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HomeMy WebLinkAbout2.c. Liquor Ordinance CITY OF ROSE�iOUNT � 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 ATTACHMENTS: APPROVED BY� �l'O Attached is the memorandum and draft ordinance provided to Council on January 29, 1999. MEMORANDUM DATE: January 29, 1999 TO: Mayor Busho Councilmembers 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 establishing 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 McDivots. 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 m�with a breakdown of food and liquor sales percentages on Monday, February 2, 1999. I plan on contacting the owners of McDivots 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 America—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 in 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 CITY OF ROSEMOUNT ORDINANCE NO. 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 l. 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 A licenses may be issued only to hotels and restaurants where percent or more of the total revenues derived from the sale of food anc�lieverages aze derived from the sale of food and non-alcoliolic beverages. In the case of Class A licenses issued to restaurants operated in conjunction with a bowling alley, percent or more of the total revenues derived from the sale of food and beverages must be derived from the sale of food and non-alcoholic beverages for consumption on the premises. 2. Class B 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 B licenses may be issued only for premises licensed for the on-sale of intoxicating liquor for 1998. In the event any such license is revoked, or lapses for a period exceeding sixty (60) days, any subsequent license for the same premises must be a Class A license. Section 2. Rosemount City Code Section 3-1-8 is amended by adding new paragraph N as follows: N. Certification. No Class A 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 percent or more (or percent in the case of restaurants operated in conjunction with bowling alleys) of total revenues of the establishment derived from the sale of food and beverages is derived from the sale of food and non-alcoholic beverages for the twelve (12) month period preceding the licensee's application for renewal. CLL-157203 RS215-1 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. Failure to comly 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. This ordinance shall be effective immediately upon its passage and publication according to law. ENACTED AND ORDAINED into an Ordinance this day of , 1999. CITY OF ROSEMOUNT Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Published in the Rosemount Town Pages this day of , 1999. CLL-157203 RS215-1