Newport Allows Hotel Operated by Mayor to Continue to do Business Without Liquor License

Newport Allows Hotel Operated by Mayor to Continue to do Business Without Liquor License

This week, GoLocalProv was first to report that the hotel managed by new Newport Mayor Charlie Holder was being brought before the Newport Board of License Commissioners — for operating without a liquor license. 

Holder is the head of operations at Gardiner House, one of the city’s newest hotels situated on Lee’s Wharf off of Thames Street. 

On Wednesday, the Board of License Commissioners had a “show cause” hearing for Gardiner House — and continued the matter to the next meeting, contingent on the Gardiner Hotel getting the necessary approval from the Rhode Island Division of Taxation. 

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While it has been operating without a valid liquor license since December 1, 2024, the City Solicitor explained that Newport has been allowing it to continue to operate "in good faith."

It is unclear how the city can legally allow a business to operate without a license. 

 

Hotel Allowed to Operate Without License 

As Chair of the Board of Licences Commissioners, Holder recused himself from the agenda item on Wednesday night. 

City Solicitor Christopher Behan recommended that the matter be “continued.” 

“My recommendation would be based on my conversation with counsel for the license holder. After we grant these liquor licenses at the beginning of December…there are a few license holders each year, four or five or so, who for any number of reasons may not have met all the conditions,” said Behan. 

“So in this particular case, they need clearance from the Division of Taxation,” Behan added. “They’re working on that, and they actually believe that they’ll have that clearance in a couple of days. So I would just move to continued this at the next council meeting and they should be in compliance at that time.”

But before the matter was continued, City Councilor David Carlin asked how they could be operational without a legal license. 

“Are [they] permitted to do business from [when] their business license expired on December 1 until now?” asked Carlin. 

“In the true sense of the law, they don’t technically have a license, they haven’t picked it up yet. But over the years, these licenses, they become a matter of business to apply and continue….seamlessly operating,” said Behan.

“So when we find a business has not picked up its license, I would say the most common cause is the Division of Taxation clearance. We do allow them to continue as long as they’re doing so moving forward in good faith and that’s usually communicated to us…so yes, we do allow it," said Behan. "A lot of them have employees, people who are dependent on work.”

The Gardiner Hotel’s counsel, David Martland, then addressed the board. 

“I do have every confidence this will be resolved. I did speak with the Division of Taxation officials earlier today and I believe all the appropriate filings are in there, they’re being reviewed,” said Martland. 

“I do have every confidence…that’s why I requested that it be continued to the next meeting,” Martland added.