F A C T S H E E T

LACYπS PUB / COYOTES

            Milford Township has received a number of inquiries concerning the status of property located 1907 John Fries Highway in the Township-- initially opened as Lacyπs Pub and now having the name ≥Coyotes≤. This FACT SHEET is intended to provide information concerning this property.

            The Property is owned by DMMW, Inc., and is currently leased by Barnett Food Group, LLC. The following is a chronology of relevant facts.

DATE	ACTION
05/18/04	Board of Supervisors granted Conditional Use approval to establish an Eating Place which constitutes use E5 under Section 405 of the Milford Township Zoning Ordinance. Use E5 is defined by the Zoning Ordinance as follows: ≥Eating Place for the sale and consumption of food and beverages without drive-in and without take-out service. All food and beverages are to be served by waiters and waitresses and consumed inside the building while the patrons are seated at counters and tables. The sale of alcoholic beverages must be incidental to the sale and consumption of food.≤ This use is commonly described as a restaurant/bar. The property is in the PC Zoning District. Conditional Use approval is required to establish a restaurant/bar in the PC Zoning District. Conditional Use approval was granted to DMMW, Inc. around the same time that land development approval was granted permitting construction of the Lacyπs Pub restaurant.
12/07/04	Board of Supervisors approved transfer of a liquor license to Lacyπs Pub, Inc. The Resolution approving the liquor license transfer was made subject to the following condition: ≥That only piano or other like musical entertainment will be permitted at Lacyπs Pub and no substantial change in the manner of applicantπs operation of the business shall occur without further approval of the Board of Supervisors.≤
12/2005	Renewal date for liquor license. As of 12/03/07, no application for liquor license renewal has been filed with the PA Liquor Control Board and no application has been filed with the LCB to transfer the liquor license to an entity other than Lacyπs Pub, Inc.
08/2006	Lacyπs Pub closed and reopened as Avanti Tuscan Grille and Bar which not long thereafter also closed.
07/10/07	Barnett Food Group, LLC applied to Milford Township for a Use & Occupancy permit to operate a restaurant/bar under the name ≥Coyotes≤ and indicated in its application that its use would be the same as the use approved for Lacyπs Pub. Because this use was the same as the use approved on May 18, 2004, the Milford Township Code Official issued the Use & Occupancy permit. Township employees began receiving telephone calls from persons who claim to be familiar with the intentions of the operators of the restaurant and stating it was the ownersπ intention to operate what is commonly referred to as ≥Gentlemenπs Club≤ or ≥Adult Cabaret≤. This use is identified as an Adult Commercial Use under Section 404.E.23 of the Zoning Ordinance and requires Conditional Use approval from the Board of Supervisors before it can be established in the Planned Commercial District. Court decisions have held that townships must permit this type of business use in some zoning district. No application has been received by Milford Township to establish this use at the Lacyπs Pub property.
11/15/07	Milford Townshipπs solicitor issued a letter to Barnett Food Group, LLC that: 1. Informed them the only permit which has been issued for the property is to operate an Eating Place (restaurant/bar), Use 405.E.5 under the Zoning Ordinance. 2. To establish an Adult Commercial Use and, specifically an Adult Entertainment Cabaret, in the PC District, requires Conditional Use approval and no such approval has been obtained. 3. If an Adult Entertainment Cabaret or other Adult Commercial Use is established on the property without obtaining the required approval, an action for Preliminary Injunction will be immediately initiated to restrain the conduct of such a use. Such an action is permitted pursuant to Sections 617 of the Pennsylvania Municipalities Planning Code.
11/21/07	Barnett Food Group, LLC filed a law suit in the U.S. District Court for the Eastern District of Pennsylvania seeking to prohibit Milford Township from enforcing its Zoning Ordinance as it relates to Adult Commercial Uses. It alleges that these regulations constitute an unconstitutional restraint on First Amendment activities.
11/27/07	The Milford Township solicitor entered his Appearance on behalf of Milford Township in the U.S. District Court action. He is in the process of preparing a response to the Court action. In addition, the Townshipπs Insurance Carrier has been contacted to provide legal assistance in this matter since the law suit also requests to recover unspecified damages from the Township.
12/06/07	A hearing on the Preliminary Injunction request of Barnett Food has been scheduled before Judge Bruce W. Kauffman on Wednesday, January 9, 2008 at 11:00 a.m. in Courtroom 15-B, US Courthouse, 601 Market Street, Philadelphia.
12/06/07	Paul G. Lees entered his appearance in the Federal case and filed Answers to the Complaint and Motion for Preliminary Injunction together with a Memorandum of Law concerning same.
12/11/07	The Townshipπs insurance carrier has appointed Paul Lees, Esquire to represent the Township in the Federal Court Action. Mr. Clemons will serve as Co-Counsel.
12/14/07	Motion by Milford Township for Emergency Relief requesting an injunction to prohibit Adult Entertainment Uses at 1907 John Fries Hwy.
12/14/07	Order of the United States District Court, Eastern District of Pennsylvania enjoining Barnett Food Group from operatingan Adult Entertainment Cabaret at 1907 John Fries Hwy.
12/18/07	A hearing was held in Federal Court before J. Kauffman on the Motion of Barnett Food Group to dissolve the previously entered Injunction Order.  At the conclusion of the hearing the Judge took the matter under advisement.
12/19/07	Both the Township and Barnett Food Group filed Memoranda of Law in support of their positions.  Judge Kauffman is expected to enter an Order soon.
12/19/07	A hearing is scheduled in the Court of Common Pleas, Doylestown, before Honorable Clyde W. Waite at 9:00 a. m. on Friday, December 21^st in Courtroom A-9. This hearing is on a State Court action filed by the Township also requesting a Preliminary Injunction. Counsel for Barnett Food Group has stated his intention to file a Notice to Remove this case to Federal Court.  If that occurs before the time scheduled for the hearing, then the Common Pleas Court cannot conduct the hearing until the Federal Court rules on whether removal is appropriate.
12/19/07	At 5:00 on 12/19/07, Judge Kauffman of the Federal Court dissolved the injunction previously entered citing that the Township has an adequate remedy in State Court – the hearing scheduled before Judge Waite.
12/20/07	An injunction order was entered by the Honorable Clyde V. Waite after hearing. However, unbeknownst to Judge Waite or to counsel for the Township (because neither received documentation) Barnett Food Group filed a Notice of Removal to Federal Court. Because this Notice was filed before the hearing, it had the effect of removing Judge Waites jurisdiction to enter the injunction order which therefore was of no effect.
1/04/07	Settlement negotiations were conducted among counsel for all parties. As the result of those negotiations, the hearing scheduled for 01/09/08 before Judge Kauffman has been continued and the Federal Court case has been placed in Civil Suspense. This means that no further action will be taken concerning either the First Amendment case or the Removal Action until either party reactivates the case. In addition, Barnett Food Group, LLC and DMMW, Inc. have agreed to file, on or before 01/11/08 an application for conditional use approval to be heard by the Milford Township Board of Supervisors. The first hearing on the conditional use application is tentatively scheduled for Thursday, 02/07/08 at 7:00 p.m. in the Milford Township Building. Continued hearing dates will be announced at the February 7th hearing. The parties have agreed to conclude testimony by 02/28/08 and that a written Decision will be entered by the Board of Supervisors by 03/28/08. The Township will not pursue enforcement action concerning the operations of Coyotes pending the conclusion of the hearing and no party will seek damages or attorneys fees and costs with respect to actions occurring through the date the decision is entered by the Board of Supervisors.
2/11/08	A hearing on the Barnett Food Group, LLC/Coyotes Conditional Use application was held on Wednesday, February 6. The applicant presented testimony and exhibits.  Parties questioned the witness and the public was permitted to express view at a public comment period after the witness testified. The next hearing will be held on Wednesday, February 20 at 7:00 p.m. in the Milford Township Fire House (address).  It is expected that the applicant will conclude its presentation, after which parties will have an opportunity to present evidence and the public will, once again be given an opportunity to comment
2/25/08	A second hearing was held on Wednesday, February 20. The applicant concluded its testimony. Interveners were permitted to examine the witness presented by the applicant and to introduce testimony and exhibits. All parties were permitted to make legal argument. Attendees were permitted to make public comment. The parties will have until Friday, March 7 to respond to proposed conditions presented by the Township Solicitor at the hearing and to submit legal memoranda if they choose to. The Township Solicitor will prepare a draft of Findings of Fact, Conclusions of Law and Decision which will be distributed to the Board of Supervisors and to the parties by Tuesday, March 11. The Board of Supervisors will consider the testimony, exhibits and the previously submitted documents and will deliberate concerning its decision at its regular public meeting on Tuesday, March 18 at 7:00 p. m. in the Township Building. If official action is not taken at that meeting, it will render its decision at its previously advertised work session meeting on Tuesday, March 25 at 5:00 p. m. in the Township Building.

            Due to the pending litigation, neither the Township Supervisors, who are named individually in the law suit, the Township Manager, who is also named in the law suit, nor administrative personnel are permitted to comment concerning this litigation. However, this FACT SHEET will be timely updated to provide further information as it becomes available.