWS Mission Brewery is opening a tasting room and retail shop at 1380 Garnet Ave. The Pacific Beach tasting room will be the company's first offsite outpost. There will be no food but Stuffed! is opening next door. SEE PAGE 8

SAN DIEGO COMMUNITY NEWSPAPER GROUP

THURSDAY · DECEMBER 15, 2016

BEACHANDBAYPRESS.COM

In PB, liquor licenses are gold standard But some cause tension with landlords, as in the case of Beachtown BBQ By JONAH VALDEZ VOICE OF SAN DIEGO

Psyched Santas Nearly 3,000 Santas, a few elves, and some reindeer ran through Pacific Beach on Dec. 10 for the annual Santa Run prior to the Holiday Parade on Garnet Avenue. After the race, the red army of Santas then filled PB bars with good cheer. PHOTO BY THOMAS MELVILLE

In Pacific Beach, businesses are struggling to get new liquor licenses – and that has turned preexisting liquor licenses into pure gold. If a business has a preexisting liquor license, the value of the property increases, creating contention between tenants that hold the licenses and landlords looking to cash in on the rising value. And the supply squeeze has led many Pacific Beach businesses to convert from family restaurants to bars as they try to satisfy the demand of San Diegans and tourists that come to the area to drink. A preexisting liquor license in Pacific Beach can sell for $100,000 to $300,000, according t Sara Berns, the executive director of Discover PB, the local business improvement district. Tony Franco, a ubiquitous commercial broker whose face is found on bus stop benches and whose real estate footprint is etched into the major commercial hub of Garnet Avenue, told me he has SEE LIQUOR, Page 9

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

News

Homeless encampment removed from backyard of of PB house on Hornblend By DAVE SCHWAB In Pacific Beach, Dec. 8 was a redletter day many in the beach community would like to see repeated: The city's successful eviction of a homeless encampment from a neighbor's backyard. After months of living next to a home at 2724 Hornblend St. where as many as 25 people lived without water, power or sewage, neighbors were elated to learn the City of San Diego, working through the judicial process, was able to put the property into receivership and vacated. The action was long overdue in the view of at least one neighbor. “It gradually got worse and worse as more people started showing up in the backyard,” said Mike Perry who, along with wife Lesa, lives in a condo next door. “People were setting up tents on the property, which had lots of bicycles and garbage.” It got so bad, living next door became almost intolerable, Perry said. “They kept breaking into our laundry room and stealing things,” he said, adding he caught a homeless woman once trying to steal a package off his front porch. “People were out there smoking crack or meth. The worst part was the yelling, screaming and fighting with each other at night. The last straw for me was finding them using our walkway in the back as their own personal toilet.” Rick Bushree, who owns property across the street from the former encampment, had a similarly bad experience. His involvement began

Information needed on unsolved homicide in PB Authorities on Dec. 6 renewed their call for information that could lead them to whoever carjacked a 77-year-old man, then fatally struck him with his own pickup truck in a Pacific Beach alley 15 years ago. Investigators believe Edward Wager was carjacked after he stopped his white Toyota pickup truck in an alley off Grand Avenue near Noyes Street shortly before 2 a.m. on Nov. 8, 2001. He was subsequently run over by his truck as the suspect sped off, according to San Diego police and Crime Stoppers. Police found Wager's truck in the Encanto neighborhood in southeastern San Diego three days later, authorities said. Anyone with information on the case was asked to call San Diego police at 619-531-2293. Anonymous tips can be submitted by calling Crime Stoppers at 888580-8477 or contacting the agency online at sdcrimestoppers.org.

about nine or 10 months ago when the elderly woman who had owned and been living at the residence moved out. “When she left, the vagrants just started moving into the property,” Bushree said. “It wasn't a good situation because they started using people's yards as sewers, thefts increased, and they were getting more aggressive going into other people's properties and defecating. We'd call the police and they would come down and get them to move on. But then they'd be back again the next day.” Enter Richardson C. (Red) Griswold, Esq., who now has responsibility over the former homeless encampment property. “The court appoints a third-party, neutral receiver, me in this case,” said Griswold who, since Nov. 18, has been in control of the property. “It's my obligation to clean it up. From this point forward, I'm in control. I report directly to the court.” Griswold anticipates it will take three to five months to get things completely straightened out at 2724 Hornblend. “I have to solve the existing code violations, and then come up with an exit plan for what will be the permanent solution,” said the court-

appointed receiver who added he has the authority to hire whomever is necessary to get the property back in presentable condition. He can then present a bill to the property's owners for whatever work he has had done to fix it. “What's happening is I can go to the owner and say, 'OK, you need to pay the bills off, or we can put a lien on or refinance the property – or you can consent to a court-authorized sale of the property.' ” On Dec. 8, the city called a press conference attended by Griswold, property neighbors, City Attorney Jan Goldsmith, Second District Councilmember Lorie Zapf and San Diego Police. “Our City Code Enforcement Department, the SDPD and city attorney know this address all too well,” said Zapf at the conference. “I’m so happy to be here to give the neighborhood back to the neighbors. They don’t have to endure being intimidated and harassed by squatters that steal their property and use their sidewalks and alleyways as toilets. “I’m grateful that the City of San Diego has a great team (code enforcement, SDPD, city attorney) that has worked together to restore this neighborhood,” Zapf said.

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THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

Sports

Bucs soccer looks to boot opponents By DAVE THOMAS

PB Holiday Parade Mission Bay High’s Buccaneer pirate ship (above), which carried the school’s Preservationists playing jazz music, won first place in the Floats Division. Pacific Beach Elementary School students on Tom Watson's vintage truck before the parade. PHOTOS BY KATHY MILLER GRAY

The Mission Bay girls and boys soccer teams are off and running. In girls’ action, head coach Jorge Palacios had his team sitting at 4-1 heading into this week. Finishing 8-10-2 a season ago, the Bucs have five returning seniors in midfielders Kylie Kroeger, Lindsey Price, Diana Suarez, and Emily Reyes, along with forward Clarissa Fitzsimmons. They will lead a young squad that includes eight freshmen, along with two sophomores and two juniors. “We are excited to have such a large number of talented young players,” Palacios commented. “We feel like if we combine that youth with the veteran leaders we have on the team, we can have a very good year. “It will be interesting to see what this team does, but so far they have proven to be hard workers who love the game. Our goals are always to play the very best soccer we can play, maximize our potential, while at the same time having a lot fun – playing together,” Palacios said.

Bucs’ Alex Fisher battles for possession in the semi-final of the Barons Soccer Tournament. Mission Bay won (1-0) and will play in the final.

Mission Bay, which finished 4-84 a season ago, has a talented group this year that Panian said can possess the ball and be effective in the offensive third. Boys soccer “The goal [this year] though is to Head coach Joe Panian said he have collective team defense,” Paniexpects his team to compete for the an commented. “To be able to press City League championship and go as a team, keep good team shape, deep into the CIF playoffs. and be able to eliminate mistakes by

keeping focus for a full game. The team has been working extremely hard to fulfill our goals for the season and if they continue with this dedication it should be an exciting year for us.” According to Panian, key players should include seniors Efrain Senties and Erick Higuera and juniors Saul Camacho and Diego Serrano.

Mission Bay basketball teams working on improving By DAVE THOMAS

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The boys and girls basketball teams at Mission Bay are hoping for winning campaigns on the hardwood this winter. On the boys’ side, new head coach Marshawn Cherry takes over for former head coach Dennis Kane. A season ago, the Bucs went 21-9. Looking at this season, Cherry expects key players to include: freshman Savaugh Davis; sophomores Andrea Scott, Jamaryee Norton, Rejean Ellis, Ronnie Latting; and senior Marcus Nickerson. “This year’s team is very young, mostly sophomores and freshmen, with just two seniors,” Cherry remarked. “We are young and talented. It's a blessing to be young and talented but we will have to give them time to grow. It will be a season of ups and downs as we gain

experience and learn to play consistently every game. “It will definitely be on-the-job training. But I look at the future for this team and I'm very excited because we will be very good in the near future if everyone stays focused and disciplined,” Cheery said. “We must be confident in our potential and aware of our inexperience.” According to Cherry, his goal for this season is to help every player improve individually on the court and in the classroom. He also would like to see the team improve every game and make a late run in the playoffs.

“We are a very young and talented team with the key players being freshmen Maggie Acquaah and Noella Coiquaud; and sophomores Natalie Mcdermott, Brooklyn Grooms, and center Ryleigh Maple. Our one senior is leader Samantha Zambrano. Our supporting cast with J.P. Perez and Janice Waites bring a lot of hustle and effort to the table,” Ichihara said. “I expect the season to be fun with a lot of learning as well as competing,” Ichihara continued. “Besides being pretty young, this team is on the smaller side but is very athletic and can get up-and-down the court. “They are all learning fast and have shown flashes of their potential to be really good. My goal this Girls basketball On the girls’ side, head coach season is to play as a team and for Vince Ichihara takes over for a team each other, get better each practice, looking to improve upon winning each game and get the best out of the girls,” Ichihara said. only one game a season ago.

Music

BEACH & BAY PRESS · THURSDAY, DECEMBER 15, 2016 · PAGE 5

Rockabilly legend Rosie Flores at Tio Leo’s By BART MENDOZA She may be based in Austin, Texas today, but legendary rockabilly / country singer Rosie Flores has her roots right here in San Diego. Appearing at Tio Leo’s on Dec. 23, Flores got her start here in 1968 playing with the band Penelope’s Children and later, in the ’70s, with Rosie & The Screamers, before heading off to a solo career that is now 13 albums deep. Making this show a must for anyone who enjoys roots rock, Flores will be joined by The Mentals, which include Beat Farmer guitarist Joey Harris in their ranks. Flores is a national treasure whose music has inspired generations of musicians – rock fans won’t want to miss this rare homecoming show. Rosie Flores: Friday, Dec. 23 at Tio Leo’s, 5302 Napa St. 9 p.m. 21 and up. $10. www.tioleos.com.

Those who follow San Diego’s jazz scene knows what a stellar talent pianist Joshua White is. His concerts usually focus on his own works, but on Dec. 17 he will perform a special set featuring the music of a musical powerhouse of the 1940s and 1950s, composer Mary Lou Williams, who released over 100

songs are now considered classics, revered by thousands of performers who have emerged in their wake. One such all star group of musicians, tribute band Easy Wind, will perform at Beaumont’s on Dec. 17. Featuring bassist Marty Holland from JGB, drummer Frank Lazarro from The Travel Agents, keyboardist Mark Bentley from the Shenanigans, guitarist Larry Flynn from Liquid Dead and Patrick Brown from Super G. Easy Wind plays with the The legendary Rosie Flores. same spirit of the original, making this show a fun evening out for anyalbums before her death in 1981. one who enjoys classic rock. Williams wrote for the likes of Benny Easy Wind: Saturday, Dec. 17 at Goodman and Duke Ellington, Beaumont’s, 5662 La Jolla Blvd. 9 recorded with Dizzy Gillespie and p.m. 21 and up. No cover. was a compatriot of Thelonious www.beaumontseatery.com. Monk and Charlie Parker, with a wealth of jazz and blues tunes ripe Anyone wanting a break from the for rediscovery and sure to shine in chill of San Diego’s winter (or just an white’s capable hands. White will be escape from the currently ubiquiaccompanied by bassist Rob Thorsen tous holiday music), may want to and drummer Duncan Moore. head to the 710 Beach Club on Dec. Joshua White: Saturday, Dec. 17, 23 for a dose of sunshine reggae at at Dizzy’s, 1717 Morena Blvd. 8 their free Winter Classic concert. On p.m. $20. www.dizzysjazz.com. hand will be a trio of rising stars in the burgeoning local reggae scene, There are few bands that inspire Jahkobeats, Maka Roots and I-Ways. the kind of fan dedication as the I-Ways: Friday, Dec. 23 at the Grateful Dead. Though not scoring 710 Beach Club, 710 Garnet Ave. 9 many actual hit records during their p.m. 21 and up. No cover. initial five decade run, the bands www.710bc.com.

Village Veterinary Hospital offers Patient Pick Up The Village Veterinary Hospital is now offering special services for animal’s and owners with special needs. You can arrange to have your pet picked up for transport to the hospital and returned home when the pet’s needs have been met and it has been treated later that same day, or the next day if needed or requested. They also offer pick up & drop off service to Senior Living facilities in the La Jolla area. Under certain circumstances, house calls can be arranged. Vil-

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Representatives from the four Pacific Beach elementary schools receive checks from the Mission Bay Real Estate Association at their Dec. 6 meeting. MBREA raised more than $2,700 per school at their 16th annual Don Brown Links For Learning Golf Tournament. Over the past 16 years, the group has raised more than $160,000 for PB schools.

Scott Booth of Coldwell Banker in Pacific Beach and Greg Cummings of The Canter Group, held their fourth annual Food Drive on Dec. 10 in PB and were able to collect more than 1,100 pounds of food going door to door collecting food from area residents. All of the donated food went to the San Diego Food Bank. They'd like to thank all of the residents who donated.

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6 · THURSDAY, DECEMBER 15, 2016 · BEACH & BAY PRESS

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THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

Dining New Mission Brewery tasting room on tap for 2017 in PB By DAVE SCHWAB A new craft brewery tasting room is coming to Pacific Beach. It's just uncertain exactly when it will get here. San Diego Mission Brewery is in the process of installing a tasting room and retail shop at 1380 Garnet Ave. on the corner of Garnet Avenue and Gresham Street. “We are waiting on our Alcohol Beverage Control (ABC) Type 23 license, which allows families with underage kids and dogs to come in,” said Julia Pasek, Mission Brewery's project coordinator. “The property was purchased from a new landlord and remodeled, and has been through quite a transformation – it's a very nice space. “People can bring their kids with them and enjoy a beer with lunch brought in from our East Village site” at 1441 L St. in downtown San Diego,” Pasek said. Pasek stressed that a tasting room is not a restaurant. “We would have our own seasonal beers on tap, and people could bring in food,” she said. Mission Brewery was originally established in 1913. Avid homebrewer Dan Selis re-established the brand in 2007 and opened in a brewery addition to a restaurant in

Mission Brewery is known for its hefeweizens, IPAs and stouts.

UTC. The brewery soon outgrew the space and relocated to a shared warehouse brewery in Chula Vista. After a few years, Mission secured the prime Wonder Bread space near Petco Park in San Diego's East Village. Mission Brewery now has more than 40 national and international craft brewing awards under its belt. The PB tasting room will be the company's first outpost and will serve onsite, as well as offer growlers for takeout. The new Mission Brewery Tasting Room in Pacific Beach anticipates an early 2017 opening. For more information, visit missionbrewery.com.

Stuffed! to open eatery in PB with new donut shop next door Local restaurant group AG Industry Concepts recently announced the expansion of their restaurant Stuffed! The comfort food concept will open its second location in Pacific Beach. The group will also be introducing Frat Boy Donuts, a gourmet donut concept, next door to the eatery at 1380 Garnet Ave. The neighboring storefronts will total about 1,700-square-feet and are planned to open in spring 2017. Evolving from food truck, to vendor in Liberty Public Market, Stuffed! will offer fast casual dining in Pacific Beach with communal tables and a casual, welcoming environment. The restaurant will serve lunch and be open late night. Brilliantly designed to emulate the comic theme of the brand, the space will feature pop art, local graffiti and neon lighting. The menu at Stuffed! will continue to serve elevated versions of the classics with a hint of nostalgia. The decadent stuffed burgers, sandwiches, mac ’n’ cheese and fried Oreos will be accompanied by new menu items that cater to the residents, beachgoers, tourists and col-

The Boom burger at Stuffed!

lege crowds in the area. Similar to its sister brand, Frat Boy Donuts will create elaborate, over-the-top variations of classic and innovative donuts and sweets. The creative culinary team will continue to push the boundaries of the ordinary to bring something special to San Diego. The tantalizing array of freshly baked goods along with the vibrant colors of the design is meant to stimulate guests. The company plans to grow both concepts with multiple locations within San Diego County.

News LIQUOR >> CONT. FROM PG. 1

seen a liquor license sell for as much as $1 million. There is no single reason that explains why it became so difficult to obtain a new liquor license in PB. The California Department of Alcoholic Beverage Control regulates the application process, and among the many things regulators look at is crime. Pacific Beach ranks second among San Diego neighborhoods for violent crime, according to recent records from the San Diego Police Department. It has been this way for a while. Since 2003, PB has either led the city or has come in second in the category. During the application process, high violent crime figures are just one of the many reasons most Pacific Beach applications are protested and often denied. John Carr, spokesman for Alcoholic Beverage Control, said that each case is different and each is looked at differently. A protested application may take more than a year to process, Carr said. Protests can come from the police department, a local official or even a local resident. Given the high crime in Pacific Beach, SDPD often protests applications to the area. Along with their own investigation, state regulators take all of the local voices into account before making a decision. Another reason applications are often protested is the heavy concentration of preexisting liquor licenses in

Pacific Beach. According to state law, one new on-sale license, such a license for a restaurant or bar, can be granted for every 2,000 people, and one new off-sale license, like a liquor store, for every 2,500 people. Based on Alcoholic Beverage Control records, census tract 79.05 in Pacific Beach, which includes parts of Mission Boulevard and Garnet Avenue, has 23 active on-sale liquor licenses and a population of 2,584, well above the state’s recommended ratios. Carr said that in the 1990s, however, California passed a stipulation that allows for a new license to enter a heavily concentrated area, as long as it serves a public convenience or necessity, such as “enhancing a business district, giving a boost to the local community … or providing a new and unique service to an area of the community that may not have that particular service.” Two of the 23 active licenses in the Pacific Beach census tract were granted within the past five years. Since Pacific Beach lacks real delineation between residential and commercial districts, the public convenience and necessity exception has drawn concern from some locals. “Pacific Beach is very unique due to the proximity of businesses to residential neighborhoods,” said City Councilwoman Lorie Zapf, who represents the area. When driving along Garnet Avenue, this multi-use landscape becomes evident.

For instance, at the intersection of Garnet Avenue and Dawes Street, a small, light blue apartment complex rubs shoulders with Bub’s at the Beach, a sports bar where displaced Pittsburgh Steelers fans often congregate on game day. Between Bayard Street and Garnet Avenue, a cluster of upscale condos sits behind Johnny V, a multi-room nightclub. A few blocks from Pacific Beach Middle School is PB Cantina, a happy hour margarita destination, and PB Pub, the local tavern. Between the middle school and the two bars is a series of apartments. “My office has received calls from concerned citizens regarding aggressive transients, lawless behaviors and over-intoxication on our beaches, in the business district and unfortunately in some neighborhoods,” Zapf said. The heavy concentration of licenses and high crime numbers have also become a rallying cry for local groups, such as Save PB, which argues that alcohol and poor regulation is to blame. These types of groups have existed in Pacific Beach since the early 2000s. Brian Curry, chair of the Pacific Beach planning group who advises the city on land use issues, said that it was in the early 2000s when new liquor licenses began to grow scarce in Pacific Beach. Even with the scrutiny and regulation, many Pacific Beach businesses are converting from family restaurants into bars. Franco told me the trend is great for landlords, since a liquor license can

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

PB Cantina is down the block from Pacific Beach Middle School.

increase the value of a property. If a business converts to a bar, a landlord can raise the rent as the value goes up, Franco said. The booming value of alcohol-serving properties is where the contention begins for some tenant-landlord relationships, which are at times characterized by high rent hikes, lawsuits and abnormal lease modifications. Michael Reidy, owner of Bar West, a defunct nightclub on Garnet Avenue, is currently engaged in a lawsuit with their former landlord, Thomas Plotts. Plotts sued Bar West in August 2015 for breach of contract. Bar West responded with a cross complaint, alleging that Plotts took an “adversarial stance” against the tenants after they rejected Plotts offer to buy the property. The court documents

show that after Reidy’s second refusal, Plotts offered an ultimatum: “either purchase the premises at a far above market price, or enter into new lease terms that were also well above market [price].” Plotts offered the place for $3.4 million. The high price was based on the value of Reidy’s own liquor license, as court documents allege. A court hearing is still not set. After multiple attempts, Plotts was unavailable for comment. Since liquor licenses are private property, belonging to whomever they are issued to, businesses often buy and sell the preexisting liquor licenses between one another, as commodities. Some landlords have also joined the SEE LIQUOR, Page 11

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THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

Schools EDUCATION NOTEBOOK>> Kate Sessions

Toy drive Pacific Beach Middle School International Baccalaureate students Sean (above) and Ryan led a holiday toy drive, collecting more than 400 toys for needy children in San Diego. Students from Ms. Pairs' and Ms. Velasco's classes collected more than 300 of the toys, winning class trips to Belmont Park donated by the amusement park.

n Kate Sessions would like to thank their 2016 Handmade in San Diego Craft Fair sponsors: Big League Bubble Balls, Buddy's Diner, Cinnaholic, G3 Kids Gym, Hammonds Gourmet Ice Cream, John Collins, Marque Urgent Care, Kalabash Music and Arts, Nightingale Music, San Diego County Credit Union, Sonic Drive-In, The UPS Store, and Yogurt on the Rocks. Your support is greatly appreciated. Santa along with his PTO helpers

arrived during the annual Sessions Craft Fair – Handmade in San Diego. Children were able to visit with Santa and eat a breakfast while their parents shopped the vendor booths for lots of goodies. During the Craft Fair, students from Crown Point Junior Music Academy demonstrated their musical talents for all fair goers. Santa thanked all of the students at Sessions for working with the Salvation Army to collect non-perishable items for deserving families in San Diego. The Student Council has collected over 25 boxes of non-perishable items! A special thank you goes out to the PTO at Sessions for providing a wonderful annual community Craft Fair in Pacific Beach.

Mission Bay Cluster n The next Mission Bay Cluster meeting will take place 6 p.m. Jan. 5 at Sessions Elementary and will be discussing GATE (Gifted and Talented Education) as a broad overview at the district level and what GATE looks like at the six PB schools. There will be a presentation from the Kate Sessions fifth graders regarding their experience at Biz Town where the students acted as members of a virtual city and learned how the economy and banking systems work. n Schoolyard Dash 5K and Kids Mile Fun Run is set for Sunday, Jan. 29, from 8:30 a.m. to 12:30 p.m. Visit www.schoolyarddash.org.

Rumpelstiltskin Pacific Beach Elementary School students performed ‘Rumpelstiltskin’ for a packed auditorium on Saturday, Dec. 3. Funded by Friends of Pacific Beach Elementary, this was the 15th annual performance of a production by Missoula Children's Theatre at PBE.

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News LIQUOR >> CONT. FROM PG. 9

worth money, the more there’s now the economic landscape of Tony predatory behaviors toward those with Roma’s, changing the name seemed like a smart business move to the them,” Berns said. Mazzellas. Demise of Beachtown BBQ Tony Roma’s is not what it used to be In May, Dan and Peggy Mazzella and back in 1986 when Peggy Mazzella’s Jorge Gaytan changed their Pacific father signed the original lease. Today, Beach restaurant’s name from Tony Tony Roma’s is a dying chain with 19 Roma’s to Beachtown BBQ. restaurants in the United States, down Name changes are common in the from more than 160 in 2002. After strip mall along Mission Boulevard, the name change, the business’ ratwhere Tony Roma’s had been for ings on Yelp rose from 3.2 stars to 4.3 decades, and the decision was unani- stars, a significant difference in the mous among the restaurant manage- unforgiving crowd-sourced review ment. community. But to the landlord, it did Their landlord, Michael Katz, did not not matter. like it, though. He said the name On Aug. 31, after Katz’ attorney sent change violated their lease agreement. a letter to the Mazzellas, warning about the name change, Katz filed a The lease reads: complaint against Beachtown BBQ, or “The Premises shall be used by Ten- in Katz’s eyes, Tony Roma’s. ant only for the purpose of operating a “The landlord is using an aggressive restaurant with bar and any purposes interpretation of the lease,” Dan incidental thereto, under the name Mazzella told me several days before ‘Tony Roma’s.’” the trial. His attorney planned to argue And now, Beachtown BBQ has that within a broader interpretation, closed its doors. But the name change the Mazzella’s were still meeting the row might have been just a side drama. terms of their lease, operating as “a The closure is another consequence of restaurant with a bar.” the skyrocketing value of liquor licensAlthough liquor licenses are private es in Pacific Beach, which has soured property of the tenant, landlords have relationships between tenants and taken measures to acquire the licenses landlords in the neighborhood. from the tenant. As a mainstay in San Diego’s drinkIf a business manages to get a liquor ing scene, more Pacific Beach restau- license, the value of the property rises, rants are converting into bars. Due to Franco said. Some landlords have state regulations, local protest, high taken advantage of this, hiking rents crime rates and heavy concentration for their alcohol-serving tenants, at of pre-existing licenses, however, new times to the point of pushing busiliquor licenses in Pacific Beach are nesses out. scarce and difficult to obtain. But Sara Berns, executive director of Disdemand remains high. cover PB, the local business improveThis leaves businesses looking among themselves for pre-existing liquor licenses. The scarcity has made the pre-existing liquor licenses an expensive commodity.

exchange, taking measures to mine the golden licenses from businesses. I was able to obtain a lease modification between a Pacific Beach landlord, Michael Katz, and one of his tenants. Signed on Dec. 12, 2012, the modification extended the tenant’s lease until 2020 and added a “Demolition Clause with the right to Purchase Liquor License.” Based on a typical reading of demolition clauses, the modification gave Katz the right to terminate the lease, demolish the building and afterward, buy the liquor license from the tenant, perhaps to develop a new business. The only thing Katz is required to do is give the tenant a heads up beforehand. Franco called these practices where a landlord deals for a tenant’s license, “preserving their assets.” He said that although it’s a case-by-case scenario, generally, it’s wise for landlords to purchase preexisting liquor licenses. “It’s just the free market,” Franco said. Berns said landlords aren’t as embedded in the community as small businesses are, so she feels compelled to prepare new businesses coming to Pacific Beach for that reality, hoping to offer workshops on what to look for and what questions to ask when negotiating a lease or rent. “These are small business owners, these are people’s dreams,” Berns said. “But they don’t necessarily have the legal background to negotiate a lease.” Yet for Berns, there is no systemic issue in Pacific Beach. She said, in general, most landlords operate their businesses just like a small business owner does and is mostly out to make an honest profit. But she said the rising value of liquor licenses is causing some landlords to take advantage of their ten- The name change The stipulation is seemingly ants. “The more you make a liquor license straightforward, but after evaluating

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

Peggy and Dan Mazzella, longtime owners of Beachtown BBQ in PB. PHOTO BY JAMIE SCOTT LYTLE/VOICE OF SAN DIEGO

ment district, said the expensive preexisting liquor licenses often leave tenants victim to predatory behavior. The Mazzellas are also engaged in a separate lawsuit with Katz in which he is seeking payment for a leaky grease trap. The suit was filed in June 2015 and the Mazzellas later filed a cross-complaint, which adds context to Katz’s aggressive behavior. “Cross-Defendant (Katz) has intentionally and, in bad faith, engaged in a series of harassing tactics in an effort to find any pretext to terminate the tenancy and gain control of the liquor license,” the court documents read. “PB Roma’s alleges that landlord has an intent to bring in a new business as tenant and or owner or partner to utilize the license for purposes of a bar or

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nightclub generating more revenue than PB Roma’s family restaurant.” Based on Katz’s history with tenants, along with what Dan Mazzella described as “The wild, wild west predatory nature of landlords” in Pacific Beach, the Mazzellas felt their allegations were legitimate. The omens within the strip mall – all of which included businesses closing and the movement of liquor licenses – were clear.

Dealing liquor licenses I was able to obtain a copy of a lease modification, made between Katz and another one of his tenants. Signed on Dec. 12, 2012, the modification

Christmas Worship Guide

SEE LIQUOR, Page 13

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

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News LIQUOR >> CONT. FROM PG. 11

extended the tenant’s lease until 2020 under the condition that “This lease would not have been modified without tenant expressly understanding that the Demolition Clause with the right to Purchase Liquor License being included in this modification.” Based on a typical reading of demolition clauses, the modification would allow Katz to terminate the lease, demolish the building and afterward, buy the liquor license from the tenant, perhaps to develop a new business. The only thing Katz is required to do is give the tenant a heads up beforehand. Records from Alcoholic Beverage Control, the state department that regulates alcohol manufacturing and sales, also show that Katz has obtained a liquor license from tenants before. McCormick and Schmick’s, a steak and seafood chain, ran a restaurant in Katz’s strip mall from 1988 to 1995. After McCormick and Schmick’s closed down for unknown reasons, records show the liquor license was transferred to Katz, who used it for a restaurant and bar that he had opened in the vacant space. Katz’ restaurant, Diego’s Café y Cantina, operated with his new liquor license from 1996 to 2000, eventually selling it to a new Hooters that took over the space in 2000. Most recently, The Eggery, a neighboring breakfast and brunch restaurant with a liquor license, closed in the

summer of 2013 after a dispute with Katz. Dan Mazzella told me that Katz denied The Eggery’s request for a lease extension, despite 25 years of operation. Katz went on to increase the rent each month until a final breaking point. In the summer of 2013, the owners of The Eggery closed shop, leaving behind their tables, chairs, silverware, plates, bowls and glasses. Alcoholic Beverage Control records also show that its liquor license may have also been left behind. It was transferred the following April to a new business, Truckstop, which now sells barbecue and craft beers along with breakfast. “Liquor licenses are personal property, but if the owner doesn’t have a place to go, what good is it?” Dan Mazzella said. Truckstop’s owners also operate multiple bars throughout Pacific Beach, including a three-story bar in Katz’s strip mall, El Prez, which opened as The Beachwood when Hooters closed in 2010. Trecia Steen is a regular patron of the strip mall. In 2014, Steen was eating breakfast at Truckstop when she got into a conversation with the chef, who asked if she was a local. Steen said she was, and as they talked, one of the owners of Truckstop and El Prez joined the conversation. “The owner got into the conversation stating they were going to rake over Tony Roma’s and have a monopoly” in the strip mall, Steen told me. They then mentioned to Steen that

they planned to sell venison meat at their new place. This made Steen uncomfortable, so before finishing her eggs, she boxed her meal, walked to the neighboring Tony Roma’s and asked Peggy Mazzella when she planned to close the restaurant. In 2014, the idea of closing was foreign to the Mazzellas. Steen never returned to Truckstop, and for the Mazzellas, the troubling thought lingered. Such a maneuver by Truckstop owners would require information and approval from their landlord, Katz. The two parties had worked on expanding within the strip mall before. In a 2013 story about Truckstop’s opening, Beach & Bay Press reported that it was the landlord of the same strip mall that approached the owners of El Prez about the opportunity of starting a business in the space vacated by The Eggery. Katz, whose name was left out of the 2013 article, was the landlord of the strip mall during that offer. I reached out to Katz, who said he was traveling out of the country, “through the jungle.” After exchanging several emails, Katz cited “spotty” email access and declined to comment. As the Mazzellas sat in the courthouse for their name change feud, waiting to be assigned to a judge and courtroom, I asked Dan how he felt as he hugged his briefcase, pressing it against his chest. “Aside from nervous? I’m optimistic,” he said. Despite the worrisome signs that revealed themselves to the Mazzellas

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

PB Pub is a few blocks from Pacific Beach Middle School. Between the school and the bar are several apartment buildings.

for the past decade, Dan and Peggy were hopeful because their business was doing well, and they felt they had a compelling case to defend and because they were unaware that a day later, on Oct. 26, Judge Timothy B. Taylor would deliver a decision that called for the eviction of Beachtown BBQ.

The decision Dan Mazzella is a lawyer himself. For 34 years he has represented insurance companies. The name change trial was a reversal of roles. He is usually on his feet, speaking to the judge or in front of jurors, grilling a witness, defending his clients who

sat down in relative silence. This time, while opposing lawyers spewed allegations against him, Dan was the one sitting and listening. He was in the witness box, speaking only when asked. Taylor later wrote in his decision: “The court found Mr. Mazzella generally credible, but he could not put aside his ‘advocate’ hat arising from his long career as a lawyer.” “This has humbled me,” Dan told me. “I can now feel their pain.” On Oct. 31, three days after Dan expected to receive the decision, I called him for an update. SEE LIQUOR, Page 14

News

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

LIQUOR >> CONT. FROM PG. 13

“We lost,” he said, and then read the decision: “Plaintiff [Katz] is entitled to a judgment for immediate possession. The remaining term of the lease is forfeited, and holdover damages are awarded in the amount of $32,925.69 … The court finds that paragraph 11 of the lease clearly and explicitly requires the restaurant and bar to be operated under the name ‘Tony Roma’s.’”

Closing down When its doors opened in 1987, Peggy’s father was the owner of the restaurant. After he passed away, Peggy’s brother assumed ownership. Since 1988, when Peggy had her second child, Peggy divided her time between helping with the restaurant, working as a licensed architect build-

ing homes, retail and office spaces and raising her boys with Dan. In 2009 Peggy’s brother wanted to retire. People were still crawling out from the worst of the recession, and with more than 40 employees under the restaurant’s payroll, Dan and Peggy decided it was not right to sell the business away. They bought the rights of the business and assumed ownership. Peggy told me that the support from local families throughout the past few years has been extremely rewarding. She said Beachtown BBQ continues to host events like birthdays, family reunions and weddings. But one event still resonates with the Mazzellas. Each year, on one night near Christmas, the restaurant, adorned in holiday décor, would host a party for the employees. It was held after hours, and employees past and present would bring friends and family, packing in to celebrate at a place that usually meant hours of work.

“The restaurant was just for us on those nights, and it felt like home,” Dan recalled. In the decision, Taylor was aware of the sting the eviction would leave. “The court takes no pleasure in ruling in this fashion, as it seems clear two families will lose their hard-won investment and several workers will lose their livelihoods,” Taylor wrote, recognizing the employees of Beachtown BBQ, the Mazzellas and Gaytan, who started working at Tony Roma’s 28 years ago as a dishwasher. Attorneys from both sides are still working on the language of the decision, which is only prolonging the inevitable closure of the restaurant. The Mazzellas decided that Beachtown BBQ would close its doors after Thanksgiving. Despite the eviction, Katz is still seeking payment for the leaky grease trap through the ongoing suit that began in 2015. By the time the court will hear

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court’s decision. He was preparing an appeal. As we talked, Dan said they’ve been receiving calls from other businesses, asking about potential partnerships or relocation. Although Dan admits the situation is sympathetic – landlord evicts a tenant of 30 years for changing name, dozens lose their jobs – businesses are not calling to offer consolation. Dan said they are mainly calling because he and Peggy still own a framed certificate that is smaller than standard printing paper, nailed to the wall of their restaurant: a liquor license. Jonah Valdez is a freelance reporter based in San Diego. You may contact him at jonahmvaldez@gmail.com and follow him on Twitter @jonahmv. To read more about the liquor licenses in Pacific Beach and San Diego, visit www.voiceofsandiego.org.

MERRY CHRISTMAS!!!

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Kathy Evans • Scott Booth 858-775-0280

the case in January, Beachtown BBQ will be a vacant property. Katz is asking for $113,693. On Nov. 14, more than 20 employees gathered around the Mazzellas for a staff meeting at Beachtown BBQ. As Dan broke the news of the eviction, some began to cry. Several had been working at the restaurant since it opened in 1987. After the meeting, one employee came up to Dan and told him, “Let us know wherever you reopen. We will come work with you.” This struck Dan as a high compliment of loyalty, but also a humbling truth: A lot of people are going to be jobless. A few moments after the meeting, Beachtown BBQ opened its doors, and business resumed as usual. Hosts greeted customers, chefs seared the ahi tuna and grilled steaks, and waiters served the dishes and cleaned tables, except now, everybody knew their days working there were few. I called Dan one week after the

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Open House

THURSDAY · DECEMBER 15, 2016 BEACH & BAY PRESS

CA BRE Broker's # 01312924 Karen Dodge • CA BRE Broker's # 01312925 Mike Dodge

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SUN & AT S N OPE

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BRE 01739847

Wishing everyone a Happy Holiday!

Coldwell Banker Previews 92109

©2015 Coldwell Banker Real Estate LLC. Coldwell Banker®, Previews® and Coldwell Banker Previews International are registered trademarks licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned And Operated By a Subsidiary of NRT LLC. Broker does not guarantee the accuracy of square footage, lot size or other information concerning the condition or features of property provided by seller or obtained from public records or other sources, and the buyer is advised to independently verify the accuracy of that information through personal inspection and with appropriate professionals.

Karen: 619-379-1194 • Mike: 619-384-8538 PacificParadiseRealty@gmail.com www.karen-mike.com

PAGE 16 · THURSDAY, DECEMBER 15, 2016 · BEACH & BAY PRESS

Team Cairncross' Coastal Listings EW

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4 Mission Beach Homes for sale! 3 Off Market! -817 San Jose Place: North Mission Beach Charming Cape Cod with private ocean and bay view rooftop patio. 3BR/2BA 1350 sqft $1.395m ~North Mission Bayside Detached 2 bed plus office 2.5 bath with 2 car garage

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1535 Loring St

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