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> OT: any club/bar owners on here?, thinking about taking over a club ...
IronHillRestorations
post May 6 2008, 01:05 PM
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(IMG:style_emoticons/default/agree.gif)

I've been in my share of clubs (in a band), and the ones that seem to do the best do not smell like stale beer and urine!

Can you get the seller to give you a balance sheet for the past few years? At least you could have an idea for operating costs, insurance, etc.
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SirAndy
post May 9 2008, 12:18 PM
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meeting with the owner today ... looks like this might really happen ...
(IMG:style_emoticons/default/piratenanner.gif) Andy
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dw914er
post May 9 2008, 12:27 PM
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if you ever need some entertainment for it, let me know.

I love to play drums live, and im sure i could arrange a band to play for you!

good luck thought with the biz andy. A club would be pretty cool, and it seems like you know some of the details about clubs already
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r_towle
post May 9 2008, 01:00 PM
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QUOTE(SirAndy @ May 2 2008, 03:40 PM) *

QUOTE(Danny_Ocean @ May 2 2008, 11:35 AM) *

Last time I checked, a liquor license in CA cost more than the most expensive Porsche...is the liquor license included in the sale/transfer?


yes! all included ... (IMG:style_emoticons/default/piratenanner.gif)

wouldn't touch it otherwise as oakland does not issue any new liquor licenses anymore. the only way to get one is to take an existing one over or if one goes back to the pool after a place closed down.
and the waiting list for that is looooong ...
(IMG:style_emoticons/default/shades.gif) Andy


My first thought was regarding zoning etc.
Typically an existing owner can continue to do certain things...live music, dancing, number of people allowed inside, etc. You really need to talk to the zoning and business people to ensure that what you assume comes with it, actually does.

The liquor license can be transfered, but certain rights to do certain things do not transfer.

I am not sure if I explained this correctly.
Try this.
The owner has had live music for 25 years...never got the new permit that was required of live music places four years ago. (hypothetical) The law cannot enforce him to do it because he has been doing his business this way for 25 years. The existing owner has non-transferable rights based upon history, and based upon his rights that existed prior to certain laws taking affect. He is granfathered in. He may have certain things that are considered "pre-existing non-conforming" (that is the legal term) under the law.
He is not breaking the law. But he cannot transfer those rights. He may not even know about the new law because it would not affect him.


Some of these rights can be transferred if you actually buy the corporation.
That has its own liability to worry about and I would not suggest that you do that.
Just buy the assets. Someone could come back around with a lawsuit for something that happened years ago against the coroporation, and you are then liable.

A good business lawyer can split those hairs for you.
Buying the assets is the cheapest way to go legally.
Buying the corporation can be done with a pretty significant legal contract that makes the previous owner liable for historic things.
the reality is that if he is dead or broke, another good lawyer can get to your money via the corporation...so I would not so it.

Do a good amount of due dilligence around what you want to do with the place to make sure you can in fact do it. You, the new owners will be required to get the permit, or no live music. You may find these types of issues with food, live music, hours of operation etc.

Expect to put three to four time your initial projections of capital outlay for permitting...new owners get stung for all sorts of new fees.

Rich
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Jeffs9146
post May 9 2008, 01:54 PM
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QUOTE
The owner has had live music for 25 years...never got the new permit that was required of live music places four years ago. (hypothetical) The law cannot enforce him to do it because he has been doing his business this way for 25 years. The existing owner has non-transferable rights based upon history, and based upon his rights that existed prior to certain laws taking affect. He is granfathered in. He may have certain things that are considered "pre-existing non-conforming" (that is the legal term) under the law.
He is not breaking the law. But he cannot transfer those rights. He may not even know about the new law because it would not affect him.


This is what I was refering to! Our problem with one of the properties is we had a conditional use permit that my uncle didn't renew in 1994 and they are saying the new owners will have to reapply and be approved before they can conduct buisness! Even then they may be denied!

Check everything twice!!
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TeenerTim
post May 9 2008, 02:15 PM
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I lived in Fremont and Milpitas for about 8 years and I would NEVER go to Oakland for anything. Especially at night.
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Joe Bob
post May 9 2008, 02:22 PM
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QUOTE(Joe Mama @ May 2 2008, 10:44 PM) *

Hey...a 914 Club House....

Food/Health Inspectors are the worst.....they can kill you with violations and if they are on the take, you need to find out immediately.

The ABC, Alcoholic Beverage Control will be all over you for the first six months, especially if you attract a young crowd. The wrist band thing used to work on 18 and over night if you serve food....not sure if that dodge still works. It's been 25+ years since I was a liquor wholesaler like my Dadz....

You'll need a dance permit most likely, which means you need to be nice nice with the local agenacy that handles it. Live music, same thing, you'll need to know if there are any noise ordinances, as well as signage...is anything Granfathered in? Will you taking over, require any changes? Maybe keeping him as 5% owner will negate that.

also, if you will own the building get an environmental assessment prior to taking over....Lead, Asbestos, mold, etc.....employee complaints in that area will bring the assholes from OSHA and the AQMD.



Ahem...said that on page one.....just because I'm a PITA, don't mean I'm ign'rnt....
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SirAndy
post May 9 2008, 06:06 PM
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QUOTE(TeenerTim @ May 9 2008, 12:15 PM) *

I lived in Fremont and Milpitas for about 8 years and I would NEVER go to Oakland for anything. Especially at night.


wussy ... (IMG:style_emoticons/default/biggrin.gif)

Oakland is not bad at all, i lived in West-O for 10 years, never had any trouble ...

i'm not afraid of black folks ... i'm dating one ...
(IMG:style_emoticons/default/rolleyes.gif) Andy
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jimtab
post May 9 2008, 07:58 PM
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QUOTE(SirAndy @ May 9 2008, 05:06 PM) *

QUOTE(TeenerTim @ May 9 2008, 12:15 PM) *

I lived in Fremont and Milpitas for about 8 years and I would NEVER go to Oakland for anything. Especially at night.


wussy ... (IMG:style_emoticons/default/biggrin.gif)

Oakland is not bad at all, i lived in West-O for 10 years, never had any trouble ...

i'm not afraid of black folks ... i'm dating one ...
(IMG:style_emoticons/default/rolleyes.gif) Andy



And a lovely one at that ..... (IMG:style_emoticons/default/wub.gif)
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sean_v8_914
post May 9 2008, 11:02 PM
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GO FOR IT!!!
SHOULDA, COULDA, WOULDA, BS TO HELL
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SirAndy
post May 10 2008, 01:36 PM
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well, the ball is rolling ... met with the owner yesterday. the place is great, it's got tons of history (in a good way), it's decent sized, the neighborhood is not too ghetto ...

a few minor things to work out but it looks like it's going to happen! (IMG:style_emoticons/default/beerchug.gif)


thanks for all the advice guys, it came in really handy.
(IMG:style_emoticons/default/pray.gif) Andy
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ericread
post May 10 2008, 09:02 PM
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Sooooooooooooooooooooooooooooo...

When's the FREE BEER????? (IMG:style_emoticons/default/beer3.gif)

er... I mean GRAND OPENING (with free beer??? )
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MartyYeoman
post May 13 2008, 02:07 PM
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QUOTE(SirAndy @ May 10 2008, 12:36 PM) *

well, the ball is rolling ... it looks like it's going to happen! (IMG:style_emoticons/default/beerchug.gif)
(IMG:style_emoticons/default/pray.gif) Andy


What's the latest? (IMG:style_emoticons/default/popcorn[1].gif)
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effutuo101
post May 13 2008, 03:28 PM
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Cool! Glad to hear it Andy! Time to book Reverand Horton Heat, the Derailers, maybe a little Mike Ness (if he plays nice and gets some new jokes) and so forth. Good Luck! Let me know the addy and I will send some of my Sacramento buddies down to have a few and support your biz. Their only requirement is good music, lots of alk and some eye candy. They aint aferd of the Oakland.
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SirAndy
post May 15 2008, 02:32 PM
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working away with the lawyers and certain government agencies ...

they all take their time, nobody moves fast over here. (IMG:style_emoticons/default/dry.gif)

on the upside, it looks like the previous owner got out clean without any outstanding violations or debts to any of the suppliers ...

the place needs a good cleaning thought, i'm too german for the californian interpretation of "savoir-vivre" ...
(IMG:style_emoticons/default/rolleyes.gif) Andy
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ChrisReale
post May 15 2008, 04:24 PM
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Drop me a line if you need any help getting things set up, cleaned, repaired. i'd be happy to lend a hand.
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