Silk’s Kyle Zubke answers questions at the Jan. 15 meeting of the Alcohol LIcense Review Committee. Silk is seeking licenses to run a strip club in the Visions spot (below right) on East Wash.
On Jan. 15 the Alcohol License Review Committee dealt a significant blow to Silk Exotic’s plans to take over Visions Night Club by unanimously rejecting Silk’s request for licenses to serve alcohol and host nude dancing.
But Silk is exploring another route, which includes a challenge to the city’s prohibition on the transfer of an alcohol license when an establishment is sold to new owners.
“In any other city in the state, if you buy a business, the licenses automatically transfer,” says Kyle Zubke, director of operations for Silk.
Attorney Mike Wittenwyler, who appeared on behalf of Silk at the ALRC meeting, says he hasn’t been authorized by his client to speak publicly. But Wittenwyler, who has previously represented the Tavern of League of Wisconsin and the state’s wine, spirit and beer industries, confirms that other municipalities in the state don’t require owners to apply for new alcohol licenses when buying establishments that are already permitted.
State law does require that a local municipality “consent to the transfer” of ownership of a tavern. In July 2019, Silk initially attempted to do that with Visions by seeking a “change of officers,” a $25 application with the ALRC. The cost of a new liquor license is $10,000 and is typically given more scrutiny.
Assistant city attorney Jennifer Zilavy eventually informed Silk that it needed to apply for a brand-new license as it’s a long-standing policy in Madison to require new liquor and entertainment licenses when there is a significant change in ownership of a business that serves booze. But either process, she adds, “is still subject to city approval.”
“I explained to [Silk at the time] that what they wanted to do wasn’t just a change of officers,” says Zilavy. “It’s a brand-new entity and our process is that brand-new entities apply for new licenses.”
Jeff Scott Olson, a well-known Madison attorney also representing Silk, tells Isthmus that he believes the city’s current policy “could be litigated.”
“Do you think the city makes Olive Garden get a new liquor license when some giant corporation buys out all the stock in its parent company?” asks Olson. “I don’t think so.”
Zilavy, however, thinks the city is on “pretty solid ground.”
Silk has been in negotiations to buy Visions for nearly a year. Located on East Washington Avenue, Visions has been in business for more than 40 years. It shut down on Jan. 1 for 90 days after striking a deal with the city to avoid having its licenses revoked. If the city had been successful in its attempt to revoke Visions’ liquor license, no business at that location could have been granted a liquor license for a year.
Several residents and business owners in the Hawthorne neighborhood, where Visions is located, testified before the ALRC in opposition to Silk.
Former Ald. Mike Shivers told the committee that the community is fed up with bad behavior from Visions customers. He doesn’t believe Silk would be a better neighbor.
“There’s no reason in the world that a place like this should be in a residential neighborhood,” said Shivers. “I don’t care if it’s Silk. Rayon. Whatever you want to call it...it’s still a strip joint.”
Jim Martini, the owner of Pedro’s across the street from Visions, says the strip club’s customers frequently park in his lot and cause problems. Martini says he’s been confronted by Visions’ patrons after they discover he’s had their cars towed.
“The first thing that they tell ya, is that they are going to kill me because I towed their car away,” Martini told the ALRC. “Happens all the time…. It’s been somewhat unbearable the last few years.”
There are just 15 on-site parking spots on Visions’ property and street parking is limited. Zubke tells Isthmus that Silk has a solution. He says there is “zero parking” at Silk’s two locations in downtown Milwaukee. But it hasn’t been a problem because the club uses a valet service. Zubke testified it would make valet parking mandatory if it buys Visions.
Ald. Sheri Carter, like several committee members, wasn’t sold on the plan.
“Valets may look great on paper, not so much when you try to implement it,” said Carter at the Jan. 15 meeting. “I’m not going to support this license, not based on an emotional distaste for Visions...but based on the real issue. And the real issue is parking.”
The city council is expected to vote on Silk’s requested licenses on Feb. 4, but it’s unlikely alders would override the ALRC’s recommendation. That, however, does not necessarily mean the end of a strip club on East Wash.
Visions’ co-owner David Brown has vowed to reopen the strip club if Silk can’t take over the business. He says those opposed to Silk don’t understand that he can legally reopen on April 1.
“It’s either Silk or Visions. A strip club will still be there,” Brown tells Isthmus. “So how is it that people don’t want Silk, who are going to class it up a bit? Madison needs an adult entertainment bar. Please quote me on that.”
Brown plans on renewing his licenses while he waits for Silk to decide what to do next. License renewal applications are due by April 15, a requirement of state law. The city must decide by June whether to renew those licenses.
The city faces a tough battle if it intends to end Visions’ 40-year run in the Hawthorne neighborhood.
The city attorney’s office already tried once — and failed — to revoke Visions’ licenses in 2019.
Following a shooting inside the strip club in December 2018, Zilavy conducted a lengthy investigation of Visions. In August 2019, she filed a 56-page complaint alleging dozens of infractions at the club dating back to 2012. Zilavy charged Visions with repeatedly violating the city’s prohibition against maintaining a “disorderly or riotous, indecent, or improper house.”
A revocation hearing began in September, but the club and the city reached an agreement before a judgement was rendered.
Ald. Mike Verveer, a veteran member of the ALRC, says non-renewal “requires due process and is more burdensome” than what is required for the committee to reject a new applicant.
“It isn’t just an up or down recommendation from the ALRC like we just did with Silk,” explains Verveer. “There will have to be a formal complaint filed and a hearing held…. There is definitely a higher threshold.”
Will the city, again, try to shut down Visions?
“I don’t know yet,” says Zilavy. “I’ll be staying on top of it now that I’m aware of the activities that go on there.”
