Getting ready for "The Edge"
Fresno businessman Kirk Vartanian is depending on a familiar name in his effort to open a new nightclub at Granite Park.
Vartanian's nightclub, The Edge, would have no chance of opening as planned on June 19 without help from Granite Park developer Milt Barbis.
If the nightclub opens as planned, customers will be drinking alcohol on June 19 thanks to a liquor license that belongs to Barbis, not Vartanian.
And if The Edge eventually stays open until 5 a.m. with dancing until 4 a.m., as Vartanian wants, it will happen thanks to an amended city permit now being sought by Barbis, not Vartanian.
These are bureaucratic necessities due to lack of time that have no effect on The Edge's grand opening, Vartanian said.
"Trust me, [the opening] will get done on the 19th," he said.
Barbis, though, allegedly was to have little or nothing to do with Vartanian's plans to revitalize a key part of the Granite Project vision. The retail-recreation project is in east-central Fresno.
Barbis' connection to Vartanian's plans raises questions about the business relationship between the two men.
Vartanian said Thursday night that it's too early to explain the relationship, if any. Vartanian said he will discuss his business plan in greater detail at a later date.
Grante Park has had problems.
On May 28, an estimated 40 local, state and federal officials served four search warrants at Granite Park and Barbis' home in Fresno. One of the Granite Park sites was the former Cabo Wabo Cantina.
Details from the warrants and searches were made public on Friday. Vartanian was not named in the Fresno Superior Court documents.
A state Department of Insurance investigator wrote that Barbis and two other men allegedly committed felony crimes by filing false insurance claims and failing to accurately report employee wages.
"From Jan. 1, 2005 to present, Milton Barbis, Howard Young and John Benjamin have committed felony crimes involving insurance fraud [and] workers' compensation insurance premium fraud by under reporting employee payroll," wrote criminal investigator Ben Rodriguez.
The three men "have committed workers' compensation insurance fraud by denying benefits to their employees, and by failing to report work-related injuries to their insurance carriers."
Rodriguez also alleged that Barbis, Young and Benjamin committed payroll tax evasion.
The Bee has been unable to reach Barbis, Young and Benjamin.
Vartanian has said he will help Granite Park regain its luster and momentum.
Vartanian announced May 18 that he planned to open a Las Vegas-style club in the former Cabo Wabo Cantina site. Barbis is managing partner in Fresno Rock Taco LLC, which teamed with rocker Sammy Hagar to open the short-lived nightclub.
Vartanian also said he will soon get the nearby Memphis Blues and Red restaurants up and running. They have yet to open. Here, too, Barbis came up with the dream and started construction. Barbis said he stopped because he ran out of money.
Barbis said in mid-May that his deal with Vartanian was simple: Vartanian takes over the restaurants and Barbis goes "back to being the [Granite Park] developer and bringing the people together."
Randolf Krbechek, Vartanian's lawyer, said on May 28 that Barbis had no role in Vartanian's Granite Park investments.
However, Barbis is providing pivotal support in getting The Edge open by June 19.
An application was filed on May 19 with the state Department of Alcoholic Beverage Control to transfer the liquor license from Fresno Rock Taco to Club Edge Inc. Vartanian is Club Edge's president, according to ABC documents.
The transfer requires a 30-day public comment period, beginning when notice of the transfer is posted at the business site. The Edge's notice was posted May 21; the 30-day period runs through Friday, June 19.
That would be too late for ABC to transfer the license to Vartanian for the grand opening.
However, ABC officials said, a liquor license applies to a specific site, not a specific business name. The Edge can open in the former Cabo Wabo site with Barbis' liquor license.
Jason Montgomery, supervising investigator at the ABC office in Fresno, said he knows of no protests against the proposed transfer.
The ABC's Web site notes that three state agencies -- the Employee Development Department, the Franchise Tax Board and the Board of Equalization -- placed holds on the transfer application on May 29.
Montgomery said the holds involve unpaid taxes dealing with Fresno Rock Taco. He gave no further details.
"These taxing agencies are directing us not to issue the license until the taxes are satisfied," Montgomery said.
Vartanian said the taxes will be paid when escrow closes. He declined to say how much is owed. Vartanian said the only asset in escrow is the liquor license.
"If escrow doesn't close, nobody gets paid," Vartanian said.
Vartanian wants The Edge to serve alcohol until 2 a.m., with dancing until 4 a.m. and open until 5 a.m.
Here, too, Barbis must help.
The city of Fresno can require proposed businesses to meet specific rules for their operation. These are stated in a conditional use permit and apply to the specific site, not a particular business name.
Barbis in 2008 signed off on a permit for Cabo Wabo that limited liquor sales, dancing and hours of operation to no later than 1 a.m.
On May 19, Barbis filed an application for The Edge and Fresno Rock Taco to amend the permit.
The application states that The Edge wants to provide alcohol service from 6 a.m. to 2 a.m., public dancing from 8 a.m. to 4 a.m. and operating hours from 6 a.m. to 5 a.m.
The Edge will be open seven days a week and "themed like a very upscale restaurant and club in Las Vegas Caesars's Palace," the application states. Per plate prices at the restaurant will range from $8 to $200.
City officials said Barbis filed the application because the nightclub's site is still owned by Barbis and Fresno Rock Taco. Officials said applications to amend conditional use permits typically require about 90 days to process.
The process usually includes comments and recommendations from city departments such as police and planning. Property owners within 350 feet of the site also are notified.
The Cabo Wabo site is near the middle of the 42-acre Granite Park project, and it's unclear whether any property not connected to Barbis lies within that 350-foot radius.
However, about 18 acres to the east are ballfields owned by Granite Park Kids Foundation, and the city does have a legal interest in that parcel. The foundation has defaulted on a $5.2 million bank loan guaranteed by the city. The 18 acres are collateral, and City Hall could end up owning the land.
City spokesman Michael Lukens said in an e-mail that Mayor Ashley Swearengin and City Manager Andy Souza are reviewing the proposed changes at the Cabo Wabo site. He said they will decide later whether to comment.
Council Member Larry Westerlund, whose district includes Granite Park, said he is reviewing the liquor license transfer application: "I know of no reason to comment negatively."
Westerlund said he is "inclined" to recommend that The Edge's operating hours be consistent with those of two nearby Granite Park restaurants, Me-n-Ed's Victory Grill and Grace O'Malley's Public House.
According to City Hall, they must stop serving alcohol and close their doors to the public at 1 a.m.
Vartanian on Thursday night said he is confident all will turn out well.
Standing outside The Edge's front door, he pointed to clear evidence that Granite Park's alleged demise is exaggerated. The large parking lot was nearly full. Couples and families were heading to Victory Grill and the Public House. The lights at the replica baseball fields were on.
Vartanian gave a quick tour of The Edge's interior. One of two VIP areas already has U-shaped sectional couches. One of the walls is painted. The hand-crafted front doors are from Mexico.
Reality TV star Kim Kardashian and DJ Vice are scheduled for the June 19 opening.
"I just want to give something nice to Fresno," Vartanian said. "I will make it happen."

Comments:
I have lived here in fresno for 5 years and what I cant figure out is everyone that tryies to open up something nice here all people do is cut them down and talk trash!! Yet,I noticed when I am on the north side of town alot and guys and girls alike walk around like there celebrities and the world should know who they are. Everyone should be nice to others no matter how much money they have and what type of car they drive. Be real not fake and stop hateing on people. I wish the Vartanian the best with there venture:) Remember to you all I always here theres nothing to do here in fresno well support the businesssmen that try to bring some exciting things here Fresno could very well be a tight place to live and hang out.
Posted by: kid smart at June 18, 2009 3:36 PM
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