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April 16, 2014

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County rejects Prive’s appeal for temporary license

Prive at Planet Hollywood

The Prive nightclub at Planet Hollywood. Launch slideshow »

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Map of Planet Hollywood Resort and Casino

Planet Hollywood Resort and Casino

3667 S. Las Vegas Blvd., Las Vegas

The owners of the Prive’ and Living Room nightclubs at Planet Hollywood today appealed the denial of their liquor license applications and requested temporary licenses to operate until the appeal can be heard -- but the county Business License Department rejected the request.

County officials said this means the clubs at Planet Hollywood must close until the matter can be heard by the County Commission next Tuesday.

Prive’s existing temporary license expires at midnight Tuesday and the temporary license for the adjoining nightclub, Living Room, expires at midnight Thursday.

The nightclubs cannot legally operate once those licenses expire, the county said.

Business License Director Jacqueline Holloway on Thursday denied the clubs’ applications for liquor licenses for failure to abide by the duties of a liquor licensee.

The request for temporary licenses, which included proposed corrective actions, was deemed insufficient given the extent of the problems uncovered by county Business License and state Gaming Control Board agents, Holloway said.

“The evidence of improper management oversight in the past was overwhelming,” she said in rejecting the request for a new temporary liquor license. “While I am encouraged by the proposed plan presented today, I am not satisfied that it goes far enough to address the myriad problems that were uncovered.”

One of the deficiencies that the department has identified is the need for a new management team.

“The current management team cannot be relied upon to address these violations,” Holloway said, adding that she has denied the applications of Frank Tucker and Greg Jarmolowich as “key employees.” New key employees must be identified and new applications must be submitted, officials said.

The letter submitted Tuesday and dated July 27 outlines some “initial changes” in operations at the clubs and suggests that more would be brought forward to the full County Commission next week.

Among the proposed changes: Planet Hollywood is “immediately exercising oversight authority” at Prive’, including having the ability to post its employees onsite at Prive’; Planet Hollywood drafted a standard operating procedures manual to be used by Prive’ for operating its businesses and Planet Hollywood instituted mandatory training of employees.

Planet Hollywood also revised its lease with Prive’ and implemented operational controls for a “zero tolerance” policy that would “prevent the following:” over-consumption of alcohol; underage patronage or alcohol consumption; possession, use or sale of illegal substances; prostitution; assaults by tenant employees, guests or invitees either within the premises or within the hotel; and improper cash handling or reporting activities by Prive’ employees.

The nightclubs have been operating under temporary liquor licenses pending the completion of investigations for suitability conducted by Metro Police. Instead of pulling liquor licenses last week, Holloway opted to let the existing licenses expire this week to give the clubs time to prepare. The Business License Department had issued three notices of violation against Prive’ for various problems including lewd and topless behavior and interfering with inspections.

Planet Hollywood also agreed to pay a $500,000 fine to settle claims that it knew or should have known about illegal acts — prostitution, drug use, underage drinking and assault.

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