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Modesto to Velvet Grills: Stop indoor dining or we will fine you each $1,000 per day

Velvet Grill & Creamery at 2204 McHenry Ave. in Modesto, California.
Velvet Grill & Creamery at 2204 McHenry Ave. in Modesto, California. jalopez@modbee.com

Modesto will fine both Velvet Grill & Creamery restaurants $1,000 each for every day they continue to serve customers indoors in violation of California’s most recent public health order issued in July to help stop the spread of the new coronavirus.

The city issued Friday what is called a notice and order to the two restaurants that state if they don’t stop indoor service by Saturday the city would impose the $1,000 civil penalties starting that day.

Modesto spokesman Thomas Reeves said these are the first notices and orders and civil penalties Modesto has issued against a business for not following the state’s restrictions since the city’s code enforcement officers began enforcing the coronavirus restrictions in late April. Modesto can impose penalties of as much as $2,500 per day.

And it comes as Stanislaus is among California’s 38 counties where the state says the virus is widespread, the state’s highest classification. These counties are under the most restrictions.

Reeves said a business can challenge the notice and order by filing an appeal with the city within 20 days of the notice and order being issued. He said if the business loses its appeal, it can then appeal to Superior Court.

Bill Owen — an officer with the Velvet Creamery, the corporation that owns the Dale Road and McHenry Avenue restaurants — declined to comment Friday afternoon. But as of about 11 a.m. Saturday, both restaurants were busy and serving customers indoors.

Modesto had planned to issue the notices and orders Wednesday but delayed doing so after Mayor Ted Brandvold raised concerns about fining businesses. City officials then met Thursday to review the steps they had taken to get the restaurants to comply.

The Velvet Grill restaurants were the subjects of 21 complaints for allowing indoor dining from early July to mid August according to records from the Stanislaus County Office of Emergency Services, which acts as a clearinghouse for complaints. It’s not clear if some of the complaints were duplicates.

Modesto issued cease and desist orders against both restaurants Aug. 11 after several attempts to gain voluntary compliance. And The Bee observed the restaurants serving customers indoors Wednesday, Thursday and Friday. The public health order allows restaurants to serve customers outdoors, which is what many restaurants are doing, setting up tables under awnings and canopies on their properties.

Mayor contacts city manager, city attorney

Brandvold said Wednesday he had contacted City Manager Joe Lopez and City Attorney Jose Sanchez when he learned the city could fine the Velvet Grill restaurants.

“I expressed my concerns on pursuing a punitive course without making sure we have worked with them on the issues, on their nonability to come into compliance,” Brandvold said.

Brandvold said no one from the restaurants asked him for his help. He said he was having breakfast Saturday, Aug. 22, at the Velvet Grill on McHenry when he learned from an employee about the difficulties the Velvet Grill faced in the pandemic and the restrictions put in place to stop it.

Brandvold said he was eating outdoors, sitting at the table near the entrance. The mayor acknowledged he saw customers enter the restaurant and dine inside. “If they are comfortable with it, it didn’t bother me,” he said when asked whether he was concerned with customers dining inside.

Both Velvet Grill restaurants have tables set up outside in addition to offering indoor dining.

Mayor: Is it city’s job to enforce order?

Brandvold said he did not know the particulars of the Velvet Grill and said he was concerned about all businesses struggling in the pandemic. He said Modesto needs to offer businesses as much help as it can to come into compliance. He said for restaurants that could include helping them figure how to set up outdoor dining and learning about available grants and loans.

“These are small businesses,” the mayor said. “... They are hurting out there, and many of them are afraid. They have worked hard, and we need to be helping them. And we need to be caring for these people. ... Businesses are shutting down. Many, many of them are not going to be there when we come out of this.”

Brandvold in a Friday interview questioned whether it was the city’s job to enforce the public health order.

“I don’t know if enforcement is our issue,” he said. “Think about it. These are mandates from the state,” adding he believed enforcement may belong to county public health.

When asked whether it was fair for a restaurant to offer indoor dining while others are not because they are following the rules, Brandvold said: “You’re right there. But at the same time, this is (for) every business out there, we need to be in a mode of coming alongside of them” to help them comply.

Modesto has not been heavy handed in enforcing the public health order.

Gym issued cease and desist order

As of Aug. 21, Modesto’s code enforcement officers had opened 127 cases since April 29 against businesses suspected of violating whatever public health order was in place at the time. The city has resolved the vast majority through working with businesses to gain voluntary compliance.

Code enforcement officers issued their fifth cease and desist order Friday, issuing one to Tru-Fitness for operating indoors. Health clubs can offer outdoor fitness.

“There is not much to comment on other than we are open and running our business,” said a man who answered the gym’s phone Friday and identified himself as the owner, Jake Keidel. “That’s why we got the cease and desist.”

Code enforcement officers issued their first four cease and desist orders Aug. 11: the two to the Velvet Grill restaurants and one to the David Lee Spa and one to Nails by David Lee. Reeves, the city spokesman, said the spa and nail salon have come into compliance.

Owen — the Velvet Creamery official — said in an Aug. 13 Bee story that he did not believe the state public health order was constitutional. He also said then he was working on setting up permanent outdoor dining at the McHenry restaurant.

No comment on outdoor dining

Owen declined Wednesday to comment on the restaurants continuing to offer indoor dining. When asked about the complaints made against the restaurants, he said: “I have nothing to say about that. People come ... are our customers because they want to. No one is forcing them.”

Owen said he was working on offering temporary outdoor dining at the Dale Road restaurant and permanent outdoor dining at the McHenry Avenue restaurant. He said the city has told him he needs to submit applications for both restaurants through the city’s open air initiative, which Modesto started to help businesses quickly set up temporary outdoor dining.

Owen said he has submitted an application for the temporary dining at Dale Road along the shopping center’s asphalt in front of the restaurant. But the restaurant had about a half-dozen tables set up outside near its entrance Wednesday and Thursday. Customers were eating at those tables as well as inside the restaurant.

Reeves said Wednesday the city had not received an application, but Owen had submitted a couple of drawings. Reeves said Owen would need to apply for a building permit for permanent outdoor dining and not submit an open air application for the McHenry restaurant.

This story was originally published August 30, 2020 at 5:00 AM.

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Kevin Valine
The Modesto Bee
Kevin Valine covers local government, homelessness and general assignment for The Modesto Bee. He is a graduate of San Jose State University.
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