NORFOLK— The Virginia Supreme Court has agreed to hear arguments on whether the city illegally shut down two Waterside clubs in 2009.
The court will decide whether the Circuit Court erred in its 2011 ruling that the City Council acted within “the scope of its lawful authority” when it voted to deny licenses to serve alcohol and provide entertainment for Bar Norfolk and Have a Nice Day Cafe and whether the businesses were given a “reasonable opportunity to be heard,” according to a court document.
The Supreme Court also will look into whether the lower court judge should have allowed the city to reverse its decisions on special exception permits granted to the clubs, according to the document.
Circuit Judge Norman Thomas ruled in late 2011 that the council acted legally when it voted to deny Bar Norfolk and Have a Nice Day Cafe licenses that allowed for the sale of alcohol.
The city had recruited the businesses about a decade earlier.
Restaurants at Waterside operated under a blanket special exception from 1983 until 2009, when the council started approving the licenses individually because of public safety concerns at the downtown complex.
On Friday, attorney Kevin Martingayle, who represents the clubs said, “The city ought to be quite nervous at this point.”
The businesses could seek financial damages or an opportunity to reopen, Martingayle said.
But City Attorney Bernard Pishko said that if the Supreme Court sides with the bar owners, it would be limited to ordering the City Council to redo the hearing on the special exception to serve alcohol.
The city continues to negotiate with Baltimore-based The Cordish Cos. for the redevelopment of Waterside.
Jillian Nolin, 757-446-2326,jillian.nolin@pilotonline.com
By Jillian Nolin
The Virginian-Pilot
© October 6, 2012