9 22 2022 Letter to P Neuer and ZBA legal issues

Gsons B.C. Philip D. Neuer, Chairman, and Members Township of West Orange Zoning Board of Adjustment September 22, 2022 Page 3 Service of Alcoholic Beveraves in the Pub The document titled “Proposal,” dated revised May 20, 2022, and submitted previously in response to Section G. of the Application Form — Requirements for Variances, Item 4A), indicated that the proposed CCRC would include a community center serving the independent living and assisted living components of the project. It further indicated that the amenities provided would include “a pub serving alcoholic beverages (subject to obtaining a liquor license).” As will be set forth in testimony at a subsequent hearing, the pub will be utilized by residents and their guests only. Thus, in the same way that a guest accompanied by a resident might order a sandwich in the pub, that same guest would also have the ability to order an alcoholic beverage — subject to a liquor license first being obtained. ‘ Club License CCRCs that serve alcoholic beverages typically operate using what is known as a “club license” to authorize the sale of alcoholic beverages for on-premises consumption. A club license entitles the licensee “to sell any alcoholic beverages but only for immediate consumption on the licensed premises and only to bona fide club members and their guests.” N.J.S.A. 33:1-12, Section 5; N.J.A.C. 13:2-8.8. “Club licenses may be issued only to such corporations, associations and organizations as are operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes, and not for private gain, and which comply with all conditions which may be imposed by the Director of the Division of Alcoholic Beverage Control by rules and regulations.” N.J.S.A. 33:1-12. To satisfy statutory requirements concerning service only to bona fide club members and their guests, the usual arrangement is for the CCRC to set up a separate “club” entity operated by the club members, Residents of the CCRC apply for membership, and once admitted, would become club members. Clubs must have been in continuous operation for a period of three years immediately prior to application for a license, N.J.A.C. 13:2-8.3, and have been in exclusive possession and use of a clubhouse or club quarters during the entirety of that time period. N.J.A.C. 13:2-8.4, The Director of Alcoholic Beverage

license, N.J.A.C. 13:2-8.3, and have been in exclusive possession and use of a clubhouse or club quarters during the entirety of that time period. N.J.A.C. 13:2-8.4, The Director of Alcoholic Beverage Control (the “Director”) may waive this provision upon a showing of special cause, N.J.A.C. 13:2-8.5(b), and often does so in the case of CCRCs. Officers of the club and members of its governing body may not have been convicted of a disqualifying offense pursuant to the alcoholic beverage control laws (Title 33 of New Jersey statutes) unless the statutory disqualification resulting from such conviction has been removed by order of the Director. They also must otherwise be qualified in accordance with Title 33, the regulations promulgated thereunder, and municipal ordinance. N.J.A.C. 13:2-8.6. Among other requirements, a list of club members must be maintained. N.J.A.C. 13:2-8.7. A minimum three-day waiting period applies to admission into the club so that members cannot be granted instant membership. N.J.A.C. 13:2-8.1. Persons holding limited or auxiliary 3035540.1 116173-101909