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HomeMy WebLinkAbout6.e. Liquor Regulations - Ordinance Amendments 4 ROSEMOLINT EXECUTIVE SUMMARY CITY COUNCIL City Council Special Meeting: November 3, 2009 AGENDA ITEM: Liquor Regulations Ordinance AGENDA SECTION: Amendments Consent Agenda PREPARED BY: Gary Kalstabakken, Chief of Police AGENDA NO. 1 e.. Amy Domeier, City Clerk ATTACHMENTS: None APPROVED BY: RECOMMENDED ACTION: Motion to Adopt an Ordinance Amending Title 3, Chapter 1 Liquor Regulations. ISSUE Based upon staff discussions with local liquor license holders and the issues raised during the creation of the arcade, billiard hall and dance club ordinance, staff is proposing amendments to the current liquor ordinance. At October 14, 2009 work session the City Council discussed the proposed amendments as listed in the Summary of this report. The City Council supported staff's recommended changes to the ordinance. SUMMARY The following are proposed changes to the current liquor ordinance for City Council consideration. 3 1 6: Persons Ineligible for License The current section includes the following restrictions: B. Multiple Interest: No license shall be granted to a person who is directly or indirectly interested in any establishment in the City to which a license has been issued under this Chapter. No person shall own an "interest as defined in this Chapter, in more than on establishment or business for which a license has been granted in this City under this Chapter. Based upon recent inquiries, staff is proposing to strike this clause from the ordinance. With the removal of this provision, local liquor license holders would have the opportunity to hold more than one liquor license within the City. 3 1 8: Conditions of License The current provision includes the following: 17. Records: The business records of the licensee, including the federal and state tax returns, shall be available for inspection by the city at all reasonable time upon written request. Based upon staff discussion it is recommended that this clause be removed from the ordinance. 3- 1 -3 -4: Amendment Application This would be a new provision added to 3 -1 -3 License Applications. The current ordinance allows for amendments to the liquor license but does not formally lay out the process. With the addition of the amendment application language the process will be defined. Proposed language: 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 or management of establishment. 2. Request to modify a condition(s) within the license. 3. Request to expand the permitted license area. B. Amendment Application: The following application material shall be provided as part of the amendment application: 1. Change in ownership or management of establishment: A license application shall be submitted with the information requested in section 3 -1 -3 -1 (Contents of Initial Applications). 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. Request to expand the permitted license area: 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. RECOMMENDATIONS Staff recommends moving forward with the above -state motion. 2 CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING TITLE 3, CHAPTER 1 LIQUOR REGULATIONS THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAINS AS FOLLOWS: Section 1. The Rosemount City Code Title 3, Chapter 1 is hereby amended by adding Section 3 -1 -3 -4 as follows: 3- 1 -3 -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 or management of establishment. 2. Request to modify a condition(s) within the license. 3. Request to expand the permitted license area. B. Amendment Application: The following application material shall be provided as part of the amendment application: 1. Change in ownership or management of establishment: A license application shall be submitted with the information requested in section 3 -1 -3 -1 (Contents of Initial Applications). 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. Request to expand the permitted license area: 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. Section 2. The Rosemount City Code Title 3, Chapter 1 is hereby amended by changing Section 3 -1 -6 as follows: 3 -1 -6: 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. been issued undcr this Chaptcr. No person shall own an "intcrcat a3 defined in thia Chaptcr, in more than one establishment or business for which a license has bccn granted in this City undcr this Chaptcr. B. C: 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. D7 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 subsections A and B 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 operated, under the license. (Ord. II, 5 -20 -1986, eff. 5 -31 -1986) D. E 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% 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 licensee in the absence of a bona fide consideration therefore 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. (Ord. II, 5 -20 -1986, eff. 5 -31 -1986; amd. Ord. XVI.38, 2 -17 -1998) Section 3. The Rosemount City Code Title 3, Chapter 1 is hereby amended by changing Section 3 -1 -8 as follows: returns, shall be available for inspection by the city at all reasonable times upon writtcn request. (Ord. II, 5 20 1986, cff. 5 31 1986) M. l: 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) 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 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. (Ord. XVI.40, 3 -2 -1999) Section 4. This Ordinance shall be in effect following its passage and publication. Adopted this 3rd day of November, 2009, by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk Published in the Rosemount Town Pages this day of 2009.