YACHATS — The owner of the Yachats Underground Pub & Grub says he will pay $6,700 in penalties by April 15 rather than face a 37-day suspension of his liquor license beginning a week later.
Owner David Lothrop agreed to a settlement with the Oregon Liquor and Cannabis Commission after an investigation resulted in three violations between June 2021 and January 2023. Prior to the settlement, the proposed penalty was a $9,430 penalty or a 52-day license suspension.
The OLCC approved the settlement at a commission meeting March 21 in Portland. Lathrop agreed in January to forgo a hearing and abide by the settlement agreement.
The first of the three violations stem from a bartender not having a valid service permit to “mix, sell, or serve alcoholic beverages, or supervise those who do” from June 12, 2021 to Jan. 21, 2023, according to the OLCC investigation.
The second violation, by the same bartender, was for serving alcohol to a minor on or about Jan. 21, 2023, after failing to verify their age “when they reasonably appeared to be under 26 years of age.”
The third violation was also for serving a minor by a different bartender on or about Oct. 8, 2023.
Paying the fine avoids the license suspension, which would allowed the Underground to stay open during the suspension but no alcohol could be served, sold or consumed on the premises or its liquor license could be cancelled.
The three violations are a permanent part of Lothrop’s OLCC file and may be considered in any future applications for any license or permit.
“Commission staff believes the circumstances surrounding these violations are serious,” OLCC documents said. “However, since licensee has accepted full responsibility for the incidents, the commission finds that this agreement is consistent with its regulatory goals …”
The Underground is a local favorite overlooking the Yachats River on Ocean View Drive. The commercially zoned property is listed for sale for $1 million, Lothrop said. The building last had a real market value of $612,350, according to Lincoln County property records.
Lothrop, who has owned and operated the tavern since 2010, closed the Underground unexpectedly the evening of Dec. 6, 2023, after a confrontation with a bartender but re-opened two weeks later.
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