When the city of Lawrence approves special tax incentives for a project, it expects that business to be a source of pride, not embarrassment, for the community.

Recent news about The Cave, a nightclub located at The Oread hotel, indicates the city may need to consider new procedures to make sure facilities that receive tax incentives measure up to those expectations.

The Oread, located at 1200 Oread Ave., received more than $500,000 in public tax incentives in 2013 and is scheduled to receive additional tax breaks for another 15 years or more. With that in mind, it’s disappointing to learn that The Cave faces a $2,000 fine and a two-day suspension of its liquor license after being cited by the Kansas Alcoholic Beverage Control division for illegally advertising that it is serving free liquor.

Twitter messages point to liquor being given away at the club and paint an unflattering picture of alcohol abuse at the site. Police have been called to The Cave multiple times in response to problems in and near the club. At least one incident required the services of eight police units. The least taxpayers should expect from a business getting tax incentives is that it won’t create added public expenses for the local police department.

City commissioners have expressed concern about The Cave and have asked whether the city’s financial agreement with The Oread’s developers includes any provisions covering how the hotel conducts its businesses.

The city has various ways to measure its return on investment for public tax incentives. That return often is measured by how many jobs a project creates or how much the business eventually will contribute to the local tax base. Perhaps the city needs to consider some additional criteria requiring businesses that receive tax incentives to operate within the law and in a manner that doesn’t reflect poorly on both the business and the city that approved incentives to help support its enterprise.

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The focus right now is on The Cave, but the city and police department should be exercising better oversight of all the city’s drinking establishments, whether or not they have received tax incentives. Violations similar to those that occur at the Cave — underage drinking, fights, passing out, etc. — also occur at other locations.

Alcohol abuse among young people is a problem in Lawrence, and, just as the city wants safe apartment units for college students, we also must have bars that observe the rules.