Iowa City liquor license hearing deferred

The City Council Monday night deferred for two weeks voting on the liquor license renewal application for downtown liquor store Sauce.

City Attorney Eleanor Dilkes said she wants more time to consider how Sauce's recent bankruptcy filing affects the city's decision.

Police Chief Sam Hargadine is recommending the council deny the liquor license for Sauce, 108 E. College St., saying the store's and owner Mike Porter's financial problems fail to meet the “good moral character” provision in Iowa code.

Porter maintains that federal code prevents the city from denying the liquor license because the bankruptcy proceedings take precedence.

Tonya Dusold, spokeswoman for the Iowa Alcoholic Beverages Division, said case law is unclear and there is no easy answer to the liquor license and bankruptcy question.