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:
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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
\
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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.
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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
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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
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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.
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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. If parents are in
the living room and you [the
surveyor anti the ~""""n!:ll~""1'l~~,
in the kitchen. the.odds of get-
ting a really solid answer are
slim. So there's a tremendous
underestimate ill r~po~g,"
r",Hf!:llnnsaid. . ,<.::;:,,,:-,,'"_<',:,~,:::,,
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'~ 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