Madhatters Tavern is no longer planning on reopening on State Street due to heavy neighborhood opposition.

According to City Council President Mike Verveer, District 4, Ted Gervasi, who owned Madhatters, said he decided to withdraw his liquor license application Friday because he felt unwelcome at the new location.

Verveer made the motion recently to transfer Gervasi's liquor license to 651 State St. on the conditions capacity be limited to 150, food is served and alcohol is not served past one hour prior to bar time.

"I stand by my vote," Verveer said. "[Gervasi] lost his lease last year after being in business for 20 years on Lake and University, so I decided to give him a chance."

However, since the Alcohol License Review Committee's decision in favor of Madhatters, neighborhood opposition has grown fierce. Verveer said Gervasi received a number of complaints from property and business owners expressing their disapproval of him moving in.

Verveer said most of the time, when the ALRC makes a formal recommendation the City Council goes along with its decision, but the council has the final word in the decision.

However, Verveer predicted Tuesday's City Council meeting concerning Madhatters to be quite the battle. He said many opposed residents and business owners planned on showing up to testify against the license.

"Opposition all came down to location, location, location," Verveer said. "It was nothing against [Gervasi] personally."

He explained many residents and businessmen feel another bar on the 600 block of State Street would diminish the quality of life by increasing crime and violence. The Capitol Neighborhood Association formally opposed the opening of Madhatters for such reasons.

"The CNA does not support Madhatters opening at 651 State St.," said Ledell Zellers, president of the CNA. "A peer review scientific study shows that the density of alcohol licenses are correlated with crime and violence."

Despite Verveer's support for Gervasi's move, he said the owner made a wise decision in this situation.

"Upon final analysis, I think Gervasi made the right call, and I am relieved that he withdrew from quite a battle," Verveer said.

He added Gervasi would continue to look for a new location in downtown Madison, and Madhatters could possibly find a home on the new University Square development opening next year.

Verveer said 651 State St. may not be vacant for long, however, as there is talk of an Italian restaurant planning on negotiating a lease in the near future.