Money woes put I.C. liquor license renewal in question

IOWA CITY - Mike Porter's financial troubles are threatening the status of the liquor license of his downtown Iowa City liquor store.

Police Chief Sam Hargadine is recommending that the City Council deny the liquor license renewal application for Sauce, 108 E. College St.

Hargadine said he does not believe Sauce or Porter have the financial standing to satisfy the “good moral character” provision in Iowa Code that is required of the holder of a liquor license.

In a memo to the City Council, which is scheduled to vote on the recommendation Monday, Hargadine cites several financial problems Porter is facing. They include two unsatisfied court judgments totaling $6,754, defaulting on a loan from the city of Iowa City, and recent bankruptcy filings for Sauce and his Vito's restaurant and bar.

Porter and his businesses have run afoul of the city several times in recent years, and in the past he's said he believes the city has targeted him for his challenging some of its policies. Porter said Thursday he couldn't comment on that topic.

He did say he “of course” has the financial ability to operate Sauce. He also said federal code prevented 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. If the city denies Sauce a liquor license, Porter could appeal to the state. If the case made its way to her division, officials would look at state and federal laws when coming to a decision, she said.