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Modesto cancels appeal hearing over fines after Velvet Grill supporters pack room

Modesto could not hold the Velvet Grill & Creamery’s Tuesday appeal of the city fining it for not following the new coronavirus restrictions after the restaurant’s supporters packed the hearing, exceeding its physically distanced seating capacity.

The city had about four dozen chairs set up for audience members in a 3,400-square-foot room at Modesto Centre Plaza. But the hearing drew more than 100 Velvet Grill supporters. Officials asked those without seats to leave, but that drew an uproar from the crowd, including booing and cries the city was trying to shut the public out of the meeting.

Even a request from the Velvet Grill’s attorney to the crowd did not convince those without seats to leave. And those seated supported those standing in staying. The people standing were bunched along the walls and the room’s entrance.

Modesto now will hold the Velvet Grill’s appeal at a later date. City officials initially said at Tuesday’s hearing the appeal would be held Wednesday over Zoom, the video conferencing platform, and the public could attend.

But city spokesman Thomas Reeves said in a text Tuesday evening: “Attorneys for both City and Velvet have agreed to continue the hearing to a date in the future (not tomorrow).” When asked the reason for the postponement, Reeves said in a text: “Need more time to discuss adequate process” for the meeting.

Reeves said the city wanted Tuesday’s meeting to be held over Zoom, but the Velvet Grill wanted it to be held in person. He said those positions have not changed, and attorneys for both sides are working out the details.

The city started fining the Velvet Grill restaurants on McHenry Avenue and Dale Road on Aug. 29 for serving customers indoors, in violation of the state’s public health order. The fines are $1,000 per day for each restaurant. The restaurants have racked up fines as they continue to serve customers indoors.

The city took this step after it tried several times to gain compliance and warned the restaurants they would be fined if they did not stop indoor dining. Modesto has fined just one other business, a health club, for violating the coronavirus restrictions. The city will hold a hearing on its fines Oct. 20.

Some audience members flocked around Bill Owen — who is the secretary and CFO of Velvet Restaurants Inc., which owns the two Modesto restaurants — after the hearing.

Audience members said the coronavirus restrictions are crushing local businesses, are arbitrary because they treat businesses differently, creating winners and losers, and no one is forcing customers to eat at the Velvet Grill. They also said the restaurants are taking precautions to keep customers safe.

Modesto Council candidate at hearing

The supporters at the meeting included David Wright, who is running for City Council District 6, which encompasses northeast Modesto, in the Nov. 3 election.

The Bee was able to identify one audience member who said she did not support the restaurants.

But the Velvet Grill can now serve customers indoors. California on Tuesday moved Stanislaus County to a less restrictive tier in the state’s coronavirus reopening strategy because the county and its cities have brought down the incidence of the disease.

The less restrictive tier allows restaurants to resume indoor dining but at 25 percent capacity.

The Velvet Grill called for supporters to attend Tuesday’s hearing. The McHenry Avenue restaurant posted a notice on one its front doors Friday imploring customers to attend, saying it needed their help to avoid $60,000 in fines. “Please come to the Hearing and voice your support of the Velvet Grill & Creamery,” the notice says. “Thank you to our many loyal customers.”

This story was originally published October 13, 2020 at 5:18 PM.

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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