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HomeMy WebLinkAbout8A Continue Public Hearing Jazz Co Cafe Liquor License,~~~, v~PRdp ~~~ ~ ~ ~~ 4646 Dakota Street S.E. U ~ ~' x' j Prior Lake, N{N 55372-1714 l F ` '~~~' of °~~INIVES~`~P °~ CITY COUNCIL AGENDA REPORT MEETING DATE: January 20, 2009 AGENDA #: 8A PREPARED BY: Janet Ringberg, License Clerk AGENDA ITEM: CONTINUATION OF PUBLIC HEARING TO CONSIDER APPROVAL OF THE ISSU~-NCE OF AN ON-SALE BEER /WINE LICENSE. FOR JAZZ CO. CAFE DISCUSSION: Histor r~ Camille Myser, owner of Jazz Co. Cafe, has applied for an on-sale beer/wine license; in order to sell wine and beer at her restaurant at 4616 Colorado Street SE. Prior Lake City Code Section 301.503 provides that with respect to a liquor licenses request, the City Council "...shall hear testimony from any person who requests to be heard for or against the granting of the license. After the police investigations and public hearing, the Council shall, in its discretion, grant or deny the issuance of a license." At the January 5, 2009 meeting, the City Council conducted a public hearing which included testimony offered by Camille Myser and from Dawn Schulberg who oFnrns the building in which Jazz Co. Cafe is located and Premiere Dance Company operates. The attached minutes provide a record of the public hearing conducted on January 5, 2009 (pages 3-7). At the conclusion of the January 5 hearing, a motion was made to approve the license:, which failed for the lack of a second. The council's final action that evening was to adopt the following motion: "to continue the public hearing until January 20, 2009." The motion passed unanimously. Current Circumstances From €„y review of the minutes, there were various public safety, health and welfare concerns articulated by the City Council. Among them were: • Type and effectiveness of wall separation/door, • Impact of wine and beer sales on minors, • Impact of wine and beer sales on customers, • Trf~ining of servers, • Oversight of bathrooms, • Beer and wine removal from the licensed premises, • Restrictions to hours of sale, • Economic Development impacts, • Sictn location and content, • Compatibility of businesses, and • Annual license review. www. cityofpriorlake. com wPlorie 952'447:9800 ,~ Fax 952.447.4245 ISSUES: Since the hearing, I believe that Ms. Myser and Ms. Schulberg have had at lean, one conversation on the topic. I believe that Ms. Myser will present a PowerPoint presentation to the Council on January 20, 2009 addressing the City Council's concerns as she understands them. Sergeant Jon Stanger has also met with Ms. Myser and Ms. Schulberg to talk about identification checks and criminal and civil city code provisions. The Council may recall that in the event o~ a sale to a minor, the clerk is guilty of a misdemeanor and the business owner iS subject to license suspension or even revocation at the City Council's discretion. Conclusion The hearing remains open so the City Council can receive any additional testimony that is offered. Once all persons have been heard, the Council should close the public hearing and act upon the request based upon information submi~:ted at the public hearing together with the council member experience, knowledge and discretion. The council should articulate their reasoning for any action taken for the record. ALTERNATIVES: The City Council has the following alternatives: 1. Conduct and close the public hearing, discuss the issues, articulate reasons for support and make a motion issuing the requested license with or without conditions. 2. Conduct and continue the public hearing to solicit additional input. 3. Conduct and close the public hearing and move to deny the license and direct staff to prepare a resolution with findings of fact for subsequent Council adoption. RECOMMENDED As defi.ermined by the City Council. MOTION: Reviewed/b -~-~ Frank Boyles, Ci M a er City Council Meeting Minutes January 5, 2009 DRAFT Assessment iew Committee requested a plan for collector streets as part of the Capital Improvemen Program so show ow the maintenance scenario for collector streets relates to the neighborhoods ets. Erickson: Asked if idewalk will be placed along with the street overlay. Albrecht: Replied that sidewalk would likely be planned with street reconstruction rath an with an overlay or as an independe~pro~ect because of cost considerations. Erickson: Asked if the co~~t o~f~a sidewalk would be less if it were included wit n overlay. Albrecht: Replied that since the ' ewalk is concrete and the overlay is a by an asphalt contractor, it would robabl cost less with separa bid; but, no money has bee udgeted for sidewalks on this p Y roadway at this time. MOVED BY MILLAR, SECONDED BY LEMAIR A OVE RESOLUTION 09.002 AUTHORIZING THE PLANS AND SPECIFICATIONS AND AUTHORI DVERTISEMENT FOR BIDS FOR 2009 STREET OVERLAY PROJECT 09-012; AND RESOL ON 09- ACCEPTING THE IMPROVEMENTS FOR BELMONT ESTATES, RESOLUTION 0 04 ACCEPTING PROVEMENTS FOR BERENS WOODS, RESOLUTION 09.005 ACCEPTIN PROVEMENTS FOR LAVE AT CLEARY LAKE, RESOLUTION 09-006 ACCEP G IMPROVEMENTS FOR JEF S POND 2ND AND RESOLUTION 09- 007 ACCEPTING IMPRO ENTS FOR WILDS RIDGE NORTH. VOTE: Ayes by Hau , Erickson, Hedberg, LeMair and Millar. The moti carried. PRESENTAT No prese ation was scheduled. PUBLIC HEARING Public Hearing to Consider Approval of the Issuance of an On Sale BeerlVlline License for Jazz Co. Cafe. City Manager Boyles explained the purpose of the hearing, described pertinent city code and criteria re- quired to be met to be eligible for such licensure. Discussed issues relating to minimum guest require- ments, training of clerks, distance from churches and schools and separation of the two entryways. MOTION BY MILLAR, SECONDED BY LEMAIRTO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 6:25 p.m. Comments: Camille Myser,16015 Northwood Road, described a wall proposed to be constructed in the existing lobby to separate the dan~~e studio from the cafe. Explained that the original business plan for Jazz Co. Cafe was patterned after Maces like Cafe Latte where food and drink are ordered from a counter. Opened her business without beer and wine to learn who the clientele is and which times would be busy. Has learned that there is not much dinner/entree business and decided it makes sense to add beer and wine to encourage dinner clientelE~. Plans a small indoor music venue also. Hedberg: asked about tree logistics of the entrances and whether there are separate entrances from street side. Myser: Replied there arE: currently two separate entrances from the outside and this would be a third en- trancefrom the Premiere Dance Academy lobby. Hedberg: Clarified that :someone would be able to drop their child off at the Academy and be able to enter the Cafe from the lobby. City Council Meeting Minutes January 5, 2009 DRAFT Myser: Affirmed that a person could enter directly from the street or the Academy side. Dawn Schulberg, 4616 Cr~lorado, stated she supports Myser with the cafe business and supports a wall between the businesses, but only supports the license with the contingency of liquor sales after the Acad- emyclasses are finished which is after 9:30 p.m. most week nights and evenings on Saturday. Concerned that the Academy will lose business if parents know there is an environment that is serving liquor. MOTION BY LEMAIR, SECONDED BY ERICKSON TO CLOSE THE PUBLIC NEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 6:35 p.m. Comments: LeMair: Stated his understanding of the desire of Jazz Co. Cafe to add things to make their business suc- ceed. Wondered what contingencies can be put in place to protect children. Believes the addition of a door and wall is good and ~i:hat perhaps times of sale could be established. Seeks further discussion on whether conditions can be placed on a license. Believes that this business should have the right to com- pete like all others. Erickson: Asked Schulb~;rg about her schedule as it relates to limited hours of liquor sales. Schulberg: Listed the hours that classes are over on various days of the week and noted that the sched- ulechanges every year. Erickson: Commented that it is difficult to establish restrictions on a flexible schedule and queried whether Schulberg is asking for variable hours of liquor sales from day today. Schulberg: Affirmed. Erickson: Asked if having the wine/beer license there might allow more opportunity for adult dance classes. Schulberg: Replied that the Academy offers lessons only and noted that much of the adult dance clientele wants to go to a place with a full bar. Erickson: Asked the age of the servers at the cafe. Myser: Replied that staffing would change to have servers older than 18 in accordance with State law. Erickson: Asked how it would be monitored so someone does not buy alcohol and give it to someone younger or go into the dance studio with it. Myser: Replied that part of the training addresses that. Erickson: Asked if it would be allowable to buy the alcohol at the cafe and take it to the ballroom area for consumption. Boyles: Replied that unless the ballroom is part of the licensed premises, the alcohol cannot be taken to that area. Myser: Added that it also is not allowed to be taken outside to the patio area. Boyles: concurred. Millar: Asked Pace if it is within the jurisdiction of the Council to restrict hours of sales. Pace: Replied that ordinances usually set out the kind of restrictions that can be imposed and hours of operation can be set out. If the Council is hearing a health, safety, or welfare concern, it would be within the Council's discretion to set restrictions. Millar: Asked Myser's response to Schulberg's suggestions for limiting the hours of service. Myser: Responded that she has met with Schulberg and daughters and asked for their support. They in- dicated their concerns and suggested that alcohol sales be restricted to after 6 p.m. on Friday and Saturday nights. Considered the expenses of adding beer/wine and determined there is not enough revenue to jus- tify the expense for such limited hours. Experience is that people want the option of beer/wine when they go out in the evening to e~~t. 4 City Council Meeting Minutes January 5, 2009 DRAFT Millar: Asked about signage plans for windows. Myser: Replied she does not plan a bulletin board or banner, but would advertise her business as food, wine and dessert. Would acid alcohol to the menu. Acknowledged that she would want to communicate the addition of beer and wine since it is being introduced after the business has opened. Millar: Asked if Myser beli~:ves it would be difficult to have beer and ~tvine for limited hours. Myser: Replied that it is difficult to promote a dining area for the evening in downtown and she needs to be able to sell the dining part of the business and the license is necessary in order to have people choose the cafe as a place to dine. Millar: Commented that hE~ cannot see how hours of sale could be changed from year to year to accom- modate another business and be successful. Commented that a day care is across the street from MGM and that license was issued. Believes the Council should remain consistent. Hedberg: Stated he has considered whether the two businesses could be compatible and also wonders whether a restaurant busin~:ss can be competitive. Believes there is a market for a cafe that offers a nice meal. Can see the concerns that Schulberg has for the dance studio. Had understood that the cafe and academy would be synergi:~tic, but now Jazz Co. Cafe believes it should be distinct and individual in order to carve out an existence as an eating establishment. Haugen: Commented that from a business perspective, wants to see businesses succeed in community, but has concerns from a safety environment. Believes economics should not impact Council's considera- tion, but rather that is the private business' concern. Has a concern that someone has the ability to go into the Academy and then has direct access into a facility selling beer and wine. Expressed concerns about alcohol consumption and cafe clientele drivers since children enter and leave the building without continu- oussupervision; and that children can observe the alcohol intake through a glass door, which leads him to believe it is not conducive :o a safe and healthy environment. O'Rourke: Replied there ~;ould be concern about any liquor license holder and their ability to control ac- cess to alcohol for underage people. Most of the academy clientele is underage so due diligence in carding the purchase and monitoring the product distribution at the table should be done. Believes the concern about the drop off and pick. up of kids is no greater than that posed by other bars nearby. Commented that beer is sold at Memorial Perk and that is no more monitored than this would be. LeMair: Stated that parents who are dropping off children are also another set of eyes that act as a super- vising force. Stated he would like to see a compromise found and wondered if the adjoining doorway could be locked during sale hours. Erickson: Commented that there is more potential for vulnerability at Memorial Park. Believes there would be a problem with rf~stricting hours, but added that the landlord and tenant should be able to work out their own hours rather than the Council. Does not see the cafe as a place where people would go to get drunk. Will support thy; licensure and would want to review it after a period of time to assure compli- ance and type of signage. Myser: Responded that some signage would be placed on the door as she wants the public to be aware that beer and wine will be served so people can make a decision about whether they want to come in. Erickson: Suggested that signage should just be on the menu rather than external to avoid implying to young children that beer end wine is something that they should want. Haugen: Asked City Attorney Pace if the Council can legally tell any business how to advertise. Pace: Replied this would be placing a restriction on or regulating commercial speech and any restriction or regulation must be content-neutral. Speech is protected under the First Amendment. Millar: Noted that Schulberg expressed a valid concern about students and believes this issue comes down to whether it is a sa`e and healthy environment. Stated he would like a compromise on the hours of sale. 5 City Council Meeting Minutes January 5, 2009 DRAFT Hedberg: Believes that trying to issue the license with limitations is not practical. Stated that O'Rourke's comments indicated there ~~re no particular safety issues that this would pose that are any different to those already existing. Believes the issue is to find a way for the two businesses to be compatible. Suggested that greater physical differences from the outside will address some of the issues of the two businesses being separate entities as yell assigning the entrances on the outside and not putting a glass door in the lobby. Stated he cannot act on the issue tonight until the businesses find resolution. Haugen: Suggested the tv~ro businesses find resolution and bring the petition back to the Council at a fu- ture meeting. Pace: Replied that even if the businesses reach resolution, the Council will still exercise discretion on whether it is right for the community to grant licensure. Haugen: Agreed. LeMair: Asked how long of a lease the cafe has with the academy. Schulberg: Five years. LeMair: Noted that no onE: would want to invest this much in their business and then have either party up- set so it is best to find a consensus. Hedberg: Asked the applicant to comment on whether this is practical direction. Myser: Replied that there have been discussions with Schulberg and both sides have been willing to hear comments and feedback. Schulberg has concerns over losing some of her business. Stated she cannot sustain the cafe business as it is currently being run. Hedberg: Clarified that Myser believes additional time would not be productive in finding a resolution. Myser: Affirmed stating they have been working on it for six months and she believes Schulberg would have shared any ideas shF; had since they have discussed it a lot. Erickson: Noted that licensure is renewed annually so a review could be done at that time if it did not seem successful Haugen: Stated that every Council decision is a permanent decision until potentially changed at some time in the future. To enter into it, thinking it might change after review does not allow a business to proceed. Liquor licenses are granted for one year, but the Council cannot grant a license and then say it will be re- looked at in a year, unless it is revoked for violation or other appropriate reasons. The decision is perma- nentunless the dynamics change. Erickson: Clarified his indent to was say it would have to be approved again at the next license approval as all licenses have to be renewed each year. Haugen: Licensees have to know the Council's decision has continuity and permanence in order for them to make the changes and investments to pursue their business plans. Erickson: Believes an a:;pect is some of the conditions the Council is considering should be the signage. Pace: Reiterated that the Council cannot regulate content of signage, and ordinance is already established for signage size, etc. MOTION BY ERICKSON TO APPROVE THE ISSUANCE OF AN ON SALE BEER/WINE LICENSE FOR JAZZ CO. CAFE. Motion died for lack of a ~~econtl. Hedberg: Commented that there are reasonable grounds to approve a license. Believes there is a market need for a cafe style restaurant in downtown. LeMair: Stated the public hearing was to gain information and he would like to think about what he has heard and revisit the license application issue. 6 City Council Meeting Minutes January 5, 2009 DRAFT MOTION BY LEMAIR, SECONDED BY MILLAR TO REVISIT THE APPLICATION AT THE FIRST MEETING IN FEBRUARY. Haugen: Stated he is not :pure what difference 30 days will make and it seems as though the Council is attempting to find a way to make it work without declining the license application. Noted that Chief O'Rourke is not concerned about safety aspects. Believes that if the businesses are not provided with in- structions to bring new information to the Council, there is no reason for them to change their minds. Hedberg: Agreed the Council seems open to hearing more and would like to make it work. Suggested that if the applicant wants to bring back the request, they can. Haugen: Asked City Attor~~ey what the Council would be acting on since the public hearing is closed. Pace: Replied that the Council would be acting on the proposal as it stands now. Or the public hearing could be reopened and continued. The Council should make findings of fact and state their rationale for approving or denying a liquor license application. Procedurally there has not been an opportunity to do that because Councilor Erickson's motion died for the lack of a second and there have been no other motions. Suggested the Council vote the application up or down and state reasons for the decision. LeMair: Withdrew the motion. Millar: Withdrew the second to the motion. A MOTION WAS MADE BY HAUGEN AND SECONDED BY HEDBERG TO REOPEN THE PUBLIC HEARING. VOTE; Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing reopened at 7:53 p.m. A MOTION WAS MADE B`( HAUGEN AND SECONDED BY ERICKSON TO CONTINUE THE PUBLIC HEARING UNTIL THE JANUARY 20, 2009, CITY COUNCIL MEETING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. RECESS Mayor Haugen called a recess at 7:55 p.m. RECONVENE The meeting reconvened at 8:07 p.m. Consider Appro I of an Ordinance ending Section 904 of the Prior Lake City Code to Include Provisions for Per 'tong the Use Motorized Golf Carts on City Streets. Building and Transpo anon Se 'ces Kansier reviewed the direction to develop ordinance allowing the permitting of golf carts to ~ used n city streets based on the determination of which roadways would be used. Reviewed the applica innesota Statutes 169.045. Noted that the proposed ordinance estab- lishes aprocedure for revoca o f licensure and appeal of that revocation. ,~ Comments: Millar: Asked about in ring the golf ca and whether it would be included with auto or homeowner insur- ance. Haugen: Believes ost insurance companie would issue a specific policy for a golf cart rather than as part of auto or ho eowner insurance.