Worcester's Café Neo will remain open through February

WORCESTER — Café Neo can serve patrons at least until March 1, while a lawsuit seeking to renew the popular Canal District bar’s lease proceeds through the court system, the city License Commission said Thursday morning at a hearing to discuss the bar’s lease and liquor license.

Café Neo sued its landlord, I.T.C. Realty Corp., in state Superior Court this fall, seeking to renew the lease at its 97 Millbury St. location and stay in business.

The owner of the popular bar, which is also known for its free Thanksgiving Day meals, contends that he and the landlord had a verbal agreement to renew the lease beyond its Jan. 31 expiration, but that the landlord backed out. 

I.T.C. Realty Corp. denies that any agreement was made. 

The issue was before the License Commission, whose meeting room was packed with Café Neo supporters, because the board oversees the liquor license associated with the bar.

I.T.C. had informed the commission that it would not be renewing the lease with Café Neo, and thus advised them not to renew its liquor license. 

But Robert White, a lawyer representing Café Neo, told the commission that the business had filed a preliminary injunction to allow it to remain in its current location. 

I.T.C.’s response to the preliminary injunction is due Friday, and White told commissioners he expected a hearing on the matter within the next two to three weeks. 

Furthermore, even if the preliminary injunction is not granted, Café Neo plans to exercise its right to remain at the location for 30 days as a holdover tenant, White said.

In other words, with a successful preliminary injunction or not, the bar will remain at 97 Millbury St. until March 1.

White also argued that a liquor license was necessary for the bar to operate and survive this period. 

“If it is not allowed to maintain its liquor license … there will be irreparable harm caused to Café Neo and essentially will put them out of business,” White said.

Deputy City Solicitor Alexandra Kalkounis said city policy was not to take any action during active litigation. 

Commissioners continued the hearing to the board’s March 9 meeting with the expectation that Café Neo representatives would report back before then if the preliminary injunction was granted by the court.