Guests at Grotto Bay Hotel will have to travel further than the nearest convenience store if they want to stock up on beer and wine.

An application to sell beer and wine at Tony's Fine Foods in Bailey's Bay was denied by the liquor licensing board yesterday after objectors won their petition.

The Hamilton Parish location, formerly known as Enterprise Grocery, has a history of violence and disturbances.

And residents said once the alcohol sales were back, the "undesirables'' would return.

In his application, Antonio Esposito, co-owner of Tony's, proposed `controlled sales'. He felt that by restricting sales to only wine and non-chilled beer sold in no less than six-packs, the "undesirable'' element would be left uninterested.

He told Senior Magistrate Archibald Warner, chairman of the three-person Liquor Licensing Board, the goal of renewed liquor sales was to address a customer demand demonstrated by Grotto Bay guests.

He said the guests have small refrigerators in their rooms and they often like to stock the room during vacation.

But after customers buy the "munchies and smaller goods'' they ask for wine and beer, said Mr. Esposito.

He directs them to the nearest full-service grocer, MarketPlace, and said, "So I lose out on the entire package.'' Area resident Linda Horton was the most forceful objector to a liquor licence for Tony's Fine Foods and said the location would attract "undesirables''.

Mrs. Horton referred to several past incidents, including the robbery of staff.

But during the Liquor Licensing Board hearing, Mr. Esposito pleaded for a "level playing field''.

Mrs. Horton told Senior Magistrate Archibald Warner: "I don't think that alcohol helps any situation. I just don't want to introduce what is not a problem (to the community).'' Mr. Esposito said the stigma of the store would disappear under the new management.

"My wife and I care a lot about the community. We have a two-year-old daughter who we want to grow up in a good community.

"We consider ourselves part of the community. The residents have made us feel like a big family down in Bailey's Bay.

"We can't guarantee what's going to happen in the future but we can guarantee it will not be from our lack of vigilance,'' he said.

During that hearing, Mrs. Horton accused Mr. Esposito of not understanding Bermuda's culture and pointed out that he is from Canada and has only been in Bermuda for a short time.

Speaking with The Royal Gazette after the hearing, Mr. Esposito said: "I think it doesn't matter where you come from. If you care about people, then you care about people.'' He said when the Bailey's Bay youth cricket team approached him, he helped by donating money for new equipment.

"We're a small shop but we try to do our service,'' he said.

After the application failed, Mr. Esposito said: "I don't feel any animosity toward anyone. Everyone has the right to object.

"You have to stick to the issue because you can't make it personal or else the issue will never get solved. I understand other people's concern,'' he said.

The owners of Tony's Fine Foods are deciding what to do next. The attorney said they can appeal or reapply but the failed application will not cripple the business.

"It was not a do-or-die thing,'' said Mr. Esposito.