Colonia Country Club liquor license becomes an issue

by Sergio Bichao on Jun 14th | Email

Colonia Country Club in Woodbridge. Staff file photo: Jason Towlen

WOODBRIDGE, NJ -- Controversy over the sale of the Colonia Country Club continues with the club set to appear before the Township Council Tuesday evening to answer charges it violated state rules governing its liquor license.

The charges were filed on Friday by Township Clerk John Mitch who alleges the club “improperly turned over” its liquor license to a shell company. The club could have its license suspended or revoked if the council, which acts as the township's Alcoholic Beverage Control board, agrees with the charges.

The move by the clerk comes on the heels of club member Matthew Lonuzzi closing on the more than $6 million purchase of the 104-acre golf course and club on May 26.

The sale was fiercely opposed by Mayor John E. McCormac, who contends that Lonuzzi wants to build on the property. The Brooklyn real estate developer denies the charge.

Club members rejected the township's offer to buy the club for as much as $8 million. After members voted to accept Lonuzzi's offer in April, township lawyers initiated condemnation proceedings to acquire the club through eminent domain. McCormac has said he's be willing to buy the club's development rights from Lonuzzi..

According to Mitch's complaint, while the club transferred its assets to a Lonuzzi's ML Colonia Operations, the liquor license was not part of the sale. Before a license can be transferred, the new owners have to apply to the township for approval. Business owners, including silent partners, have be investigated to see whether they're qualified to hold a license.

The township's complaint says the club brought in a front company called ML Colonia Beverage Management, which is not owned by ML Colonia, to run the food and beverage operations. The convoluted agreements between the three entities call for the club to pay its own owners with the proceeds from the beverage company and for the club to then pay the beverage company with the proceeds that company collects.

“Because licensee (Colonia Country Club) has no obligation to make any payments to managing agent for its services, managing agent (ML Colonia Beverage) has a direct financial incentive in the profitability of the country club's liquor business,” the complaint says. “By leasing out the license to the managing agent, the managing agent is acting as a front for an undisclosed beneficial interest in licensee's license.”

Lonuzzi did not return a request left at his business for comment. Club member Leslie Vetland, who is listed as the sole owner of ML Colonia Beverage, could not be reached.

The hearing will begin after the council's 7 p.m. public meeting at the Municipal Building.