FRANKLIN REVOKES ON THE BORDER’S LICENSES

 

FRANKLIN REVOKES ON THE BORDER’S LICENSES

Common Council votes 3-2 following a nearly six-hour evidentiary hearing, concluding that substantial evidence supported each of the five allegations against the establishment.

By Dr. Richard Busalacchi
Franklin Community News

After nearly six hours of testimony, legal arguments, documentary evidence, and deliberation, the Franklin Common Council voted 3-2 Thursday evening to revoke the alcohol beverage licenses and public entertainment license held by On the Border Gentlemen’s Club, concluding that substantial evidence demonstrated the establishment had become a disorderly house where prostitution, drug activity, violence, and repeated violations of city ordinances had occurred.

The decision followed what City Attorney Jesse Wesolowski repeatedly described as a quasi-judicial proceeding, requiring Council members to act not as policymakers, but as impartial fact-finders weighing sworn testimony and evidence.

For Franklin, the hearing represented one of the most significant license revocation proceedings in recent memory.

A Split Vote

Following the adoption of the Findings of Fact and Conclusions of Law, the Common Council voted 3-2 to revoke On the Border’s licenses.

Voting in favor of revocation were Alderman Salus, Alderman Hassan, and Alderwoman Eichmann. Voting against revocation were Alderwoman Kresovic and Alderman Johnson.

Alderwoman Kenney recused herself from the proceedings because of a conflict of interest and did not participate in the hearing, deliberations, or final vote.

The narrow margin reflected differing views among the five participating Council members regarding whether the City’s evidence justified the extraordinary remedy of permanently revoking the establishment’s operating privileges.

Although the Council’s deliberations occurred in closed session, members returned to open session to publicly announce detailed findings supporting each of the five counts alleged in the City’s complaint before casting the final roll-call vote. By adopting those Findings of Fact and Conclusions of Law, the Council concluded that substantial evidence supported each allegation and ordered the revocation of the establishment’s Class “B” intoxicating liquor license, Class “B” fermented malt beverage license, Entertainment and Amusement License, and Cigarette Sold by Machine License. 

For On the Border, the 3-2 vote brought months of uncertainty to a close. Whether the matter ends there, however, may ultimately depend on whether the business seeks judicial review of the Council’s decision.

An Unusual Hearing

Unlike a routine Common Council meeting, Thursday’s proceedings resembled a courtroom.

Witnesses testified under oath.

Attorneys conducted direct and cross-examinations.

Hundreds of pages of exhibits were admitted into evidence.

Council members heard legal arguments before retiring into closed session to deliberate before returning to open session to announce their decision.

Throughout the hearing, City Attorney Wesolowski repeatedly reminded Council members that their decision could not be based simply upon pending criminal charges involving club employees.

Instead, Wisconsin law required them to determine whether the evidence presented demonstrated violations sufficient to justify revocation of the licenses.

A Multi-Year Investigation

The City’s case centered on testimony from Franklin Police detectives and command staff describing what they characterized as a lengthy investigation involving local, state and federal law enforcement.

According to police testimony, the investigation included:

• interviews with dancers, former employees, patrons and confidential witnesses;
• cooperation with the FBI during a human trafficking investigation;
• surveillance of activity occurring inside the establishment;
• narcotics investigations;
• prostitution investigations;
• execution of search warrants;
• numerous police reports spanning several years.

Detectives testified they concluded prostitution was occurring inside VIP rooms, illegal drug activity was taking place inside the establishment, and management either knew or should have known about the activity.

Police Describe Extraordinary Demands on Department Resources

One of the recurring themes throughout the hearing involved the amount of police resources devoted to the business.

Officers testified that On the Border generated significantly more police activity than other licensed establishments within Franklin.

Police described repeated responses involving:

• narcotics investigations;
• overdoses;
• disturbances;
• assaults;
• prostitution investigations;
• suspicious activity;
• welfare checks.

Command staff testified that investigations involving the club consumed substantial investigative resources over an extended period.

Allegations Extended Beyond Prostitution

Although much public attention has focused on prostitution allegations, the City’s evidence addressed a much broader range of alleged misconduct.

According to testimony presented Thursday, investigators documented evidence involving:

• prostitution;
• cocaine trafficking;
• fentanyl-related incidents;
• overdoses;
• assaults involving employees;
• alcohol sales to intoxicated patrons;
• disorderly conduct;
• repeated police intervention.

The City argued these incidents demonstrated a continuing pattern inconsistent with maintaining licensed premises under Franklin ordinances.

Defense Challenges City’s Evidence

Representing On the Border, Attorney Steven Levine aggressively challenged nearly every aspect of the City’s case.

During cross-examination, Levine questioned investigators regarding:

• whether officers personally witnessed prostitution;
• reliance upon witness interviews;
• anonymous complaints;
• credibility of confidential witnesses;
• whether owners Jerry and Mary Hay personally participated in criminal conduct;
• management policies prohibiting illegal activity;
• whether police statistics fairly compared On the Border to other businesses.

Levine also questioned whether many of the alleged criminal incidents involved patrons rather than employees and argued the City was attempting to hold ownership responsible for conduct occurring without their knowledge.

Ownership Denies Knowledge

Defense witnesses testified that ownership prohibited prostitution and criminal conduct.

Evidence was presented describing:

• employee policies;
• surveillance cameras;
• management oversight;
• cooperation with law enforcement;
• termination of employees suspected of misconduct.

The defense argued isolated criminal acts committed by individual employees should not justify revoking licenses held by the business itself.

Council Weighs the Evidence

After hearing testimony, attorneys presented closing arguments before the Council entered closed session.

When the Council returned to open session, members announced findings concluding there was substantial evidence supporting multiple violations alleged by the City.

Among the findings adopted were conclusions that substantial evidence supported allegations involving:

• prostitution occurring at the licensed premises;
• illegal drug activity;
• physical assaults by employees;
• sales of alcohol to intoxicated persons;
• operation of a disorderly house;
• repeated violations demonstrating the premises had become detrimental to public safety.

The Council’s findings were based upon the administrative standard applicable to license revocation proceedings—not proof beyond a reasonable doubt required in criminal cases. 

What Happens Next?

Thursday’s vote does not necessarily represent the final chapter.

Businesses whose licenses are revoked generally have the ability to seek judicial review of municipal decisions.

Should an appeal be filed, a reviewing court would examine the administrative record developed during Thursday’s hearing, including:

• witness testimony;
• documentary exhibits;
• procedural fairness;
• legal standards applied;
• whether substantial evidence supported the Council’s findings.

For that reason, the transcript of Thursday’s hearing may ultimately become as important as the vote itself.

A Landmark Franklin Proceeding

Regardless of whether additional litigation follows, Thursday’s hearing will likely stand as one of the most consequential liquor-license proceedings ever conducted before the Franklin Common Council.

Unlike many municipal license matters resolved through negotiated agreements or uncontested proceedings, this case produced a detailed evidentiary record spanning years of investigations, extensive police testimony, vigorous legal advocacy, and formal findings of fact.

Whether viewed as a necessary exercise of the City’s police powers or an aggressive use of municipal licensing authority, the proceedings established a comprehensive administrative record that is likely to shape any future judicial review.

For Franklin residents, Thursday’s decision marked not merely the revocation of licenses, but the conclusion of an extensive public hearing examining the responsibilities of licensed establishments, the role of law enforcement, and the authority of local government to protect public safety through its licensing powers.

This piece reflects the author’s personal opinion and experiences. All statements are presented as commentary protected under the First Amendment. Readers are encouraged to review public records, filings, and documented evidence referenced throughout this article.

Dr. Richard Busalacchi is the Publisher of Franklin Community News, where he focuses on government transparency, community accountability, and local public policy. He believes a community’s strength depends on open dialogue, honest leadership, and the courage to speak the truth—even when it makes powerful people uncomfortable.

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