The Village of Iola Board of Trustees denied a Class B alcohol beverage license to Thirsty Perch LLC on Tuesday, June 9, at a meeting in Iola Village Hall, citing convictions of LLC member Steve Steeber that trustees said rendered him unfit to hold such a license.

Trustee David Harper moved to deny the application, which the board considered a new license request under state law rather than a renewal. The motion passed 6-1, with Trustee Mike Richberg voting against it and Trustees Jim Rasmussen, Aaron Messier, Alan Bauer, Dave Harper, Pamela Parks and Village President Jennifer Schustek voting in favor.

Harper questioned Village Clerk Laura Krogwold during the meeting to review the case’s history. Last year, the board denied renewal of the Thirsty Perch LLC liquor license on the grounds that Steeber, a member of the LLC, had a lengthy arrest record relating to alcohol. At subsequent quasi-judicial proceedings, the board offered a deal that would have renewed the license if Sheri Miller and Steeber agreed to remove Steeber’s name from the LLC by Oct. 1, 2025. Miller and Steeber declined the offer.

Thirsty Perch LLC sued the village in Waupaca Circuit Court in July 2025, alleging improper proceedings. The circuit court upheld the board’s decision in August 2025. The LLC appealed the ruling to the Wisconsin Court of Appeals in October 2025. Village trustees were advised by the village attorney not to speak about the matter while the case was pending.

The business has not held a valid liquor license from the village since July 1, 2025. Under state law, the 2026 application was treated as a new application with no grandfathered provisions, such as distance requirements from a church. There is a Baptist church across the street. The filing deadline passed, but the clerk allowed Miller and Steeber opportunities to correct mistakes on multiple submissions. The application considered Tuesday night was the fourth.

Harper’s motion cited Steeber’s conviction record in detail as follows: non-criminal operating while intoxicated, first offense, violation March 19, 2023, conviction Aug. 20, 2025; misdemeanor resisting or obstructing, violation Dec. 3, 2023, conviction April 20, 2025; non-criminal reckless driving, violation Dec. 3, 2023, conviction April 20, 2025; ordinance disorderly conduct with a motor vehicle, violation Dec. 3, 2023, conviction April 20, 2025; and misdemeanor false swearing, violation June 3, 2024, conviction April 20, 2025. Harper noted that the false swearing conviction was unrelated to a liquor license application but that the others related to alcohol use. Steeber remained listed as a member or owner of the LLC, contrary to the terms of the deal offered the previous year.

The Thirsty Perch lost its Class B liquor license in June 2025 after the board voted against renewal following a public hearing, primarily due to Steeber’s record. The two-year effort to regain the license involved legal action, an appeal, and repeated new applications.

Several trustees argued against denial, saying it was not in the community’s best interest. They cited job losses, reduced village revenue, a divisive atmosphere that had not existed before, and the prospect of another vacant building. Supporters, including about a dozen letter writers and other residents, favored allowing the business to open.

Trustee Pamela Parks questioned whether it was appropriate to keep the building closed and noted the distinction between the liquor license and a separate music permit. Concerns about live music were not directly tied to the alcohol license decision. The trustee emphasized that an LLC is a joint entity under Wisconsin State Statute Chapter 125, so actions by one member affect the whole group for licensing purposes.

Trustee David Harper expressed bafflement that Miller and Steeber did not accept the previous year’s deal to remove Steeber’s name, noting that the license would likely have been granted if Miller were the sole member. The trustee said legal and accounting steps could have been taken to structure the business without economic harm to Steeber.

Wisconsin liquor licensing law gives municipalities broad discretion to deny licenses over criminal records

Wisconsin law grants villages and cities significant authority to deny or refuse to renew liquor licenses when an applicant or LLC member has a criminal record that calls into question their fitness to sell alcohol, under Chapter 125 of the Wisconsin Statutes.

Under the state’s primary alcohol beverage regulations, municipalities may reject applications if the applicant — including members of an LLC — has been convicted of offenses substantially related to the licensed activity. Key factors include alcohol-related violations such as operating while intoxicated, as well as crimes involving resisting or obstructing, disorderly conduct, and false swearing.

State statute § 125.04(5) requires that both individuals and entities such as LLCs meet strict qualifications. For LLCs, all members and managers generally must qualify individually. Municipalities can deny a license if a problematic member remains associated with the business, though the entity may avoid disqualification by terminating its relationship with the individual whose record creates the issue.

The law treats a liquor license as a privilege rather than a right. Boards may refuse issuance or renewal for cause, including lack of good character, habitual law violations, or any conduct demonstrating unfitness. After a denial or expiration, subsequent applications are considered new rather than renewals, giving local boards broader discretion and eliminating grandfathered provisions.

In practice, recent alcohol-related convictions weigh heavily in licensing decisions. While fair employment laws under Chapter 111 require that convictions be substantially related to the activity and allow consideration of rehabilitation, municipalities retain authority to protect public health, safety, and welfare when evaluating fitness.

The statutes also distinguish between the main Class B liquor license and separate permits, such as those for live music or individual operators’ licenses for bartenders. Concerns over issues like entertainment are often handled independently from the core alcohol sales license.

Publication requirements, filing deadlines, and opportunities to correct application deficiencies are also governed by Chapter 125. Local boards must generally provide notice and a hearing before denying or non-renewing a license.

These provisions formed the legal backdrop for the Village of Iola Board of Trustees’ 6-1 vote on Tuesday to deny a Class B license to Thirsty Perch LLC, where member Steve Steeber’s conviction record remained a central issue.

AI was used in researching information for this story.