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A new sushi restaurant plans to open Saturday on State Street, even though it cannot get a liquor license.

Xi Wang said she has invested $300,000 into the former American Apparel location at 502 State St., which is owned by her cousin.

Besides sushi, Koi Sushi will serve teriyaki and hibachi as well as Chinese food. It won't serve alcohol, at least not at first, since Madison’s Alcohol License Review Committee has denied Wang a liquor license.

"I cannot believe it," Wang said. "I can't do anything."

Wang, 36, said she is paying her cousin, Jiang Jing Xun, who owns the building, $10,800 per month to lease the space.

Xun owns the buildings that house many Chinese and Japanese restaurants, including the sushi restaurant Edo on Park Street, and the Chinese restaurant Ichiban, also on Park Street.

He also runs a couple of restaurants -- Soga and Osaka House across the street from each other on State Street. He also owns the building that houses Osaka House.

The city's denial is a victory for Mayor Paul Soglin’s attempt to preserve retail in the Downtown area by limiting alcohol licenses. "It's not fair to me," Wang said.