A San Jose restaurateur wants to take over Krazy Koyote Bar and
Grill, a local hotspot under fire after a series of stabbings,
shootings and fights in its parking lot.
Gilroy – A San Jose restaurateur wants to take over Krazy Koyote Bar and Grill, a local hotspot under fire after a series of stabbings, shootings and fights in its parking lot.
But the bar’s license can’t be transferred until state regulators finish investigating a gang clash July 29 that left two stabbed and two shot, nor until they finalize what penalties, if any, Krazy Koyote faces in connection with a November stabbing.
“We can’t stop them from applying,” said Karyn Nielsen, a district administrator for the California Department of Alcoholic Beverage Control. “But no transfer can go through until the pending disciplinary action is resolved.”
Wednesday night, Krazy Koyote managers posted an official ABC notice that co-owners Marcos and George Headley have applied to transfer the bar to Juan Manuel M. Muñoz Muñoz, the owner of El Grullo No. 7 and three El Rincon taquerias in San Jose. One patron who was present said bartenders were stunned, and hadn’t been notified of the potential transfer. Under Muñoz’ ownership, the bar would become ‘Diamante Bar and Restaurante,’ the notice read.
“It’d be a cool place for the Gilroy neighborhood,” said Muñoz, when reached at one of his San Jose taquerias Thursday. “It’s a restaurant during the day, with parties at night.”
Co-owner Marcos Headley could not be reached for comment Thursday. The Headleys have roughly two weeks from Wednesday to respond to the ABC’s recommended penalties related to the November incident, said Nielsen, and can either agree to the penalties or contest them in a hearing. Nielsen said she could not specify what penalties ABC recommended until the bar responded.
Krazy Koyote could face city penalties well before ABC acts: Gilroy police have already compiled a list of violent incidents outside the popular bar for Chief Gregg Giusiana’s review, said Sgt. Jim Gillio, the department spokesperson. Giusiana will review that list and decide what penalties, if any, to recommend to City Administrator Jay Baksa, who could then put the issue to City Council. Ultimately, the city could opt to suspend or revoke the bar’s license.
Local politicians have widely panned the bar’s reputation for gang violence, despite owners’ insistence that they’ve done all they can to combat crime: hiring extra security and notifying police of their events, for example. Since November, there have been three gang-related stabbings and one significant fight in the bar’s parking lot; during the latter, police shot powdery pepper-balls into the crowd. Pastor Mark Wilson of the neighboring Foothills Foursquare Church, which rents space to the bar, has been harshly critical of Krazy Koyote, but says the church can’t evict the bar, bound by a pre-existing lease.
The church’s attorney, Jeffry Tone, could not be reached by press time to discuss how an ownership transfer might affect the lease.
