City council denies new liquor license for Alibi Drinkery in Lakeville

The Lakeville City Council moved to deny a new liquor license for Alibi Drinkery in Lakeville.

The bar and restaurant previously had its liquor license suspended for violating COVID-19 restrictions in December and was found in contempt of court for repeated violations in January.

The Minnesota Department of Health then filed a lawsuit also in January for operating without a license.

The city filed documents this month that indicated Jose Colon entered into a purchase agreement to acquire Alibi Drinkery from previous owners Lisa Zarza and Ricardo Baldazo. Colon said Michelle Rene would continue managing the business as Rene had done since it was opened.

When asked whether previous owners would have any involvement in the business, Colon reportedly said he would be using the previous owners as consultants. However, the Lakeville police chief pointed out in a background investigation that a lease provision required Zarza and Baldazo to operate the business during the term of the lease as paid, full-time employees.

During its June 21 meeting, the city council met to consider the liquor license application and to conduct a public hearing. The council stated that after the hearing, Colon didn’t provide any further clarification of the discrepancies in the application and background materials.

The council moved to deny Alibi Drinkery’s application for a liquor license, stating Colon appeared to be a proxy for Zarza and Baldazo.

In its Tuesday meeting, the city council again discussed the matter and some community members spoke out in support of the business.

"Because of Lisa (Zarza) opening during COVID, I was able to feed my three kids," a bartender who worked for Alibi Drinkery said during the meeting. "Honestly, I feel like she’s owed this … she deserves this right to be able to sell her business and (Colon) deserves the right to be able to take it over."

However, Council Member Michelle Volk said she and other council members felt clarification was necessary in order to process the application.

"The questions that we had for you and the answers that we received left us, left me, uncomfortable with that decision to approve your liquor license because I didn’t feel like you were being honest with us," Volk said during the council’s Tuesday meeting.

During Tuesday’s meeting, Colon rescinded the license application in favor of reviewing and potentially resubmitting.