Cork Market In Danger of Losing Liquor License over Ownership Issues

DC's Alcoholic Beverage Control (ABC) Board is investigating Cork Market & Tasting Room (1805 14th Street NW) for possible "ownership interest issues". According to ABC Board document available here, the ABC Board is investigating to determine if it is appropriate to forward the matter to the DC Office of the Attorney General for prosecution, and to determine if the ABC Board can legally renew their liquor license.

A hearing on the matter was scheduled for yesterday, February 25, at the ABC's Board offices at the Reeves Center (14th and U Streets). The hearing was postponed until April 22.

The ABC Board document cited above asks the proprietors of Cork Market & Tasting Room, Diane Gross and Khalid Pitts, to supply all bank records for the establishment plus their federal income tax returns for 2012 and 2013.

The document also said the Board was looking into whether Cork was "not in compliance" with several parts of the DC Code. One of them is section 25-301 (a)(5), which states that, before the ABC Board will issue or renew a liquor license, the applicant must be able to show that he or she

is the true and actual owner of the establishment for which the license is sought, and he or she intends to carry on the business for himself or herself and not as the agent of any other individual, partnership, association, limited liability company, or corporation not identified in the application.

Another section cited is section 25-403 which states in part

The making of a false statement, whether made with or without the knowledge or consent of the applicant, shall, in the discretion of the Board, constitute sufficient cause for denial of the application or revocation of the license.

Khalid Pitts ran unsuccessfully for an At-Large City Council seat last year. His Linked In profile says he is active in an executive capacity in a number of other organizations, including Democracy Partners, DC Health Link, and USAction.

Cork Market & Tasting Room's sister establishment, Cork Wine Bar, is located across the street at 1720 14th Street. It is not named in the ABC Board document. Cork Wine Bar was one of the first upscale establishments to appear on 14th Street. It won Pitts and Gross the title Restaurateurs of the Year from Washingtonian Magazine in 2009.

CORRECTED: 2724 11th Street: "It's Children Living Next to Rat Traps"

CORRECTION: An email from a neighbor of 2724 11th Street notes: "The owner's hardship petition has been default approved until the appeal process gets before a judge, so the 31.5% rent increase went into effect on Sept. 1, 2014." I was unaware the higher rents were already in effect. Apologies for the error.

Advisory Neighborhood Commission (ANC) 1B/U Street spent about an hour of its October 2 meeting listening to tenants and neighbors of 2724 11th Street NW tell of how the building is unpleasant to live near and nightmarish to live in. On October 5, tenants and neighbors had a well-attended event at the property to bring attention to their situation.

From the Twitter feed of Brianne Nadeau on October 5

The ANC voted unanimously to send a letter objecting to a proposed 31% rent increase for this rent-controlled building. Those asking for the rent increase have allowed the building to fall into an advanced state of disrepair during a half century of ownership. They have recently received approval of a "hardship petition" that would allows them to raise rents by 31 percent. This would may force many of the tenants out of the building. The approval is being appealed.

The ANC voted unanimously to send a letter to the body hearing the appeal, noting that the ANC objects to the rent increase.

Change of heart on the zoning variance

A vote to endorse a zoning variance for the same building was originally on the agenda for the meeting, but it was removed at the last minute when the owners did not produce revised plans it had promised in a timely manner. The zoning variance, if approved, will allow the owners to turn unoccupied basement space into new apartments, the rents of which will start at least at near-market rates. The proposed renovation would also compel current tenants above the basement level either to leave the property temporarily or deal with even more unpleasant conditions.

The Design Review Committee of ANC1B narrowly endorsed a request for zoning relief for 2724 11th Street at its September 15 meeting -- see SALM blog post of September 17. The approval was on the condition that the applicants provide revised drawings to the full ANC at the October 2 meeting.

It was reported that two of the committee members found out about conditions in the building after the vote and wished to rescind their approval. ANC1B Chair James Turner (Commissioner for district 09), while sympathetic to the desire to express disapproval of the conditions of the building, said: "They can't do that."

However, ANC1B Design Review Committee chair Leila Winston, who had reluctantly voted to endorse the voting request at the Design Review Committee meeting, urged the committee not to ratify the committee's endorsement

ANC hears about the building conditions

The ANC listened to tenants of the buildings. All of the tenants who testified were immigrants.

"It's like a slum," said one tenant, telling of chronic rat problems and unresponsive service. "Yesterday I had to kill a rat with a trap."

Several testifying tenants felt more comfortable in Spanish. They brought a translator to make their statements, but ended up answering questions posed directly by Spanish-speaking Commissioners -- Ricardo Reinoso (district 05), Juan Lopez (07), and Marc Ranslem (08).

One Spanish speaker reported living on the property since 1996. The conditions had recently gotten worse, the tenant reported, after the landlord had started, and then abandoned, unauthorized and unlicensed renovations to the basement of the building.

Another Spanish-speaker said: "They have been ordered to do repairs but haven't."

Several neighbors also testified. One testified she had lived in the neighborhood for years but first visited 2724 11th Street 6 or 7 months ago. She reported that children lived in terrible conditions there, and tenants had to buy new mattresses every three months due to chronic bedbug infestation.

"It's not just the financial immorality," she said. "It's children living next to rat traps."

Another neighbor said the building was "breeding rats and dead bugs" and called upon the ANC to reject the zoning request.

"This request is symptomatic of the management's desire to skirt the law," the neighbor said.

Yet another neighbor reported fly-covered dead rats caused at least in part by the owners' inability to maintain adequate trash collection. The DC health department gave the management company violations, the neighbor said, which led to the placement of some rat traps. The same neighbor reported a fire department inspection that turned up "seven to nine" violations, including missing or non-working smoke detectors. There also had been a leaking fuel tank in the basement.

Sunday rally at the property

Bishop Budde addresses the tenants

At the October 2 meeting, tenants and neighbors invited Commissioners to a Sunday afternoon barbeque at the property on October 5. I was unable to attend but an organizer says that 70 people attended the event, including Bishop Marian Budde of the Episcopal Diocese of Washington attended. She was given a tour of the building and spoke in support of the tenants.

ANC1B Commissioners Lopez, Turner, and E. Gail Anderson Holness (district 11) attended the event. The property is in Turner's ANC district.

Brianne Nadeau, Democratic Nominee for the Ward 1 Seat on the DC City Council, and Khalid Pitts, Candidate for DC City Council At Large, attended and posted messages of support for the tenants on Twitter.

Photos of the rally, as well as photo documenting the condition of the building, can be seen at the Facebook page of the group Save 2724 11th Street. The group also has an online petition.

ANC1B's Design Review Committee will probably take up this matter again at its next meeting, scheduled for Monday, October 20, at 6:30pm, at the Thurgood Marshall Center (1816 12th Street). The next scheduled meeting of the full ANC is Thursday, November 6, at 7pm, at the Reeves Center (14th and U Streets)

(Lower photo credit: Amal Mimish, used with permission)