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HomeMy WebLinkAbout2.e. Liquor Code Update EXECUTIVE SUMMARY City Council Work Session: June 8th, 2015 AGENDA ITEM: Liquor Ordinance Update AGENDA SECTION: Discussion PREPARED BY: Clarissa Hadler, City Clerk AGENDA NO. 2.e. ATTACHMENTS: Draft Liquor Ordinance APPROVED BY: ddj RECOMMENDED ACTION: Discussion only. ISSUE The Liquor Code was last amended in 2007. Due to changes in state law staff suggests a thorough review of the liquor code to bring it in line with state statute, as well as allow for easier implementation of the code. SUMMARY In general, the majority of suggested changes to the liquor code are to bring it in-line with Minnesota statute. Some changes are suggested to create consistency in the code. The following list summarizes significant changes to the liquor code. 3-1-3-1-B : Alcohol Content in Wine – Wine License – City Code currently allows for just 14% alcohol by volume. State allows for up to 24% alcohol by volume. Staff recommends changing to 24% to bring code in-line with statute. 3-1-3-1-B : Food Requirement for Wine/Beer license – City Code currently requires 60%. Staff recommends changing to 51% to be consistent with the rest of City Code food requirements. 3-1-3-1-F : Added golf courses to 3.2% malt Liquor license. City Code currently allows for 3.2 licenses to be granted only to clubs, restaurants, and hotels where food is prepared. We’ve expanded this to include golf courses. Rich Valley Golf Club has held a 3.2% malt liquor license since 2005. 3-1-3-1-H : Added On-Sale Brewer Taproom License. 3-1-3-1-I : Added Off-Sale Small Brewer License. 3-1-3-1-J : Added Brew Pub Off-Sale Intoxicating License. H/I/J : State statute now allows municipalities to authorize taprooms and brew pubs to conduct Sunday On- and Off-sales (off-sale of growlers only) with no additional license needed. Council would have to add text of the code if they did not wish to allow Sunday sales. 3-1-3-1-K : Added Microdistillery Cocktail Room License. 3-1-3-1-O : Added Temporary Brewer On-Sale License. 2 3-1-3-1-P : Added One-day Consumption and Display Permit. This would allow non-profit organizations to allow for consumption and display (“BYOB”) at a social event. This item has been on the Fee Schedule for a number of years, but not enabled by legislation. 3-1-4-1 : Contents of Initial Applications. Staff reviewed the information that was actually utilized and necessary for the purpose of licensing with Chief of Police Scott and the City Attorney Tietjen and removed that information that was deemed unnecessary or excessive. 3-1-4-4 : Amendment Applications. Language clarifies earlier code. New language allows that an amendment be filed only with changes of ownership that result in any individual acquiring an interest of greater than 10% of the corporation. This is consistent with state statute requirements for notification. 3-1-5 : License Fees: There were discrepancies between the code and the fee resolution, so the code was changed to reference the fee resolution where possible. Investigation fees, which are complicated by in-state vs out-state status, and require a deposit, retained their values within the code itself. Also, the current code calls for a $350 fee for in-state investigations. Staff recommends changing this to the state-allowed $500. Removed: Corporations, Partnerships or Associations: This section created redundancies with the Amendment section. Information was moved to other sections of the code. 3-1-15 City Attorney Tietjen advised the addition of minimum civil penalties (paragraph B), as well as paragraph E, which allows the Council to immediately suspend a license in the event of a lapse in financial responsibility. Other Issues: Sunday On-Sale Start Time – Legislation has recently passed that will allow Sunday on-sale intoxicating sales to begin at 8 a.m. We currently do not state times in City Code that is more restrictive than state statute, so we would need to add that if Council does not wish to allow earlier sales on Sunday. Staff recommends following state statute. License Fees – State statute does not currently restrict what may be charged for Brewer Taproom, Brew Pubs and Cocktail room licenses. The majority of cities that I researched have them priced from $500 - $1000. Staff recommends a fee of $750, which makes it competitive in the market and is comparable to the city’s current fee for a Wine / Strong Beer License. For the off-sale growlers, most cities have priced it at $200, which is comparable to many off-sale intoxicating licenses. Our current off-sale intoxicating license is also $200. Council will need to approve Amendment to the Fee Resolution when approving changes to Liquor Code. CONCLUSION Staff is inviting Council feedback on the following recommended items and any other suggested changes to the liquor code at this time. 1 Chapter1 LIQUOR REGULATIONS 3-1- 1 1 PROVISIONS OF STATE LAW ADOPTED: new 2 DEFINITIONS 3-1- 2 3 LICENSES REQUIRED: 3-1 LICENSE TYPES 3-2 APPORTIONMENT OF LICENSES 3-1- 3 4 LICENSE APPLICATIONS: 3-1- 3-1 4-1 CONTENTS OF INITIAL APPLICATIONS: 3-1- 3-3 4-2 EXECUTION OF APPLICATION: 3-1- 3-2 4-3 RENEWAL APPLICATIONS: 3-1- 3-4 4-4 AMENDMENT APPLICATION: 3-1- 4 5 LICENSE FEES: 3-1- 5 6 GRANTING OF LICENSES: 3-1- 6 7 PERSONS INELIGIBLE FOR LICENSE: 3-1- 7 8 PLACES INELIGIBLE FOR LICENSE: 3-1- 8 9 CONDITIONS OF LICENSE: 3-1- 12 10 RESTRICTIONS INVOLVING MINORS: 3-1- 9 CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS: 3-1- 10 SPECIAL CONDITIONS: (moved to Conditions of License) 3-1- 11 11 LIABILITY INSURANCE: 3-1- 13 12 TEMPORARY LICENSES: 3-1- 15 13 ONSALE LICENSE ON PUBLIC PREMISES: 3-1- 16 14 OUTDOOR PATIOS AND DECKS: 3-1- 14 15 REVOCATION OR SUSPENSION OF LICENSE: 3-1- new 16 CONSUMPTION IN PUBLIC PLACES 3-1-1 : PROVISIONS OF STATE LAW ADOPTED: Except to the extent the provisions of this chapter are more restrictive, the provisions of Minnesota statutes, chapter 340A, as amended from time to time, relating to the definition of terms, licensing, consumption, sales, hours of sale, and all other matters pertaining to the retail sale, distribution and consumption of intoxicating liquor and 3.2 percent malt liquor are adopted and made a part of this chapter as if set out in full. 3-1-2 : DEFINITIONS For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ALCOHOLIC BEVERAGE. Any beverage containing more than .5% alcohol by volume. 2 APPLICANT means any person making an application for a license under this chapter. CLUB As defined in M.S. Chapter 340A, as amended. COMMISSIONER means the state commissioner of public safety. HOTEL. An establishment where, in consideration of payment therefor, food and lodging are regularly furnished to transients and which has a resident proprietor or manager; a dining room serving the general public at tables and having facilities for seating at least 30 guests at one time; and at least 25 guest rooms. INTOXICATING LIQUOR. Ethyl alcohol, distilled, fermented, spirituous, vinous and malt beverages containing more than 3.2% of alcohol by weight. LICENSE means a document, issued by the city, permitting an applicant to carry on and transact the business stated therein. LICENSEE means an applicant who, pursuant to the approved application, holds a valid, current, unexpired license, which has neither been revoked nor is then under suspension, from the city for carrying on the business stated therein. PREMISES means the licenses premises as described in the issued license. In the case of a restaurant or a club licensed for on-sales of alcoholic beverages and located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated. MALT LIQUOR means any beer, ale, or other beverage made from malt by fermentation and containing not less than one-half of one percent alcohol by volume. OFF-SALE means the sale of alcoholic beverages in original packages for consumption off the licensed premises only. OPERATING OFFICER, MANAGER or AGENT. A natural person, who is a resident of the state of Minnesota, appointed in writing to take full responsibility for the conduct of the licensed premises and serve as agent for service of notices and other process relating to the license. SALE, SELL and SOLD. Include all barters and all manners or means of furnishing intoxicating and 3.2% malt liquors or wine in violation or evasion of law and also include the usual meaning of the terms. THREE AND TWO-TENTHS PERCENT (3.2%) MALT LIQUOR. Malt liquor containing not less than 0.5% alcohol by volume nor more than 3.2% alcohol by weight. TOTAL REVENUES. All revenues from the sale of food, alcoholic beverages and nonalcoholic beverages for consumption on the premises during the hours when the sale of alcoholic beverages is allowed. WINE. A beverage made by normal alcoholic fermentation of grapes, grape juice, other fruits or honey or a beverage made from other agricultural products, imitation wine, compounds sold as wine, vermouth, cider, perry, and sake, containing not less than 0.5% nor more than 24% alcohol by volume for nonindustrial use. 3-1-32 : LICENSES REQUIRED: A. General Requirement: No person, except as provided in Minnesota statutes, section 340A.301, subdivisions 1 and 8, and section 340A.510, regarding samples at off-sale establishments, and manufacturers and wholesalers to the extent authorized by law, shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating liquor, 3.2 percent malt liquor or wine without first having received a license to do so as provided in this chapter; nor shall any private club or public place, directly 3 or indirectly, or upon any pretense or by any device, allow the consumption or display of intoxicating liquor or serve any liquid for the purpose of mixing with intoxicating liquor without first obtaining a license from the city as provided in this chapter. 3-1-3-1 : LICENSE TYPES: A. On-Sale Intoxicating Liquor Licenses: On-sale licenses shall be issued only to hotels, restaurants and exclusive liquor stores and shall permit on-sale of liquor or wine. On-sale Intoxicating Liquor licenses shall be of two (2) classes. 1. Class B licenses may be issued only to the following; a. Restaurants where fifty one percent (51%) or more of total revenues are derived from the sale of food and nonalcoholic beverages for consumption on the premises during hours when the sale of alcoholic beverages is allowed. b. Restaurants operated in conjunction with a bowling center, movie theater, or live theater, where twenty five percent (25%) or more of total revenues are derived from the sale of food and nonalcoholic beverages for consumption on the premises during hours when the sale of alcoholic beverages is allowed. c. hotels as defined in MS 340A.101 Subd. 13. 2. Class A licenses may be issued to hotels, restaurants and exclusive liquor stores and are unrestricted as to the percentage of revenues derived from the sale of food and nonalcoholic beverages. B. C.On-Sale Wine Licenses: On-sale wine licenses shall be issued only to restaurants meeting the qualifications of Minnesota statutes, section 340A.404, subdivision 5, and and whose total revenues are at least fifty-one (51%) attributable to the sale of food and shall permit only the sale of wine not exceeding fourteen percent (14%) twenty-four percent (24%) alcohol by volume, for consumption on the licensed premises only, in conjunction with the sale of food. A holder of an on-sale wine license who is also licensed to sell 3.2 percent malt liquors at on-sale and whose total revenues are at least sixty percent (60%) attributable to the sale of food may sell intoxicating malt liquor at on-sale without an additional license. C. D.Special Club On-Sale Intoxicating Licenses: Special Club on-sale intoxicating liquor licenses shall be issued only to clubs or congressionally chartered veterans organizations which meet the qualifications of Minnesota statutes, section 340A.404, subdivision 1. have been in existence for three (3) years or more and to congressionally chartered veterans' organizations which have been in existence for three (3) years or more. D. E.Special License For Sunday Sales: A special license authorizing sales on Sunday in conjunction with the serving of food may be issued to any hotel, restaurant or club which has facilities for serving at least thirty (30) guests at one time, and which has an on-sale license. E. F.Off-Sale Intoxicating Liquor Licenses: Off-sale intoxicating liquor licenses shall permit the sale of alcoholic beverages in original packages for consumption off the premises only. G.Bottle Club Permits: Bottle club permits may be issued to bottle clubs and business establishments in accordance with the provisions of Minnesota statutes, section 340A.414, for the consumption or display of intoxicating liquor or the serving of any liquid for the purpose of mixing with intoxicating liquor. F. On-Sale 3.2 Percent Malt Liquor Licenses: On-sale 3.2 percent malt liquor licenses may be granted only to clubs, restaurants and hotels where food is prepared and served for 4 consumption on the premises, and golf courses. On-sale 3.2 percent malt liquor licenses shall permit the sale for consumption on the premises only. G. I.Off-Sale 3.2 Percent Malt Liquor Licenses: Off-sale 3.2 percent malt liquor licenses shall permit the sale of 3.2 percent malt liquor at retail in the original package for consumption off the premises only. H. On-Sale Brewer Taproom License: A brewer taproom license may be issued to a brewer for on- sale consumption of the malt liquor manufactured at the adjoining brewery pursuant to the requirements of Minnesota Statute 340A, but only to the extent permitted by City Code and Zoning Ordinance. Council may authorize a taproom to conduct on-sale business on Sundays with no additional license needed. I. Off-Sale Small Brewer License: An off-sale small brewer license may be issued to a brewer who has a license from the Commissioner in accordance with the requirements of Minnesota Statute 340A. Council may authorize a Small Brewer to conduct sales of growlers only at off-sale on Sundays with no additional license needed. J. Brew Pub Off-Sale Intoxicating Liquor License: An off-sale brew pub license may be issued to a restaurant who has a license from the Commissioner in accordance with the requirements of Minnesota Statute 340A. Council may authorize a Brew Pub to conduct sales of growlers only at off-sale on Sundays with no additional license needed. K. Microdistillery Cocktail Room License: A microdistillery cocktail room license may be issued to a holder of a microdistillery licnese from the Commissioner in accordance with the requirements of Minnesota Statute 340A. L. Public Premises License: On-sale intoxicating liquor licenses for events taking place at a sports, convention or cultural facility owned by the city may be granted as authorized by section 3-1-13 of this chapter. G.M. Temporary On-Sale 3.2 Percent Malt Liquor License: Temporary 3.2 percent malt liquor licenses may be granted to a club or charitable, religious, or nonprofit organization as authorized by section 3-1-123 of this chapter. H.N. K.Temporary On-Sale Intoxicating Liquor License: Temporary on-sale intoxicating liquor licenses may be granted as authorized by section 3-1-123 of this chapter. O. Temporary Brewer On-Sale License: Temporary on-sale intoxicating liquor licenses may be granted as authorized by section 3-1-123 of this chapter. P. M.City Owned Facilities: On-sale intoxicating liquor licenses for events taking place at a sports, convention or cultural facility owned by the city may be granted as authorized by section 3-1-15 of this chapter.One-day Consumption and Display Permit: A one-day permit for the consumption and display of intoxicating liquor may be granted as authorized by section 3-1-12 of this chapter. Q. Consumption and Display Permits: Consumption and display permits may be approved by Council for issuance by the Commissioner in accordance with the provisions of Minnesota statutes, section 340A.414, for the consumption or display of intoxicating liquor or the serving of any liquid for the purpose of mixing with intoxicating liquor. 3-1-3-2L APPORTIONMENT OF INTOXICATING LIQUOR LICENSES: 5 A1. Class B intoxicating liquor licenses will be issued within the total liquor license limits established in Minnesota statutes, section 340A.4134, as amended. B2. Two (2) Cclass A intoxicating liquor licenses may be issued within the city of Rosemount. C3. Off-sale intoxicating liquor licenses may be issued dependent on the population of the city of Rosemount. One off-sale liquor license may be issued for each six thousand five hundred (6,500) of city population attained, as determined by the most recent metropolitan council population estimates. On July 1, 2006, tThere shall be no limit on the number of off-sale intoxicating liquor licenses. 3-1-34 : LICENSE APPLICATIONS: 3-1-4-1: CONTENTS OF INITIAL APPLICATIONS: A. General: In addition to the information which may be required by the forms of the Ccommissioner of public safety, the application for any type of license to be issued under this chapter shall contain information required by this section. B. Nature Of Application: The application shall show whether the applicant is a natural person, corporation, partnership or other firm or organization. 1. Natural Person: If the applicant is a natural person, the following information shall be required: a. True name, place and date of birth, and street residence address of the applicant. b. Whether the applicant has ever used or been known by a name other than his or her true name and, if so, what was such name or names, and information concerning dates and places where used. c. The name of the business if it is to be conducted under a designation, name or style other than the full individual name of the applicant; in such case a copy of the certification, as required by Minnesota statutes, chapter 333, certified by the secretary of state, shall be attached to the application. Whether the applicant and present spouse are registered voters, and if so, where. d. Street addresses at which the applicant and present spouse havehas lived during the preceding ten (10) years. e. Kind, name and location of every business or occupation the applicant or present spouse has been engaged in during the preceding ten (10) years. f. Names and addresses of the applicant's and spouse's employers and partners, if any, for the preceding ten (10) years. g. Whether the applicant or his spouse, or a parent, brother, sister or child of either of them, has ever been convicted of any crime or violation of any City ordinance, other than traffic. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had. Whether the applicant or his spouse, or a parent, brother, sister or child of either of them has ever been engaged as an employee or in operating a saloon, hotel, restaurant, cafe, tavern or other business of similar nature. If so, the applicant shall furnish information as to the time, place and length of time of such employment or operation. 6 Whether the applicant has ever been in the military service. If so, the applicant shall, upon request, exhibit copies of all discharges from such military service. The name, address and business address of each person who is engaged in Minnesota in the business of selling, manufacturing or distributing intoxicating liquor and who is nearer of kin to the applicant or his spouse than second cousin, whether of the whole or half blood, computed by Rules of Civil Law, or who is a brother-in-law or sister-in-law of the applicant or his spouse. 2. Partnership: If the applicant is a partnership, the following information shall be required: a. tThe names and addresses of all partners and all information concerning each partner as is required of an individual single applicant in subsection B1 of this Section. A managing partner or partners shall be designated. The interest of each partner in the business shall be disclosed. b. A true copy of the partnership agreement. a.c. If the partnership is required to file a certificate as to a trade name under the provisions of Minnesota Statutes, chapter 333, a true copy of such certificate certified by the Secretary of State shall be attached to the application. 3. Corporation: If the applicant is a corporation or other association and is applying for an on-sale license, the following information shall be required: a. Name and, if incorporated, the state of incorporation. b. A true copy of the certificate of incorporation, articles of incorporation or association agreement and bylaws and, if a foreign corporation, a certificate of authority, as described in Minnesota statutes. c. The name of the manager or proprietor or other agent in charge of the premises to be licensed, giving all the information about said person as is required of a single applicant in subsection B1 of this Section. d. A list of all persons who, singly or together with their spouses, or a parent, brother, sister or child of either of them, own or control an interest in said corporation or association in excess of five ten percent (105%) or who are officers or directors of said corporation or association, together with their addresses and all information as is required of an individual single applicant in subsection B1 of this Section. 4. Club: If an application is submitted by a club, the following information shall be submitted in addition to that required by the Commissioner of Public Safety and by the prior subsections hereof: a. The name of the club and tThe purpose for which the club was originally organized and for which it is now existing. b. The date that the club was first organized and the place of such organization. and location that the club was first incorporated, and, where appropriate, the date that the establishment serving the club was incorporated or otherwise established. True copies of the Articles of Incorporation, By-Laws, or other similar governing documents shall be submitted with the application. c. The number of members. 7 d. The name of the manager, proprietor or other person who shall be in charge of the licensed premises together with allthe same information concerning such person as is required of an individual single applicant for an on-sale license as set forth in subsection B1 of this Section. e. A sworn statement by a responsible individual having personal knowledge of the facts shall be submitted with the application verifying that the club meets all the requirements of Minnesota Statutes, sections 340A.404 and 340A.101, subdivision 7. In the event that no person can make such a statement, satisfactory documentary proof may be submitted in support of such facts. C. Type: The application shall state the type of license the applicant seeks. D. Description Of Premises: 1. Legal Description: The exact legal description of the premises to be licensed together with a plot plan of the area showing dimensions, location of buildings, street access, parking facilities and the locations of and distances to the nearest church buildings and school grounds. 2. Street Address: The street address where the sale of intoxicating liquorsalcoholic beverages is to be conducted. and the rooms where liquor is to be sold or consumed. An applicant for an on-sale license shall submit a floor plan of the facilities open to the public. The plan shall show room dimensions and shall indicate the number of persons intended to be served in each of said rooms. 3. Plans Of Premises: A set of plans showing the design of the proposed compact and contiguous premises within which alcoholic beverages may be dispensed and consumed. The plan shall show room dimensions and shall indicate the number of persons intended to be served in each of said rooms. E. Financial And Interest Criteria: 1. Financial Interest: The names and addresses of all persons, other than the applicant, who have any financial interest in the business, buildings, premises, fixtures, furniture, stock in trade; the nature of such interest, amount thereof, terms for payment or other reimbursement. This shall include, but not be limited to, any lessees, lessors, mortgagees, mortgagors, lenders, lienholders, trustees, trustors and persons who have cosigned notes or have otherwise loaned, pledged or extended security for any indebtedness of the applicant. 2. Amount Of Investment: The amount of investment that the applicant has in the business, building, premises, fixtures and structures, exclusive of land, on the premises proposed to be licensed. F. References: The names, residences and business addresses of three (3) persons, residents of the state, of good moral character, not related to the applicant or financially interested in the premises or business, who may be referred to as to the applicant's character or, in the case where information is required of a manager, the manager's character. G. Plans Of Premises: Whenever the application for a license to sell intoxicating liquor, or for a transfer thereof is for premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed.The plan shall show room dimensions and shall indicate the number of persons intended to be served in each of said rooms. 8 H. Taxes: Whether or not all real estate taxes, assessments, or other financial claim of the city, state or federal government for the business and premises to be licensed have been paid, and if not paid, the years for which delinquent. I. Description Of Proposed Business: A detailed narrative description of the proposed business for which the license is sought including, but not limited to: type of clientele, type of entertainment (if any), type of food menu (if any), fixtures. J. Other Information Required: Such other information as the city council shall require. 3-1-4-2 : EXECUTION OF APPLICATION: If the application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, by one of the partners; if by an incorporated association, by the operating officer or managing officer thereof. If the applicant is a partnership, the application, license and bond or insurance policy shall be made and issued in the name of all partners. It shall be unlawful to make any false statement in an application. Applications shall be filed with the city clerk. 3-1-4-3 : RENEWAL APPLICATIONS: License Period, Expiration: Each renewal license shall be issued for a maximum period of one year. All 3.2 percent malt liquor licenses, except temporary licenses, expire on June 30 of each year, and all intoxicating liquor licenses, except temporary licenses, expire on December 31 of each year. Temporary licenses shall expire according to their terms. Time Of Making Application: Applications for the renewal of an existing license shall be made at least sixty (60) days prior to the date of the expiration of the license, and shall state that everything in the prior applications remains true and correct except as otherwise indicated. The city will mail application forms to existing licensees approximately ninety (90) days prior to expiration of the licenses. If, in the judgment of the council, good and sufficient cause is shown by any applicant for his failure to file for a renewal within the time period provided, the council may, if the other provisions of this chapter are complied with, grant the application. 3-1-43-4 : AMENDMENT APPLICATION: A. Purpose Of An Amendment: A licensee may request an amendment to the license during the calendar year term of the license for any of the following purposes: 1. Change in ownership of ten percent (10%) or more of the stock of the corporation or change in ownership which results in any party acquiring an interest which, together with that of a spouse, parent, brother, sister or child, exceeds ten percent (10%). 2. Change in the Operating Office, Manager, or Agent or management of establishment. 2. Request to modify a condition(s) within the license. 3. Request to expand the permitted license area. B. Material Required: The following application material shall be provided as part of the amendment application: 1. 1. Change in ownership or management of establishment: An amendment application shall be submitted with any changes to the original application. In addition, applicant shall submit all information as is required of an individual single applicant in Section 3-1-4-1, subsection B1, for each party who acquires an interest which, together with that of a spouse, parent, brother, sister or child, exceeds 10 percent (10%). A license application shall be submitted with the information requested in section 3-1-3-1, 9 "Contents Of Initial Applications", of this chapter. 1.2. Change in Corporate Officers, Operating Officer, Manager or Agent of establishment: An amendment application shall be submitted with all information as is required of an individual single applicant in subsection B1 of this Section. 2.3. 2. Request to modify a condition(s) within the license: The licensee shall provide in writing the condition that is requested to be modified, the modification that is requested, and the factors that the city council should consider when determining the modification. 3.4. 3. Request to expand the permitted license area licensed premises: The licensee shall provide in writing the plans for the expansion including the necessary building permit application, landscaping plans and all plans as requested by staff. A revised certificate of liability insurance must also be submitted showing liquor liability coverage for the expanded area. C. Amendment Fees: The amendment fees for the licenses shall be established from time to time by resolution of the city council. In the case of the change of principal ownership or management, an initial investigation fee shall be paid by the applicant. C. Amendment applications shall be submitted on or before thirty (30) days prior to the effective dates of any changes. 3-1-54 : LICENSE FEES: A. Fees: The fees for licenses, amendments and permits shall be as established from time to time by resolution of the city council subject to limitations set by MS 340A and City Code. 1. The fee at each event at which a licensee holding an on-sale intoxicating liquor license on public premises serves intoxicating beverages shall be thirty dollars ($30.00). 2. The fee for any amendment to an existing liquor license is fifty dollars ($50.00). B. Payment Of Fees: The license fee for a new license shall be paid in full before the application for the license is accepted, and at least ten (10) days before the public hearing on the application. All fees shall be paid into the general fund of the city. Upon rejection of any application for a license or upon withdrawal of an application before approval of the issuance by the council, the license fee shall be refunded to the applicant except where rejection is for a wilful misstatement in the license application. C. Term, Pro Rata Fee: Each license shall be issued for a period of one year except that if the application is made during the license year, a license may be issued for the remainder of the year for a pro rata fee, with any unexpired fraction of a month being counted as one month. Every license shall expire as provided in subsection 3-1-63-2A of this chapter. D. Refunds: No refund of any fee shall be made except as authorized by Minnesota statutes, section 340A.408. E. Change Of Ownership, Exception: Where a new application is filed as a result of incorporation by an existing licensee and the ownership control and interest in the license are unchanged, no additional investigation fee will be required. F. Investigation Fees: Investigation fees for other than temporary licenses shall be as follows: 1. For initial license investigations conducted within the state of Minnesota, the investigation fee shall be five hundred dollars ($500.00) or the maximum set by MS 340A.412. 10 2. For initial license investigations conducted outside of the state of Minnesota, the investigation fee shall be the actual cost of the investigation, but not to exceed ten thousand dolllars ($10,000.00). At the time of the original application for a license, the applicant shall deposit one thousand five hundred dollars ($1,500.00) with the city for the investigation fee. Any fees due in excess of the one thousand five hundred dollar deposit must be paid prior to the license hearing and before the city council considers the application. Any deposit amount in excess of the actual cost of in the investigation shall be returned to the applicant. At the time of each original application for a license, the applicant shall deposit one thousand five hundred dollars ($1,500.00) with the city for the investigation fee. The investigation fee shall be three hundred fifty dollars ($350.00). Provided, for investigations conducted outside the state, the city shall be paid the investigation costs in excess of three hundred fifty dollars ($350.00), but not to exceed ten thousand dollars ($10,000.00). Any fees due in excess of the one thousand five hundred dollar ($1,500.00) deposit must be paid prior to the license hearing and before the city council considers the application. The remainder of the deposit shall be returned to the applicant. 32. At any time an additional investigation is required because due to one or more of the following, the city may charge an additional investigation fee up to five hundred dollars ($500.00) or the maximum set by MS 340A.412.; of (a) change in the ownership of any licensee or control of a corporate license within the meaning of subsection 3-1- 6C 3-1-4 of this chapter, or because of a transfer from place to place, the licensee shall pay an additional investigation fee equal to the amount of the cost of the investigation. The deposit on the fee shall be one thousand five hundred dollars ($1,500.00) (b) a change in the operating officer, proprietor, manager, or other agent in charge of the licensed premises. 3. At any time that an additional investigation is required because of (c) an enlargement or, substantial alteration of the premises already licensed which, in the city's opinion, changes the character of the establishment, or extension of premises previously licensed , the licensee shall pay an additional investigation fee equal to the amount of the cost of investigation. The deposit on the fee shall be five hundred dollars ($500.00). (d)E. Change Of Ownership, Exception: Where a new application is filed as a result of incorporation by an existing licensee and the ownership control and interest in the license are unchanged, no additional investigation fee will be required. 4. If requested, the city will furnish the applicant verification of all costs in excess of two thousand five hundred dollars ($2,500.00). 5. Investigation fees for temporary license shall be established from time to time by resolution of the city council. 6. Fees for additional investigation required because of a change in the operating officer or proprietor or other agent in charge of the licensed premises shall be established from time to 11 time by resolution of the city council. 3-1-65 : GRANTING OF LICENSES: A. Investigation: At the time of making application, the applicant shall, in writing, authorize the police department to investigate all facts set out in the application and do a personal background and a criminal record check on the applicant. The applicant shall further authorize the police department to release information received from such investigation to the city council. Should the city council deny the applicant the request for a license, due partially or solely to the applicant's prior conviction of a crime, the city council shall notify the applicant in writing of the following information: 1. The grounds and reasons for the denial; 2. The applicable complaint and grievance procedure as set forth in Minnesota Sstatutes, section 364.06; 3. The earliest date the applicant may reapply for a license; and 4. That all competent evidence of rehabilitation will be considered upon reapplication. B. Hearing Requirements: 1. Public Hearing Required: A Public Hearing shall be required for any new application or amendment application for the purpose of permanently expanding the licensed premises. 2. Hearing On Renewal Applications and Amendment Applications Other than Expansion of Licensed Premises: The Council may choose to hold a public hearing prior to amendment or renewal of any license where opportunity may be given to any person to be heard for or against the granting of a renewal license. Such hearing shall take place not less than ten (10) nor more than thirty (30) days after the date for submitting renewal applications. Upon request of such hearing, the clerk shall cause to be published in the official newspaper ten (10) days in advance, a notice of hearing to be held by the council, setting forth the day, time and place when the hearing will be held and the names of all renewal applicants. 3. Notice Of Hearing: Upon receipt of the written report and recommendation by the police department, and within twenty (20) days thereafter, the council shall instruct the clerk to shall cause to be published in the official newspaper ten (10) days in advance, a notice of hearing to be held by the council, setting forth the day, time and place when the hearing will be held; the name of the applicant; the premises where the business is to be conducted; the nature of the business and such other information as the council may direct. 42. Conduct Of Hearing: At the hearing, opportunity shall be given for persons to be heard for or against the granting of the license. 3. Hearing On Renewal Applications: No less than ten (10) nor more than thirty (30) days after the date for submitting renewal applications, the council shall hold a public hearing. Opportunity shall be given to any person to be heard for or against the granting of a renewal license. The hearing requirements on renewal applications may be waived by the council. 4. Hearing Costs: The cost of all hearings except uncontested, routine renewal hearings shall be borne by the applicant. 55. Exception: The provisions of this section are not applicable to applications for temporary licenses. C. Granting License: After such investigation and hearing, the council shall grant or refuse the application in its discretion. 12 D. Issuance; Transfer; Buildings Under Construction: 1. Each license shall be issued to the applicant only for the premises described in the application.. 2. License Period, Expiration: Each renewal license shall be issued for a maximum period of one year. All 3.2 percent malt liquor licenses, except temporary licenses, expire on June 30 of each year, and all intoxicating liquor licenses, except temporary licenses, expire on December 31 of each year. Temporary licenses shall expire according to their terms. a. 2. Transfer: Each license shall be issued only for the premises described in the application. No license may be transferred to another person or to another place without the approval of the council and without a new application having been filed. Any transfer of the license and a transfer of stock without council approval is grounds for revocation of the license. 3. Premises Under Construction: Where a license is granted for premises where the building is under construction or otherwise not ready for occupancy, the clerk shall not issue the license until notified by the building inspector that the building is ready for occupancy. E. Report To State: The clerk shall, within ten (10) days after the issuance of any license under this section, submit to the commissioner of public safety the full name and address of each person granted a license, the true name, the effective license date, and the date of expiration of the license. He shall also submit to the commissioner of public safety any change of address, transfer, cancellation or revocation of any license by the council during the license period. F. Transfer: 1. Each license shall be issued only for the licensee and premises described in the application. No license may be transferred to another person or to another place without the approval of the council; 2. Licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation, within the meaning of 3-1-4 of this chapter unless such change is approved by the council via amendment. 3. Licenses issued to associations or partnerships shall be valid only so long as there is no change in the partnership or association agreement or in the ownership of said partnership or association unless such change is approved by the council via amendment. 4. Any transfer of the license or a transfer of stock or interest in excess of 10% or where a transfer results in any party acquiring an interest which, together with that of a spouse, parent, brother, sister or child, exceeds 10 percent (10%), without council approval is grounds for revocation of the license. 3-1-76 : PERSONS INELIGIBLE FOR LICENSE: A. State Law: No license shall be granted to or held by any person made ineligible for such a license by state law. B. Manager Required: No license shall be granted to a corporation that does not have an operating officer who is eligible pursuant to the provisions of this chapter. C. Real Party In Interest: No license shall be granted to a person who is the spouse of a person ineligible for a license pursuant to the provisions of subsection A of this section or who, in the judgment of the council, is not the real party in interest or beneficial owner of the business operated, or to be 13 operated, under the license. D. Interest Defined: The term "interest" as used in this section includes any pecuniary interest in the ownership, operation, management or profits of a retail intoxicating liquor or 3.2 percent malt liquor establishment, but does not include: bona fide loans; bona fide fixed sum rental agreements; bona fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business or selling or leasing merchandise, fixtures or supplies to such establishment; or an interest of five percent (5%) or less in any corporation holding a city liquor license. A person who receives monies from time to time directly or indirectly from the licensee in the absence of a bona fide consideration therefor and excluding bona fide gifts or donations, shall be deemed to have a pecuniary interest in such retail license. In determining bona fide, the reasonable value of the goods or things received as consideration for the payment by the licensee and all other facts reasonably tending to prove or disapprove the existence of any purposeful scheme or arrangement to evade the prohibitions of this section shall be considered. 3-1-87 : PLACES INELIGIBLE FOR LICENSE: A. General Prohibition: No license shall be issued for any place or any business ineligible for such a license under state law. B. License Refused Where Taxes Due: No license shall be granted or renewed for operation on any premises on which real estate taxes, assessments or other financial claims of the city or of the state are due, delinquent, or unpaid. If an action has been commenced pursuant to the provisions of Minnesota statutes, chapter 278, questioning the amount or validity of taxes, the council may, on application by the licensee, waive strict compliance with this provision; no waiver may be granted, however, for taxes, or any portion thereof, which remain unpaid for a period exceeding one year after becoming due unless such one year period is extended through no fault of the licensee. C. Distance From School Or Church: No license shall be granted to any applicant whose place of business is within three hundred feet (300') of any school or within three hundred feet (300') of any church. In applying this restriction the distance shall be measured from the main front entrance of the school or church and the liquor establishment following the route of ordinary pedestrian travel. D. Nudity And Sexual Conduct Prohibited: No license shall be held at any premises where nudity or sexual acts or conduct are permitted to occur. 1. For the purposes of this subsection "nudity" and "sexual conduct" are defined as follows: NUDITY: The showing of the post-pubertal human male or female genitals, pubic area or buttocks with less than a fully opaque covering or the showing of postpubertal female breast with less than a fully opaque covering of any portion thereof below a point immediately above the top of the areola, or the covered human male genitals in a discernibly turgid state. For the purposes of this definition, the female breast is considered uncovered if the nipple only or the nipple and the areola are covered. SEXUAL CONDUCT: Acts or simulated acts of masturbation, sexual intercourse, sodomy, bestiality, oral copulation, flagellation, sadomasochistic abuse, or any touching of the genitals, pubic areas or buttocks of the human male or female, or the breasts of the female, whether alone or between members of the same or opposite sex or between humans and animals in an act of apparent sexual stimulation or gratification. 2. The following acts or conduct in a premises which has been issued a license are contrary to the public welfare and, therefore, in order to preserve order and protect the public welfare, no license issued under this chapter shall be held at any premises where such conduct or acts 14 are permitted to occur: a. The licensee, owner or manager of any licensed establishment permitting or allowing any live nudity to occur on the licensed premises. b. The licensee, owner or manager of any licensed establishment permitting or allowing any live sexual conduct to occur in the licensed establishment. 3. The city council may suspend or revoke or refuse to issue a license for violation of this subsection D upon a finding that the licensee has failed to comply with this subsection. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing. 3-1-98 : CONDITIONS OF LICENSE: A. Conditions aAnd Regulations: Every license is subject to the conditions in the following subsections and all other provisions of this chapter and of all other applicable ordinances, state laws or regulations. B. Licensee's Responsibility: Every licensee is responsible for the conduct of his place of business and the conditions of sobriety and order in it. The act of an employee on the licensed premises authorized to sell intoxicating liquoralcoholic beverages there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by this chapter and the law equally with the employee. Every licensee shall also cooperate with the city in controlling activity attributable to the business in surrounding areas. C. Inspections: Any police officer, building inspector or any properly designated officer or employee of the city shall have the unqualified right to enter, inspect and search the premises of any licensee hereunder during the business hours without a warrant. D. Hours And Days Of Sale; Intoxicating Liquor: (Rep. by Ord. XVI.50, 7-1-2003) E. Hours And Days Of Sale; 3.2 Percent Malt Liquor: (Rep. by Ord. XVI.50, 7-1-2003) F. Nonemployees On Premises: No person, other than the licensee and any employee, shall remain on the one-sale licensed premises more than 30 minutes after the time when a sale can legally occur. A liquor licensee shall not allow nonemployees on the business premises from thirty (30) minutes after the sale of intoxicating and/or 3.2 percent malt liquor is prohibited until the sale is again permitted except as hereinafter provided. Liquor licensees may permit nonemployees on the premises during normal hours of operation when the sale of intoxicating and 3.2 percent malt liquor is prohibited, provided, that there be no sale of intoxicating or 3.2 percent malt liquor during the hours in which the sale of liquor is prohibited and no consumption or display of intoxicating and/or 3.2 percent malt liquor from thirty (30) minutes after the sale is prohibited. G. Beverage Restriction: No intoxicating or 3.2 percent malt liquoralcoholic beverage shall be sold, or furnished or delivered to any obviously intoxicated person, to any known habitual drunkard, to any minor, or to any person to whom a sale is prohibited by state law. H. Sales Prohibited: No person shall give, sell, procure or purchase intoxicating liquor or 3.2 percent malt liquor to or for any person to whom the sale would be forbidden by law. I. Employment Of Minors: No person under eighteen (18) years of age shall be employed in any rooms constituting the place in which intoxicating liquorsalcoholic beverages are sold at retail on-sale, except that persons under eighteen (18) years of age may be employed as musicians or to perform the duties of a bus person or dishwashing services in places defined as a restaurant, hotel, motel or other multipurpose building servicing food in which intoxicating liquors are sold at retail on-sale. 15 J. Ownership Of Equipment: No equipment or fixture in any licensed place shall be owned in whole or in part by any manufacturer or distiller except such as shall be expressly permitted by state law. K. Prostitution: No licensee shall knowingly permit the licensed premises or any room in those premises or any adjoining building directly under his control to be used by prostitutes. L. Controlled Substances: No licensee shall knowingly permit the sale, possession or consumption of controlled substances on the licensed premises in violation of Minnesota statutes, chapter 152. M. Certification: No class B on-sale intoxicating liquor license shall be renewed to a licensee that has failed to submit a statement signed by an independent certified public accountant attesting that fifty one percent (51%) or more (or 25 percent in the case of restaurants operated in conjunction with bowling centers or movie theaters) of total revenues of the establishment was derived from the sale of food and nonalcoholic beverages during the twelve (12) month period preceding the licensee's application for renewal. The licensee shall provide access to its books and records during business hours on reasonable notice by the chief of police or designee and shall provide such additional information as the chief may require to demonstrate that the information on revenues derived from food and beverage sales is accurate. In the event the chief of police determines that an audit by an outside auditor is appropriate, the expense of such audit shall be paid by the licensee. Failure to comply with limitations on percentage of revenues derived from food and nonalcoholic beverage sales applicable to the relevant class of license is grounds for revocation or for suspension and the imposition of such conditions as are deemed appropriate by the council. N. Premises Limited: No license shall be effective beyond the compact and contiguous space named therein for which the same was granted. All licenses granted hereunder shall set forth the exact location within the building structure where such sales may be made and no sales shall be permitted except in that part of the premises defined in the license. O. No On-sale licensee or an employee thereof shall allow a person to leave the licensed premises in possession of an alcoholic beverage, except as allowed by MS 340A.404, Subd. 11. P. Special Conditions: At the time a license renewal is issued, the city may attach additional conditions to the license to protect the welfare of the community. Violation of any of the conditions shall be grounds for revocation of the license. 3-1-9 : CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS: A. Licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation, within the meaning of subsection 3-1-6C of this chapter unless such change is approved by the council, in which event said license shall be continued in force until the end of the then current license year. B. Licenses issued to associations or partnerships shall be valid only so long as there is no change in the partnership or association agreement or in the ownership of said partnership or association unless such change is approved by the council, in which event said license shall continue in force until the end of the then current license year. C. Corporations, partnerships or associations holding licenses shall submit written notice to the clerk of any such changes described herein on or before thirty (30) days prior to the effective date of any such change. Notwithstanding the definition of "interest" as given in subsection 3-1-6D of this chapter in the case of a corporation, the licensee shall notify the clerk when a person not listed in the application acquires an interest which, together with that of a spouse, parent, brother, sister or child, exceeds five percent (5%) and shall give all information about said person as is required of a person pursuant to the provisions of this chapter. 16 D. Corporations holding licenses shall submit written notice to the clerk of any change in operating officers at least thirty (30) days prior to the effective date of such change. The written notice shall designate the new operating officer and shall contain all of the information about said person as is required of a single applicant in section 3-1-3-1 of this chapter. The new operating officers shall be subject to the investigation required by subsection 3-1-5A of this chapter. Investigation fees shall be as determined by the city council pursuant to subsection 3-1-4F of this chapter. E. The designation of a new operating officer shall not cause the corporation's license to become invalid before a decision is rendered by the city council, provided proper notice and application are made pursuant to subsection D of this section. A proposed new operating officer shall be referred to as the interim operating officer. In the event an interim operating officer is rejected by the city council, the corporation shall designate another interim operating officer and make the required application pursuant to section 3-1-3-1 of this chapter within fifteen (15) calendar days of the council's decision. In any event, a corporation shall be limited to two (2) successive interim operating officers. 3-1-10 : SPECIAL CONDITIONS: At the time a license renewal is issued, the city may attach special conditions to the license to protect the welfare of the community. Violation of any of the conditions shall be grounds for revocation of the license. 3-1-10 : RESTRICTIONS INVOLVING MINORS: A. No Sale To Minors: No licensee, his agent or employee shall serve or dispense upon the licensed premises any intoxicating liquor or 3.2 percent malt liquors to a person under the legal drinking age; nor shall such licensee, or his agent or employee, permit any such person to be furnished or consume any such liquors on the licensed premises; nor shall such licensee, his agent or employee, permit any such person to be delivered any such liquors. B. Delivery To Minors: No person under the legal drinking age shall receive delivery of intoxicating or 3.2 percent malt liquor. C. Misrepresenting Age: No minor shall misrepresent his age for the purpose of obtaining intoxicating liquor or 3.2 percent malt liquor, nor shall he enter any premises licensed for the retail sale of intoxicating liquor or 3.2 percent malt liquor for the purpose of purchasing or having served or delivered to him for consuming any such intoxicating liquor or beer, nor shall any such person purchase, attempt to purchase, consume or have another person purchase for him any intoxicating liquor or 3.2 percent malt liquor. D. Identification Required: Any person shall, upon demand of the licensee, his employee or agent, produce and permit to be examined a current driver's license or photo identification issued by the state department of public safety. In the case of a foreign national, a valid passport may be used as an alternative to the foregoing methods of identification. E. Compliance Checks: From time to time, the city shall conduct compliance checks. Such checks may involve, but are not limited to, engaging underage persons to enter the licensed premises to attempt to purchase alcohol products. 3-1-11 : LIABILITY INSURANCE: All applicants for any type of intoxicating liquor, 3.2 percent malt liquor or wine license to be issued or renewed must, as a condition to the issuance of the license, demonstrate proof of financial responsibility as defined in Minnesota Statute 340A.409 and with regard to liability imposed by Minnesota Statutes, section 340A.801, to the city. Proof of financial responsibility may be given by filing one of the following: 17 A. A certificate that there is in effect for the period of the license an insurance policy or pool providing the following minimum coverages: 1. One hundred thousand dollars ($100,000.00) because of bodily injury to any one person in any one occurrence and, subject to the limit for one person, in the amount of three hundred thousand dollars ($300,000.00) because of bodily injury to two (2) or more persons in any one occurrence, and in the amount of fifty thousand dollars ($50,000.00) because of injury to or destruction of property of others in any one occurrence; 2. One hundred thousand dollars ($100,000.00) for loss of means of support of any one person in any one occurrence, and, subject to the limit of one person, three hundred thousand dollars ($300,000.00) for loss of means of support of two (2) or more persons in any one occurrence; or B. A bond or a surety company with the minimum coverages as provided in subsection A of this section; or C. A certificate of the state treasurer that the licensee has deposited with him three hundred fifty thousand dollars ($350,000.00) in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of three hundred fifty thousand dollars ($350,000.00). D. In lieu of the above insurance requirements an applicant for a temporary 3.2 percent malt liquor license may provide proof of financial responsibility by filing a certificate that there is in effect for the license period an insurance policy or pool providing at least fifty thousand dollars ($50,000.00) of coverage because of bodily injury to any one person in any one occurrence, one hundred thousand dollars ($100,000.00) because of bodily injury to two (2) or more persons in any one occurrence, ten thousand dollars ($10,000.00) because of injury to or destruction of property of others in any one occurrence, fifty thousand dollars ($50,000.00) for loss of means of support of any one person in any one occurrence, and one hundred thousand dollars ($100,000.00) for loss of means of support of two (2) or more persons in any one occurrence. 3-1-1213 : TEMPORARY LICENSES: A. Temporary 3.2 Percent Malt Liquor License: The city council may issue a temporary on- sale license for the sale of 3.2 percent malt liquor to a club, charitable, religious, or nonprofit organization. The temporary licenses shall be subject to such terms and conditions as the council shall subscribe. Except where specifically excluded, applicants for temporary licenses shall be subject to the provisions of this chapter. B. Temporary Consumption and Display LicenseIntoxicating Liquor License: The city council may issue to a club or charitable religious or nonprofit organization in existence for at least three (3) years, a political committee registered under section 10A.14, or a state university, a temporary license for the on-sale of intoxicating liquor in connection with a social event within the city sponsored by the licensee. The license may authorize the on-sale of intoxicating liquor for not more than three four (43) consecutive days, and may authorize on- sales on premises other than premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for intoxicating liquor catering services with the holder of a full year on-sale liquor license issued by a municipality. The licenses are subject to the terms, including the license fee, normally imposed by the city. The licenses issued under this section are subject to all laws and ordinances governing the sale of intoxicating liquor except Minnesota Statutes, section 340A.409, dealing with liability insurance. Temporary licenses must first be approved by the commissioner of public safety before they become valid. C. Temporary Brewer On-Sale License: The city council may issue to a brewer who meets the qualifications in MS 340A.404 Subd. 10, paragraph (c), a temporary license for the on-sale of intoxicating liquor in connection with a social event within the municipality sponsored by the brewer. The terms and 18 conditions specified for Temporary Intoxicating Liquor Licenses under section 3-1-12.B shall apply to a license issued under this paragraph. D. One-day Consumption and Display Permit: A one-day permit for the consumption and display of intoxicating liquor may be issued to a nonprofit organization subject to conditions set forth in MS 340A.414 Subd. 9. The permit must be approved by the public safety commissioner and is valid only for the day indicated on the permit. The fee for the permit shall be set by Council but may not exceed amount allowed in MS 340A.414 Subd. 9. 3-1-1315 : ON-SALE LICENSE ON PUBLIC PREMISES: A. Nature Of Public Premises LicenseSports, Convention or Cultural Facility: The city council may issue to the holder of an on-sale intoxicating liquor license issued by the city or a municipality adjacent to the city, a license to allow the dispensing of intoxicating liquor at any convention, banquet, conference, meeting or social affair conducted on the premises of a sports, convention or cultural facility owned by the city. The licensee must be engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the premises and may dispense intoxicating liquor only to persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or participating in an amateur athletic event held on the premises. B. Community Festivals: The city council may issue to the holder of an on-sale intoxicating liquor license issued by the city, a license to allow the dispensing of intoxicating liquor off premises at a community festival held within the municipality. The authorization shall specify the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability insurance. CB. Application Process: Applicants for public premises licenses set forth in subsection A of this section, shall be subject to the following process: 1. Annual Application: Applicants for a public premises license, which shall be limited to holders of on-sale intoxicating liquor licenses issued by the city or adjacent municipalities, shall annually apply to the city for such license. The application shall set forth the applicant's desire for such license, the nature and duration of its existing on- sale intoxicating liquor license and contain the license fee set forth in subsection 3-1- 54A of this chapter. 2. Hearing Not Required: No public hearing as set forth in subsection 3-1-65B of this chapter shall be required for the granting of an on-sale license on public premises. 3. Application Approval: The city council shall approve the application if it determines the applicant has a duly issued on-sale intoxicating liquor license issued by the city or an adjacent municipality and if it further determines that the applicant has committed no violations of municipal ordinances is in good standing with regarding to the applicant's on-sale intoxicating liquor license. 4. Duration: The license granted under this section shall remain in effect from its issuance until December 31 of the year in which it is issued. Licenses issued under this section are subject to annual renewal. DC. Other Conditions: In addition to the requirements otherwise set forth in this section, public premises licensees shall be subject to the following conditions: 1. Event Fees: In addition to the annual license fee set forth in subsection 3-1-54A of this chapter, a licensee shall pay a per event fee. Such fee shall be established from time to time by resolution of the city council. as provided in subsection 3-1-4A of this chapter. 19 2. Minnesota Products: If a licensee under this section is selling beer for on premises consumption, the licensee shall make provision for the sale of at least one Minnesota produced beer at each station on the premises where beer is being sold. 3. Events; Special Conditions: Whenever the city council determines that a specific event for which the licensee will be providing on-sale intoxicating liquor requires special or unique conditions, the city council may impose same and the licensee shall abide by all such conditions. 3-1-1416 : OUTDOOR PATIOS AND DECKS: A. Conditions Under Which Permitted: Service and consumption of alcohol on outdoor patios and decks in conjunction with an intoxicating liquor "on-sale" license, an "on-sale" wine license, a special club license, a special license for Sunday sales or a 3.2 percent malt liquor license may be permitted by the city council under the following conditions: 1. The patio or deck area must be compact and contiguous to the licensed premises and shall be enclosed with a wrought iron railing that meets standards set forth in this code and final inspection by the chief building official. 2. Appropriate receptacles for rubbish, garbage, cigarette paraphernalia, etc., must be provided. 3. Lighting must be sufficient to promote public safety, directed downward, and compatible with the surrounding area. 4. A buffer zone should be provided between the patio or deck area and adjacent parking lot. The area surrounding a patio or deck area must be fenced so as to not allow entrance from outside the fenced area onto the patio or deck area. 5. Smoking may be allowed on the patio or deck area, provided it is in compliance with the Minnesota "Ffreedom to bBreath aAct of 2007". 6. Music, televisions, bands, amplified sound or any activity that would disturb the peace of the surrounding area is prohibited on the outdoor patio or deck area. Background music that does not disturb the peace of the surrounding area is permitted during hours when service of alcoholic beverages is permitted. 7. The patio or deck area shall be controlled and monitored continuously during the hours of operation and unruly patrons shall be removed immediately. 8. The hours and days of sale of alcoholic beverages shall be in accordance with this code. 9. Patrons shall not leave the premises with a drink nor can drinks be taken onto a public sidewalk. 10. The amendment to the licensee's licenses for the outdoor patio or deck area shall be approved on a provisional basis. The council may revoke, suspend or decline to renew the license for the patio or deck area portion of the licensed premises on the grounds of failure to comply with the conditions outlined in the resolution or undue annoyance or burden on nearby residents. 11. The outdoor patio or deck area must be included in the required liquor liability insurance for the premises. 12. The city council may impose any additional conditions it deems necessary in the interest of the public health, safety and welfare at the time of initial approval or any renewal of the license for a patio or deck. The conditions set forth allowing the patio or deck shall be reviewed during the yearly renewal period. 20 3-1-15 : LICENSE REVOCATION OR SUSPENSION; CIVIL PENALTY A. The council shall suspend a license for a period not to exceed sixty (60) days, revoke a license, impose a civil fine not to exceed two thousand dollars ($2,000.00) or impose any combination of these sanctions for each violation on a finding that the licensee has committed a violation of any of the following: 1. False or misleading statements made on a license application or renewal, or failure to abide by the commitments, promises or representations made to the city council. 2. Violation of any special conditions under which the license was granted. 3. Violation of any provision of this chapter or other applicable ordinances. 4. Creation of a nuisance on the premises or in the surrounding area. 5. Violation of any state or federal law or regulation controlling the sale of intoxicating liquor or controlled substances. 6. Lapse of lapse of proof of financial responsibility. B. The following is the minimum schedule of presumptive civil penalties which must be imposed in addition to any suspension unless the license is revoked: 1. For the first violation within any three-year period, $500. 2. For the second violation within any three-year period, $1,000. 3. For the third and subsequent violations within any three-year period, $2,000. C. Inactive License: The city council may revoke the intoxicating liquor or 3.2 percent malt liquor license of any establishment granted a license that is not under construction and exhibiting satisfactory progress toward completion within six (6) months from its issuance, or any establishment that ceases operation for a period of six (6) months. A hearing shall be held to determine what progress has been made toward opening or reopening the establishment and, if satisfactory progress is not demonstrated, the council may revoke the license. D. Hearing Notice: Except in cases of lapse of proof of financial responsibility or liability insurance, revocation or suspension of a license shall be preceded by a public hearing conducted in accordance with Minnesota statutes, chapter 14. The city council may appoint a hearing examiner or may conduct a hearing itself. The City shall give the licensee notice of the hearing at least ten (10) days prior to the hearing. The notice shall include notice of the time and place of the hearing, and shall state the nature of the charges against the licensee. E. Lapse of required proof of financial responsibility shall affect an immediate suspension of any license issued pursuant to this ordinance or state law without further action of the Council. Notice of cancellation or lapse of a current liquor liability policy shall also constitute notice to the licensee of the impending suspension of the license. The holder of a license who has received notice of lapse of required insurance or of suspension or revocation of a license may request a hearing thereon and, if a request is made in writing to the Clerk, a hearing before the Council shall be granted within ten days. Any suspension under this division shall continue until the Council determines that the financial responsibility requirements of state law and this ordinance have again been met. F. In the event of a revocation of a license, the licensee must reapply for a license and meet the requirements for a license under this chapter. In the event that a fine imposed pursuant to this section is 21 not paid within fifteen (15) days of its imposition by the council, the license shall be suspended until the fine is paid. 3-1-16 : CONSUMPTION IN PUBLIC SPACES CA. Open Container iIn Parking Areas: No person shall consume intoxicating liquor or 3.2 percent malt liquor or have in his possession any bottle or receptacle containing intoxicating liquor or 3.2 percent malt liquor which is open while in the parking area of any shopping center or other commercial establishment. B. Liquor in Public Parks: Possession and / or consumption in city parks shall be allowed or prohibited according to City Code Title 4, Chapter 3, Section 10, as amended, except as permitted by Public Premises licenses issued in accordance with this chapter, section 13.