L&I “Nickel-and-Diming Bars to Death”

Philly bar has been issued violations worth $1,200 for having six neon signs

Charlie Collazo of The Institute Bar on North 12th Street has been issued violations by L&I (Licensing and Inspections) that would require payment of more than $1,200 in fees, for six neon signs that adorn the windows of his establishment.

"I was shocked," said Collazo, who has been in operation since June of 2008, and never heard of these permit requirements before the notice came this week regarding accessory signs. "We've been open two years and had L&I in here numerous times, and this has never been a problem before."

After contacting more than a dozen bar owners in town, we know that Collazo is not alone in his surprise.

"I've been in business 20 years and this is definitely a first," said a longtime South Philly bar owner who wished to remain anonymous.

Accessory signs are defined by L&I as: "A sign containing copy which directs attention to information, identification, or advertisements strictly incidental to a lawful use of the premises on which the sign is located. This includes signs or devices indicating the business transacted; services rendered; goods sold or produced on the premises; and, the name or emblem of the person, institution, organization or activity occupying the premises."

Frances Burns, Commissioner of L&I, said this law isn't new. "It's always been in effect. There were some revisions in 2010, but this isn't a brand new requirement. While the business in question was not a target or an example, it is enforced on a case-by-case basis."

With the wholly encompassing language used to describe accessory signs, we inquired whether a check cashing establishment advertising their services via neon sign, or a delicatessen advertising Boar's Head Brand meats would be issued a violation.

Local

Breaking news and the stories that matter to your neighborhood.

Fire closes NJ mall for weekend

Did you feel it? Small earthquake hits Berks County

"Yes, absolutely, but we're not about to go on a witch hunt to collect on these violations," said Burns. "It is up to the discretion of the inspector."

Neon signs are not the only concern to business owners now, as hanging banners advertising daily specials outside of their establishment also fall under these guidelines. With the city in the midst of a serious financial crisis, bar-owners feel this is just another way to recoup some money as a band-aid fix, like the failed Soda Tax experiment.

John Longacre, President of The Philadelphia Tavern Owners Association, and owner of The South Philadelphia Taproom, said he isn't surprised. "This is just another in a long line of nuisance revenue streams that are making it almost impossible to open and support a business in the city of Philadelphia," said Longacre. "They're nickel-and-diming bars to death. And it's only gotten worse during [Mayor Michael] Nutter's administration."

As for Collazo and his wife Heather DeRussy, who is co-owner in the establishment, they are looking at a Plan B. "We thought that with a less expensive up-front cost to a liquor license ($65,000 as opposed to $150,000 in the suburbs), we could keep our family here and run this business. But, every day it gets harder and harder. That $1,500 is a mortgage payment to us. Maybe we have to move to keep our doors open."

Contact Us