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HomeMy WebLinkAbout6.e. Liquor License Ordinance Amendment EXECUTIVE SUMMARY City Council Meeting Date: November 4, 2020 AGENDA ITEM: Ordinance Amendment, City Code 3-1-3- 2 Apportionment of Intoxicating Liquor Licenses AGENDA SECTION: Consent PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. 6.e. ATTACHMENTS: Ordinance Amendment APPROVED BY: LJM RECOMMENDED ACTION: Motion to Adopt an Ordinance Amending City Code 3-1-3-2 Apportionment of Intoxicating Liquor Licenses BACKGROUND In 2005, the City Council approved numerous modifications to the liquor ordinance to reflect a change in policy regarding attraction of new businesses. Prior to that time, there was a limit on the number of on- sale liquor licenses in the City and the default liquor license given to establishments was the Class A liquor license, which did not require meeting a percentage of food revenue versus liquor sales. In other words, the Class A liquor license could be used for businesses which were not considered a restaurant and may only serve liquor. The discussed change was to attract more full-service restaurants and family-type establishments to better address the needs of the community. (The food revenue requirement was reduced to 51% in 2015.) The ordinance modification also reduced the number of Class A licenses available to two (2), in recognition of the two Class A licensed businesses, Shenanigans and Celts. It was discussed that at any time either of these businesses would cease, the Council would further reduce the amount of Class A licenses. With the Morrison redevelopment, Shenanigans has closed and is no longer in need of the Class A license. They continue to look for a new location within Rosemount and there has been some discussion that the Class A license could be issued should they find a new location by June 30, 2021, as a license cannot be issued without a permanent address. Staff has discussed the current action and timing with Brandon Barth, owner of Celts and Shenanigans, and he understands the situation. In the meantime, staff is recommending amending the ordinance to reduce the number of Class A licenses to one (1). Should Shenanigans need the license in the near future, the Council could again amend the ordinance. With license renewals coming at the end of the calendar year, staff does not want to have an available Class A license should one of the other local establishments wish to change during their renew time period. The ordinance modification should not negatively impact the attraction and licensing of a brewery or wine bar, as both of those establishments would be licensed under different provisions of the ordinance. RECOMMENDATION Staff recommends approval of the ordinance amendment to limit the number of on sale liquor establishments in the city that do not need to generate 51% of total revenues to one. CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE RELATING TO LIQUOR LICENSE APPORTIONMENT; AMENDING SECTION 3-1-3-2 OF THE ROSEMOUNT CITY CODE THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. Title 3 Business Regulations, Chapter 1 Liquor Regulations, Section 3-1-3-2 of the Rosemount City Code is amended as follows: 3-1-3-2 APPORTIONMENT OF INTOXICATING LIQUOR LICENSES: A. Class B intoxicating liquor licenses will be issued within the total liquor license limits established in Minnesota statutes, section 340A.413, as amended. B. Two (2) One (1) class A intoxicating liquor licenses may be issued within the city of Rosemount. C. There shall be no limit on the number of off-sale intoxicating liquor licenses. (Ord. 2015-06, 7-7-2015) Section 2. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage and publication according to law. ENACTED AND ORDAINED into an Ordinance this 4th day of November, 2020. CITY OF ROSEMOUNT ______________________ William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk