Judge backs Iowa City bars in dispute with city

One of Iowa City's new get-tough policies on underage drinking and bars perceived to contribute to the problem was dealt a blow Tuesday.

Administrative Law Judge Margaret LaMarche reversed the City Council's denials of liquor license renewals last summer to downtown bars Fieldhouse and Etc.

The battle is not over, though. City Attorney Eleanor Dilkes said the city would appeal the decision to Lynn Walding, administrator of the Alcoholic Beverages Division, for his consideration.

Dilkes said Walding's decision should clarify the position of the division, which regulates alcohol in Iowa, on the responsibility of bar owners to control access to alcohol once underage people are inside a bar.

At issue in the Etc. and Fieldhouse cases is the council's new policy to crack down on establishments where underage patrons are cited for possessing alcohol, an offense commonly referred to as a PAULA. The police department is required to recommend the denial of a license for any establishment with a PAULA rate greater than 1.0 per officer visit.

The Fieldhouse averaged 1.55 PAULAs per police visit and Etc. had 1.38 for the 12 months before their liquor license renewals were up.

LaMarche wrote in separate but similar decisions that the city's policy pre-empted state law. She determined PAULA citations alone do not show a lack of good moral character, a standard Iowa law requires liquor license holders to meet.

She also noted citations are issued to bar patrons, not bar employees, and are only allegations. The PAULA policy was applied in a way that does not prove bar owners or employees knew that underage alcohol possession or consumption was occurring, she wrote.

Fieldhouse attorney Matt Adam said that was the key to the bar's argument.

“Why would someone get punished if they didn't do anything wrong?” he said.

The Summit Restaurant and Bar was denied its liquor license by the council last month for similar reasons and is appealing to the state and suing the city.

Bars can stay open during the appeal process.

Through October there were seven Iowa City bars with PAULA rates of 1.0 or greater this year.