Tabu, 323-325 1st Ave. N., faces a $15,000 fine and a two-day license suspension, under a proposed deal reached with the city.
Sgt. Travis Glampe, a police investigator, said multiple problems triggered disciplinary action.
A 20-year-old woman alleged Farzad Fereshtehkhou, a 40 percent owner, served her alcohol knowing she was underage and helped her get drinks at another Downtown bar, according to a city Technical Advisory Committee (TAC) report.
That single incident in September 2003 might not have caused a sanction, Glampe said. However, the business had several police calls for disorderly conduct and/or serious assaults in the following months, on Nov. 27, Dec. 25, Jan. 4, Jan. 18 and Jan. 25, according to the TAC report.
Fereshtehkhou and Tabu representatives denied the establishment knowingly served an underage patron and denied conduct problems resulted from poor management. As part of a settlement, Tabu representatives acknowledged the City Council could find it had violated its Class A liquor license.
The Public Safety and Regulatory Services Committee approved the five-page TAC agreement with no discussion. The City Council approved the deal 11-0 on Nov. 5.
The agreement imposes a $15,000 fine and suspends the liquor license for 15 days. It withholds 13 days of the 15-day suspension and will not impose them if the establishment does not violate the agreement or its license for the next six months.
Tabu must serve the two-day suspension on two consecutive business days, a Sunday and Tuesday, no later than Nov. 30, giving police 14 days advance notice, the agreement said. It also requires Fereshtehkhou to withdraw his application to increase his ownership from 40 percent to 70 percent.
The city initiated a TAC hearing in April and spent six months negotiating a settlement, Glampe said.
The report found that Tabu has shown good business practices and cooperated with Police but also said the Council could conclude Tabu's security measures, inside and outside the building, have at times been inadequate.
South Beach LLC holds the license, doing business as Tabu.