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HomeMy WebLinkAbout2.e. Lquor License Ordinance AmendmentsCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Work Session Date March 9, 2005 AGENDA ITEM. Ordinance Amendment City Code AGENDA SECTION: 3 -1 -2, Paragraphs B and L, Relating to Liquor Regulations �JSC�cSSlo�/ PREPARED BY: Gary Kalstabakken, Chief of Police Kim Lindquist, Community Development AGE an 1#0W 02 E Director ATTACHMENTS: Exec Summary February 15, 2005 and Proposed Amendments Meeting Minutes CC January 19, 1999, CCWS February 11, 1999, CC March 2, APPROVED BY: 1999, Exec Summary February 1999, Exec Summary March 2, 1999 99 �y Memorandum January 22, 1999 RECOMMENDED ACTION: Provide direction to staff on restrictions on location of Class A liquor license holders and the number of liquor licenses permitted for on -sale licensees in the City ACTION: BACKGROUND The proposed ordinance amendments were brought before the Council at the February 15, 2005 meeting This was the first reading and after discussion Council asked to have this issue further discussed at a Work Session SUMMARY Rosemount's current ordinance restricts the number of on -sale liquor licenses to six (6) This is more restrictive than Minnesota state statute, which allows twelve (12) and excludes hotels, restaurants, theaters, bowling centers and veteran's clubs The amendment would bring Rosemount's City Code in line with state statute The current ordinance includes a provision which restricts the bar type on -sale liquor licensees from being located on or within 300' of County Road 42 At the February 15, 2005 meeting, Council asked for more background information regarding this restriction along County Road 42 The attached minutes are from the Council Meetings and Work Sessions in 1999 when this section of the code was added Unfortunately, the minutes do not include much information on the rationale for restricting the location of Class A license holders It appears that the direction of the Council at that time was simply to prohibit bars on County Road 42 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Meeting Date February 15, 2005 AGENDA ITEM: Ordinance Amendment City Code AGENDA SECTION: 3 -1 -2, Paragraphs B and L, Relating to New Business Li uor Re ulations PREPARED BY ry Kalstabakken, Chief of Police im Lindquist, Community Development AGED O. Director ATTACHMENTS. Ordinance, August 11, 2004 Work APPROVED BY Session Minutes RECOMMENDED ACTION: First reading of ordinance No action required at this reading, only discussion ACTION: BACKGROUND The proposed amendments were discussed with the Council at the August 11, 2004 Work Session These changes are proposed based upon changes that have occurred in Minnesota State Statutes regulating liquor licenses and based upon the anticipated and desired growth in the City's restaurant variety SUMMARY City Code 3 -1 currently is more restrictive than state statute in the number of liquor licenses permitted The total number presently allowed is six (6) in city code State law allows twelve (12) on -sale liquor licenses, while also providing exclusions for restaurants, hotels, theaters, clubs or congressionally recognized veteran's organizations, establishments licensed for wine sales and bowling centers The provision excluding the, listed types of establishments was passed by the legislature in 2003 The City-has five (5) on -sale licenses issued at this time, leaving only one (1) license remaining for issuance under the current language of City Code This could become problematic if additional restaurants express an interest in locating within Rosemount because many restaurants have liquor licenses to allow serving of alcoholic beverages to their customers The change in state law excluding restaurants and the other establishments listed seems to acknowledge that alcohol is not the primary product being offered by the establishments and, therefore, the exclusion from license limits. The current City Code does have two (2) categories of on -sale licenses and staff is recommending that this provision be retained The two (2) types of licenses are based upon the amount of revenue generated by the sale of alcoholic beverage compared to food and other nonalcoholic beverages. Class A licenses are issued to those establishments that derive less than fifty- percent of their sales from non alcoholic products, in other words, establishments that are more of a bar or night club in nature than an eating establishment In discussions with Council at the Work Session, consensus seemed to be that the City Code should limit the number of Class A licenses, thereby, controlling the number of bars operating within the city At this time, Class A licenses are held by Shenanigan's Pub and Celt's Irish Pub and Grill Shenanigan's has held a Class A license since the two license system was adopted, while Celt's had held a Class B license until they expanded their game /recreation area in 2004 The proposed language limits the number of Class A licenses to two (2) Because Celt's and Shenanigan's already hold Class A licenses, if the proposed amendments are adopted, no additional Class A licenses would be available for issuing However, liquor licenses would be available for issuance under the Class B type The proposed language allows Class B licenses to be issued in accordance with Minnesota Statutes The changes are proposed in an effort to continue to control licensed liquor establishments but puts a greater emphasis on controlling the establishments that are bar type establishments versus restaurants City Attorney LeFevere has reviewed the proposed changes and has approved the proposed language A letter outlining the proposed changes was also sent to each of the five (5) current on -sale liquor license holders 2 CITY OF ROSEMOUNT ORDINANCE NO AN ORDINANCE RELATING AMENDING ROSEMOUNT PARAGRAPHS B AND L TO LIQUOR REGULATIONS, CODE, SECTION 3 -1 -2, THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS THAT THE CITY CODE OF THE CITY OF ROSEMOUNT IS AMENDED AS FOLLOWS Section I City Code, Section 3 -1 -2, paragraph L is amended as follows L Apportionment Of Intoxicating Liquor Licenses 2. Two (2) Class A intoxicating liquor licenses may be issued within the city of Rosemount 3 Off -sale intoxicating liquor licenses may be Issued dependent on the population of the city of Rosemount One off -sale license may be Issued for each six thousand five hundred (6500) of city population attained, as determined by the most recent Metropolitan Council population estimates Section City Code, Section 3 -1 -2, paragraph B2 is amended as follows 2 Class A licenses may be issued to hotels, restaurants and exclusive liquor stores and aie unrestricted as to the percentage of revenues derived from the sale of food and nonalcoholic beverages Class A licenses may not be issued for any premises vd rrhthat is on a lot, piece or parcel of land whichihat is adjacent to County Road 42 or for any premises wh chthat is within three hundred feet (300') of the right of way of Country Road 42 c Sect,nn I This Ordinance shall be in effect following its passage and publication. T tndeflin,ng indicates new material Lrimtg t1awagh indicates deleted material CLL-258228v1 RS215 -6 ADOPTED this day of Rosemount ATTEST Linda Jentxnk, City Clerk 2005, by the City Council of the City of CITY OF ROSEMOUNT William Droste, Mayor CLL258228v1 R8215.6 B. 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 licenses shall be of two (2) classes (Ord XVI 40, 3 -2 -1999) 1 Class B licenses maybe issued only to hotels and 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 In the case of class B licenses issued to restaurants operated in conjunction with a bowling center, twenty five percent (25 or more of the total revenues must be derived from the sale of food and nonalcoholic beverages for consumption on the premises "Total revenues" is defined as all revenues from the sale of food, alcoholic beverages and nonalcoholic beverages for consumption on the premises during the hours when sale of alcoholic beverages is allowed (Ord XVI 46, 3 -2 -2001) 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 Class A licenses may not be issued for any premises which is on a lot, piece or parcel of land which is adjacent to County Road 42 or for any premises which is within three hundred feet (300') of the right of way of County Road 42 All on -sale intoxicating liquor licenses will be issues as class A licenses unless application is made for a class B license (Ord XVI.40, 3 -2 -1999) CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Meeting Date August 11, 2004 AGENDA ITEM: Liquor License Regulations AGENDA SECTION: Discussion PREPARED BY: Kim Lindquist, Community Development Director, Gary Kalstabakken, Police Chief, I AGENDffW Linda Jentink, City Clerk ATTACHMENTS: Excerpt June 11, 2003 City Council APPROVED BY: Minutes, Staff Memo from June 11, 2003 RECOMMENDED ACTION: Provide Staff Direction. ACTION: ISSUE One of the Council goals for 2004 is to increase the diversity of restaurants in the community. Often restaurants need liquor licenses to operate The City currently regulates the number of on -sale liquor licenses permitted Due to the Council goals and changes in State law, staff felt a discussion about liquor licensing would be appropriate. BACKGROUND The current ordinance permits issuance of °on -sale intoxicating liquor licenses [that] shall be issued only to hotels, restaurants and exclusive liquor stores and shall permit on -sale of liquor or wine There are two classes of liquor licenses Class B Class B may only be issued to hotels and restaurants where 51% or more of total revenues are derived from the sale of food and nonalcoholic beverages for consumption on the premises Restaurants in bowling centers are required to have 25 the-total-revenues. derived from the sale food and nonalcoholic beverages from consumption on the premises Class A: 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. Class A licenses may not be issued for any property adjacent to County Road 42 or within 300' of the County Road 42 right -of -way The ordinance also notes that all on -sale intoxicating liquor licenses will be issued as class A licenses unless an application is specifically received for class B license. The City ordinance restricts the number of on -sale intoxicating liquor licenses to six (6) State statute limits the number of liquor licenses for Class 3 cities (Rosemount) to 12 However, during the last legislative session the State made modifications to the liquor licensing standards It adopted an exclusion for certain businesses, meaning that "licenses may be issued to the following entities by a city, in addition to the number authorized by this section. 1. clubs or congressionally chartered veterans organizations; 2. restaurants, 3 establishments that are issued licenses to sell wine under section 340A 404 subdivision 5, 4 theaters that are issued licenses under section 340A 404, 5 hotels, and 6 bowling centers DISCUSSION On -Sale Liquor Licenses. The impetus for this discussion centered on the Council's desire to attract different types of restaurants into the community Presently, the City ordinance limits the amount of on -sale liquor licenses to 6 The four establishments that currently have liquor licenses are Shenanigans, Celts, McDivots, and AMF City Limits With the anticipation that Applebee's would receive approval for a liquor license, there would only be an opportunity for one more restaurant establishment with liquor in the community Staff initially was going to ask the Council to reconsider the limitation of 6 licenses to permit additional restaurant opportunities in the community. The question of liquor or no liquor would obviously have an impact on what food establishments would want to come to the City The City Clerk noted that changes in state law exempt restaurants and bowling centers from the number of licenses permitted by the statute, meaning they are exempt from the total 12 licenses permitted oy the State Potentially ail liquor licenses currently issuea oy the City would fall into the exemption category The State statute defines restaurants as "an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority That means there-may be additional liquor licenses available for-non- restaurant uses The change in State law could address the economic development issue for Rosemount of having a limitation on restaurant liquor licenses, so long as the Council is comfortable applying this State change to the local ordinance. Staff wanted to ensure that the Council was aware of the changes in State law and that there was a formal policy discussion to change the interpretation of the City ordinance It is staffs opinion that the City, as it has been in the past, can be more restrictive than the State, and therefore the changes at the State level do not automatically ensure additional liquor licenses will be issued for restaurants This interpretation has been confirmed by the City Attorney Therefore staff has several questions for the Council 2 Would the Council like to adopt the exclusion permitted in State statute for restaurants, bowling centers, etc? This recognizes that the exclusion by the State would address the staff concern about attracting additional restaurants within the community and allowing them the opportunity to serve liquor Without this change, or without increasing the number of licenses permitted by local ordinance, it will be difficult to attract many additional restaurants to the community. If the Council does not want to consider the exclusion, does it want to increase the number of on -sale liquor licenses available in the City? One option, to address a concern over bars versus restaurants, is to limit the amount of Class A licenses and not restrict or set a different limit for the Class B licenses (As currently written, the license issued is a class A license unless specified otherwise by the applicant) By making some modifications to the liquor licensing section of the ordinance, the emphasis could be placed upon restaurant establishments, those where 51 or more of total revenues are derived from the sale of food and nonalcoholic beverages, rather than on the unrestricted sales found in the Class A license Is the Council interested in restricting the amount of Class A licenses that would be applicable to land uses that are not considered restaurants, hotels, bowling centers, and other uses listed above? In other words would the Council like to limit the amount of liquor licenses establishments whose primary function is to serve liquor, for example a bar versus a restaurant Similar to the response above, Class A licenses would be issued to properties that function more like a bar man a restaurant Tne Council may wish to conunue limiting the number of licenses and may in fact choose to reduce the current number available from 6 to some lower figure. Off -Sale Liquor Licenses. .The City also restricts the number-of-off-sale liquor_licenses dependent upon population of the City "One off -sale liquor license may be issued for each 6,500 of the city population attained, as determined by the most recent metropolitan council population estimates The State does not restrict the number of off -sale liquor licenses allowed for class 3 cities, rather noting that the limit shall be determined by the governing body of the city Under the City ordinance two off -sale licenses are allowed. Staff just received the Apnl 1, 2003 population estimate for the City which was determined to be 16,794 Given the methodology the Met Council uses to determine the population, staff concurs with the estimate (Staff does not necessarily concur with accuracy of the methodology, however) Therefore the City would not permit another off -sale establishment until the population increased by 2,706, which would probably be in another three to four years. 3 t Staff is not necessarily advocating increasing the number of off -sale liquor licenses available in the community However, the Council should be aware that we have received several inquiries about obtaining a liquor license to open another store in the community The Community Development Department received an inquiry as part of a discussion about redevelopment in the Downtown SUMMARY The overarching question is whether the Council would like to permit additional liquor licenses to be available for certain land uses within the community Staff would recommend that additional licenses be made available for restaurants, which means amending the city code There are several ways to implement that change either increasing the number of licenses made available through the local code or recognizing the State statute that exempts restaurants, bowling centers and other listed uses from the total number of licenses permated Or some combination of the two could be accomplished. The Council may also wish to look at the current licensing structure with the Class A and Class B licenses If the main interest is to limit exclusive liquor stores (on -site establishments), it could limit the number of those licenses or modify the requirements for receipt of an on -sale liquor license to have some type of percentage of total revenues derived from the sale of food and nonalcoholic beverages. Finally, the Council may wish to discuss whether to modify the off -sale liquor license apportionment from the current standard El Excerpt from the City Council Work Session of August 11,2004 Liquor License Regulations. Community Development Dire�tor Lindquist led a discussion regarding tl�e proposed � changes in the ordinance that governs on-sale liquor licensing. The current City ordinance restricts the number of on-sale liquor licenses to six{6j. State sta.tue places the .limit at 12. Recent State modifications allow exemptions for elubs, restaurants,hotels, bowling centers,and theaters. Staff recommended that the City amend the ordinance to allow exemptions for restaurants. ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING JANUARY 19, 1999 Public Works Director Osmundson noted that this alley way was ttlized by the City prior to the construction of this former grocery store building west of th d north of Lower 147th Street, but no longer provides a public purpose The block building the site actually was built over a 10 foot portion of the old alley in 1977 This vacation will c n up the title for resale of the vacant business building No public testimony was received MOTION by Edwards to close the P he Heanng for An Alley -Way Vacation Second by Wippermann Ayes Five Nays NoX Motion carried MOTION by Carroll to adopt RESOLUTION CAUSING A PUBLIC ALLEY VACATION ON LOT 61, AUDITOR'S.9UBDIVISION NO.1. Second by Carroll Ayes Edwards, Cisewski, Wippermann, Busho, Ca oll Nays None Motion carried Tayern_OnA2_LiquDrl,ic2ense Application Assistant to the City Administrator Walsh reviewed information about the liquor application which had been tabled from the January 5th City Council meeting John Ursmo presented a floor plan with dimensions and seating arrangements Ursino said they were willing to change the name of the restaurant to "Ursmos Ursmo also presented several petitions with signatures of residents in favor of the new restaurant The liquor license period would be from March 1, 1999 to December 31, 1999 Mayor Busho noted that other states require proof of food to liquor sales percentages and suggested that Rosemount should also In Montana it is a 70/30 percentage split and Washington has a 60/40 percentage split City Attorney LeFevere noted that this would not apply to this applicant if approval was given tonight because it would require an amendment to the existing liquor ordinance Mayor Busho wanted assurances that this business would not be primarily a bar Councilmembers Carroll and Wippermann were in favor of an additional choice for a local restaurant Councilmembers Edwards and Cisew ski had concerns about the liquor sales as did Mayor Busho Mayor Busho opened the meeting for public comment Dick Heinen, 3110 145 Street West, said he was a fifth generation Rosemount resident and he urged City Council to grant the requested liquor license Ed McMenomy, 4122 143rd Street West, said given the plans and specifications this food based family run restaurant would be a welcome addition to Rosemount McMenomy supported the approval of a liquor license Steve Kopel, 13757 Danbury Path, said the concept is great, it would be good for residents Kopel is a business owner near by and would like to see a family style restaurant rather than a vacant building 3 ROSEMOUNT CITY PROCEEDINGS REGULAR MEETING JANUARY 19, 1999 Janet Oster, 14793 Dodd Boulevard, said she is related to Fluegels (part owner of the applicant) and knows that they are family oriented and that they would keep their promises as to promoting a "family" style restaurant Glen Urtdenbogerd, 14625 Chippendale Avenue, said he was retired and felt this type of restaurant would be used by seniors extensively Rosemount has many parks and ballfields for youths but the seniors would like some amenities also Urtdenbogerd said, "If you want to keep people in Rosemount, give them more choices John Kaye, 13768 Danbury Path, said he didn't know the owners, but he has lived here ten years and would like to see a family restaurant with liquor Kaye thought it was unfair to suggest to change the liquor ordinance now, after the application has been made MOTION by Wippermann to approve the issuance of an Intoxicating Liquor License and Special Sunday Liquor License to Tavern On 42 (or Ursmo's) for the period of March 1, 1999 through December 31, 1999 Second by Carroll Ayes Wippermann, Carroll Nays Cisewski, Busho, Edwards Motion failed Mayor Busho invited the applicant back for future discussion and directed staff to be prepared to discuss adding food to liquor percentages at a future work session Camprehenstxe Guide -PlamAmendment-D Cou ntyAlRPiand- M&H-Inc. Community Development Director Rogness reviewed thXCity e b} akota County HRA. and M &H, Inc which had been continued from the Janua ncil meeting The property would have two separate develop ments with the HRA d managmg the southern side including 40 or 46 rental townhomes and the northern owner occupied twinhomes developed by M H, Inc Rogness presented two opeed Option A would include HR(High Density Residential)/UR(Urban Residential) C endments and zoning for R -2 and R -3 with a Planned Unit Development (PUD) an no variances Option B would include only a UR Comp Plan Amendment, zoning to R -2, a P and two variances 1) rental inclusion and 2) allowing single car garages Mark Ulfers, Director of Housing and Red elopment, noted that they do not have any program for single family housing The Family Hous g Partnership Program is resource driven and has funding available this year for braid out nex year This is a long term commitment for managmg this complex The public housing by th central offices (2496 145th Street West) has been managed by HRA since 1981, when they wer uilt Affordable housing is needed in Dakota County Families with incomes under $24,000 ould be eligible for these rentals People do struggle to make ends meet and try to improve o eir education or employment at the same time Council voiced conce s for unit density, nearness of railroad tracks, guarantee of property value, the concentration ofAffordable housing, the location of this project, the need for more single family detached units wi in Rosemount, and the proposed mix of housing types Councilmember Carroll no he was in avor of the project and saw a need as industries look to develop in Rosemount to have affordabl housing for their employees 4 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION COMMITTEE OF THE WHOLE MEETING DATE FEBRUARY 11, 1999 AGENDA ITEM: LIQUOR ORDINANCE AMENDMENT AGENDA NO.: PREPARED BY. SUSAN WALSH� ASSISTANT TO ADMINISTRATOR ITEM ATTACHMENTS APPROVED BY: 111emp Attached is the memorandum and draft ordinance provided to Council on January 29, 1999 MEMORANDUM DATE. January 29, 1999 TO- Mayor Busho Counctlmembers Cisewski, Wippermann, Carroll Edwards FROM Susan Walsh, Assistant to Administrator SUBJ Liquor Ordinance Amendments Attached for City Council review is a draft of an ordinance that would amend the existing liquor ordinance for the purpose of establislung two classes of licenses —Class A License and Class B License Class A licenses would be issued only to hotels and restaurants where a certain percentage of total revenues would be derived from the sale of food and non alcoholic beverages Also included in the Class A license are bowling alleys with restaurants, and the percentage of total food and non alcoholic beverage sales could be equal to or lower than the percentage established for restaurants under a Class A license Class B licenses would only be issued to the city's existing on -sale liquor license holders —City Limits, Shenanigan's and MCDlvots If the licenses for these businesses would be revoked or lapse for more than 60 days, then any new license would have to qualify for the Class A license category Class B license holders would not have to meet a certain percentage of food sales Rather than a "grandfather" provision for existing license holders, another option could be issuing three Class A and three Class B licenses for the total of the six on -sale licenses allowed by code Most likely Shenanigans, McDivots and City Limits would qualify for the Class B The provision for bowling alleys under the Class A definition would be for future bowling centers that have restaurants Staff is suggesting that City Limits be included in the Class B You may want to have a lower percentage for food sales for bowling alleys since staff found that Bloomington requires 30% food sales and Brooklyn Center requires as low as 40% food sales from total revenues I have discussed this proposed revision with Jean Doyle, owner of City Limits, and she said she would provide me with a breakdown of food and liquor sales percentages on Monday, February 2 1999 I plan on contacting the owners of MCDlvots and Shenanigan's today to advise them that the City Council may consider revisions to the liquor ordinance You have received Brooklyn Center's classification of licenses, which range from 40 to 80% food sales Bloomington's ordinance requires a minimum of 40 percent food sales for all license holders except for bowling alleys and nightclubs that are required 30 percent food sales The nightclub provision was included for license holders at the Mall of Amenca —like Hooters and Planet Hollywood Section 2 of the proposed ordinance provides that license holders must submit a statement signed by an independent certified public accountant attesting to the percentages for the previous year At this time staff is not recommending that the on -sale license fee of $2,750 be changed Bloomington's on -sale liquor license fees are all the same except for the licenses at the Mall of America and they are almost double ($18,000(yr Brooklyn Center license fees range from $8,000 (80% food) to $14,000 (40% food) Rosemount's fees are slightly lower than other cities comparable m size and it may be appropriate to discuss later this year Mayor Busho advised me that this would be on the February 10 committee of the whole agenda Also for your information, Don Fluegel called Thursday morning and indicated his desire to proceed He also indicated that they are facing a deadline with the owners of the Tom Thumb building and expressed his desire that this matter proceed as quickly as possible Cc Thomas D Burt, City Administrator Charles LeFevere, City Attorney Attachment Draft Ordinance ROSEMOUNT CITY PROCEEDINGS COMMITTEE OF THE WHOLE FEBRUARY 11, 1999 Pursuant to due call and notice thereof a Committee of the Whole meeting was duly held on Thursday, February 11, 1999, at 6 30 p in in the Council Chambers at City Hall Mayor Busho called the meeting to order with Councilmembers Wippermann, Edwards, Carroll and Cisewski present Also present were City Administrator Burt, Assistant to City Administrator Walsh, Community Development Director Rogness, Public Works Director Osmundson, and City Planner Pearson Strategic Plan Mayor Busho updated the City Council on having an upcoming strategic planning session She has been in contact with two facilitators to conduct the sessions and she will inform the City Council who she selects at a later date The dates of Friday, March 19th and Saturday, March 20th were selected for the event and the location will be determined soon Sign-Orslina Community Development Director Rogness summarized an application from Ron Kraus, new owner of the Dairy Queen, for an amendment to the city's sign ordinance This proposed amendment would allow "off- premises business signs" to be allowed within Commercial, Bushiness Park and Industrial zones Such signage would be used by any business to add to another business' existing freestanding sign within 1000 feet Many controls have been recommended by the planning commission, ranging from overall design compatibility to size limitations Concerns were raised by Councilmembers related to enforcement, sign proliferation, and the need for such a change After further discussion, the Council asked that staff prepare a motion for denial at the upcoming City Council meeting U-1 Assistant to Administrator Walsh reviewed proposed amendments to the liquor ordinance that would provide for two classes of on -sale liquor licenses After discussion by the City Council, staff was directed to put together an ordinance that would include the following provisions (1) Class B license would require food and non alcoholic beverages to be 51% of the total revenues for restaurants and hotels, (2) bowling alleys would have to meet a 25% food sale requirement for a Class B license, (3) Class A license would be prohibited along CR 42 or within a certain distance of CR42, (4) Class B license holders would have to provide documentation that they meet the food revenue requirements, and (5) Class A licenses would not have to meet food revenue requirements City staff was also directed to begin reviewing liquor license fees since the Council agreed that fees may have to be increased, and a Class A license fee should be higher than a Class B license fee Oompxeltensiye Community Director Rogness summarized the main issues that remain for the draft 2020 comprehensive plan prior to its submission to the Metropolitan Council for formal review The CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE MARCH 2, 1999 AGENDA ITEM: LIQUOR ORDINANCE AMENDMENTS AGENDA SECTION: OLD BUSINESS PREPARED BY: SUSAN WALSH TO ADMINISTRATOR AGENDJXQ. ®A CMS ASSISTANT ATTACHMENTS LIQUOR ORDINANCE APPROVED BY: For City Council consideration and adoption is an ordinance that would amend certain sections of the City Code pertaining to liquor regulations The attached ordinance is the final draft based upon discussions and input at previous City Council meetings In summary, the amendments will provide for two classes of on sale intoxi- cating liquor licenses Class B will require hotels and restaurants to certify that 51 percent or more of total revenues are derived from the sale of food and non alcoholic beverages for consumption on the premises Bowling centers may be issued a Class B license if they meet a 25 percent requirement Class A license holders will not have to meet this provision but are restricted from having a license for any premises that is located on or adjacent to County Road 42 or within 300 of the right of way. Upon adoption of this ordinance city staff will begin researching liquor licenses fees and present recommenda- tions prior to sending out license renewals for the Year 2000 RECOMMENDED ACTION: MOTION TO ADOPT ORDINANCE NO XVI 40, AN ORDINANCE RELATING TO LIQUOR LICENSES, AMENDING ROSEMOUNT CITY CODE SECTIONS 3 -1 -2 AND 3 -1 -8 CITY OF ROSEMOUNT ORDINANCE NO XVI 40 AN ORDINANCE RELATING TO LIQUOR LICENSES, AMENDING ROSEMOUNT CODE SECTIONS 3 -1 -2 AND 3 -1 -8 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS AS FOLLOWS: Section 1 Rosemount City Code Section 3 -1 -2, paragraph B is amended to read as follows: B 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 licenses shall be of two classes 1 Class B licenses may be issued only to hotels and restaurants where 51 percent or more of total revenues are derived from the sale of food and non alcoholic beverages for consumption on the premises In the case of Class B licenses issued to restaurants operated in conjunction with a bowling center, 25 percent or more of total revenues must be derived from the sale of food and non alcoholic beverages for consumption on the premises Total revenues is defined as all revenues from the sale of food, alcoholic beverages and non alcoholic beverages for consumption on the premises 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 non alcoholic beverages Class A licenses may not be issued for any premises which is on a lot, piece or parcel of land which is adjacent to County Road 42 or for any premises which is within three hundred (300) feet of the right of way of County Road 42 All on sale intoxicating liquor licenses will be issued as Class A licenses unless application is made for a Class B license Section 2 Rosemount City Code Section 3 -1 -8 is amended by adding new paragraph N as follows N 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 51 percent or more (or 25 percent in the case of restaurants operated in conjunction with bowling centers) of total revenues of the CLL- 157203 RS215 -1 establishment was derived from the sale of food and non alcoholic 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 and shall provide such additional information as the Cluef may require to demonstrate that the information on revenues derived from food and beverage sales is accurate In the event the Chief of Police determmes 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 non alcoholic beverage sales applicable to the relevant class of license is ground for revocation or for suspension and the imposition of such conditions as are deemed appropriate by the Council Section 3 Tlus ordinance shall be effective immediately upon its passage and publication according to law ENACTED AND ORDAINED into an Ordinance this 2n day of March, 1999 CITY OF ROSEMOUNT Cathy Busho, Mayor ATTEST- Susan M Walsh, City Clerk Published in the "Rosemount Town Pages" this day of 1999 CLL- 157263 RS215 -1 ROSEMOUNT CITY PROCCEDINGS REGULAR MEETING MARCH 2, 1999 Liquor Ordinance Amendments Council reviewed the final draft of a liquor ordinance that would amend certain sections of the City Code pertaining to liquor regulations City Clerk Walsh explained the differences between a Class A and a Class B on sale liquor license Walsh advised that staff would begin researching license fees and present a recommendation prior to sending out the Year 2000 renewals MOTION by Edwards to adopt Ordinance No XVI 40, AN ORDINANCE RELATING TO LIQUOR LICENSES, AMENDING ROSEMOUNT CITY CODE SECTIONS 3 -1 -2 AND 3 -1- 8 Second by Busho Ayes Busho, Carroll, Edwards, Cisewski Nays None Motion tamed Rosemount Market Square Planned Unit Development Amendment Discussion wa held on an application received from Peter Linder of Linder's Greenhouses, Garden Center a d Flower Marts to amend the Rosemount Market Square PUD The amendment woul allow Linder's to place a flower mart in the parking lot in front of Knowlan's Community Devel merit Director Rogness informed Council of the Planning Commission's recommendation to a prove the amendment by a 3/2 vote The City Council had several questions which included size, location, signs, electricity, water supply, terms of lease parking lot traffic, customer park[ g, and types of products to be sold Members of the Council requested that the PUD am dment include a condition that the flower mart be approved on a one -year trail basis and that o er conditions such as site layout, signage, and hours of operation also be included as operating c dihons MOTION by Carroll to authorize sluff to prepare a proposed amendment, with specific conditions, to the Rosemount Market uare Planned Unit Development to permit the Linder's Flower Mart in the parking lot as shown the attached exhibit and to be reviewed by Council at a future meeting Second by Cisewski A s Carroll, Edwards, Cisewski, Busho Nays None Motion carved Community Development Director Rogness presentarr request from Solberg Aggregate to renew their mineral extraction permit for property owned by Koch Refining Co The property is located on the former Solberg site west of STH 52 which was sold to Koch and leased back to Solberg for continued mineral extraction operations on a yea to year basis Rogness explained how the revised grading plan would taper downward resulting i a two percent slope and extending the operations approximately three to four years Lau n Howard of Solberg Aggregate addressed questions from the Council with regards to th story of the Solberg operation and reclamation plans He also advised that if the grading odification was not approved, there was enough mineral extraction for this year's constructi season, but that the company would need additional time for reclamation It was noted that th City Council will be discussing mining issues at a future work session, and it was the consensus o the Council to only approve the extraction permit renewal and not the grading plan modification MOTION by Busho to approve the mineral extraction permit renewal for Solberg Aggregate for 1999 without modification to the grading plan Second by Edwards Ayes Edwards, Cisewski, Busho, Carroll Nays None Motion tamed 2 MEMORANDUM DATE January 22, 1999 TO Mayor Busho Counctlmembers Cisewski, Wippermann, Carroll, E wa FROM Susan M Walsh, Assistant to Administrator SUBJ Tavern on 42/Ursmos On Thursday, January 21 I contacted the Ursmos to see if they were interested in pursuing their attempt to get an on -sale liquor license with the understanding that the city liquor ordinance would be amended to include classifications of on -sale licenses I talked to Suzanne and John Ursmo individually, and both were under the impression it would take 6 months to a year to change the ordinance I assured them that it shouldn't take more than one month and possibly less On Thursday both Ursinos were somewhat receptive to pursing the liquor license per our telephone discussions This morning, Friday, January 22 Suzanne contacted me and advised via voice mail that they are going to move on and pursue other things She went on to state that if the ordinance does get changed and they can be assured that the city council will approve a license, that staff can let them know but they are not going to focus on Rosemount Prior to this telephone call, Attorney LeFevere and I discussed possible revisions to the liquor ordinance and timelines for getting this accomplished We agreed a draft ordinance could be provided to the City Council as early as the February 2 Council meeting or at the February 10 committee of the whole Mr LeFevere also stated the Ursmo license could also be granted at the same time or assurances could be given to the Ursmos that the license would be approved at the February 16 regular meeting I have not called Suzanne since her voice marl this morning I thought it would be best to contact her next week after staff has received direction from the Council on whether or not the ordinance should be amended and when the Council would like to address the proposed revisions We think the proposed ordinance amendments would include two or three on -sale liquor license classifications —one for bars and one for restaurants (Caution this is all very preliminary) The restaurant classification would require 50% or up to 70% food sales (depending on Council direction) We also discussed limiting the number of classifications based on the six on -sale licenses currently allowed in our City Code For example, allow 3 bar (limited food sales) licenses and 3 restaurant licenses After the 2000 census, this number could increase to 12 if the Council wanted it to Attached is an excerpt from Brooklyn Center's liquor ordinance, which describes the different classifications they have I noted in the column what types of restaurants are approved for a particular type of license Excerpt from the City Council Work Session of August 11, 2004 Liquor License Regulations Community Development Director Lindquist led a discussion regarding the proposed changes in the ordinance that governs on -sale liquor licensing The current City ordinance restricts the number of on -sale liquor licenses to six (6) State statue places the limit at 12 Recent State modifications allow exemptions for clubs, restaurants. hotels, bowling centers, and theaters Staff recommended that the City amend the ordinance to allow exemptions for restaurants,