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HomeMy WebLinkAbout9C - Report Re: Request to Limit Distance Between Off Sale Liquor Establishments MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: Introduction The purpose of this agenda item is to determine whether the Council believes it beneficial to establish geographic distance limits between stores possessing off- sale liquor licenses within Prior Lake. There are two types of off-sale liquor licenses. One is the off-sale 3.2 malt liquor license possessed by grocery stores, convenience stores and some gas stations. The second type of license is intoxicating off-sale liquor license which includes liquor stores and some facilities like restaurants that have both an on-sale and off-sale license. It is the bona fide off-sale liquor store licenses which are the focus of this agenda item. Historv Minnesota Statutes Chapter 340A governs the terms of intoxicating liquor licensure in Minnesota. The Statute provides that no off-sale intoxicating liquor license may be issued in any city, except as provided in this section, in excess of the following limit: 1. In cities of the first class, not more than one off-sale license for each 5,000 population; and 2. In all other cities the limit shall be determined by the governing body of the city. Off-sale liquor licenses may not be issued if any of the following apply: . Where restricted from commercial use through zoning ordinances. . Within or on the State Capitol grounds. · On the State fairgrounds or within one-half mile of the fairgrounds in a city of the first class (Minneapolis and St. Paul). . On the campus of the University of Minnesota with minor exceptions. . Within 1,000 feet of a State hospital, training school, reformatory, prison or other institution of supervision or control. . In a town or city where an election conducted regarding license issuance was opposed. . Within 1,500 feet of a State university subject to several exceptions. . Within 1,500 feet of a school not within a city. City code may be more restrictive than State Statute. Prior Lake presently prohibits off sale intoxicating liquor licenses as follows: . An applicant less than 21 years old. · An applicant who has been convicted within the last five years of a violation of a provision of this section, or a violation of a Federal, State or local law, www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 ordinance provision or other regulations related to alcohol or related products. . The applicant has had a previous license revoked. . The applicant fails to provide City-required information. . The applicant has outstanding fines, penalties or property tax. . The applicant already owns a facility. . The business is not eligible to have a license under the law. . Taxes, assessment, fines or other financial claims are owed the City. . The premise to be licensed is within 300 feet of a church or school. . A background or financial check cannot be conducted for lack of information. . The applicant is not of good moral character. Current Circumstances The current location criterion in the Prior Lake ordinance is 300 feet or more from a church or school. Kevin Bresnahan, owner of Dakota Liquors at 14065 Commerce Avenue, has asked that the City Council consider adding additional location criteria. Specifically, he proposes that off-sale intoxicating liquor stores be restricted to at least one-half mile or 2,640 feet from one another. His reasons for this recommendation are: . He has made an investment in his business over the last 26 years. The addition of a large competitor in the immediate vicinity could erode business or put him out of business. . Such a limitation would result in fewer on-sale liquor licenses in the City than might otherwise occur through market forces. . Fewer stores make for fewer outlets for under-age drinkers. . Fewer outlets are less of an enforcement challenge for the Police Department. . Fewer stores mean fewer opportunities for theft or burglary. . Since the law does not provide any limits to the number of off-sale stores in Prior Lake, this would create a maximum number. Conclusion Attached is information provided by Mr. Bresnahan through his attorney Bryce Huemoeller, together with other reading materials we have collected. There are two decisions the Council needs to consider: 1. Does it wish to implement one-half mile location restrictions as proposed by Mr. Bresnahan or limit the number of licenses issued? 2. Should the limitations apply only to liquor stores or include restaurants with on/off-sale licenses and 3.2 off-sale licenses? If grocery stores are allowed to sell off-sale, would the restrictions apply? ISSUES: The City Council and staff want Prior Lake businesses and citizens to be financially successful. This is an essential element of our 2030 Vision and Strategic Plan. At the same time, the City seeks economic development and redevelopment of this community. Economic development means that as much as we may wish to preserve all businesses as they are, there will be changes. It is not surprising to see larger businesses moving into the southwest quadrant of TH 13 and CR 42 as this is neighborhood and community commercial area. I believe we can expect more of this to happen in the future at this location. 2 The question is what impact would placing a distance limit between liquor stores have, and would such action constitute good public policy. The following points appear to be most relevant in determining if distance limits should be adopted. 1. The City Attorney advises that, as presented to the Council, the proposed limitation appears intended primarily to limit competition; a constitutionality issue arises regarding restraint of trade and antitrust laws. 2. All other things being equal, limiting the number of stores does limit the enforcement effort the Police Department must expend which could also be accomplished by limiting the number of licenses. 3. There is some question whether the number of stores will impact the availability of liquor to minors. Availability of liquor to minors is more a function of the training liquor clerks receive and their tenacity in carding customers than the number of stores. The attached article points out that Minnesota already has far more restraints on the number of liquor outlets than two-thirds or three-fourths of the states in the nation. 4. One could argue that more stores mean fewer customers per store and therefore greater assurance of carding in each store because fewer minors could "slip by" in peak customer times. 5. Mr. Bresnahan provided the City with a copy of a survey completed in February of 2002 that identified thirteen metropolitan area communities. We have updated the survey (attached) to include 16 communities and found that in our survey; only Burnsville and Coon Rapids restrict the proximity of off-sale liquor stores to one another. The City of St. Michael considered a similar restriction in 2004, but ultimately the proposal was rejected. 6. We have reviewed the City's zoning map to identify the location of existing stores. If the one-half mile restriction was adopted today and was applicable to both existing and future stores, there would be conflicts between current off-sale licenses for Village Liquor and Viking Liquor. If the off-sale licenses for Extra Innings and Captain Jack's were included, there would be a distance conflict with them as well. (See attached aerial map.) If off-sale 3.2 intoxicating liquor licenses are included, then Holiday Gas, Village Market, Shell, Narayan Gas and Groceries and Hot Spot would also be in violation of the one-half mile limit. 7. We are aware that MGM has submitted an off-sale license application to open a building on Commerce. The proposed store location would be within one-half mile from Dakota Liquors. Dakota Liquors, owned by Mr. Bresnahan, already has another liquor store within the half-mile limit in Savage (Marketplace) which is not within the City's control. 8. Without such regulations, it does not appear that off-sale liquor establishments have proliferated in Prior Lake based upon the historical table below: * 3 Population # Off Sale Licenses Per Capita per License 1990 11 ,482 4 2,871 2000 15,917 3 5,306 2005 21,395 3 7,132 20081 22,111 1 31 7,3701 *This includes three off-sale liquor stores. The restaurants with both on- sale and off-sale licenses are not included in the count. D&C Liquors is excluded as they are not licensed by the City. According to the attached article, Minnesota has fewer off-sale liquor outlets per adult than 40 other states. The number of off-sale outlets per adult is about one-third of the national average. Minnesota law is more restrictive than three-fourths of the other states in the nation which allow strong beer to be sold in grocery, convenience and drug stores, and about two-thirds of the states that allow wine to be sold in these types of stores. 9. Existing liquor stores are likely to oppose a new store because of the potential loss of customers and, therefore, market share. 10. The consumer could be the biggest loser as the result of added restrictions by paying more for the off-sale products they purchase. As the attached article states, off-sale beer prices and wine prices in Minnesota are 7-9% and 5-7% higher, respectively, than in Wisconsin (which has fewer restrictions and more outlets) while distilled spirits prices are 8-10% lower in Minnesota. 11. Adopting additional restrictions could be seen as protecting existing small business against large, big box operations. It could also be seen as anti- economic development by discouraging larger businesses from relocating to Prior Lake. 12. There is no evidence that restricting the location of off-sale intoxicating liquor stores promotes or addresses a health, safety or public welfare problem in the City. Using location restrictions to protect existing businesses raises unfair restraint of trade issues. FINANCIAL IMPACT: If fewer stores were to come into existence because of this ordinance, there would be a decrease in licensing and property tax revenues and, to some extent, a decrease in police resources for enforcement and liquor checks. ALTERNATIVES: 1. Direct the staff to prepare an ordinance amendment imposing location criteria regarding distance between off-sale licenses 2. Direct the staff to prepare an ordinance amendment which would establish a maximum number of off-sale liquor licenses the City can issue. 3. Take no action and leave the ordinance criteria as presently written. RECOMMENDED As determined by the Council. MOTION: 4 ..1 Ur'1-t:)2-~\::)\::.lt:l 1:::>; 4~ ~kUvJrl j-'k! Nil NL1 :>\::l'( I:lSr' 4'(llj t-',01/01 June 2, 2008 Mayor jack Haugen City Council Members City of ?rior Lake Prior lake, MN 55372 Re: Request to change the off-sale liquor ordinance Dear Gentlemen, My request to change the off-sale liquor ordinance is as follows: No off-sale into)(icating liquor license shall be issued for a premise that is within one half (1/2) mile of another off-sale intoxicating liquor facility. Facilities operatins on the effective date ofthis chapter may continue to operate whether or not they are within one half (1/2.) mile of another facility. Thank you for your attentton to this matter, Respectfully, ~~LBr:; .?L \ TOTAL P.01 l<iww,rjyflnf"s.wm 'be.New It!!k ~tU1tS ~._. 0". TIU' WED February 26, 2002 Underage Drinking in U.S. Is on the Rise By THE ASSOCIATED PRESS Filed at 10:46 a.m. ET WASHINGTON (!.P) -- Nearly a third of high school students say they binge drink at least once a month, according to a report that says underage drinkers now account for 25 percent of the alcohol consumed in this country . "Underage drinking has reached epidemic proportions in America," said Joseph Califano Jr., president of the NatioI}al Center on Addiction and Substance Abuse at Columbia University, which issued the report Tuesday. T}re report, which analyzes two years' research, "is a clarion call for national mobilization to curb underage /drinking," said Califano, a former u.s. Secretary of Health, Education and Welfare. ( Some of the report's findings: -- Eighty-seven percent of adults who drink had their first drink before age 21. -- The gender gap for drinking is disappearing. Female ninth-graders were just as likely to be drinkers as male ninth-graders. --Eighty-one percent of hIgh school students haveconslJAl~9..alcohol, compared \Vith 70 percent who have smoked cigarettc~ a..J 471 percent who have used marijuana. . ~-Most teens who experidtent with alcohol continUe using'h. {Among high school seniors who had tried alcohol, 91.3 percent still were drinking in the 12th grade. The percentage of teens who drink on binges -- 31 percent among high school students -- was obtained by using the Youth Risk Behavior Survey of the Centers for Disease Control and Prevention in Atlanta, published in 2000. The conclusion that underage drinkers accounted for 25 percent of alcohol consumption was based on the 1998 National Household Survey on Drug Abuse. The number of drinks consumed by underage drinkers in a month was divided by the total number of drinks in the same period for the sample. "AI,gbgU"',.,awaytl1e.top ~~e~.~Jor ~erican kid~tsaid Susan Fost.ecenter's vice*. president and director of )olley reSearCh and analysis\ "The college binge-drinking problem starts with children and teens, and that's where our prevention and education efforts must be focused." A spokesman for the Distilled Spirits Council of the United States called the group's analysis "flat-out wrong." "Under its flawed iTlterpretation, each American teen-ager and young adult who illegally drinks alcohol would have to consume 120 drinks per month," to make up the 25 percent consumption figure, said spokesman Frank Coleman. Phil Lynch, a spokesman for Brown-Forman Corp., whose products include Jack Daniel's Tennessee whiskey, said, "It looks like Mr. Califano and CASA have adopted Emon's accounting practices." Binge drinking often is described as four consecutive drinks for a female or five drinks for a male. According to an American Medical Association survey last year, binge drinking is among parents' top worries. Around 44 percent of college students admit to binge drinking, and nearly a fourth of those binge frequently. Underage drinking crosses social dynamics as well. President Bush's twin daughters, Jenna and Barbara, have gotten in trouble for underage drinking. Advertisement '" ow:w>> <~_lli , CHNOSCOlJT, d,1t~f[i1~ '~!~'"'~~~fS T[(;~1N'i;)lO(1Y t.1Pfjf?-. 11i;:"~ If.tbe..)NQrJc.l_'!':L9.~..fl.9t,.jy~t ~PQYLi'lDY..<:1ntenn~w.oylc.l c.lQ.! AJIQQrJ.i'l.mPtb<:1t...~pre9.c.l~ ~.I,I.I1~bilJ~...~J.I.g\!.~.r.~..r()()m Ib~mQ$t..imPQrtqnt..new. auto technoloav is 125 miles hiah Why wake uo to an annovina buzzer? Why soend hundreds on 9.._bjggJ~LmonjtQLenlarae tl}~:LQIJ~-Y.9J!_b.i:3.y.~ Pene1mtir19_9-~L~my[~jfl~~ f1'!.t on contact Alert animals that your vehicle is aQoroacblr:lg YQurw~!;lc9m.c.ljgjt:!! G.9.m~ri'l....<:1nc.l...Yic.l~Q..G.i'.lm~m iotQQD~...G.onv.~ni~nt, compi:3ctynil, iiNRf.pi^"'<'iIf:I:ili:~ "~~,<,:J~d:~~is!~-(t Too often, teens have easy access to alcohol, the report says. One-third of sixth- and ninth-graders get alcohol from their own homes, and children cite other people's homes as the most common setting for drinking. The report also cliinplains that the entertainment industry has glamorized alcohol and rarely shows its ill effects. It noted that NBC television recently announced it would start accepting commercials for distilled beverages, breaking a longtime tradition of refusing such ads. The center advises parents to discuss the consequences of underage drinking with children but also recommends that policy-makers step up enforcement of underage drinking laws and finance additional treatment programs for adolescents. The White House Office of National Drug Control Policy also should be broadened to include alcohol in its media campaigns and other activities, the report said. ^------ On the Net: National Center on Addiction and Substance Abuse: http://www.casacolumbia.org Distilled Spirits Council: http://www.discus.health.orgl Coovrioht 2002 The Associated Press I Privacv Information Re Jort:33%of teens are -. , almittec -Jinge lrin-{ers "7 ';1 /,' if ,// j./ /J /7 A /1 G:4-4e'..-t-/iL./(.I/-Lf ,t;t l-,(i-t~ '1./ '-'-~~ Parents for .Prevention has hints to stop teen drinking A campaign to stop underage drinking in northwest Hennepin County is targeting parents of teens. Called "Parents for Preven- tion: Together we can stop teen drinking," the campaign has the following hints for parents. 1. Talk to kids about alcohol issues. Parents are the number one influence in children's lives: A teen may not tell a parent that their opinions matter, but re- search repeatedly shows that parents' approval has a major impact on youth. 'Parents should tell their teens they care about their health and safety and that drinking alcohol is dangerous. Ask the teen how they would handle a situation if they were , offered alcoh'ol. 2. Define and set clear bound- aries. Be clear and consistent with that underage use of alcohol is not acceptable. Let them know they can call to get them out of a situation where they have been offered alcohol or where they are un- comfortable. Wait up for the children, or ask them to come say goodnight when they get home. Knowing that they will see a parent when they. get home may discourl1ge alcohol use. 3. Eliminate youth access to alcohol in the home and commu- nity. BY JANELLE CARTER Associated Press Choose not to keep alcohol in the home. If choosing to keep alcohol in the home, lock itup or keep it in a place where kids cannot get to it. Monitor the supplies and' let your kids know there is at~en- tion to how much alcohol is in the home. Call ahead to parties that the teens are attending. Ask the parents if they will be present and what they are doing to en- sure that alcohol will not be in- , volved. Spread the word to other par- ents that about not approving underage drinking. Support each other on this important is- sue. Support the police and city council in enforcing underage drinking laws. 4. Model responsible use of alcohol. Be conscious of the circum- stances in which drinking in front of the children. Eliminate alcohol from the next celebration or family gath- ering. Prove through actions that one does not need alcohol to have a good time. WASIllNGTON - Thirty- one percent of high school stu- dents say they binge drink at least once a month, according to a new report by an advoca- cy group. "Underage drihking has reached epidemic proportions in America," said Joseph Cali- fano Jr., president of the National Center on Addiction and Substance Abuse (CASA) at Columbia Universi- ty, which issued the report Tuesday. The group also asserted that young people between the ages of 12 and 20 account- ed for 25 percent of all alco- holic beverages consumed nationwide. But the Substance Abuse and Mental Health Services Administration, the govern- ment agency that conducted the 1998 survey cited by Cali- fano's group, maintained that f:llJee/" If -e 5 5 underage drinkers account for 11.4 percent of U.S. alcohol consumption. Both the government and CASA percentages were based on a 1998 National Household Survey on Drug Abuse in which 25,500 people, including 9,759 between the _ ages of 12 and 20 were ques- tioned in their homes. While the 12-20 age group represented 38 percent of those surveyed, they account for about only 13 percent of .. the total U.S. population. " The government says it weighted its survey results to account for the age discrepan- cy between its survey sample and the total population. Califano defended his group's decision not to make that adjustment. Binge drinking often is described as four consecutive. drinks for a woman or five drinks for a man. Online: www.casacolumbia.org ;zj;z 7/t? ;;? r Girls are drinl<ing lil<e boys Teens' alcohol use now nearly equal By Karen Thomas USA TODAY Teenage girls are almost as likely to drink alcohol as teen boys are, closing a generations-old gender gap, a study released Tuesday says. An analysis of national data by the National Center on Addiction and Substance Abuse (CASA) finds overall alcohol use among teens in- volves 48% of &irls and 52% of boys. Tenth-grade girls who binge drink (five or more drinks in a row) reached 31 % .in 1999; 34% of boys that age are binge drinkers. The gender gap disappears en- tirely among ninth-graders: 40% of boys drink vs. 41 % of girls; 22% of boys binge vs. 20% of girls. "We found that ... girls want to be one of the boys, so they go drink-for-drink with them." says CASA President Joseph Califano. "Also, girls are under enormous pressure to have sex, and alcohol is a big disinhibitOl:" Experts say alcohol is more problematic for women, who me- tabolize it more slowly and be- come intoxicated more quickly than men. They also tend to be- come alcohol-dependent fastel: The report says underage drink- ing accounts for one-fourth of all alcohol consumed in the USA, a figure hotly disputed Tuesday. The conclusions are "absolutely, statistically wrong," says Peter Cressy, president of the Distilled Spirits Council ofthe United States. Late Tuesday, the Substance Abuse and Mental Health Services Ad- ministration, whose data CASA used, said underage drinking ac- counts for 11.4% of consumption. CASA is calling for stricter alco- hol policies and a campaign against underage drinking financed by the alcohol industry. Cressy says the industry has spent $120 million in the past 10 years to counter un- derage drinking. Among adults polled by CASA: ~ .86% want. restrictions on home delivery of alcohol. ~. 74% support restrictions on alcohol advertising; ~ 76% say patents should be held l~gallyresponsible for teen drinking. 10th-graders wl10 bingedrin.k .- ~?ys 35% .---;..... Girls ~gi ~0;33.S%1 20% ~1%1 Sourco,CAS^ o '~11 . !93. '95; ,'97. ,199:.,~rs~Yi~r~~:llth " Survey By Julie Snider. USA TODAY r~ ~ ~ I'l( ~ , \'- ~, '\. , \~ ~ ~ Underage drinking is discussion topic A "Youth Fishbowl Discussion on Un- derage Drinking" will be 7 to 9 p.m. Tues- day, March 12, at Plymouth Creek Cen- ter, 14800 34th Avenue North, Plymouth. During the discussion, youth from the Wayzata School District will discuss what they see as contributing to under- age drinking and what the community can do to reduce the problem. Results of the School District's 2001 Minnesota Stu- dent Survey will be shared. Adults will have the opportunity to ask youth and other adults questions after the discussion. Information: 612- 803-1194. .:l-b -Ci9, Lt7YL1' Luu ~-1 Consumption by girls has c;m~ht up to boys', and binge drin 1rin~ is on the rise. 'Epidemic' c.ited in teen drinking From News Services WASHINGTON, D.C. - Teenage girls are drinking almost as heavily as boys, and nearly a third of high school students say they binge drink at least once a month, according to a new report by an advocacy group. The gov- ernment estimates underage drinkers ac- count for 11.4 percent of all alcohol con- sumed in the United States. "Underage drinkinghasro.rho~ epidemic proportiOI).S in America," said Joseph Califa- no Jr.. president of the National Center on Addiction and Substance Abuse (CASAl at Columbia University, which issued the report Tuesday. The report. which. analyzes two years of research. "is a ,..h.rinn call for national mobili- zation to curb underage drinking." said Cali- fano, a fanner U.S. secretary of health, educa- tion and welfare. Although alcohol consumption by teen- agers dropped sharply in the 1980s, when states raised the drinking age from 18 to 21, that decline has plateaued since the mid- 199Os.. DRIIiIUNG contIaues on AlO: - Eight out of 10 Minnesota kids reportedly try alcoluJl before leaving high schooL SkuE' /,. /~ ::z/;).7ftJ.:? DRINKING from A1 Alcolwl industry: Numbers in report are misleading From the 1950s until the 1990s. more boys drank than girls, but that gender gap has all but disappeared. The gender-specific drink- ing .data come from different government surveys, with teenagers reporting higher rates of drinking in the Youth Risk Behavior Survey - con- ducted in schools by the Cen- ters for Disease Control and Prevention (CDC) - than they do on the annual National Household Survey on Drug Abuse. which is conducted in homes. Both the CASA and the goveroment figures were based on theho..C'ohnl,J sUlVey. Both surveys show that teenage girls' drinking habits now mirror those ofboys. "The latest findings show no difference between teenage girls' ~,.;n\ing habits and teen- age boys',' said a spokeswom- an for the Centers for Disease Control and Prevention. Carol Falkowski. director of research communications at the Hazelden Foundation. the cherni.cal dependency!reat- ment center in Center City, Minn., said eight out of 10 kids in Minnesota try alcohol before they get out of high school. A state government-spon- sored survey of thousands of public school students. re- leased late last year, found a third of 12th-graders surveyed said they had engaged in binge drinking in the past two weeks; 16 percent of ninth-graders polled reported binge drinking recently. Binge drinking was defined in the survey as having at least five drinks on one occa- sion. That siUd, the survey also noted that the percentage .of students who said they drank alcohol in the past year has dropped in every survey. In 1992. 80 percent of 12th-grad- ers said they had used alcohol recently. In 2001. 67.5 percent of 12th-graders reported drink- ingin the past year. While teenagers drink less frequently than adults, they tend to drink larger. more dan- gerous, amounts at anyone time. The CDC's study found that at whatever age teenage boys and girls begin to drink, they almost always continue to drink as they get older. According to the 1999 Youth Risk Behavior Study, 33.5 per- cent of lOth-grade boys report- ed binge drinking as compared with 31.3 percent of the girls. Eight years earlier. 31.4 percent of the boys and 22.4 percent of the girls reported binge drink- ing. The household survey, too. found that, while the propor- tion of teenagers who binge drink had declined. the gender gap on binge drinking has shrunk. in that study. 6.6 per- cent of girls ages 12-17 report- ed binge drinking in 1998, compared with 8,7 percent of the boys. Ten years earlier. 11 percent of the girls and 18.9 percent of the boys reported binge drinking. The assertion Tuesday by Califano's group that young people between 12 and 20 ac- counted for 25 percent of the nation's consumption of alco- holic beverages ,..",n~....1 ~ minor dustup. . . The Substance Abuse and Mental Health Services Admin- istration, . the governme~t , agency that conducted the .1998 survey cited by r~1i'onn's group, said underage drinkers account for 11.4 percent ofU .S. ~l,..n~nl consumption:. "RegardlesS of any discrep- ancies . . ., any alcohol use be- fore age 21 is ,,"""roptable and against the law," said the agen- cy, an ann of the Dep3rtment Underage binge mnking The percent of bilge drilkers among 10th gradels is on the rise, accor<I-€ to a recent study. Bilge drinking is often descrbed as four consecutive <rinks for a female, fIVe for a male. Percent of 10tf1 graders who reported binge drInIdng 50%.. . .'.BO}$ . lillI-Girls' ~ihftl 1991 .1993 1995 1997 1999 :" -c....;.. ....:,..--.: _ . Solxce: National Center on AddicOOn and Slbstance Abuse 11.,..,...,...;.,.+0,.-1 Press of Health arid Human Services. The alcoholic beverage in- dustry accused Califano's group of falsifying its numbers. "It looks like Mr. Califano and CASA h~ve adopted En- ron's accounting practices," said Phil Lynch, a spokesman for Brown-Forman Corp., whose products include Jack Daniel's To"no<<oo whiskey. Both the government and CASA percentages were based on a 1998 National Household Survey on Drug Abuse in which 25,500 people. including 9,759 between 12 and 20 were ques- tioned in their homes. While the 12-20 age group represented 38 percent of those surveyed, they account for about only 13 percent of the total U.S. population, accord- ing to 2000 Census Bureau fig- ures. The government says it weighted its survey results to. account for the age discrepan- cy between its survey sample and the total population. Califano on Tuesday de- fended his group's A"";';nn pot to make that adjustment. .:' '.CO "The household survey is taken by going into, a.home and . asking parents if you can talk to their children. 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[}::: en S. g: e: '" ~ g ~ g S"P-orn g. ~ct)~ '- 0..' ct)...,..... g Slga "'l:r:I f!~ ;il- t>'O ., c ;:s :I .. :I "'- ~ii1 ~ ,10 .., ~ CD :::I Q. .. -- :::I ^' -- ::s 'CtO..", .. D);' '-0 ... o CT' i. - (D 3 :e -- r+ ::s- g ,'< ',-. ::s .CtO. ',-a '0 .=e CD .. \~ '~ E4-STARTRIBUNE :; DRINKING from El Parents slwuld be alert for I changes in behavio~friends "Binge" drinking held near- ly steady, too, butat a rate alarming to health profession- als: One in three seniors re- ported having five or more drinks in a row within the past two weeks; one in six ninth- graders said they had. "I jJelieve that underage drinking is really an epidemic with staying power," said Carol - Falkowski, director of research. communication at the Hazel- den Foundation. "It's never gone away: It's just always been there." afits power to tempt, Falkowski said, "that doesn't make them bad kids, and that doesn't make you bad parents. It's because of the world we live in." To Cynthia Slovick of Maple Grove, the right approach is vigilance. She and her hus- , band, Jack, have always told their children not to drink. But Slavick said that as a parent she'd be remiss in not knowing, the statistics on teen drinking, and foolish to feel immune. She believes that her son, Sean, 15, has not taken a drink. He has no interest, and he wouldn't jeopardize his right to play school sports, she said.' She said he,r daughter, Missy, now 20 and a student at the University ofM/ssouri, did admit to having a drink at a couple of parties while in high school. "As a parent, you get a little scared, and you wonder and you worry," she said. "I hate to sound like 1 didn't care about it, but 1 always monitored things. She was a really good kid. She is a really good kid." Can lead to trouble WEDNESDAY, MARCH 6 - 200: But Falkowski stresses that alcohol can selid a 'young life into a tailspin, and parents need to know when to get help. She listed some trouble signs: Youngsters get secretive, defensive; they try to borrow more - or even steal-'- mon- ey; they lose their appetite; they either sleep all day or don't sleep at all; they lose in- terest in their usual activities; school attendance and work falls off; they hang out with a new crowd. When Laura Langanki df .Maple Grove was struggling with two chemically depen- . dent sons, she said, she learned that alcotiol shows up in urine analyses for only about 12 hours. So she began to test her sons as soon as they came ' home at night, if she was suspi- cious. Many treatment centers are open all night, Langanki said. If the test comes back positive, she said, schedule a chemical health assessment immediately. That, too, is han- dled by treatment centers ~ listed under "alcoholism" in the Yellow Pages. Health-care professionals, in particular, worry about chil- dren who start drinking while very young. Dr. Donna Milner, an emergency room physician at Children's Hospital ofSt. Paul, sees children in distress 'asyoungas 13. , At that age, Milner said, t drinking is often done on im- l. pulse: IGds find themselves \ home alone and decide it ; would be cool to raid their par- ents' liquor supply. That's why she tells all parents to lock up any alcohol in the house. Michaela Bykowski of Crys- tal said that drinking very on, Mom, I'm doing/tand I'm young sent herlife off course. .. . still alive.' " . She was 12, and shaken by the . What would she say now to death of her father. She went a high school girl whom she . on to marijuana and other saw drinking? . . drugs. Now 19, she has a 15- "1 would say, '!fyou want to . month-old daughter and no finish high school, if you want high school diploma. to play sports, you can't do She credits her daughter this.' with turning her life around: "I "Younger kids don't really . haven't done anydrugsSinceI:: . know what this can lead to," got pregnant." She hopes to go': .' shesaid/'People always say" back. to high school next fall. .... ... . ..alcohoI and marijuana are tpe . Her mother watned her i1bout\.igateway dru~s. andI firmly',,; drinking, she sald, but not early believe that. .. .'. . . ';,; enough. ' . .. . ., "It was after the facti it was '. ~H.J. Cummtnsisat too late," she said..'~Itwas just....' . hcummlns@,tnrtrlbune.rom)' going in one ear and out the .. ,,' .".".., other because I was already in- ' "'.: valved and fwas, like, 'Come Binge drinking's<campus toll Fraternities argue that this deadly problem isn't theirs alone By Mary Beth Marklein USA TODAY The circumstances in each case afe uniquely heartbreal<ing. Yet the similar- ities in five alcohol-related deaths this month evoke a disquieting sense of deja vu; .. On Feb. 14. University of Maryland student Daniel Reardon, 19, was dis- connected from life support and died after being found unconscious and in cardiac arrest in the Phi Sigma Kappa fraternity house, where he had accept- ed a bid that night to join the group. Au- topsy results are not yet available, but a university statement says alcohol "may have played an important part." Meanwhile, local police are stm in- I vestigating the September death of stu- dent Alexander Klochkoff, 20, found on the porch of the Sigma Alpha Epsilon house with no pulse and with blood on his nose. Alcohol poisoning was ruled 'OUt, but investigators say gamma hy- droxybutyrate - GHB. the "date-rape drug" - was in Klochkoff's system. .. Thlo San Diego State University freshmen. Brian jimenez and. Zachary jacobs, both 18, died early Feb. 10 when their pickup truck crashed some- time after they left a party at the Tau Kappa Epsilon fratermty house. Police are awaiting medical reports, but offi- cials say the truck was speeding, and winds were high. just 14 months earli- er, the fraternity was expelled from campus after a hazing incident that landed one 18-year-old in the hospital and another in a detox center. .. At Alfred (N.Y.) University, the body of Benjamin I{]ein, 21, was found Feb. 12 in a creek behind the Zeta Beta Tau fraternity house. Police obtained convenience-store videotape showing him purchasing (legally) a bottle of beer when last seen, and in news reports fraternity brothers acknowledged hav- ing punched. Klein hard enough to cause bruising. Police are investigating. About 120 miles northwest of Alfred. on the same day Klein was reported missing, University at Buffalo architec- ture major Jeffrey Critelli, lB. and friend ltavis Hennigar, 19. crashed their car in- to a river Feb. 10 after visiting a fraterni- ty party and then a popular bar for col- le~e students, where th~y used fake IDs. Cntelli escaped, but Hennigar has not been found. 'The deaths are just piling up here," says Hank Nuwer, author of Wrongs of Passage: Frorernities, Sororities. Hazing and Binge Drinking (Indiana University Press, $27.95) and a frequent lecturer on the topic. By his count, at least 56 people have died in some variation on the themes of fraternities, alcohol andl or ;~~i~ff:~~c~~~~~~ ~~;~n,e more saddening to some because the school had launch~d a national conversation aimed at stopping such behavior after a 199B incident involving freshman foot" ball players being forced to drink large amounts of alcohol and water. Despite greater attention, "it almost seems to be worsening:' says anti- hazing activist Eileen Stevens of Say- ville, N.Y.. whose son, Chuck Stenzel, died 24 years ago last Sunday after be- ing locked in a trunk in cold weather and forced to drink a mixture of hard li- quor, wine and beer. "I don't know what it's going to tal<e." Neither do others close to the tangle of issues involved. Most ex~erts ac- Imowledge that college drinking by it- self Is a complicated problem. A 1993 national survey of college students by Harvard researchers found that nearly half (45%) of males and more than a third (36%) of females engage in binge drinking. But among Greek students, the numbers are hIgher: 86% of fra- ternity members and BOX of sorority members living in chapter houses are likely to engage in binge drinking. When alcohol-related accidents occur, hazing - essentially being pressured to engage in some sort of initiation rite - often turns out to be a contributing factor. College leaders say they have made progress through alcohol awareness and educational programs, stronger hazing policies and tougher enforce- ment. The number of liquor arrests on San Die~ State: Randy Salle places flowers at a memorial for freshmen Brian jimenez and Zachary jacobs, who died Feb. 10 in a pickup truck crash after they left a party at the Tau Kappa Epsilon fraternity house. Gearin~ Up for sprmg break With spring break just around the corner, many colleges are stepping up alcohol-awareness programs. Last year, more than 700 cam- puses took part in a Safe Spring Break promotion, in which stu- dents are encouraged to sign a pledge saying they won't drink and drive. The national campaign is sponsored by a Denver-based national peer education network called BACCHUS and GAMMA. Examples: .. Last year. more than 250 stu- dents participated in the Univer- sity orSouth Carolina's program. "Don't Get Caught in a Pinch," which featured educational pro- grams, movie screenings, games and a midnight breakfast bar. .. At California Polytechnic State University at San Luis Obispo, stu- dents who participated in eight educational exercISes were eligible to win prizes, including a three- day trip to the destination of their choice and a stay at a resort. .. Next week, the Universit~ of . Miami kicks off a series of pro- grams. including an address by Cindy McCue, whose son Brad, a Michigan State University student, died in 199B from alcohol poison- ing whiie partying with friends. college campuses rose 4.2% (to 26,091) in 2000 over 1999, and the number of campus-based disciplinary referrals rose 7.3% (to 120,063), Education De- partment statistics show. California State University last summer adopted some of the most sweeping reforms, in- cluding restrictions agaInst naming events after a brand of beer. after a stu- dent at the Chico campus drank himself to death. After tragedy struck, the University at Buffalo called a timeout on all Greek activities for a weel<, suspended Alpha Sigma Phi fraternity and charged three students with violating campus hazing and drinking laws. which means they could be expelled. Alfred University's trustees suspend- ed the fraternity and two of its mem- bers, tightened restrictions on other Greel< groups and are "questioning whether the Greek system should be allowed to continue," says president Charles Edmondson. Meanwhile, 42 states have enacted anti-hazing laws, up from three when Stevens' son died in 1978. But Nuwer says that. state for state, the law "with very few excep- tions is symbolic:' National Greek organizations, too, have taken action, banning alcohol and hazing from chapter houses and shut- . .,.. .,',' lIyMutHou.ton.A.P University of Maryland: Mourn!rs 4mbrace after a Feb. 15 memorial service in Washington, D.c.. for freshman Dariel Reardon, who died at a frat house. isn't just the No. 1 issue in fraternities and sororities. It's the number one issue for all students," says John Williamson, executive vice president of the Indian-. apolis-based North-American Inter- fraternity Conference, which repre- sents 66 fraternities on 800 campuses in the USA and Canada. University at Buffalo spokesman Den- nis Black doesn't disagree. "Obviously, a lot of factors are involved," he says. "But fraternities and sororities can't separate themselves from the fact that there's a history, and that history repeats itself." Some colleges - notably Bowdoin College in Maine - long ago eliminated the Greek system from campus alto- gether. Other campuses have raised the possibility but backed away for a host of reasons, including alumm pressure. A more common response is that of Indi- ana University. which delayed by one semester the period during which fra- ternity and sorority chapters may recruit new. members. The idea is to wait until freshmen are better adjusted to campus life. As for how to eliminate the phenom- enon altogether, "When somebody comes up with the answer they may get a Nobel Prize," says George Cath- cart, spokesman for the University of Maryland. But skeptics aren't holding their breath. "I really don't see any actlon,.any ac- tion. that means anything," says George Cantor, who chromcles his family's or- deal after his daughter's death In the just-published Courtney's Legacy. A Fo- tl,er's Journey (laylor ltade Publishing, $22.95). In 1998, Courtney Cantor fell out of a University of Michigan dormito- ry window and died after coming home from a fraternity party. GHB was later discovered in her system; 'When a rash of these things appears there's a public outcry and colleges promise to clamp down and do more. And then it surfaces again," Cantor says. "It's discouraging that the whole cycle is repeating itself and other families are gaing to go through the same anguish that we went through." Alfred (N.Y.) University: Bel)jamin Klein was found dead in a creel< Feb. 12. tering houses that violate rules. Phi Sig- ma I<appa national officials this week revol<ed the charter of its University of Maryland chapter, effective Saturday. About 30 members must move out,of the fraternity house by the end of n~xt week. I But enforcement is tough. For one thing, expelled fraternities can Con- tinue to operate off campus as a private tlub, as was the case at San Diego State University. National fraternity leaders also argue that they are unfairly targeted by col- lege administrators who want to deflect negative publicity, They say the media distorts perceptions even further by f0- cusing on fraternities and sororities when tragedies strike. Some studies show, for example, that many students are exposed to alcohol and hazing in high school. A report released Tuesday by the National Center on Alcohol and Substance Abuse shows binge drinking is widespread in high school - about a third of 10th-graders do it. Athletics teams, including a high-profile incident at the University of Vermont, also en- gage in hazing. And in the Buffalo case, the students spent more time at a iocal bar than at a fraternity party. "Alcohol is the No. 1 issue on every college campus I've been on. (But) It ! VL~,A 1~ ~{&~ Od-- Liquor Regulation - Summary Page 1 of 4 mDm Program Evaluation Division ,: I · ...~ Office of the Legislative Auditor ~ State sf Minnesota Liquor Regulation March 2006 Major Findings: . In contrast, Minnesota requires manufacturers of distilled spirits to sell their brands to any licensed wholesaler, which encourages strong price competition among spirits wholesalers. . Minnesota restricts retail competition in the liquor business more than most states. Minnesota prohibits most grocery, convenience, drug, and general merchandise stores from selling strong beer, wine, and spirits for off-premises consumption. In addition, most of the 226 cities with city- owned liquor stores have an off-sale monopoly on these products within their city boundaries. . Minnesota's laws for beer and wine wholesalers arc similar to those in other states. A retailer is generally able to purchase a manufacturer's brands from only one wholesaler. . Adjusted for differences in taxes and dram shop insurance costs, off-sale beer prices are 7 to 9 percent higher in Minnesota compared with Wisconsin, where there are few state restrictions on retail competition. Similarly, adjusted wine prices are 5 to 7 percent higher in Minnesota than Wisconsin. . However, adjusted prices for distilled spirits are 8 to 10 percent lower in Minnesota despite the state's more restrictive retail environment. The state's prohibition on the use of exclusive territories for the wholesale distribution of spirits is most likely responsible for Minnesota's lower off-sale retail prices. . Overall, adopting less restrictive retail laws like those in Wisconsin could save Minnesota consumers about $100 million annually. But such law changes would negatively impact existing private liquor stores and jeopardize the $16 million in annual profits that municipal liquor stores currently provide for city services. . In addition, some research suggests that adopting Wisconsin's retail laws might increase problems with alcohol abuse. But allowing grocery stores to sell wine would probably have significantly smaller economic and social impacts. . While there would probably be significant price savings for consumers, banning exclusive territories for beer and wine distribution might limit product availability and reduce other consumer benefits. Removing state restrictions on competition ill the liquor industry would lower prices and improve convenience, but some adverse impacts are also possible. Report Summary For a number of years. legislation has been introduced in the Minnesota Legislature to allow the sale of wine in grocery stores. During the 2005 legislative session, the Minnesota Grocers Association presented a consultant's report on liquor http://www.auclitor.leg.state.mn.us/PEO/2006/1iqregsU111.htm 6/20/2008 Liquor Regulation - Summary Page 20f4 prices. The report contended that Minnesotans pay substantially higher wine and spirits prices than residents of Wisconsin. The report blamed Minnesota laws for fostering a lack of competition in the wholesale and retail sectors of Minnesota's liquor industry. Liquor retailers and wholesalers disputed the report's findings about prices. They and others also raised concerns about increased problems with alcohol use that might result from greater retail availability of intoxicating beverages. Minnesota laws generally restrict competition iiz the liquor industry. As a result, the Legislative Audit Commission directed us to examine the competitiveness of the wholesale and retail sectors of Minnesota's liquor industry. This report examines the price differences between Minnesota and Wisconsin stores selling intoxicating beverages for off-premises consumption. The report also assesses whether Minnesota liquor laws are restricting competition and increasing consumer prices. Finally, the report considers the potential negative social impacts of encouraging alcohol use through lower prices and greater availability. Minnesota restricts off-sale retail competition in the liquor business more than most states. Minnesota does not allow most grocery, convenience, drug, or general merchandise stores to sell strong beer, wine, or spirits for off-premises consumption. Minnesota allows grocery and other non-liquor stores to sell only 3.2 beer and malt beverages. State law also restricts the number of off-sale stores in Minneapolis, St. Paul, and Duluth. In contrast, at least three-fourths of the states allow strong beer to be sold in grocery, convenience, and drug stores, and about two-thirds of the states allow wine to be sold in these types of stores. One-third of the states also allow spirits to be sold in grocery and convenience stores. In addition, 226 Minnesota cities operated municipal liquor stores in 2004. These cities, representing close to 18 percent of the state's population, generally do not allow private off-sale liquor stores to operate within their boundaries. Overall, Minnesota ranked 9 th highest among the 50 states in 2002 in revenues from government-operated retail stores and wholesale operations. Even though Minnesotans consume about 9 percent more alcohol than the national average, state laws have restricted the number of off-sale liquor stores selling strong beer, wine, or spirits to well below the national average. Minnesota has fewer off-sale liquor outlets per adult than 40 other states and the District of Columbia. The number of off-sale outlets per adult is only about one-third of the national average. Minnesota laws encourage competition among spirits wholesalers but restrict competition among beer and wine wholesalers. In all states including Minnesota, each brewer assigns territories to beer wholesalers. Retailers purchasing a particular brewer's products may only obtain them from the one wholesaler who represents the brewer in that area. Similarly, in nearly all states, a vintner assigns territories to wine wholesalers, although one wholesaler will generally represent a vintner throughout most, if not all, of the state. Spirits manufacturers also assign exclusive territories to wholesalers in most states. However, in Minnesota and Oklahoma, spirits manufacturers are required to sell to any licensed wholesaler. The prohibition on exclusive territories encourages competition by allowing retailers a choice of wholesalers. Minnesota state law also provides protection for beer wholesalers from being terminated by brewers. Franchise protection, combined with Minnesota's requirement for exclusive territories, may make it difficult for brewers to terminate inefficient wholesalers. Restrictions on retail competition result in higher heer and wine prices. Off-sale prices for heer and wine are higher in Minnesota than in Wisconsin, but prices for distilled spirits are lower. http://www.auditor.leg.state.mn.us/PED/2006/liqregsurn.htm 6/20/2008 Liquor Regulation - Summary Page 3 of 4 Comprehensive information on retail liquor prices across the United States is not available from any source. As a result, we conducted an in-store survey of prices in Minnesota and Wisconsin during a to-day period in November 2005. Wisconsin was selected as a comparison state because of its less restrictive retail laws, as well as its proximity to Minnesota. We focused on prices of liquor sold for off-premises consumption because of the difficulties of making fair comparisons of on-sale prices. The results of our price survey suggest that beer and wine prices are higher in Minnesota than in Wisconsin. But prices of distilled spirits are lower in Minnesota despite Minnesota's more restrictive retail laws. Including sales prices, beer prices were 9 percent higher in Minnesota than Wisconsin, after adjusting for differences in taxes and the cost of mandated dram shop insurance coverage. Similarly, Minnesota wine prices were 7 percent higher than Wisconsin prices. However, prices of distilled spirits were about 8 percent lower in Minnesota than Wisconsin after tax and insurance adjustments. However, distilled spirits prices are lower because state law encourages coinpetition among spirits wholesalers. Within Minnesota, municipal liqllor stores tend to charge prices that are about 3 to 8 percent higher than privately owned liquor stores. Municipal liquor stores are able to charge higher prices because of the monopoly most of them have within city boundaries. However. the proximity of liquor stores licensed by a county or neighboring city keeps the price difference at a modest level. Minnesota's more restrictive retail laws are probably responsible for the state's higher beer and wine prices, while its relatively unique law for spirits wholesaling is responsible for its lower spirits prices. Although data on wholesale and manufacturers' prices are not available for the two states, we think the main reason for Minnesota's higher wine and beer prices is the state's more restrictive retail laws. There are few differences between Minnesota arid Wisconsin in the wine market other than the differences in retail restrictions. As a result, Wisconsin has twice the number of off-sale wine outlets that operate in Minnesota. Although there are other factors that may affect the difference in beer prices between the two states, we think that Minnesota's more restrictive retail environment probably explains most of the difference. Minnesota's lower spirits prices appear to be largely the result of the state's ban on the use of exclusive territories for spirits distribution. Even though Minnesota does not have a large number of spirits wholesalers, the ban encourages competition among them and allows retailers to choose from more than one wholesaler. Minnesota spirits wholesalers appear to operate with much lower profit and cost margins than Wisconsin wholesalers. In addition, those wholesalers who distribute both wine and spirits in Minnesota indicate that their margins on spirits are mllch lower than the margins on wme. Less restrictive retail laws could save Minnesota consumers about $100 million annually but could have some negative impacts. Minnesota consumers would benefit from improved convenience and could save about $100 million per year for 01'1'- sale purchases of alcoholic beverages, if Minnesota laws on retail competition were similar to those in Wisconsin. This estimate assumes that Minnesota wine and beer prices would be similar to those in Wisconsin. In addition, we assume that Minnesota spirits prices would be about 7 percent lower than current Minnesota prices due to increased retail competition. However, achieving such savings would probably require significant changes in Minnesota's retail environment. Wisconsin has twice the number of wine and spirits outlets per capita that currently operate in Minnesota and generally allows any type of store including convenience stores to sell alcoholic beverages. Removing all state restrictions on competition may increase alcohol abuse and could jeopardize the existence of 11lunicipalliquor stores. Implementing Wisconsin-style retail laws could jeopardize the existence of Minnesota's municipal liquor stores and http://www.auditor.leg.state.mn.us/PED/2006/liqregsLlm.htm 6/20/2008 Liquor Regulation - Summary Page 4 of 4 eliminate much of the $16 million currently transferred to city budgets annually. In addition, competition from grocery, convenience, and supercenter stores could cause significant numbers of private liquor stores to go out of business. Wisconsin has fewer than half the number of traditional liquor stores that currently operate in Minnesota. Enacting retail laws similar to those in Wisconsin would also raise concerns about the impact of lower prices and the increased availability of alcoholic beverages on alcohol abuse. The costs of excessive alcohol consumption have been estimated to be more than $4.5 billion annually in Minnesota. While the evidence from research is not definitive, policymakers should be cautious in considering dramatic changes in Minnesota's retail laws. Even a minor increase in the costs of alcohol abuse would offset the savings consumers would receive from lower prices and improved convemence. Allowing grocery stores to sell wine would probably have relatively modest economic and social impacts. In recent years, the Minnesota Legislature has considered allowing wine to be sold in grocery stores of a certain size. Such sales would have relatively modest economic and social impacts, since wine accounts for only about 15 percent of off-sale purchases. In addition, wine is not generally the alcoholic beverage of choice for underage users. Selling wine in grocery stores would likely lower wine prices in Minnesota but would probably save consumers only about $15 million annually. Profits of existing stores would be affected, but most stores would probably stay in business. Changes in state laws regulating beer and wine distribution would probably lower retail prices but could have some disadvantages for consumers as well. Minnesota's lower spirits prices suggest that consumers might benefit significantly from additional competition in the wholesale distribution of beer and wine. Studies of beer distribution suggest that banning exclusive territories reduces retail beer prices. However, bantling exclusive territories may also reduce the freshness of beer and limit product selection and availability. More Information The Program Evaluation Division was directed to conduct this study by the Legislative Audit Commission in April 2005. For a copy of the full report, entitled "Liquor Regulation," 60 pp., published in March 3006, please call 6511296- 4708, e-mail Legislative.Auditor@state.mn.us.writetoOfficeoftheLegislativeAuditor.RoomI40.658CedarSt..St. Paul, MN 55155, or go to the webpage featuring the report. Staff who worked on this project were John Yunker (project manager), and Jan Sandberg. For more information, contact John Yunker. Project Manager. Home I Financial Audit Division I Program Evaluation Division I Search http://www.auditor.leg.state.mn.lIs/PED/2006/liqregsum.htl11 6/20/2008 MINUTES REGULAR SAINT MICHAEL CITY COUNCIL MEETING February 10, 2004 Saint Michael Council Chambers 7:00 p.m. Present: Mayor Wayne Kessler; Council Members Thomas Hagerty. Joe Hagerty, Drew Scherber and Cindy Weston; City Engineer Steven Bot; Attorney Nathan Allen; City Administrator Robert Derus; and City Clerk Carol Beall. Mayor Kessler called the meeting to order, declaring a quorum present. The Pledge of Allegiance was said. Mayor Kessler welcomed those present. Set Al!enda. City Administrator Derus added setting a meeting with the City of Albertville and STMA Board; meetings on Tuesday the I ih with Rep Borrell at 12: 15 and Thursday the L 9th with Senator Pogemiller at 3:00 p,m. City Engineer Bot added Asbestos contract for downtown buildings to his report. Council Members J. Hagerty/Weston moved to approve the agenda, as amended, with all voting aye. Citizen Input. No one asked to be recognized under Citizen Input. Consent Al!enda. Council Members J. Hagerty/T Hagerty moved to approve Consent Agenda Items a) through g), as listed below. All voted aye. a) Rcsolution #02-10-01-01 Approving Regular City Council Minutes 011-27-04 b) Resolution #02-10-04-02 Approving Amcndcd Final Pay Application to Dcnnis Fchn Gravel and Excavating for Gutzwillcr Park Improvements in thc Amount of $51,529.07 c) Rcsolution #02-10-04-03 Approving Partncrship Agrcement for MnDOT Services d) Kcsolution #02-10-01-01 Setting the Annual Board of Rcview for 3:00 P.M., Wednesday, May 5,2004 c) Resolution #02-10-04-05 Approving Security Rcductions for Highwoods and Landings on the Crow River Subdivisions n Kcsolution #02-10-01-06 Approving Conditional Usc Pcrmit for Ncxtel Wirelcss Tower - S W Corner ofCSAH #34 and Garrison g) Rcsolution #02-10-04-07 Rcmoving Deed Restriction on PIl) #111500231302, 10,521 30'" Street NE Mike ElsenDeter. A&M Liauors - Reauest to Ree:ulate Number of Liquor Stores. City Administrator Derus provided the Council with information on a request by Mike Elsenpeter of A&M Liquors to regulate the number of liquor stores in St. Michael. Elsenpeter addressed the Council asking them to consider not allowing additional off sale licenses, especially if they are for big businesses like Coborns. He said larger cities are allowed one for every 5,000 of population. He is in favor of fair competition, but another liquor store under the same roof with a grocery store would not be fair competition for him. He also said 241 construction is of major concern and will certainly hurt profit and make it hard to pay bills while construction is underway. He said the Council has the ability to limit the number of licenses that are issued in St. Michael, and the Council should protect businesses who have paid their dues over the last years--not to be pushed out by big corporations. He said he asked Grandma Jon's what the problem was when they left the City and was told the pie has been cut too many times, with cookies and rolls available at McDonalds, Super America and other places. Elsenpeter requested the Council adopt an ordinance allowing for one off sale license for every 5,000 population, and grandfather in the existing license holders. Attorney Allen said he had read the statute, and it is true cities of the First Class are allowed one off sale for every 5,000 population, but before a smaller community would adopt such a rule, a study should probably be done to determine what is needed and what would be an appropriate number to use. He said he did not know what the appropriate ruling would be for someone who has made an application before the ordinance was changed. It was pointed out when staff is asked if a license is available, the answer is yes. Administrator Derus said the City would need an ordinance before they could turn down a request based on population. The City does have the authority by ordinance to limit the number. There was some discussion about Municipal liquor stores, as well as regulating cc - O~-IO-O\. - 2 other business. For example, it was asked whether the City should have turned down Stein's Steak House because it might hurt Russell's. Neil Meyer said their business is hurt the worst. He asked, "Who will come into the circle'?" He was referring to a possible future change to TH 241 in the downtown area. Community Development Director Weigle said no plan has been adopted for the road yet. He said a Downtown Planning Committee has been appointed and is meeting to look at a number of options and make a recommendation. Mike Elsenpeter said any time the Council discusses this subject he would like to be notified. Council Member Tom Hagerty referred to other businesses and whether the Council would want to keep big box businesses out that could hurt existing businesses such as the hardware store if something like a Menards were to come to town. Community Development Director Marc Weigle said this is a common planning discussionusmall versus big. He talked about how the retail world works. He said we do need to be sensitive to existing businesses, but as the City looks at Planning and Economic Development, it could end up hurting in the long run. Some may suffer, but overall the business economy as a whole thrives on more business. There is no good way to evaluate what is enough. There is a statute which allows a City to limit liquor, but historically that is from the time of prohibition when liquor was considered to be a vice. Administrator Derus said controlling the market is pretty much foreign territory for a city. The City of St. Michael has promoted and encouraged small business in the City. In this case it sounds like we should welcome a small store, but not a big one. Several Council members said they have always been against municipal liquor because it does not promote freedom in the marketplace; however, if the City were to start regulating who can come and who cannot in this way, it might be better to go with a municipal store and at least then the City would be getting the funds. Elsenpeter was also asked if a small grocer wanted to go into the mall next to the A&M Liquor store, whether the City should not allow it because it would give A&M an unfair advantage and a competitive edge over the other liquor stores. The store owners present asked the Council when they were going to stop giving licenses. It was pointed out there are a number of areas that might be appropriate places for a future liquor store, so it would be unlikely the City would want to put a cap at the number that are in the City at present. It would certainly take some study before the Council would consider a public hearing to change the ordinance, which would not be effective until it had been published according to law, and there was still the question of an application received before an ordinance change. It was pointed out this is an issue with a lot of dimensions. If it were limited, it could impact the whole city. There was more discussion on free enterprise as opposed to a monopoly and what kinds of policies a City might want to consider for regulating business. Again, it was stated the reason liquor is a regulated industry is because of the nature of what they sell. Council Member Joe Hagerty talked about when Buffalo went through the same thing with Walmart and Cub. After discussion among those in the audience and the Council, Council Member T. Hagerty/Mayor Kessler moved approval of Resolution 02-10- 04-10, approving an off sale liquor license application for Coborns, Inc., dba Cash Wise Liquor. There was additional discussion from the audience and Council. Mike Elsenpeter reiterated his belief the Council should turn down the request. Tim Wolseth from Dittos said it would not affect him that much, but asked how many licenses the City is going to eventually give out. Council Member T. Hagerty asked how often licenses are renewed. They are renewed each year. He asked if we have turned down any at that time and asked why the Council would handle this request any differently. Mayor Kessler called for a vote on the motion. T. Hagerty, Kessler, J. Hagerty and Weston voted aye. Scherber voted nay. The motion passed 4-1. JlLANNING REPORT JUNE 2008 LIQUOR SURVEY Location Number of Per Capita City Po. n Restriction Stores Per Store Apple Valley 45,527 None - Municipal 2 22,764 300 feet from Bloomington 85,832 school/church 20 4,292 Brooklyn Park 70,997 None 14 5,071 No less than one mile radius from Burnsville 60,200 another store 7 8,600 No less than one mile radius from Coon Rapids 63,649 another store 6 10,608 Eagan 67,448 None 16 4,216 Eden Prairie 61,993 Municipal 3 20,664 Edina 46,656 Municipal 3 15,552 Golden Valley 20,291 None 3 6,764 Lakeville 47,805 Municipal 3 15,935 Minnetonka 50,690 None 11 4,608 500 feet from Plymouth 70,676 school 14 5,048 300 feet from Prior lake 22,111 school/church 3 7,370 Savage 23,500 None - Municipal 2 11,750 Shakopee 33,960 None 8 4,245 300 feet from St. Louis Park 44,114 school/church I 11 4,010 1/2 _Vli_e Bu~er - HUEMOELLER, BATES & GONTAREK PLC ATTORNEYS AT LAW 16670 FRANKLIN TRAIL P.O. BOX 67 PRIOR LAKE, MINNESOTA 55372 (952)447-2131 Fax: (952) 447-5628 E-mail: HBGIal.oriorlakelaw.com kf "1L 11{ft r . JAMES D. BATES DEAN G. GAVIN ALLISON J. GONTAREK BRYCE D. HUEMOELLER THERESA A. PETERSON July 2, 2008 City Council Members City of Prior Lake 4646 Dakota Street Prior Lake, MN 55372 Re: City Council Meeting July 7, 2008 Dakota Liquor's Request for Ordinance Change Dear Council: We represent Kevin Bresnahan and Dakota Liquor and we offer this letter for your consideration in support of our request, to be heard at the City Council meeting on July 7, 2008, for a change in Section 301 of the Prior Lake City Ordinances to add a one-half mile separation requirement between off-sale liquor stores. Baclmround about Kevin Bresnahan and Dakota Liauor Kevin Bresnahan moved to Prior Lake in 1980 to raise his family. In 1982, Kevin made a commitment to the Prior Lake community by investing in the construction of a freestanding building at 14065 Commerce Avenue N.E. and purchasing equipment and inventory to own and operate a new liquor store, Dakota Liquor. For 26 years, Kevin has been a resident, business owner and taxpayer in Prior Lake for. In 26 years of doing business, Dakota Liquor has never had a liquor violation, and Kevin has received praise and acknowledgement from police and council members for the operation of the store and his contributions to the community. July 2, 2008 Page 2 Current Conditions in Prior Lake Prior Lake is a class two city with an estimated population in 2006 of 22,678. Prior Lake is currently served by four off-sale liquor stores: Dakota Liquor at 13 and 42; Viking Liquor at 13 and Eagle Creek; Village Liquor near the Village Market grocery store; and C&D Liquors on the Shakopee Mdewanketon Sioux reservation. With its four liquor stores, Prior Lake currently has one liquor store per 5,669 people. Each of the liquor stores has a broad inventory of available product and competitive pricing, with convenient access for Prior Lake citizens. The stores are well-maintained and safe, with long-standing histories as part of the Prior Lake community. Viking Liquor and Village Liquor are approximately lh mile apart along Highway 13; Viking and Dakota Liquor are approximately three miles apart; and C&D Liquors is on the east side of Prior Lake, approximately 5 miles from either Viking, Village, or Dakota. Current Conditions - Surroundine: Communities In addition, Prior Lake residents can easily access liquor stores in the neighboring communities. Across the street from Dakota Liquor, at the same comer of 13 and 42, is the Savage municipal liquor store, Market Place Liquor Store. According to Kevin Bresnahan and Barry Stock, the Savage City Administrator, the Market Place Liquor Store draws heavily from Prior Lake residents. The 13 and 42 comer is a heavily trafficked area with the Rainbow Foods, Cub Foods, Bonfire Restaurant, several fast food restaurants, and numerous retail stores. Down 13 north, in Savage, is the Dan Patch Liquor Store. In Shakopee, MOM Liquor Warehouse and Crossroads Liquor are within a mile of each other on Marschall Road between 101 and 169. All of these liquor stores are close and available to Prior Lake residents. Backe:round Ref!ardine: Sale of Liauor The sale of liquor is a highly regulated industry in the State of Minnesota. Minnesota Statute Chapter 340 governs liquor sale and licensing. Any person seeking to operate a liquor store in Minnesota must apply with the city for an off-sale license. Off-sale is defined as "the sale of alcoholic beverages in original packages for consumption off the licensed premises only." Minn. Stat. ~ 340A.lOl, subd. 20. Minnesota Statute 340A.412 contains numerous restrictions on authorization of liquor licenses, including prohibiting liquor licenses on the State Capitol grounds or the State Fairgrounds, within 1,000 feet of state hospitals or prisons, within 1,500 feet of state July 2, 2008 Page 3 universities, and within 1,500 feet of public schools. Liquor licenses are only issued for a period of one year. Liquor stores may only be open certain hours. Liquor stores may selling only alcoholic beverages, tobacco, ice, and other beverages. Liquor may not be sold in grocery stores. Cities must comply with the state law and may include more restrictive laws regarding liquor sale and licensing in their communities. Prior Lake's ordinance states that off-sale intoxicating liquor licenses may be issued only to an exclusive store and permit the sale of "alcohol related products." P.L. Code 301.302. No person shall sell or offer for sale any alcohol without having a license. In order to obtain a license, an applicant must provide a license fee, investigation fee, general liability insurance, and workers' compensation insurance. An application will be denied if the person is under the age of 21; has been convicted within the past 5 years of a violation of local, state, or federal law; and numerous other requirements. The Prior Lake ordinance also requires that the premises to be licensed may not be located within 300 feet of "any church or school." P.L. Code 301.600. Liquor licensing and the sale of liquor are highly regulated businesses unlike other type of retail business. A careful analysis and investigation into the potential consequences of changing the ordinance is required. In weighing the request to add a one-half mile separate requirement, the goal is to balance the availability of liquor to the public with the need for careful control. Why Include a SeDaration Reauirement? Minnesota Statutes Ch. 340A and the Prior Lake Ordinance already use separation to control the disbursement and sale of intoxicating liquor. State law has separation requirements regarding the distance from schools or prisons, and Prior Lake has included the requirement that no off-sale liquor store be opened within 300 feet of a church or school. The separation requirement is simple, understandable, and effective to disburses liquor sale throughout the community and restricts the number of liquor stores. The separation requirement has been adopted effectively in other communities. To date, Bumsville, Brooklyn Park, New Brighton, Coon Rapids, Blaine and St. Paul all have separation requirements in their city codes. Apple Valley, whose population is more than twice that of Prior Lake, has no separation requirement but has only two liquor stores. The City of Bumsville requires that all off-sale intoxicating liquor stores be located one mile apart and be in freestanding buildings. In 2002, the City of Bumsville engaged in an in-depth review of these two code provisions. Bumsville's lengthy investigation July 2, 2008 Page 4 involved holding meetings and collecting comments from citizens, liquor store license holders, the police department, other local businesses, community churches, the Chamber of Commerce, and Mothers Against Drunk Driving. Some citizens comments supported expanding commerce and lifting any restrictions on location of liquor stores. The separation and freestanding building requirements, however, were heavily supported by the local law enforcement, liquor store owners, schools, and MADD. Some of the comments in support of the ordinance included: . the 1 mile separation distributes liquor stores equally through the community . each store gets to know their customers and their local neighborhood . no other businesses have the same control as liquor; liquor is a highly regulated business . separation protects small business owners . the existing ordinance works well and provides even distribution of sales . an increase in the number of stores would increase potential access to alcohol . increased access to alcohol may lead to more minors attempting to purchase alcohol . MADD strongly opposed expansion or relaxation of the currently ordinances State law also restricts the number of licenses according to city population. Minnesota Statutes require that first class cities (those having more than 100,000 inhabitants) issue no more than 1 liquor license per 5,000 residents. Second class cities, including Prior Lake, must locally determine the number of liquor licenses to issue. Minn. Stat. ~ 340A.413, subd. 5(2). Why Include a Seoaration Reauirement in Prior Lake? Prior Lake has no set number of liquor licenses for its population. Prior Lake currently has 1 liquor store for every 5,669 residents, close to the number of liquor stores allowed in large cities such as Minneapolis and St. Paul. Adding the separation requirement provides the City of Prior Lake with a way to successfully limit the number of licenses by requiring that liquor stores be geographically spread out. According to Prior Lake's 2030 Comprehensive Plan, the City's mission is to enhance the quality of life for citizens, by, among other things, providing quality services which result in a safe and secure community and providing economic vitality. Objectives under the security goal include enacting and maintaining policies and ordinances to ensure the public safety, health and welfare, by delivering basic public services which protect and preserve the community and its residents. July 2, 2008 Page 5 Two of the objectives under the economic vitality goal are (1) to strive for a balance of commerce, industry, and population in Prior Lake and (2) to encourage a diversified economic base and broad range of employment opportunities. Adding the separation requirement helps the City to meet all of the above objectives. Careful allocation of liquor licenses and geographic disbursement provides convenience for Prior Lake neighborhoods and prevents traffic and parking lot congestion. Limiting the number of liquor stores through the separation requirement prevents increased access to alcohol by underage youth, limits underage attempts to purchase alcohol, and prevents increased need for law enforcement services. The separation requirement also helps maintain the economic viability of the current businesses. Having two liquor stores in close proximity may create competition which causes one of the owners to close its doors or sell to new owners without the same solid community ties. The overall goal of the Prior Lake Comprehensive Plan is creating a balance and well- planned mix of business opportunities. The separation requirement meets this goal. The Reauested Chane:e Bresnahan and Dakota Liquor request that the Council change the P.L. Code 301.600, to add the following: DENIALS: The following shall be grounds for denying the issuance, transfer, or renewal of a license under this Section. The following list is not exhaustive or exclusive: (12) The premise to be licensed is located within one-half (112) mile of another off-sale intoxicating liquor facility. Facilities operating on the effective date of this ordinance may continue to operate whether or not they are within one-half (1/2) mile of another facility. The ability to change the ordinance is squarely within the City Council's authority. The Court of Appeals acknowledged that municipal authorities have broad discretion to decide the manner in which liquor licenses are issued, regulated, and revoked. Bourbon Bar & Cafe Corp. v. City of St. Paul, 466 N.W.2d 438,440 (Minn. Ct. App. 1991). The Supreme Court determined that local licensing authorities have the power to refuse a license or to limit the number of licenses to be granted when in its judgment, the action is necessary to protect the welfare of the city. Polman v. City of Royalton, 311 Minn. 555, July 2, 2008 Page 6 556, 249 N.W.2d 466, 467 (1977). The City Council in Po/man denied a liquor license application where the city had three existing liquor stores, which fulfilled the community's needs and over-taxed the city's traffic and law enforcement facilities. Polman, 249 N.W.2d at 466. A city's concern for the public welfare allows it to limit the number of liquor stores within a geographic area to prevent the diminishment of revenues from a nearby municipal liquor store. Polman, 249 N.W.2d at 466; Tabaka v. Wabedo Township, 2005 Minn. App. LEXIS 366 (April 5, 2005 Minn. Ct. App.). In Tabaka, the township board denied a golf course's application for a liquor license, and the applicant appealed the decision. The Court of Appeals upheld the township's decision. The Court held that the township was well within its broad authority to regulate liquor license applications, and that the decision was soundly based on the township board's specified reasons, including (1) resident opposition; (2) the existence of four off- sale liquor stores within four miles; (3) the adverse effects on the public welfare; (4) lack of harm to the applicants; and (5) the comprehensive plan's goal to balance the need for limited commercial development, but protect the township's rural character. Tanaka at *3. The decision before the Prior Lake City Council is not approval of a liquor license application, but the reasoning behind the request to change the ordinance is the same. Changing the ordinance determines whether additional liquor licenses will be allowed with unrestricted geographical limits. The City Council has the broad authority to regulate liquor sales and licensing within its community, including the authority to limit the number of licenses to be granted. Bresnahan and Dakota Liquors request that the City enact the above ordinance. The ordinance will successfully balance the City's objectives of maintaining a safe, secure and economically vital community, while permitting free enterprise and competition amongst business owners, and protecting the strict state and local regulation of intoxicating liquors. s~~~ .." Bryce D. Huemoeller cc: Suesan Pace Kevin Bresnahan liquor stores loe: Prior Lake, MN - Google Maps Page 1 of 1 "e Results 1-10 of about 2,348 for liquor stores near Prior Lake, MN I Get Google Maps on your phone q.......' i Textthe word "GMAPS" to 46645 3 ....~... ~ A. Savage City Offices: Market Place Liquor Store B. Sunset Liquor Store 8200 W County Road 42, Savage, MN (952) 440-9860 C. Viking Liquor Barrel 16290 Highway 13 S, Prior Lake, MN (952) 447-2127 - 2 reviews E. Rainbow Foods 12545 Boone Ave, Savage, MN (952) 440-9770 G. Crossroads Liquor 1262 Vierling Dr E, Shakopee, MN (952) 445-7242 I. Dakota Liquors 14065 Commerce Ave NE, Prior Lake, MN (952) 447-6661 4022 Egan Dr, Savage, MN (952) 894-5122 D. Savage City Offices: Dan Patch Liquor Store 4425 W 123rd St, Savage, MN (952) 890-6066 F. MGM Liquor Warehouse 471 Marschall Rd, Shakopee, MN (952) 445-8714 H. C & D Liquors 2459 Sioux Trl NW, Prior Lake, MN (952) 445-0955 J. Village Liquor 16731 Highway 13 S # 102, Prior Lake, MN (952) 447-8830 http://maps.google.comlmaps?ie=UTF8&oe=UTF -8&q=liquor+stores&near=Prior+Lake, +... 7/2/2008 Equor stores loc: Prior Lake, MN - Google Maps Page 1 of 1 Goog:,e Results 1-10 of about 2,348 for liquor stores near Prior Lake, MN I Get Google Maps on your phone Text the word "GMAP5" to 46645 3 A. Savage City Offices: Market Place Liquor Store B. Sunset Liquor Store 8200 W County Road 42, Savage, MN 4022 Egan Dr, Savage, MN (952) 440-9860 (952) 894-5122 C. Viking Liquor Barrel D. Savage City Offices: Dan Patch Liquor Store 16290 Highway 13 S, Prior Lake, MN 4425 W 123rd St, Savage, MN (952) 447-2127 - 2 reviews (952) 890-6066 E. Rainbow Foods F. MGM Liquor Warehouse 12545 Boone Ave, Savage, MN 471 Marschall Rd, Shakopee, MN (952) 440-9770 (952) 445-8714 G. Crossroads Liquor H. C & D Liquors 1262 Vierling Dr E, Shakopee, MN 2459 Sioux Trl NW, Prior Lake, MN (952) 445-7242 (952) 445-0955 I. Dakota Liquors J. Village Liquor 14065 Commerce Ave NE, Prior Lake, MN 16731 Highway 13 S # 102, Prior Lake, MN (952) 447-6661 (952) 447-8830 http://maps.google.com/maps?ie=UTF8&oe=UTF -8&q=liquor+stores&near=Prior+Lake, +... 7/2/2008