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Hearing video

ZBA Hearing - April 30, 2025

Philadelphia Zoning Board of Adjustment (ZBA)Apr 30, 20257h 43m

could you please state your name and spell for the sonographer uh

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okay real close um my name is alex bugman could you spell it please for a l e x last name bugman

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P-U-G-M-A-N.

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Do you swear or affirm to tell the truth, the whole truth,

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nothing but the truth?

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I don't.

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Please proceed, counsel.

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Yes.

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Alex, you heard everything I had to state today about your zoning

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matter.

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Yes.

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Is it true and correct?

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Yes.

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And do you adopt it as your own testimony?

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Yes.

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Thank you.

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I would ask that Nick Giganti virtually raise his hand.

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Okay.

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Alan, would he service his own location?

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What do you mean, service?

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What do you mean service?

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In other words, he had other beer distributors.

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In other words, he had other beer distributors.

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Would his beer distributor be the delivery to that location?

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Would his beer distributor be the delivery?

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They buy from wholesalers.

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We purchase our beers from approved wholesalers.

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Okay. All right. All right. Thank you.

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Nick?

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Yes.

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Hi. Could you please state your name and spell for the stenographer?

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Sure. My name is Nicholas Giganti, N-I-C-H-O-L-A-S, last name Giganti, G-I-G-A-N-T-I.

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You swear we're referring to tell the truth, the whole truth, and nothing but the truth?

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Yes.

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Please proceed, counsel.

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Yes. Mr. Giganti, what real estate brokerage do you work at?

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I work out of Keller Williams and Power.

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Okay. And is Keller Williams in power, the listing agent for the property at 5052-56 City Avenue?

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Yes.

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All right. And how long have they been the listing agent for this property?

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Since October 22nd of 2024.

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for. Okay. And during that time, how many offers other than Mr. Hugman's offer has your office

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received? So we received two formal offers. One was with a developer who wanted to basically

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redevelop the property. That contract was terminated. He did not move forward. And then

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the other one was with Alex Pugman. Okay. And then do you have any knowledge of how long this

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property has been vacant or last occupied? I believe it's over, as far as I know, over six

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years. Okay. And do you have any knowledge of, of any other offers that were submitted

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with this property prior to your, um, engagement? No, I do not know of any. Okay. Um,

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has it been an easy listing of this property given its, its, its location in Philadelphia?

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you um no it hasn't for the main reason of the condition of the property um it's a very onerous

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task for someone to take this property over in the condition that it's in um unless there's the

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right use uh the first person that wanted to do the redevelopment after he ran his numbers and

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you know put pencil to paper he realized that the the building wasn't uh feasible for him

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to uh to do that redevelopment um we've had several people call about it we've probably had

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roughly you know 50 leads that came in pondering about the location but again once they really

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start to dig into um what you know the the building um uh condition no one has really

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moved forward other than you know that first person which of course didn't go through and

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and obviously now we're with uh alex all right all right thank you okay i do i do have some

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questions for Alex. I stated that you have multiple locations in the Philadelphia region.

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Can you just explain those locations and typically what would be your hours of operation?

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We have one location in Hatfield, Pennsylvania. One is Hudborough and we are opening a brand new

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that we're planning to start operating probably by June in Chestnut Hill, Philadelphia. So

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So, Hetfield location is our first location.

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It's on a shopping center.

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Hadbar, we own property there.

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Okay.

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And hours of operation, 9 to 9, Monday through Saturday, and 10 to 6 on Sundays.

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And would that be similar to what this location would have, the hours of operation?

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Yes.

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Okay.

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And then in terms of security, do you have someone on staff during hours of operation?

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In those locations, we don't have a need for security.

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There is no need for that.

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Okay, but I guess there was a discussion with the community of having security there. Would you have any objection to that?

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Okay, but I guess there was a discussion with the community of having security there.

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Would you have any objection?

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Thank you.

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No, I think Cedar Avenue, it's common practice living in the area. It's common practice. Most of the businesses on City Line Avenue corridor, they have security, and there is a reason for that.

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Okay, and then, and there's pre-existing parking on this lot, right?

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Yes. And then how many employees would you expect to have at any one time

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during the hours of operation and in total? Probably a security person and two employees.

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So at any given time, it should be three employees. Okay. I have no further questions.

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Thank you. Questions from the board. Yes, I guess my question is, given that like in Philadelphia, beer distributes are a known nuisance property to most community groups, and this had already had two previous approvals as a restaurant, had you at all considered something that might be more in line with what the community was interested in seeing?

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so i will answer that the last application was for a restaurant with a liquor license

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and and the community uh strong-armed in a way the operator out of actually opening up

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this is the 2024 the 2019 29 i think it's there's two there's two different listed

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permit approvals that were approved i my understanding is that what because i and

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And I've seen a community meeting video on this.

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I believe that there was something that I think they never got past the PLCB.

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And I think that was the issue.

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So they couldn't get the approval.

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So with the PLCB, so the operator eventually gave up.

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And then for the location that you've mentioned at Chestnut Hill, have you already made it past that stage for that one?

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Yeah, everything is approved to be about to start operating.

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It was a by-ride option given the zoning classification of the property.

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But again, it has a similar business model, right?

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Right.

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Yeah, that's where our experience and expertise coming from in operating beer sales,

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not being restaurant owners or any other business experiences.

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That's what we know.

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Gotcha.

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Where does the numbers pencil out from being 250 feet away from the wine experience?

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50 feet, I think it was.

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I'm not a liquor control board attorney.

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So based on your question,

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it sounds like there may be a requirement to be so.

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So again,

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my client is represented by John McCreish who,

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who is going through that process concurrently.

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I have not heard of any issues in terms of that.

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So I'm assuming that we are 250 feet.

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Yes.

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at Hatfield location we are next door to Giant and Giant has a liquor license and we have

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so being across the street definitely shouldn't be a problem with PLC. One is a distributor's

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license the other is a liquor license y'all going at the both distributors it's a safe requirement

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250 feet and it was yeah again I'm I defer to you know my client again but that's the whole reason

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right if if these are issues that you would discuss at a plbc hearing the zone and i and i

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and what happened with the previous operator proposed operator they got tied up at plcb but

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this is a responsible use of the property from a zoning perspective whether my client ultimately

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gets approval in front of the plcb that's another matter he does have a great track record at

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multiple locations so it's definitely more than 250 feet so i do have a question so

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she's the ward leader of the 52nd ward am i right she's writing it as the ward leader not as a

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councilwoman i believe give me one second i believe she wrote the letter as in her position

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as council member give me one second yeah i don't have the benefit of the letter so i can't i did

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just send it to you okay is she she wrote in as as a council member thank you so my my question

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is a little different i guess i'm i'm i'm not sure how you um i i i understand beer distributors

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where you're selling a beer buddy case and what have you.

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I'm not sure if I understand your model.

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So you're selling what has been described here

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What has been described here as like craft beers, what does that mean and why is that so different and what kind of business model is there? I mean, how many of these bottles can you sell at a time and how does that, how does this whole thing work?

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as like craft beers.

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What is that?

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I think it's a very good question. PLCB classification of licenses goes back to, to my knowledge, over 100 years ago. So back in the years, beer distributors were primarily selling kegs and cases.

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now the model in 2025 is changing and changing rapidly and it's changing more in suburbs and now

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it's moving into philadelphia the model is like younger generation and even middle age and

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everybody else looking to buy six-pack singles to have a variety and also the trend is changing

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people want to buy craft beers actually philadelphia is known for craft beer philadelphia

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is a home to about 35 breweries inside philadelphia and about up to 100 philadelphia and

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suburbs so what we are looking to do like uh make the store more like a destination store for local

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beers of course we'll sell uh big names like budweiser engling and so on but also uh to have

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people choice to buy a lot of craft beer seltzers ciders uh probably my rough estimation 40 percent

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of buyers are ladies it has to be well lit store good security big uh wide aisle so ladies will

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come and comfortable shopping in this store so it's it's it's a different model and also comparing

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to Giant or Acme, they have a small selection. They carry big names like Guinness, again, Budweiser.

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We're going to bring all, in addition to big names, small names, local names. There are breweries

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owned by great entrepreneurs in this area. There are minority-owned breweries. We want to have

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full presentation uh there are a lot of tourists in philadelphia even in suburbs we have a lot of

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people come and say show me local beers i'm visiting my family here in hadfield in harborough

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show us local and i think being in philadelphia and city avenue will give us a great opportunity

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to present the whole array of philadelphia beers yeah and i want to mention it sounds

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like when you're saying i'm going to buy one bottle of beer what i what i do personally is

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like you get when you go to a giant like for instance you mix and match you they literally

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if there's these like why don't you explain what that what i mean by that right so uh again market

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is changing like back when we just started 13 years ago plcb regulation people had to buy if

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somebody wants to buy beer, they have to buy a case. Now it's changed. Everybody can buy anything

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from a single can or bottle to a case. And when people buy single bottles, they can mix and match

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six different bottles of one can. And also like some people say, if I'll buy a six pack or case,

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I may drink it all in a couple days. I would rather buy a couple today, a couple tomorrow.

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So it's not a bad thing to sell singles. Singles are good for some people. So it's good to give people different choices in price range, in craft versus domestic, foreign. It's a different market.

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It's ciders, seltzers.

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People want to pick and choose what they want.

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And again, gas stations, vavas, or supermarkets don't give this opportunity.

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They have relatively small sections versus us.

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We'll have big choice to choose from.

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And also, us buying in bulk, we can compete in prices.

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We can offer people better prices than supermarkets.

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Can you also explain the training you do to make sure that you're not serving to underage kids and things like that?

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Absolutely. So it's highly regulated industry. PLCB requires and it's a new regulation that every employee is a ramp certified responsible alcohol management program.

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So every employee must pass the program for us to be in compliance. So it's it's a two or three hour program online and everybody has to pass a test.

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and i'm taking this test every two years and i have to pay attention to otherwise i'll fail the

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test so it's not that easy everybody has to pass everybody goes through orientation through us

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sign papers and we explain uh we are the business responsible for alcohol sale but every employer

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We are the business responsible for alcohol sale, but every employee is personally liable not to sell to underage.

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Everybody is responsible to sell alcohol to a visibly intoxicated person and so on.

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We take it very seriously.

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PLCV take it very seriously.

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We are also overseen by state police.

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approximately every six months state police sends undercover people either like younger than 21 and

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if we don't check the id properly if that god forbid transaction happens there is a fine for

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that if three transactions like that happens license revoke so it's very regulated and

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state take it seriously and we as operators of your business take it very seriously otherwise

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we'll lose the business yeah i think i think we can acknowledge that i think the issue in most

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places in philadelphia where these are considered nuisance businesses has to do with trash has to

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do with like people coming in buying single consumption things and it causing debris in

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like a very short distance around that business and in people lingering outside of them and so

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I think like to I think understand how you want to mitigate those very specific issues that

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neighbors might be really you know concerned about is like the major thing I think the second

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piece I've often heard from communities is deliveries right like the volume and the number

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and the types of deliveries that have to service these businesses

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and how do you set that apart?

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I think a question that I didn't get to was with your addition,

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you've taken away a lot of the space that it looks like

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the previous commercial space is used for deliveries.

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It looks like it was perfectly formatted to be the space

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that a truck could pull in and then comfortably pull out.

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So with the addition, how do you plan to manage deliveries

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with that very narrow drive aisle for your eight parking spaces?

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uh so uh we get literally three deliveries a week from three main wholesalers uh deliveries will

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happen off rush hours probably late mornings uh they bring pallets of beers and those pallets will

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be still uh even with the addition there will be approximately 20 feet in the back

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