(a) A license may be suspended or revoked if a licensee's business is or creates a nuisance. A licensed business is or creates a nuisance if: (i) within any consecutive 12 months, not less than three separate incidents occur on the licensed premises, on or in the licensed premises' parking facility, or on adjacent property, involving illegal acts; or (ii) the licensee has failed to take reasonable steps to correct objectionable conditions existing or occurring on the licensed premises, on or in the licensed premises' parking facility, or on adjacent property while the licensed premises is open for business or within one hour of the time the establishment is opened or closed for business. The licenses of any business that is or creates a nuisance under clause (i) of this subsection (a) shall be subject to suspension or revocation pursuant to Section 4-4-280. The licenses of any business that is or creates a nuisance under clause (ii) of this subsection (a) shall be subject to suspension or revocation pursuant to the procedures set forth in subsection (b) of this section.
(b) (1) A group of five or more people who reside within 500 feet of a licensed premises, measured from the nearest exterior walls of each applicable building, may file with the commissioner a complaint that a licensee's business is a public nuisance because the licensee has failed to take reasonable steps to correct objectionable conditions existing on the licensed premises, on or in the licensed premises' parking facility or on adjacent property. The commissioner may notify the licensee to appear before the commissioner, in the presence of the complaining persons when the commissioner considers such presence appropriate, to define, discuss and seek resolution of problems giving rise to the complaint. The commissioner may also order subsequent meetings to review progress toward resolution of the problems. A meeting may also be convened at the request of the commissioner or the alderman of the ward in which the licensed premises is located.
Notice of any meeting scheduled pursuant to this subsection shall be sent to the alderman of the ward in which the licensed premises is located.
The failure of a licensee to appear in response to a notice, or to attend subsequent meetings as ordered by the commissioner, shall be grounds for the imposition of a fine or the suspension or revocation of a license. The progress made in resolving the problems identified in the complaint and meeting process shall be considered in any proceeding to suspend or revoke a license under this section.
(2) After the commissioner determines that the complaint and meeting process has been completed or the licensee has failed to submit a plan of corrective action pursuant to subsection (d), the commissioner may institute a hearing based upon his reasonable belief that the operation of the business is a public nuisance. Notice of a hearing scheduled under this section shall be given to the alderman of the ward in which the licensed premises is located. At the conclusion of the hearing, if the commissioner determines by a preponderance of the evidence that the operation of the licensee's business is a public nuisance because the licensee has failed to take reasonable steps to correct objectionable conditions occurring on the licensed premises or adjacent property, the commissioner shall enter an order suspending or revoking the applicable license.
When determining what constitutes reasonable steps, the commissioner shall consider site configuration constraints and other factors related to any unique circumstances or the nature of the business, as well as the frequency of complaints of objectionable conditions and the manner in which the licensee has sought to address such conditions.
"Reasonable steps" include, but are not limited to, the following:
(A) Calling the police department. Timely calls to the police department via 911 that are placed by the licensee, or his agents or employees, shall not, in and of themselves, be construed by the commissioner as evidence of objectionable conditions that constitute a nuisance.
(B) Directing those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his agents or employees, reasonably believe that their personal safety would be threatened if such direction was given. Directions of this nature may be provided orally or in writing.
(C) Making good-faith efforts to remove items that facilitate loitering, such as furniture.
(D) Attending CAPS meetings, beat meetings or other similar city-sponsored informational meetings or educational events designed to alert the licensee and his employees to problems related to the operation of the business and to promote remediation of such objectionable conditions.
(c) As part of an order of suspension issued by the commissioner, the commissioner may impose conditions upon the future operation of the licensed business that are useful or necessary to mitigate the public nuisance, including, but not limited to: providing security personnel, restricted hours of operation, providing outdoor lighting, the display of signs, providing trash pickup services or any other reasonable restrictions on business practices until the commissioner concludes that the conditions which gave rise to the public nuisance are abated.
(d) (1) Notwithstanding subsection (b), at any time prior to the initiation of proceedings to revoke or suspend a license under this section, if the commissioner determines that a business meets the criteria for a public nuisance under subsection (a), the commissioner may notify the licensee of his determination. Upon such notification, the commissioner may request the licensee to submit a plan of corrective action that provides reasonable assurance that the operation of the business will not cause, or continue to cause, a public nuisance. Subject to the approval by the commissioner, the plan may include conditions upon the licensee's operation of the premises that are useful or necessary to mitigate the public nuisance, including, but not limited to: providing security personnel, restricted hours of operation, providing outdoor lighting, the display of signs, providing trash pickup services or any other reasonable restrictions on business practices.
(2) Any licensee who fails to comply with all requirements of the approved plan of corrective action shall be fined not less than $200.00 nor more than $1,000.00, or have his license suspended or revoked for the first violation. For any subsequent violation, the license shall be revoked. Each day that such violation exists shall constitute a separate and distinct offense.
(3) If the licensee does not submit a plan of corrective action after a request by the commissioner, the commissioner may institute a hearing in compliance with subsection (b)(2).
(4) The commissioner shall not approve any plan of corrective action after the initiation of proceedings to revoke or suspend a license, unless the commissioner determines that it would be in the best interest of the city to approve such a plan.
(e) The commissioner shall deny an application for a license when the premises identified in the application was subject to a license suspension, revocation or a plan of corrective action pursuant to this section or Section 4-4-312 within the three-year period prior to the date of the application; provided that the commissioner may approve an application if the applicant agrees to enter into and comply with the plan of action approved by the commissioner to abate any of the conditions which gave rise to undertaking a plan of corrective action, or the finding of a violation of this section; provided further for any premises which is ineligible for a license due to a license being revoked for cause at that location, no license shall be issued during of the term ineligibility provided in the code.
(f) In a proceeding to suspend or revoke the license of a business that is or creates a nuisance under subsection (a) of this section:
(1) it shall not be a defense that the licensee or the licensee's employees or agents were not personally involved in the commission of the illegal acts or directly responsible for the objectionable conditions except as provided otherwise in paragraph (2) of this subsection;
(2) for purposes of determining whether three or more illegal acts occurred during a 12-month period, illegal acts occurring on the public way shall be limited to acts of the licensee, its employees, agents or patrons or otherwise involving circumstances having a nexus to the operation of the business;
(3) the illegal acts or objectionable conditions must occur or exist while the licensed premises is open for business or within one hour of the time the establishment is opened or closed for business; and
(4) any evidence on which a reasonably prudent person would rely may be considered without regard to the formal or technical rules of evidence, and the commissioner may rely upon police reports, official written reports, affidavits and business records submitted by authorized city officials or employees charged with inspection or enforcement responsibilities to determine whether such illegal acts or objectionable conditions occurred. If during any 12-month period three separate incidents of illegal acts occur on the licensed premises, on or in the licensed premises' parking facility, or on adjacent property, a rebuttable presumption shall exist that the licensed business is or creates a nuisance in violation of this section.
(g) A licensee may offer evidence of mitigating factors in any license disciplinary hearing where it is alleged that the licensed business is or creates a nuisance based upon the occurrence of three or more illegal acts in any 12-month period. Mitigating factors may include evidence of the licensee's reasonable efforts to deter or discourage illegal acts from occurring on the licensed premises or adjacent property such as: the use of strategically placed recording cameras, employment of trained security personnel, and a practice of promptly notifying the police when illegal activity occurs or appears imminent and cooperating with police investigations. When reviewing any evidence of mitigating factors, the commissioner may consider factors related to the unique circumstances of the nature of the business as well as the relative frequency of the occurrence of illegal acts in the surrounding community.
(h) For purposes of this section:
(1) "Adjacent property" means:
(A) any private property that is owned, leased, or rented by the licensee, or used by its patrons, and that is located next to the business premises;
(B) any public way located next to the business premises; or
(C) any private property which is owned, leased, or rented by the licensee, or used by its patrons with the knowledge or permission of the licensee, and that is: (i) used in connection with the operation of the business; and (ii) located within 500 feet of the licensed premises.
(2) "Illegal acts" means any conduct or activity that violates any federal or state law defining a felony, or any federal or state law or municipal ordinance regulating narcotics, controlled substances or weapons.
(3) "Objectionable conditions" include, but are not limited to, disturbance of the peace, public drunkenness, drinking in public, harassment of passersby, illegal gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, or excessive loud noise.
(Added Coun. J. 5-9-12, p. 27485, § 14; Amend Coun. J. 11-8-12, p. 38872, § 45; Amend Coun. J. 12-10-14, p. 100450, § 1; Amend Coun. J. 5-25-22, p. 48413, § 2)