The owner of downtown Salt Lake nightclub The Hotel said he'll likely be laying off 80 people following Thursday's meeting of the state liquor control board that left him without the legal ability to serve alcohol.
Jordan Harwood, who agreed to surrender his license Aug. 26 as part of a settlement with the Utah Department of Alcoholic Beverage Control following liquor-related violations, gave up that license Thursday in an ownership transfer that was supposed to take place following the DABC commission meeting. That transfer, however, was sidelined when the incoming owner of The Hotel, Bryan Borreson, a former manager at another downtown club, Lumpy's, was denied his license application. That denial will shutter the business for the time being and put dozens of employees out of work, Harwood said.
"We thought we had everything worked out and were told that everything was good," Harwood said. "Now I've got to lay off 80 people because (Bryan's) old boss bounced a check."
DABC commission members said they issued the denial, in part, because of bad checks written to the DABC by Borreson's former employer, Lumpy's. The commission said while the financial issue was not Borreson's personal responsibility, it reflected poorly on his management skills. At the time of the commission meeting Thursday morning, the bad checks had not been taken care of, according to DABC officials.
After hearing the commission's decision, Harwood asked that his license be reinstated but was told it was not in the commission's power to do so, and if he was interested in acquiring another license he would have to reapply.
Borreson also addressed the commission following his application denial, asking for a contingency ruling pending the Lumpy's debt being taken care of by the end of the day. The commission also denied that request, saying there were still "other issues" that needed to be addressed and that it would reconsider Borreson's application at the September meeting.
Borreson said he would likely address the commission's issues and try again next month, but he was upset with the decisions.
"Frankly, I believe it was unfair," Borreson said. "Nobody wins in this situation … we're talking about people's jobs and a state agency that has forced a business to lay off employees."
e-mail: araymond@desnews.com