Saugus selectmen unable to retrieve liquor license at show cause hearing

SAUGUS – Red tape surrounding a beer and wine license and a permit for cordials and liqueur has managed to tie the hands of at least three potential businesses but the Board of Selectmen learned there is little it can do about it.The Board of Selectmen opened a show cause hearing against the San-Pen Corporation that was doing business as Tonino’s in the Hamilton Street plaza across from the Public Safety building.At issue is the fact that Sandy Esperanza, who leased the property, still holds a beer and wine license and a cordial and liqueur permit despite the fact the business has been closed.The show cause hearing was to discuss the possibility of revoking the licenses so that La Vita Mia, which is renovating the property, could move in. The Alcohol Beverage Control Commission only allows one liquor license per property, so the board would have to revoke Esperanza’s license before La Vita Mia could official move in.Unfortunately for the property owners, La Vita Mia and the business that was eying a move to La Vita Mia’s Route 1 location, a court case has frozen everything.According to Selectman Stephen Castinetti, who ran the show cause hearing since Chairman Donald Wong holds a liquor license of his own, Esperanza filed for bankruptcy late last year which resulted in all of his assets being frozen. The beer and wine license and the cordial permit are considered assets and therefore have been frozen as well, which leaves the board with no jurisdiction to retrieve them.Castinetti said although Tonino’s ceased doing business in May 2008 Esperanza renewed the licenses in November. The board learned later, however, that at the same time Esperanza was renewing his alcohol licenses he was also auctioning off all his kitchen equipment to pay off his debt on the restaurant.Castinetti said subsequent to the auction Esperanza filed for bankruptcy.”As a condition of the bankruptcy all of the assets are protected and the beer and wine license is protected,” Castinetti said. “In my opinion this hearing is moot. The board cannot act on a protected license.”Castinetti said the case also means the property owners can’t lease the property, which leaves La Vita Mia in the lurch.”It’s snowballing,” he said. “Unfortunately the board doesn’t have the authority to deal with it.”Selectman Peter Rossetti said on the recommendation of Town Counsel that the hearing remain open but “continued in general” with the thought that the court case will be settled eventually.Castinetti said in the mean time he believes a deal is trying to be worked out that would make some concessions for the businesses, such as La Vita Mia, caught in the crossfire.”It would allow La Vita Mia to move in and the owners to realize the profit it has been losing,” he said adding, that is only if a deal can be made.