Otto’s Niteclub and Underground was ordered to pay $750 to the city of DeKalb plus court fees Tuesday for violating Chapter 38 of the DeKalb Municipal Code.

On Nov. 21, 2008, Otto’s, 118 E. Lincoln Highway, advertised that patrons could pay $8 for a cup to have an unlimited number of drinks from a keg of beer. Otto’s also advertised a sign that read “Cuervo shots courtesy of DOT DOT DOT” which promoted free shots of tequila to patrons.

Both of these offenses are in violation of Section 38.30. The “Happy Hour Prohibited” laws state no retail licensee or employee or agent of such licensee can “sell, offer to sell or serve to any person an unlimited number of drinks of alcoholic liquor during any set period of time for a fixed price, except at private functions not open to the general public.” Section 38.30 also states that an establishment cannot “advertise or promote in any way whether on or off the licensed premises,” that which has been prohibited in other parts of Chapter 38.

When asked who was in charge of this advertising by DeKalb Mayor and Liquor Commissioner Kris Povlsen, Ottos’s owner Patrick Looney said it was the band that was playing that night.

“The whole thing was initiated by the band,” Looney said. “They were trying to get people in early.”

Looney said the Otto’s employees thought that since the band was paying for the alcohol, it was fine to be giving it out as they did. He said they only gave out about two shots when the band realized they needed to pay $4 per shot. Looney said the show was a flop and the crowd was small, despite the advertisements for free alcohol.

City Attorney Norma Guess said the city came to this penalty after evaluating the club’s relatively clean record. Punishment for the offenses could have been as severe as a suspension or revocation of its Class A liquor license.

DeKalb Police Chief Bill Feithen said he would suggest that Looney sit down with his employees and go over all the parts of Chapter 38 to make sure this type of thing doesn’t happen again.

Povlsen agreed and added that if he were in charge of the business, he would have trained the employees better.

“If these were my people, I would have to make sure they know the law,” Povlsen said.

Otto’s has until April 28 to pay the $750 to the city and the additional $150 to pay for the court reporter and other fees.