Zoot Suit

The music may be over for popular be-bop boite.

By Scott Farmelant

After being open only a few months, Zoot snared best jazz spot in Philadelphia magazine's annual "Best Of" awards. Now the "classy newcomer on Head House Square" may go kaput by month's end.

Call Zoot the little club that couldn't.

In the meantime, Zoot will stop selling liquor and close down for a week beginning Oct. 3.

Zoot's problems stem from massive fiscal disagreements between club management, landlords and the owner of Zoot's liquor license. As things stand, the matter is headed to court amid countercharges of dirty dealings between investors.

Bottom line, though, is that Zoot hasn't paid its landlord any rent since opening, state police have told the club to stop selling liquor, and all parties are crying foul.

State police informed Zoot manager Al Teti that license problems would make it necessary for the club to halt the sale of alcohol. Teti says Zoot "will absolutely comply" with a state Liquor Control Board (LCB) advisory to cease liquor sales.

Zoot opened in March under the management of Carl Notter III, the son of a city police officer, and Teti. The cop, Notter Jr., said he invested $50,000 in the club as a graduation gift to his son. By all accounts, the mellow jazz club succeeded, as evidenced by the kudo from Philly Mag.

Business agreements fared worse.

After starting discussions in June 1994, the parties — the Notters, along with Gloria Levin and Michael DiPaolo — agreed to form 406-408 S. 2nd Street Inc., under which Notter III, DiPaolo and Levin would share a one-third interest in the business.

DiPaolo and Levin promised to supply furniture and restaurant equipment, as well as buy a liquor license from former tenant John Rorer. The Notters agreed to pitch in $50,000 toward club start-up costs.

According to a draft civil suit obtained by City Paper that may soon be filed by DiPaolo and Levin, the relationship soured in January. At the time, the Notters asked DiPaolo and Levin to bail out of the partnership. While details are disputed and the partnership still exists on paper, both sides agree no one signed a lease before Zoot opened its doors.

DiPaolo and Levin (who are landlords under the corporate name New Market Mall Venture) argue the Notters altered their original lease and subsequently refused to bargain in good faith. They also say the Notters owe $27,000 in back rent ($3,000 per month) plus some $6,250 in real estate taxes owed to the landlord, insurance bills and common area costs.

The Notters counter those charges, saying they want to sign a lease and pay their rent but will not do so until New Market delivers on original promises. As such, Zoot has placed eight month's worth of rent in escrow, says Notter Jr.

Not surprisingly, both sides blame the other.

"They've been in business for nine months and they haven't given us a dime," says DiPaolo. "It's unheard of."

"They pay everyone else, their vendors, their help... but they've never paid their landlord," adds Levin.

"I have tried everything I could do to come to an agreement with Mike [DiPaolo] and Gloria [Levin]," says Notter Jr. "We've come to the table at least five times and they would change their decision every time. The bottom line is these people are trying to rape my son."

Notter notes he will pay overdue rent when both sides settle the lease and partnership issue.

News of Zoot's problems troubles one jazz buff.

"Anytime you lose any kind of major club that has been dedicated [to jazz], it has an influence," says Mark Huxsoll, director of the Kardon Northeast center at the Settlement Music School. "A lot of people — musicians, fans — lose."

While the Notter's/ New Market matter seems headed to the Court of Common Pleas, Zoot faces more woes over its liquor license.

Susan Harmon, an attorney representing Rorer, says the Notters have reneged on the liquor license agreement. Notter Jr., under the license deal, placed $21,000 in an escrow account held by Harmon and Attorney Neil Liebman who represented the Notters.

The deal, according to Harmon, would become final contingent upon the payment of delinquent liquor license taxes and the execution of a valid lease. Because the lease has stalled, says Harmon, Rorer returned the license to the Liquor Control Board in Harrisburg.

State Police Trooper Bettina Bunting, an LCB supervisor, says she has advised Teti that Zoot cannot sell booze until they own Rorer's license.

"If we find them selling liquor, we will treat them as a speakeasy," says Bunting.

Teti says the club will shut down for a week.

"Our plans are going to reopen as a bring-your-own-bottle, espresso, all ages club," says Teti.

In the meantime, says Notter Jr., Zoot's future looks bleak.

"Right now, it looks like we're going to have to close our doors."

Zoot's all folks?