By LORRAINE SWANSON
Editor
Loyola University is backing off a policy prohibiting businesses renting store fronts at a new residential and commercial development across the street from Loyola’s Lake Shore campus from pursuing city packaged and incidental liquor licenses.
CVS store officials and their attorney met with the Loyola Area Neighbors Association last month to discuss their plans to apply for a city liquor license to sell packaged beer and wine in the new CVS store at The Morgan At Loyola Station.
Ald. Pat O’Connor requested that CVS not submit its application for a liquor license to the Chicago Department of Business Affairs and Consumer Protection, until store officials met with community residents. Liquor licenses need the support of the local alderman or they stand a slim chance of getting approval from the city.
Even O’Connor expressed confusion over a master agreement between Loyola, which owns the property, and developer McCaffrey Interests, that no packaged liquor would be sold on university-owned property.
“In the past, Loyola said there would be no packaged liquor around the school,” O’Connor said. “It would be helpful to know if Loyola has a position.”
According to residents, when Loyola and McCaffrey Interests met with the neighborhood in 2007 to discuss plans for the high-end, rental apartment and retail development at Sheridan and Arthur, one of the selling points promised to the community was that no liquor licenses would be issued to commercial lease holders.
Residents complained of ongoing issues with students over imbibing, creating noise disturbances on quiet residential streets, and lawns littered with beer cans and bottles from weekend parties.
The 75-year “Memorandum of Lease” agreement between Loyola University and McCaffrey Interests dated Dec. 3, 2007 and obtained through the Cook County Recorder of Deeds grants Loyola ownership of the land title and releases the university from mortgage and tenant liabilities.
McCaffrey, in turn, assumes responsibilities for the mortgage and management of the properties, including leases and subleases to residential and commercial tenants, even in the event of foreclosure. The lease does not contain clauses prohibiting commercial tenants from applying for city packaged and incidental liquor licenses for restaurants.
Jennifer Clark, director of community relations for Loyola University, said that the university originally decided not to support packaged liquor goods or taverns on the property, but would consider incidental liquor licenses for prospective restaurant tenants on a case-by-case basis when plans for the Morgan were discussed in 2003.
“That policy has been loosened over the years,” Clark said. “It would be inappropriate to enforce it. Loyola decided it would make more sense to review all liquor license applications on a case-by-case basis rather than have a prohibition in place.”
During community planning for the Morgan, many residents expressed desires for a Trader Joe’s or Cost Plus World Market. Neither retailer considers sites for new stores unless avenues for packaged liquor licenses are in place.
“One thing we heard loud and clear in community planning was what types of retail residents would like to see,” Clark said. “These came up as examples as the kind of places that would serve both the student and residential population.”
Clark said that Loyola’s master agreement with Loyola allows McCaffrey to enter into lease agreements with retail tenants but McCaffrey has to notify the university if retail tenants plan to apply for city liquor licenses in advance.
“[McCaffrey] notified us when they were negotiating with CVS a year ago,” Clark said. “We didn’t know anything else about it until the alderman held his meeting.”
Liquor license applications go through the usual processes spelled out in the city’s liquor ordinance, including notifying the local alderman and community.
“Just because they have a unique rental agreement doesn’t mean they get a liquor license,” Clark said.
A second ground floor lease agreement dated Nov. 18, 2008 between McCaffrey and Highland Park CVS LLC also obtained from the Cook County Recorder of Deeds, identifies Loyola as the “master landlord” and McCaffrey as “landlord.”
The CVS lease alludes to prior conditions between Loyola and McCaffrey precluding commercial rentals “to planned parenthood or health or medical clinics performing or offering sterilization or abortion services.”
The CVS store at the Morgan carries emergency contraception or the “morning after pill,” which is available without a prescription to adults 18 years and older. Emergency contraception is a hormonal drug that can prevent pregnancy if taken within 72 hours of intercourse. The U.S. Conference of Catholic Bishops is opposed to emergency contraception and classifies it as a form of abortion.
Asked if this isn’t a contradiction in policy at the Jesuit-owned university, Clark said that Loyola encourages “adult decision making” among its students.
“We’re not a church or a parish and I don’t think people would want us to be. We’re a university first and open to all,” Clark said. “At the same time, we walk a fine line that is not offensive to the church.”
In response to neighbors’ growing complaints of underage drinking and noisy hunts through quiet streets for off campus parties, Loyola has created a new staff position that oversees students living off campus.
Clifford Golz, assistant dean of Off Campus Student Life, said that Loyola has taken an aggressive stand by identifying problem buildings and going after student leaseholders. Violators perform community service and are subjected to fines.
Sophomores who are considering living off campus are also required to take a 90-minute seminar ranging from such topics as signing a lease, setting up utilities and behavioral expectations.
“I think we’re making progress. We’ve seen fewer complaints and issues this year,” Golz said. “I think that in some ways it’s helpful for neighbors to know that we have an office that focuses on it.”
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