The Loyal Legion, Southeast Portland's 99-tap Oregon beer bar, will close, effectively immediately, after learning their liquor license application had been delayed.

The bar, which debuted last week to long lines and heady anticipation, had been operating under a temporary license while waiting for their permanent application to be processed.

"I personally hold 13 different liquor licenses under my name," says owner Kurt Huffman, whose ChefStable group backs restaurants including Lardo, Gruner and Oven & Shaker. "We've never had an issue, ever, even in Old Town/Chinatown. Every restaurant we've ever opened, we get our license, just like clockwork."

But on Friday, Huffman learned that The Loyal Legion's application was still on hold.

"This is something that we're still learning about," Huffman says. "If you're in a neighborhood that has a certain number of arrests over a 12-month period, then by law you have to appear in front of the OLCC commission and essentially tell them that you are going to be a good business."

According to Huffman, the area within a 500-foot radius of The Loyal Legion, a popular drinking and dining neighborhood that includes Trifecta, Voicebox karaoke, The Loyal Legion, Star Bar, Dig a Pony, Oso, Kachka and the upcoming Bit House Saloon, has seen some 124 "incidents" in the past year. That's more than enough for the city to label the neighborhood a "problem area," requiring liquor license applicants to make personal appearances before the OLCC commission.

The next available spot on the OLCC's docket? August 28th.

"Personally, I think The Loyal Legion will help improve the neighborhood and reduce the number of arrests," says Ken Forkish, whose Trifecta restaurant sits next door. "The bad behavior isn't from my patrons or the Loyal Legion's future patrons ... if anything, the Loyal Legion opening is a step in the right direction for this historic, center-of-Portland area on the rise."

Until then, Huffman hopes to use the remaining days on The Loyal Legion's temporary liquor license to open the bar each Saturday. ChefStable's catering and events coordinators are working to secure private parties for the other days. And Huffman hopes to secure shifts for the bar's 25 employees at other ChefStable venues.

"These are people that left full-time jobs and that took a risk with us with this whole $15 an hour model," Huffman says. "It's such a huge disappointment to have to do this. But we have to respect the letter of the law."

The closure also means a pause in the bar's unusual experiments with pricing and wages. The Loyal Legion charges $6 a beer, regardless of size, including tip, and pays employees $15 an hour.

"We only have three days to look at, but in general, we got great feedback about (not tipping), Huffman says. "Most people would leave money, and when our servers would go, 'Hey, tips included in the price,' they would raise their eyebrows, and most of them would not tip.

"Except the (restaurant) industry people. Industry people that came in, they thought, 'That is stupid' and tipped anyway. Because it's the culture. 100 percent of servers tipped."

-- Michael Russell