CHICAGO — Tavern owners who violated a Happy Hour law prohibiting all-you-can-drink deals paid $139,900 in fines for two evenings in the past 12 months: last New Year's Eve and St. Patrick's Day, according to documents obtained by DNAinfo Chicago.
In a little-noticed action, the city after last New Year's Eve launched a new effort combing advertisements and fining bars for violating Illinois' Happy Hour Law, which prohibits open-bar deals. Another wave of fines came in March around St. Patrick's Day.
Bar owners were threatened with losing their licenses and hit with fines, with the average fine being $1,900, according to the documents obtained through a Freedom of Information Act request.
"The end of the year is usually marked by a high rate of community complaints related to happy hour. In response, this year [the city] tried a new strategy. The 2014 tickets [for Happy Hour Violations] were a result of that strategy," said Mika Stambaugh, a spokeswoman for the city's Department of Business Affairs and Consumer Protection.
Alisa Hauser explains why some think the city is cracking down:
There were 83 cases of alleged Happy Hour violations last Dec. 31 and 47 cases of alleged Happy Hour violations on March 15, the Saturday before St. Patrick's Day, according to city documents.
The fines from Dec. 31 ranged from $175 to $5,000, with the average fine being $1,900.
The fines from March 15 ranged from $500 to $3,000, with the average fine being $1,350.
Ted Widen, who produces a New Year's party at the Drake Hotel, said he is happy about the new enforcement.
"I am very happy others have started to adhere to the law because it was very difficult to sell an expensive ticket at around $160 with only six drinks versus other much less expensive parties that offered an open bar. It was not an even playing field before," Widen said.
Widen said sales for this year's New Year's party at The Drake Hotel "are the best they have been since 2000," and nearing capacity of 2,500 guests.
"It's a combination of the economy and other parties I'm competing with are not using the word 'open' bar. At the Drake we do hundreds of weddings a year and cannot afford to lose our liquor license," Widen said.
Enacted in 1989, "the Illinois Happy Hour Law only allows an open bar during a set period of time for a private event, such as a wedding," Stambaugh said.
Some bars have gotten around the law by offering a set number of drink tickets as part of a meal and drink package, or offering the Happy Hour deal all day long, a strategy that dates back to just after the law was passed, when bars held "Happy Days."
According to city documents, the city dismissed or withdrew its allegations on five bars or venues, including Gamekeepers and the Chicago Children's Museum, which held a New Year's Eve charity benefit.
One bar, Nouveau Tavern at 358 W. Ontario Ave, agreed to a 14-day closure in lieu of a fine.
Stambaugh said the amount of the fines, which were negotiated during remediation conferences, presided over by the city's Liquor Commissioner Greg Steadman and John Mariane, a city revenue collector, "depended on many factors, such as history of the establishment and egregiousness of the violation."
As result of the enforcement, Stambaugh said the city has "also seen fewer complaints" from the community and no decrease in the number of New Year's event packages being offered by the business community, whom she said "has been a great partner and willing to engage with the Dept. of Business Affairs and Consumer Protection."
"We believe our partnership with the business community and communication efforts are a benefit to all," Stambaugh added.
While the city collected fines from 79 of the 83 folks brought in to discuss New Year's Eve Happy Hour violations, it appears efforts were less successful after St. Patrick's Day, when 47 bars and restaurants received violation notices but fines were collected from just 27 establishments.
Baume & Brix at 351 W. Hubbard St., which was brought in for Dec. 31 Happy Hour violations but had its case withdrawn, lost its liquor license following a Happy Hour violation from March 15, according to city documents.
"I don't think the city wants to close down taverns and bars; we pay a lot of city taxes and we are a city built on tourism. I think they are just trying to get everyone doing the right thing,' said Dino Vulpitta, owner of Brando's Speakeasy, 343 S. Dearborn St.
Vulpitta paid a $5,000 fine after last New Year's Eve because of an independent promoter that had put a flier on Facebook promoting a masquerade party with an open bar.
"We only had 60 people in our bar that night, drinking, partying and singing. It was a karaoke masquerade party. I'm not going to say woe is me. It was my mistake," Vulpitta said.
Vulpitta said he "thinks there's more to the story" and suggested that the city include a letter with new liquor licenses explaining the Happy Hour Liquor Law.
"There are so many gray areas with the Happy Hour Law; it should be more spelled out," Vulpitta said.
Vulpitta believes the city could be helping the public by enforcing the law.
"It's a privilege to have a liquor license, not a right. What they are doing is partially for revenue but it is also a responsibility to the public," Vulpitta said.
In addition to collecting fines, Stambaugh said the new strategy also included public education workshops and meeting with members of the business community to "discuss ways to work with the community, operate responsibly, and comply with current law."
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