Davenport revokes business license issued in error
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By Tory Brecht | Friday, September 05, 2008 |
Nearly a year ago, former Davenport Mayor Ed Winborn revoked the business license of 3rd Street Mart, a downtown convenience store whose critics said spawned public drunkenness, loitering, littering, prostitution and other illicit activities.
But neighborhood activists were aghast last month when the store at 612 W. 3rd St. reopened as Shaw’s Mart — with one of the co-owners of the former business, Shahid Mahmood, listed as the proprietor.
City Hall lawyers scrambled to draft a revocation letter, forcing the store to close once more.
City Attorney Brian Heyer’s letter said Mahmood must end operations by the end of September, and since the current license was issued in error, the order cannot be appealed.
Mahmood said Thursday he was confused by the city’s handling of his license application. He said he spoke to Heyer and was told that his prior revocation was for one year and that he could reapply Nov. 13.
Alan Guard, the city’s finance director, declined comment on how the error was made.
The store’s liquor license was revoked by the state last November. In his letter to Mahmood, Heyer said, “You were a co-owner of that business with Ali Murtaza and were complicit in the provision of false and misleading statements that led to the revocation of the prior license.”
The location is not eligible for a new liquor license because of an ordinance passed in June that limits new permits for carryout liquor in most areas of the city, except for a few industrial areas.
Mahmood said not selling beer or other alcohol has slowed business but also has cut down on the number of people loitering outside.
Shelley Sheehy, a neighborhood activist who pushed for the closure of 3rd Street Mart, said she is concerned that one of the previous owners is still involved in the business. She’s also upset with the city’s apparent mishandling of the license process.
“This is not Wasilla, Alaska,” she said. “This is a big city, you should be able to keep track of these things.”
Mahmood said he’s hopeful the city will renew his business license in November. In the meantime, he’s preparing for six weeks with no sales.
“I wish they would have let me know (he was ineligible) before,” he said. “They gave me a license then said they made an error.”
Sheehy said neighbors will keep an eye on the store, hoping that the lack of beer and liquor keeps bad elements away.
“If they’re selling groceries and have an atmosphere where elderly folks and other people in the neighborhood can feel safe and shop, that’s all fine and good,” she said. “But if it’s going to be run the same way the other one was, that’s not so hot.”
Tory Brecht can be contacted at (563) 383-2329 or tbrecht@qctimes.com.
Comment on this story at qctimes.com.
Background
The former 3rd Street Mart, located at 612 W. 3rd St., Davenport, has been at the center of liquor and business license issues since early 2007.
In June 2007, an administrative law judge for the Iowa Alcoholic Beverages Division upheld the city’s revocation of the store’s liquor license, because of owner Ali Murtaza’s multiple felony convictions and false statements made on the license application.
In July 2007, then-Mayor Ed Winborn revoked the store’s retail sales license as well.
The current store owner, Shahid Mahmood, said Murtaza — who is his cousin — was no longer involved in the business before the license revocations.
Murtaza has seven felony convictions stemming from fraud and misuse of a Social Security number, according to U.S. District Court records.
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