Percevecz said they would like to finish out their five-year plan for Tiki Shack but agreed to seeking an earlier end to their Jan. 31, 2018, lease. Before the vote, he said they were worried about making their $11,178 per month rent.

“We can’t operate and make enough money to pay our bills and lease (at Tiki Shack) without the alcohol license,” Percevecz said.

During past discussions, the licensing committee honed in on issues stemming from Tiki Shack, located at 124 State St., including the percentage of food and alcohol sales. Ald. Mike Verveer, District 4, expressed his concern and frustration with the applicants.

“I think (the owners have) gotten away with frankly … not ever adhering to the condition on (their) license,” said Verveer.

To be considered a restaurant in Madison, alcohol must account for less than 50 percent of all sales. Preliminary audit results show the Tiki Shack had an average of 46 percent in alcohol sales over a 12-month period, though in some months, alcohol made up the majority of sales.

Those concerns, among others, led to an ultimatum from Zilavy who warned at the committee’s May 17 meeting that she would like to see Tiki Shack’s license surrendered if the city decides to grant the Hail Mary a license.

Madison's City Council will make a final decision on the licenses at its meeting on June 6.

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