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State Licenses and Permits

27 West 24th Street (Broadway/6th) - 2427 Restaurant corp., DBA "Eugene's/Gypsy Tea Room" liquor license renewal

WHEREAS, 2427 Restaurant Corp., d/b/a "Eugene's/Gypsy Tea Room," is requesting renewal of the liquor license for the premises at 27 West 24th Street; and

WHEREAS, This is a large venue with an occupancy of over 900; and

WHEREAS, Over the last two years, CB 5 has received numerous complaints regarding the negative impact the patrons of this establishment have had on the residents on and around 24th street; and

WHEREAS, Police reports show a number of violations/incidents (see attached):

WHEREAS, Over the past two years, there have been significant complaints from both the business and residential communities and a significant number of representatives from both communities attended CB 5's Public Safety/Quality of Life Committee (PSQL) meeting on December 10, 2007 to voice their concerns and pleas to recommend denial of this liquor license; and

WHEREAS, 2724 Restaurant Corp. d/b/a "Eugene's," the holder of the liquor license is currently doing business as "The Madison" and "Gypsy Tea Room," (two separate d/b/a's/entities), which is not allowable under the ABC law that states that there can only be one d/b/a doing business under a liquor license; and

WHEREAS, 2427 Restaurant Corp. has filed for bankruptcy in the US Bankruptcy Court for the Southern District of NY and has a voluntary petition for relief under Chapter 11 of the Bankruptcy Code; and

WHEREAS, The corporation has a management company operating with an independent monitor that has reported that they do not have sufficient security staff; and

WHEREAS, The Monitor's report cites incidents of underage drinking on the premises; and

WHEREAS, CB 5 is concerned as to the judgment shown on the part of the operators regarding underage drinking, since the club(s) were appealing specifically to an "18 and over" crowd; and

WHEREAS, The Monitor's report also includes but is not limited to the following incidents within the club:

9/28/07 – summons for disorderly premise (security hit patron with flashlight)

10/13/07 – underage drinking

10/19/07 – male patron hit female patron with bottle – police called

10/05/07 – undercover operative – observes people getting in without id check; and

WHEREAS, The management company that has been operating "The Madison" and the "Gypsy Tea Room" plans to use the premises as a production and event space in addition to a lounge and club; and

WHEREAS, The management company also plans to put someone in charge who has no experience in the nightlife business and the two people working with him who have experience are both from clubs that have been a blight on CB5 for the past 15 years, i.e., "Club Deep," "Club Avalon," "The Tunnel," etc.; and

WHEREAS, With the imminent departure of Eugene DiNino, the current holder of the liquor license, the board has concerns regarding who would be involved were the license to be renewed; and

WHEREAS, The demographics of this area have changed with a dramatic residential increase:


4 West 21st Street
New - 54 dwellings

2 West 22nd Street
Conversion/New - 5 dwelling units (currently on the market)

141 Fifth Avenue                                        

Conversion - 40 (approx) dwelling units

35 West 21st Street/38 W 22nd Street
Under Construction - 109 dwelling units

30 West 21st Street                                    

Conversion - 18 dwelling units

52 West 21st Street                                    

Renovation - 4 dwelling units

16 West 21st Street
Demolition/New Constr. - 14 Story residential building

160 Fifth Avenue                                        

Sold Dec 2005 - plans unknown

8-14 West 22nd St. and 7-13 West 21St.
Rezoned in 2004/05 - Up to 311 dwelling units

20 East 23 St.                                               

New Construction - Residential

5th bet. 26/27 Sts.                                       

Conversion - Residential (open)

Toy Bldg. No.                                              

Conversion - Comm. To Residential

WHEREAS, This club has been cited by the police as one of the biggest problem clubs in the 13th Precinct; therefore be it

RESOLVED, That Community Board Five DOES NOT RECOMMEND APPROVAL of the renewal of the liquor license for 2427 Restaurant Corp., d/b/a "The Madison"/"Gypsy Tea Room," located at 27 West 24th Street.

The above resolution passed by a vote of 26 in favor; 1 opposed; 1 abstention.

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