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HomeMy WebLinkAbout8A - O'Malley's On Main On-Sale Liquor License tjP~ .c n~ 4646 Dakota Street S.E. 'iJ ~ "" Prior Lake, MN 55372-1714 ~ CITY COUNCIL AGENDA REPORT AGENDA ITEM: November 2, 2009 8A Frank Boyles, City Manag~ APPEAL OF CITY MANAGER REJOCATION OF ON-SALE LIQUOR LICENSE FOR O'MALLEY'S ON MAIN FOR NON-PAYMENT OF REAL ESTATE TAXES MEETING DATE: AGENDA #: PREPARED BY: DISCUSSION: Introduction The purpose of this agenda item is to conduct a public hearing to consider an appeal of the City Manager's decision to revoke the on-sale liquor license of O'Malley's on Main. Histol'l O'Malley's on Main was issued an on-sale liquor license on July 1, 2009. In order to be eligible for a liquor license in the first instance and to be permitted to hold the license, the Prior Lake City Code requires, among other things, that property taxes are and remain current on the property. On October 5, 2009, Accounting Clerk Janet Ringberg notified Paul Yeo, owner of O'Malley's on Main, that the real estate taxes were delinquent for the second half 2008 and the second half 2009 in the approximate amount of $12,265.15 (attached). Ms. Ringberg had arranged to receive a $1,000 weekly payment from O'Malley's until the taxes were paid in full. O'Malley's made one payment of $500. On October 13, 2009, after consulting with the City Attorney, I hand-delivered a letter (attached) to Mr. and Mrs. Yeo advising them that Section 301.1001 of the Prior Lake City Code provides in pertinent part, "A license issued by the city may be revoked or suspended for any of the following reasons: (3) The license holder, its owners or employees has violated a special condition under which the license was granted, including, but not limited to, the timely payment of real estate taxes and all other charges." (The entire ordinance section is attached for your information.) This notice advised Mr. Yeo that the liquor license for O'Malley's on Main was revoked. The notice also advised of the right to appeal my action by requesting an appeal hearing pursuant to Prior Lake City Code Section 301.1800 within 10 days of the notice. On October 15, 2009, Mr. Yeo sent the attached letter requesting a hearing before the Prior Lake City Council. Initially I advised Mr. Yeo that the appeal hearing would be conducted on November 16, 2009. After looking at the agenda and considering the gravity of the matter, I called and wrote (attached) Mr. Yeo confirming that the appeal would be placed on the November 2, 2009 agenda instead. www.cityofpriorlake.com :>Cif?~qll@;;%??\ M!~iQ800! i h" f?~.'@~~. M-7,,~Q. Current Circumstances When Mr. Yeo requested an appeal hearing, he also confirmed that he had paid his 2008 second half taxes in the amount of $4,692.15 in whole. We have confirmed through Scott County that this is correct, but that the second half of 2009 taxes, which were due on October 15,2009 in the amount of $7,573 remains unpaid; therefore, the hearing on November 2, 2009 is still necessary. Prior Lake City Code Section 301.1800 Hearina on Denial or Violation states in pertinent part: "... the city council may appoint a hearing examiner who shall be a member of the city council, or may conduct the hearing itself." The ordinance also provides that, "If, after the hearing, the applicant or license holder is found ineligible for a license, or in violation of this ordinance, the Council may affirm the denial, impose a fine (up to $2,000), issue a suspension or revocation or impose any combination thereof." Conclusion The City Council should conduct the public hearing. I have asked the City to be available, if necessary, to present or solicit additional information from relevant parties to assure the "record of decision" on this matter is complete. Once the public hearing is closed the City Council should decide whether to affirm my decision to revoke O'Malley's license. In lieu of revocation, the Council also has the option to impose a fine of up to $2000, issue a suspension of the license for a prescribed amount of time or impose some combination of a fine and suspension. The Council's decision should be based on the information in the record, with appropriate findings to support the rationale for the Council's decision. ISSUES: Payment of real estate taxes is an important condition of licensure. I am not aware of any instance where the City Council has considered a liquor license application for a business with delinquent property taxes. Liquor licenses are granted for a one year period from July 1 to June 30. The Council will recall that each June we bring liquor license applications to the City Council. The agenda report for the renewal application includes information prepared by the Finance Department and Police Department which addresses among other things whether the applicant's property taxes are current and whether the Police Department is aware of any Code violations or incidents at the licensed location. In the case of O'Malley's on Main in both 2008 and 2009 only the second half property taxes were not paid. The first half taxes, the one's we checked in June as part of the license renewal process were paid. We check the payment status of property taxes in June as part of the administrative procedure we follow before bringing liquor license renewal applications to the City Council. Under our former practice the payment status of second half property taxes have not been checked. We have changed our process now so we check all payable property taxes. Mr. Yeo stated that his reason for not paying this second half property taxes is that there is some potential he could lose the property which is held on a contract , i i.! I,. for deed, and he does not want to pay the former and new owner's expenses if he loses the property The fact that any property owner may lose their property because of delinquent payments on a contract for deed (or mortgage) is not a valid justification for not paying property taxes. City government operates on its portion of the property taxes the County collects. Property owners who fail to pay their taxes impose an unfair burden and penalize every taxpayer, resident, student, teacher and employee in the City. From an equity perspective, we have 16 other on-sale and off-sale liquor license holders. All have up-to-date real estate taxes. If the taxes remain unpaid at the time of the hearing, there is little or no rationale to keep the license in force. Mr. Yeo has been provided more time than any other licensee to pay his taxes and the ordinance clearly indicates that non- payment of real estate taxes is the basis on which a license can be revoked or suspended. The matter between Mr. Yeo and the deed holder is not a matter of public concern and should not be considered as a rationale for non-payment of taxes. The decision before the Council is whether to affirm my decision to revoke the liquor license for O'Malley's on Main or to impose an alternative penalty. The alternatives available to the Council are to: (1) impose a fine of up to $2000, (2) suspend the liquor license for a specified length of time or (3) a combination of a fine and suspension. If a suspension is involved it should extend beyond the date specified if the property taxes are not paid or automatically convert to a revocation if the property taxes are not paid by the close of business on the last day of the suspension. If Mr. Yeo can provide evidence before the City Council meeting begins on November 5 that the property taxes have been paid in full, the Council could cancel the hearing. ALTERNATIVES: 1. Affirm immediate revocation of the license. 2. Suspend the license for a period of time to allow for payment of the taxes in full. 3. Conclude the public portion of the meeting and direct the staff to provide additional information. RECOMMENDED Alternative #1 or #2. MOTION: Ii 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 Paul Yeo O'Malley's On Main PO Box 831 Prior Lake Mn 55372 RE: Past Due Property Taxes Dear Paul, As you know from our previous conversations you are past due in paying the 2008 property taxes for O'Malley's On Main, 16211 Main Avenue SE, Prior Lake, Mn 55372. When it was originally brought to my attention that the second half of the 2008 property taxes were past due you verbally told me you would make weekly payments of $1,000.00 until the taxes were current. As of today Scott County records show that you made one payment for $500.00 on September 18, 2009. City Ordinance section 301.600 (8) states: taxes, assessments, fines, or other financial claims of the City that are delinquent and unpaid as to the premises to be licensed are grounds. for the denial, transfer or renewal of a liquor license. You are currently in violation of this ordinance and are in danger of losing your liquor license. Scott County records show that you are delinquent $4,692.15 for the second half of 2008 taxes, and the second half of 2009 taxes in the amount of $7,573.00 are due by October 15, 2009. You are required to pay all of these taxes in the amount of $12,265.15 by October 15, 2009 or your liquor license will be invalid. If the taxes are not paid in full by October 15, 2009, the Prior Lake Police Department will enforce the City Ordinance by ensuring that all liquor is removed from the premises until pay~ent is received in full. . Please provide me with a receipt of payment in full from Scott County on or before October 15, 2009 to avoid having any disruption to your liquor license. Feel free to call me at 952-447-9840 if you have any questions. Sincerely, , ~~ ~~~~ Janet Ringberg License Clerk, City of Prior Lake cc: Frank Boyles, City Manager Bill O'Rourke, Police Chi!3f www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 October 13, 2009 HAND DELIVERED Mr. Paul Yeo O'Malley's on Main P. O. Box 381 Prior Lake, MN 55372 Subject: Revocation of License Dear Mr. Yeo, In a letter dated October 5,2009, Janet Ringberg, Accounting Clerk, informed you that the City has become aware ofthe fact that your property taxes on O'Malley's on Main, 16211 Main Avenue SE, are delinquent in the approximate amount of$12,265.15. Prior Lake City Code Section 301.1001 sets out the Grounds for Revocation or Suspension, of a liquor license and provides in pertinent part: A license issued by the City may be revoked or suspended for any of the following reasons: (3) The license holder, its owners or employees has violated a special condition under which the license was granted, including, but not limited to, the timely payment of real estate taxes and all other charges. Every liquor license issued by the City Council is subject to suspension or revocation and/or the imposition of a civil fine of up to Two Thousand Dollars ($2,000) for violating any provisions of City Code Section 301. This letter is "Notice" that you have violated City Code Section 301.1001 (3) set out above and that your liquor license is revoked. In determining what penalty to impose, I considered the City's past efforts to work with you to bring your property taxes up to date and your failure to live up to the payment commitments you made. I also considered the fact that this is not the only time that your property taxes have been delinquent. There has been a pattern and practice of failing to timely pay second half property taxes. The City relies on the receipt of property tax payments to provide essential city services. The City also expects license holders to comply with City ordinances and State law. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Mr. Paul Yeo October 13,2009 Page Two In accordance with Prior Lake City Code Section 301.1800 you, "may request a hearing before the City Council if you wish to appeal this revocation. Your request for a hearing must be made in writing and received by me within 10 days of the date of the mailing ofth[is] notice...of suspected violation." I hand delivered this notice to you on October 13,2009. For purposes of computation your request for a hearing before the City Council must be received by me on or before October 23, 2009. If you make such a request, I will place your hearing request on a regular or special meeting of the City Council as soon as possible. Upon hearing the evidence, the City Council may modify my decision to revoke the license. The Council may suspend the license up to sixty (60) days, affirm my revocation of the license, impose a civil fine not to exceed two thousand dollars ($2,000.00), impose conditions on your liquor license or take any other action they deem appropriate. If you do not file a written request for a hearing before the City Council to appeal the revocation of your license within the 10-day period from today (October 23,2009), the revocation of your license shall take immediate effect by default. For your convenience I am attaching a copy of City Code Sections 301.100 through 301.1800. Please let me kno " if you have any questions as soon as possible. f '\ y Manager cc: J t Ringberg, Accounting Clerk 11 O'Rourke, Chief of Police SUBSECTIONS: 301.100: 301.200: 301.300: 301.400: 301.500: 301.600: 301.700: 301.800: 301.900: 301.1000: 301.1100: 301.1200: 301.1300: 301.1400: 301.1500: 301.1600: 301.1700: 301.1800: 301.1900: 301.2000: 301.2100: 301.2200: 301.2300: 301.100: 301.200: Business Regulations SECTION 301 LIQUOR CONTROL PROVISIONS OF STATE LAW ADOPTED DEFINITIONS LICENSE TYPES LICENSE REQUIRED AND PROHIBITED SALES ApPLICATION FOR LICENSE DENIALS RENEWALS TERM TRANSFERS REVOCATION OR SUSPENSION NON-EMPLOYEES ON PREMISES DISPLAY RIGHT OF INSPECTION MOVEABLE PLACE OF BUSINESS OUTDOOR AREAS IN ON-SALE ESTABLISHMENTS OBSCENITY AND NUDITY CIVIL VIOLATIONS AND PENALTIES HEARING ON DENIAL OR VIOLATIONS CRIMINAL VIOLATIONS AND PENALTIES AFFIRMATIVE DEFENSE COMPLIANCE CHECKS EXCEPTIONS SEVERABILITY PROVISIONS OF STATE LAW ADOPTED: The provIsions of Minnesota Statutes, Chapter 340A, relating to alcohol are adopted and made a part of this ordinance as if set forth fully herein. Except to the extent the provisions of this Chapter are more restrictive, the provisions of Minnesota Statutes, Chapter 340A, as amended, regarding the terms, licensing, consumption, sales, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of intoxicating liquor and 3.2 percent malt liquor are adopted and made a part of this Section as if set out in full. (Amd. Ord 105-21 - pub 9/17/05) DEFINITIONS: The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: Alcohol related product Any food or beverage containing more than one-half of one percent (0.5%) alcohol by volume, including but not limited to liquor, malt beverages, and wine. City of Prior Lake 30 1/p 1 Business Regulations Applicant: A person as defined herein, who completes or signs an application for a license to sell alcohol-related products individually or on behalf of a business. Business: The business of selling alcohol or alcohol-related products. Exclusive Liquor Store: An establishment that sells alcohol-related products for consumption off of the premises and does not sell food or food-related products. Intoxicating Liquor. Ethyl alcohol, distilled, fermented, spirituous, vinous, and malt beverages containing more than three and two-tenths percent (3.2%) of alcohol by weight. Licensed Premises : The premises described in the approved license application. In the case of on-sale licenses located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated. License Holder: The person as defined herein licensed to sell alcohol related products. For the purposes of compliance with the regulations set forth in this Section, license holder also includes owners and employees of the license holder. Movable place of business : A business whose physical location is not permanent or is capable of being moved or changed. Off-Sale : The sale of alcoholic beverages in original packages for consumption off the licensed premises only. On-Sale 3.2IWine License : A license issued for the sale of 3.2 malt liquor and wine not exceeding fourteen percent (14%) alcohol by volume, for consumption on the licensed premises only, in conjunction with the sale of food. Person: One (1) or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the State; or any other business organization. Temporary On-Sale Intoxicating Liquor License : A temporary On-Sale License for the sale of intoxicating liquor issued to a club or charitable, religious or nonprofit organization for special events on a limited basis. Temporary On-Sale 3.2 License : A temporary On-Sale license for the sale of 3.2 malt liquor and wine issued to a club or charitable, religious or nonprofit organization. Food Service: Table service of food other than prepackaged snack foods or foods reheated in a microwave or toaster oven. City of Prior Lake 301/p2 Business Regulations 301.300: LICENSE TYPES: The following types of licenses shall be available for the sale of alcohol related products: 301.301 On-Sale Intoxicatina Liauor License: On-sale intoxicating liquor licenses shall be granted only to hotels, clubs (either private or public), restaurants, bowling alleys and excursion boats on Prior Lake. A license shall be issued to congressionally chartered veterans' organizations if they have been in existence for at least three (3) years and liquor sales will only be to members and bona fide guests. On-sale intoxicating liquor licenses are subject to the following conditions: (1) Where the licensed premises is a free standing building, the building (exclusive of land) must have a minimum valuation of $200,000 as established by the Scott County Assessors determination of fair market value; (2) Where the licensed premises is located in a shopping center, office building, or free standing structure, the licensed premises must provide seating and food service for a minimum of 30 guests at one time. (3) No sale of intoxicating liquor for consumption on the licensed premises may be made after two o'clock a.m. (2 am), Monday through Sunday, or before eight o'clock am (8 am) Monday through Saturday. (amd. Ord. 03-11, pub. 7/26/03) (amd. Ord. 04-29, pub. 10/23/04) 301.302 Off-Sale lntoxicatina Liauor License: Off-sale intoxicating liquor licenses may be issued to an exclusive liquor store and shall permit off-sale of alcohol related products. 301.303 On-Sale 3.2 Percent Malt Liauor/Wine License. On-sale 3.2 percent malt liquor/wine license (hereinafter "3.2/wine license") may be issued to restaurants, congressionally chartered veterans' organizations, and hotels where food is prepared and served for consumption on the premises only. An on-sale 3.2/wine license may be issued only to a restaurant having facilities for seating at least twenty-five (25) guests at one time. 301.304 Off-Sale 3.2 Percent Malt Liauor License. Off-sale 3.2 percent malt liquor licenses may be issued to general food stores and drug stores and permit the sale of 3.2 percent malt liquor at retail in the original package for consumption off the premises only. 301.305 On-Sale Sunday Liauor License. On-sale Sunday liquor licenses may be issued to a hotel, bowling alley, club, or restaurant, with facilities for serving not less than thirty (30) guests at one time, to which an on-sale intoxicating license has been issued. Such licenses may permit the sale of liquor to be consumed on the premises between the hours of 10:00 a.m. on Sunday and 2:00 a.m. on Monday in conjunction with the serving of food provided that he licensee is in conformance with the Minnesota Clean Air Act and provided a public hearing is held prior to the issuance of the license. No Sunday license is needed for on-sale 3.2/wine licenses. (amd. Ord. 04-29, pub. 10/23/05) City of Prior Lake 301/p3 Business Regulations 301.306 Temoorarv On-Sale Intoxicatina Liauor License. The City Council may issue to a charitable, religious or nonprofit organization, comprised of at least 35 members, in existence for at least three (3) years or to a political committee registered under Minn. Stat. ~1 0A.14 a temporary license for the sale of intoxicating liquor in connection with a social event within the City sponsored by the licensee. (1) The license may authorize the sale of alcohol-related products for not more than four (4) consecutive days, and may authorize sales on premises other than premises the licensee owns or permanently occupies. The license may provide that the licensee may contract for catering services with the holder of a full-year on-sale liquor license issued by the City. The licenses are subject to the terms, including license fee, imposed by the City. In addition to any terms and conditions that the City Council may impose as a condition of approval for a temporary on- sale license, the licenses issued under this subsection are subject to all laws and ordinances governing the sale of alcohol related products except Minn. Stat. ~340A.409 and ~340A.504, subd. 3, paragraph (d). Temporary licenses must first be approved by the Minnesota Commissioner of Public Safety before they become valid. (2) The City may not issue more than three (3) four-day temporary licenses, four (4) three-day licenses, six (6) two-day licenses, or twelve (12) one-day licenses, in any combination not to exceed 23 days per year. to anyone organization or for anyone location. No more than one temporary license may be issued to anyone organization or for anyone location within any 30-day period, unless the licenses are issued in connection with an official community festival, designated as such by the City. 301.307 Temoorarv On-Sale Malt Liauor Licenses. The City Council may issue a club or charitable, religious, or nonprofit organization a temporary on-sale license for the sale of 3.2 percent malt liquor. (amd. Ord. 105-21 - pub 9/17/05) 301.308 ~xceotions for Temoorarv On-Sale Licenses. Notwithstanding the provisions of subsection 301.600, the City Council may issue temporary on-sale licenses as follows: (1) Church Property. Temporary on-sale licenses may be issued for church property or for premises within 300 feet of any church. For purposes of this Section, a school that is owned and operated by a church is regulated church property. (2) School Property. Temporary on-sale licenses may be issued for premises within 300 feet of any school if said school files with the City Council a written consent to the issuance of said temporary license. However, no temporary on-sale license may be issued for school property. (amd. Ord. 99-04 - pub. 4/10/99) City of Prior Lake 301/p4 Business Regulations 301.400: LICENSE REQUIRED AND PROHIBITED SALES: 301.401 License. No person shall keep for retail sale, sell at retail or otherwise dispense any alcohol related products at any place in the City without first obtaining a license and paying a license fee. No person, except as otherwise provided in Minnesota Statutes Chapter 340A shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating liquor, 3.2 percent malt liquor, or wine as part of a commercial transaction without first having received a license to do so as provided in this Section; nor shall any person, directly or indirectly, or upon any pretense or by any device, allow the consumption of display of intoxicating liquor or serve any liquid for the purpose of mixing with intoxicating liquor without first obtaining a license form the City as provided in this Section. Every license issued pursuant to this subsection is subject to the conditions in the following subsection and of any other applicable ordinance, state law or regulation. 301.402 Prohibited Sales. No person shall sell, offer for sale, give away, furnish, or otherwise deliver any alcohol or alcohol-related product: (1) Without first having received a license to do so as provided in this Section. (2) To any person under the age of twenty-one (21) years. (3) By any means, or to any other person, prohibited by Federal, State, or other local law, ordinance provision, or other regulation. 301.403 Instructional Proaram. Other than temporary licenses issued under subsections 301.306 and 301.307, no person shall be issued a license or renewal license to sell alcohol-related products unless the applicant for a license has a program for instructing all employees at the business premises subject to the license, in the legal requirements pertaining to the sale of alcohol related products, including, but not limited to, reviewing the law on the sale of alcohol-related products, providing information on the health risks of using alcohol-related products, and requiring employees to request identification from every customer who appears to be under 27 years of age. The training shall include information that the sale of alcohol- related products to minors is illegal, explains what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal and/or civil liability. At the request of the City, a license holder or applicant shall provide copies of written and other materials used in connection with the program. No license shall be issued unless the applicant or license holder signs a City form attesting that each employee of the applicant or license holder has received training and instruction on the sale of alcohol-related products and the date such training occurred. Any new employee of the license holder who begins employment during the license period shall participate in the training prior to serving or selling any alcohol-related product. City of Prior Lake 301/p5 Business Regulations 301.500: ApPLICATION FOR LICENSE: 301.501 ADDlication: An application for a license to sell alcohol-related products shall be made on a form provided by the City. The application shall include, but is not limited to; the full name and age of the applicant, the applicant's residential and business address and telephone numbers, the name of the proposed license holder, the business location for which the license is sought, the type of license applied for, and such other information as the Council shall require from time to time. No person shall make a false statement in an application. The completed application along with the documents described herein, shall be submitted to the City Manager or designee for approval by the City Council. 301.502 Documents to Accomoanv Aoolication. At the time of application, the following must be provided by the applicant: (1) License Fee. Each application for a license shall include proof of payment of the license fee. The license fee shall be determined by the City Council. License fees which are in excess of $500.00 may be prorated on a monthly basis of the annual amount charged. If the license application is rejected or denied, the City shall return the license fee only, except where rejection is for a willful misstatement in the license application. (amd. Ord. 02-01, pub. 3/2/02) (2) Investigation Fee. Other than applications for temporary licenses issued under subsections 301-306 and 301.307, all applications for an initial license or transfer of an existing license shall also include payment of an investigation fee of Five Hundred ($500.00) dollars. If an investigation outside of the State of Minnesota is required, the applicant shall pay the cost thereof, prior to consideration of the license application by the City Council. (3) Legal Documents. All applications shall be accompanied by copies of each summons received by the applicant under Minnesota Statute ~340A.802 during the preceding year. (4) General Liability Insurance. Proof of financial responsibility shall be given by filing a certificate that there is in effect for the license period an insurance policy or pool providing at least $500,000 of coverage because of bodily injury to two or more persons in anyone occurrence, $1,000,000 because of bodily injury to two or more persons in anyone occurrence, $500,000 because of injury to or destruction of property of others in anyone occurrence, $500,000 for loss of means of support of anyone person in anyone occurrence, and $1,000,000.00 for loss of means of support of two or more persons in anyone occurrence. The insurance policy must provide that the insurer will provide the City with thirty (30) days notice prior to the termination of insurance for any change in insurance coverage. (5) Workers' Compensation Insurance. The policy limits for workers' compensation insurance shall be as provided for by state law. (6) Financial Responsibility.Liquor licenses shall be issued, maintained, or renewed City of Prior Lake 301/p6 Business Regulations only if the applicant demonstrates financial responsibility as defined in Minnesota Statute ~340A.409 for the applicant's liability under Minnesota Statute ~340A.801 (Dram shop liability). Such proof of financial responsibility shall be filed with the Minnesota Commissioner of Public Safety and a copy filed with the application for a license. The sale of alcohol-related products without having on file with the City effective proof of financial responsibility is subject tot he provisions of subsection 301.1003. (7) Partial Refund. In circumstances where an existing licensee discontinues their license before the termination date and a new license is issued for the same stablishment for the remainder of the license period, a refund of the unused portion of license fee may be granted at the discretion of the city Council subject to the following: a. The request for reimbursement must be made during the year for which the license was issued. b. A reimbursement will be considered only for on=sale intoxicating and liquor license fees. c. The minimum reimbursement is $1,000. d. An administrative fee of $400 shall be charged for every reimbursement. e. The reason the license was discontinued is a result of the issuance of a new license at the same location. f. License discontinuation is not the result of a violation of this ordinance. (Ord 107-04 - adopted 1/27/07) 301.503 Action. If the City Manager determines that an application is incomplete or without property supporting documentation, he or she shall return the application to the applicant with notice of the deficiencies. The City Manager shall review the application, supporting documents, and the result of a background investigation, and may recommend to the City Council either approval or denial of the license, or may recommend the City Council delay action for such reasonable period of time to permit the City to complete any additional investigation of the application or the applicant deemed necessary. Following written notice to the applicant, the City Council shall review the application and supporting documents and shall hear testimony from any person who requests to be heard for or against the granting of the license. After the investigation and hearing, the Council shall, in its discretion, grant or deny the issuance of the license. No "on-sale 3.2/wine" license or "off-sale" license shall become effective until approved by the commissioner of public safety. The City Council may impose reasonable conditions on the issuance of any license to protect the public. If the City Council approves the license, and all required approvals are received by the City, a license shall be issued to the applicant. If the City Council denies the application, a notice of denial shall be sent to the applicant at the business address provided on the application along with the reasons for the denial. If a license is mistakenly issued or renewed to an applicant or license holder, it shall be revoked by the City Manager upon the discovery that the person, applicant or license holder was ineligible for the license under this Section. No license shall be issued transferred or renewed if the results of the background City of Prior Lake 30 1/p 7 301.600: 301.700: 301.800: BusmessRegumilons investigation show that issuance would not be in the public interest. (1) (2) 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: The applicant is under the age of twenty-one (21) years. The applicant has been convicted within the past five (5) years of a violation of any provision of this Section or a violation of a Federal, State, or local law, Ordinance provision, or other regulation relating to alcohol or related products. The applicant or license holder has had a license to sell alcohol revoked within the preceding five (5) year of the date of application. The applicant fails to provide any information required on the City license application, or provides false or misleading information. The applicant or license holder has outstanding fines, penalties or property taxes owed to the City. The applicant is directly or indirectly the owner of any current license issued under this Section. The place of the licensed business is ineligible for a license under state law or the City Code. (Minn. Stat. ~340A.412 or 340A.301). Taxes, assessments, fines or other financial claims of the City are delinquent and unpaid as to the premises to be licensed. The premises to be licensed is located within 300 feet of any church or school. It is impractical to conduct a background and financial investigations due to the unavailability of information. The applicant is not of good moral character and repute. (3) (4) (5) (6) (7) (8) (9) (10) (11) Exceotion. No license shall be granted for operation on any premises on which state, city or county taxes, assessments, fines or other financial claims of the state, city or county are delinquent and unpaid. Notwithstanding the foregoing, if the delinqu.ent taxes, assessments, fines or financial claims are against a landowner, and the applicant or license holder in the case of a renewal, is a tenant of landowner and has no financial interest in landowner, then the City Council may, in its discretion, but shall not be required to, grant a license to an applicant so long as the applicant is not delinquent on any taxes, assessments, fines or financial claims as set forth herein. RENEWALS: The renewal of a license under this subsection shall be handled in the same manner as the original application. Any person intending to apply to renew a liquor license must submit a renewal application, on a form provided by the City, and pay the application and license fee. A license renewal application, and license fee must be submitted to the City no later than forty-five (45) days prior to the expiration of the license. The issuance of a license under this ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. A late fee of Fifty dollars ($50.00) will be imposed on any licensee who fails to submit a timely renewal application. TERM: All licenses are issued for a period of one (1) year. The license period is from July 1 to June 30. City of Prior Lake 301/p8 Business Regulations 301.900: TRANSFERS: All licenses issued under this Section shall be valid only on the business premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Council. Any sale or transfer of stock of a corporate licensee is deemed a transfer of the license, which, without Council approval, is grounds for revocation of the license. 301.1000: REVOCATIONS OR SUSPENSION: All licenses issued by the City may be revoked or suspended by the methods set forth herein. 301.1001 Grounds for Revocation or Susoension. A license issued by the City under this Section may be revoked or suspended for any of the following reasons: (1) The license holder, its owners or employees has violated any subsection of this Section. (2) The license holder, its owners or employees has violated any applicable civil or criminal statute, ordinance, or regulation pertaining to alcohol related products. (3) The license holder, its owners or employees has violated a special condition under which the license was granted, including, but not limited to, the timely payment of real estate taxes and all other charges. (4) The license holder, its owners or employees has violated a Federal, State or local law regulating the sale of alcohol related products or controlled substances. (5) The license holder, its owners or employees has created a public nuisances, as described in the City Code, on the premises or in the surrounding area. (6) The license holder, its owners or employees has suffered or permitted illegal acts upon the licensed premises or on property owned, controlled by, or adjacent to the licensed premises, unrelated to the sale of alcohol related products. (7) The license holder, its owners or employees has knowledge of illegal acts upon or attributable to the licensed premises, but has failed to report the same to the police. 301.1002 Automatic Susoension. Any license issued under this Section shall be immediately suspended without further action by the City Council, for any of the following reasons: (1) Lapse of required dram shop insurance, or (2) Lapse of security provided to the City. 301.1003 Automatic Revocation. Any license issued under this Section shall be immediately revoked without further action by the City Council, for any of the fOllowing reasons: (1) Upon written notice from the City Manager of the mistaken grant of a license. (2) Expiration or cancellation of any required insurance, bond or other security or failure to notify the City within a reasonable time of changes in the term of the insurance or insurance carriers. City of Prior Lake 301/p9. Business Regulations 301.1004 Notice. Notice to the license holder from any insurer of the lapse of insurance, lapse of bond, or withdrawal of security shall also serve as notice of the suspension of the license. A suspension or revocation under this Section shall be effective until the City Council determines the requirements of this ordinance have again been met. 301.1005 Effective Date. Except as provided in subsections 301.1002 and 301.1003, no revocation or suspension shall take effect until the license holder has been afforded an opportunity to be heard by the City Council pursuant to subsection 301.1800 herein. 301.1100: NON-EMPLOYEES ON PREMISES: A licensee shall not allow non-employees on the business premises from twenty (20) minutes after the sale of alcohol related products is prohibited until the sale is again permitted except as hereinafter provided. Non-employees are allowed on the premises of a hotel, restaurant, club, or bowling alley (on-sale liquor licensees and on-sale 3.2/wine licensees) during normal hours of operation. During the hours that the sale of alcohol related products is prohibited, there may be no sale, consumption, or display of alcohol related products. The licensee shall close off all access to alcohol related products or any bar area in a manner approved by the City. 301.1200: OISPLA Y: Every license shall be conspicuously posted at the place of business for which the license is issued and shall be exhibited to any person upon request. . 301.1300: RIGHT OF INSPECTION: Any Prior Lake police officer, City official, or any properly designated officer displaying property identification shall have the unqualified right to enter, inspect, and search the premises of any licensee hereunder without a warrant, during business hours or when owners, managers, or other employees are located on the premises. The business records of the licensee, including Federal and State tax returns, shall be available for inspection by the City at all reasonable times upon written request. 301.1400: MOVEABLE PLACE OF BUSINESS: No license of any type shall be issued for any movable place of business, including but not limited to kiosks or trailers. "Moveable place of business" does not include golf carts when used on golf course property, excursion boats on Prior Lake, or any moveable structure when specifically permitted by the City Council under subsection 301.1500 herein. City of Prior Lake 301/p10 Business Regulations 301.1500: OUTDOOR AREAS IN ON-SALE ESTABLISHMENTS: All outdoor areas in on- sale licensed establishments are subject to the following limitations: (1) . Every outdoor area must be approved as part of the original licensed premises or by the granting of an application for expansion of the license premises. No sales may be made nor may alcohol related products be consumed in parking lots or any portions thereof without a permanent or temporary license approval from the City as provided herein. (2) Regardless of the type of license issued to an outdoor area, the City Council may regulate and restrict the hours, days, nature, volume, and other aspects of entertainment in any outdoor area to protect the safety and welfare of residents, businesses and other uses near the establishment.. (3) The City Council may authorize an establishment to conduct entertainment not otherwise allowed under its license in an outdoor area by permit temporarily for special events. Such temporary permits shall be issued for a fee as set forth by the City Council. (4) Customers shall not be allowed to occupy the outdoor area in numbers greater than the seating capacity permits. (5) No bar shall be located in an outdoor area except a service bar for the exclusive use of employees. (6) The license holder shall provide food service to the outdoor area during all hours of operation of the outdoor area, (7) Access to and from the outdoor area shall be through the remainder of the premises or through the property controlled by the license holder. (8) No sales of alcohol-related products may be made on any public sidewalk or private property open to the public for passageway purposes except as specifically authorized by the City Council. The City Council may regulate and restrict the hours, days, nature, volume and other aspects of sales in these areas, and may require the license holder to procure insurance naming the City as an additional insured to protect the safety and welfare of residents, businesses and other uses near the establishment. . 301.1600: OBSCENITY AND NUDITY: No liquor licensee shall: (1) Employ or use any person in the sale or service of alcoholic beverages or as employees while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the pubic hair, anus, cleft of the buttocks, male or female genitals, or the female breast below the top of the areola; City of Prior Lake 301/p11 Business Regulations (2) Employ or use the services of any wait person while such person is unclothed or in such attire, costume or clothing as described in paragraph (1) above. (3) Encourage or permit any person on the licensed premises to touch, caress or fondle the breast, buttocks, anus or genitals of any other person; (4) Permit any employee or person to wear or use any device or covering exposed to view, which simulates the breast, genitals, anus, pubic hair or any portion thereof. 301.1700: CIVIL VIOLATIONS AND PENALTIES: 301.1701 Civil Violations. Any violation of this Section shall be considered an act of the license holder for purposes of imposing a civil penalty, license suspension, or revocation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. The license holder shall be responsible for the conduct of its agents or employees while on the licensed premises. 301.1702 Additional Violations. The following additional restrictions apply to all licenses issued by the City Council under this Section: (1) No licensee shall knowingly permit the licensed premises or any room in those premises or any adjoining building directly under the licensee's control to be used by prostitutes. (2) No licensee shall knowingly permit the sale, possession or consumption of controlled substances on the licensed premises in violation of state law nor shall any licensee permit consumption of alcoholic beverages on licensed premises more than twenty (20) minutes after the hour when a sale thereof can be legally made. (3) Except for charitable gambling as defined and permitted under state law, gambling and gambling devices are not permitted on licensed premises. State lottery tickets may be purchased and sold within licensed premises as authorized by the director of the state lottery. (4) No licensee shall employ or use any person in the sale or service of alcoholic beverages or as employees for the purpose of staging any nature of "lingerie show" in or upon the licensed premises while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, or genitals. 301.1703 Notice of Violation. Upon occurrence of a violation, the Police Department shall inform the City Manager of the suspected violation. The City Manager shall then send to the license holder a written notice of the civil violation. The notice shall City of Prior Lake 301/p12 Business Regulations advise the license holder of the penalty and the license holder's right to request a hearing regarding the violation of this Section pursuant to subsection 301.1800. 301.1704 Civil Penalties. Each license issued hereunder shall be subject to suspension or revocation and/or imposition of a civil fine of up to Two Thousand Dollars ($2,000.00) for violation of any provisions of this Section or the laws of the State of Minnesota as follows: (1) Presumptive Civil Penalties; Purpose. The purpose of this subsection is to establish a standard by which the City Council determines the length of license suspension, the propriety of revocations, and the amount of fines, and shall apply to all premises licensed under this Section. These penalties are presumed to be appropriate for every case; however, the Council may deviate in an individual case where the Council finds that there exist substantial reasons making it more appropriate to deviate, such as, but not limited to, a licensee's efforts in combination with the State or City to prevent the sale of alcohol to minors. When suspending or revoking a license or imposing a fine for a violation of this Ordinance, the Council will provide written findings that support the penalty selected. Further, when deviating from the standard set forth herein, the Council shall set forth in writing the rationale for the deviation. (2) Presumptive Penalties for Violations. The minimum penalties for civil violations as determined by the City Council must be presumed as follows (unless specified, number indicate consecutive days' suspension): Appearance -'!ype of Violatio~ 1st 2nd 3rd 4th Commission of a felony re- Revocation NA NA NA lated to the licensed activity. Sale of alcoholic beverages Revocation NA NA NA while license is under sus- pension Sale of alcoholic beverages 3 6 18 Revocation to underage person Sale of alcoholic beverages 3 6 18 Revocation to obviously intoxicated person After hours sale of alcoholic 3 6 18 Revocation beverages After hours display or con- 3 6 18 Revocation sumption of alcoholic bev- erages City of Prior Lake 301/p13 Business Regulations Refusal. to allow City Inspec- 5 15 Revocation NA tors or Police admission to inspect premises Illegal gambling on premises 3 6 18 Revocation Failure to take reasonable 3 6 18 Revocation steps to stop person from leaving premises with alco- holic beverages Sale of intoxicating liquor Revocation NA NA NA where only license is for 3.2 percent malt liquor 301.1705 Multiole Violations. At a licensee's first appearance before the Council, the Council may act upon all of the violations that have been alleged iri the notice sent to the licensee. The Council in that case must consider the presumptive penalty for each violation under the first appearance column in subsection 301.1704 above. The occurrence of multiple violations is grounds for deviation from the presumed penalties in the Council's discretion. 301.1706 Subseauent Violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing, must be treated as a separate violation and dealt with as a second appearance before the Council, unless the City Manager and licensee agree in writing to add the violation to the first appearance. The same procedure applies to a second, third, or fourth appearance before the Council. 301.1707 Comoutation of Aooearances. After the first appearance, a subsequent appearance by the same licensee will be determined as follows: (1) If the first appearance was within three (3) years of the current violation, the current violation will be treated as second appearance. (2) If a licensee has appeared before the Council on two (2) previous occasions, and the current violation occurred within five (5) years of the first appearance, the current violation will be treated as a third appearance. (3) If a licensee has appeared before the Council on three (3) previous occasions, and the current violation occurred within seven (7) years of the first appearance, the current violation will be treated as a fourth appearance. (4) Any appearance not covered by paragraphs (1), (2) or (3) above will be treated as a first appearance. 301.1708 Other Penalties. Nothing in this Section shall restrict or limit the authority of the Council to suspend the license up to sixty (60) days, revoke the license, impose a civil fine not to exceed two thousand dollars ($2,000.00), to impose conditions, or take any other action; provided, that the license holder has been afforded an opportunity for a hearing in the manner provided in subsection 301.1800. Penalties imposed under this Section do not require a prior criminal adjudication. City of Prior Lake 301/p14 Business Regulations 301.1709 Reinstatement. A license shall be reinstated following expiration of the suspension period upon payment of all fines by the license holder. No license shall be reinstated, and no sales of alcohol related products may be made until all fines have been paid. The sales of any alcohol related products while a license is under suspension shall constitute a violation of subsection 301.1003 and result in the automatic revocation of the license. 301.1710 Other Enforcement of Action.. Any civil penalty, suspension or revocation or combination thereof under this Section does not preclude any private civil action or any criminal prosecution under this Ordinance of any Minnesota statute. 301.1800: HEARING ON DENIAL OR VIOLATION: Following receipt of a notice of denial issued under subsection 301.600 or a notice of a violation and penalty issued under subsection 301.1700, an applicant or license holder may request a hearing before the City Council. The City Council may appoint a hearing examiner who shall be a member of the City Council, or may conduct a hearing itself. A request for a hearing shall be made by the applicant or license holder in writing and filed with the City Manager within ten (10) days of the mailing of the notice of denial or notice of suspected violation. Following receipt of a written request for hearing, the applicant or license holder shall be afforded an opportunity for a hearing before the Council. If a hearing examiner conducts the hearing, the hearing examiner shall report its findings and make a recommendation to the full Council. If, after the hearing, the applicant or license holder is found ineligible for a license, or in violation of this Ordinance, the Council may affirm the denial, impose a fine, issue a suspension or revocation, or impose any combination thereof. If the applicant or license holder has been provided written notice of the denial or violation and if no request for a hearing is filed within the ten (10) day period, then the denial, penalty, suspension or revocation imposed in subsection 301.1700 shall take immediate effect by default. The City Manager shall mail notice of the denial, fine, suspension or revocation to the applicant or license holder. The City Police shall investigate compliance with the suspension or revocation. 301.1900: CRIMINAL VIOLATIONS AND PENALTIES: 301.1901 Criminal Violations: License Holder and Emolovees. As set forth in Minnesota Statutes Chapters 340A.503 and 340A. 705, it shall be a gross misdemeanor for anyone to sell, furnish, or provide alcohol products to a person under the age of twenty-one (21) years. It shall be a gross misdemeanor for anyone under the age of twenty-one (21) years to sell, furnish, or give away any alcohol products. This subsection shall not apply to an employee of the license holder under the age of twenty-one (21) but over the age of eighteen (18) years while serving alcohol City of Prior Lake 301/p15 Business Regulations related products. 301.1902 Criminal Violations. (1) No person under the legal drinking age shall enter a licensed premises for the purpose of purchasing or consuming any alcoholic beverage. It is not unlawful for any person who has attained the age of 18 years to enter licensed premises for the purposes of (a) performing work for the establishment, including the serving of alcoholic beverages, unless otherwise prohibited by statute, (b) consuming meals, or (c) attending social functions that are held in a portion of the establishment where liquor is not sold. (2) It shall be a misdemeanor for anyone under the age of twenty-one (21) years to use, purchase, attempt to purchase, or possess alcohol products. This subsection shall not apply to a person under the age of twenty-one (21) but over the age of eighteen (18) years who purchases or attempts to purchase alcohol-related products while under the direct supervision of a responsible adult for training, education, research or enforcement purposes. (3) No underage person shall misrepresent the person's age for the purpose of obtaining alcohol related products, nor shall the person enter any premises licensed for the retail sale of alcohol related products for the purposes of purchasing or having served or delivered any alcoholic beverage. Nor shall any such person purchase, attempt to purchase, consume, or have another person purchase for the underage person any alcohol related products. (4) Any person shall, upon demand of the licensee, his employee, or agent, produce and permit to be examined one of the forms of identification provided under Minnesota Statutes 9340A.503, subbd. 6. (5) No person shall possess open containers of alcoholic beverages or consume alcoholic beverages on public property including but not limited to public streets, sidewalks, parking lots, or in parks except where specifically permitted by ordinance. No person shall possess open containers of alcoholic beverages or consume alcoholic beverages in parking lots under the control of a liquor licensee outside the licensed structure or on private property generally open to the public unless possession or consumption for a specific event on such property is approved by the City Manager in advance of the event. The requesting party for such approval shall submit an application to the City Manager on a form authorized by the City. (6) No person shall consume nor any licensee permit consumption of alcoholic beverages on licensed premises more than twenty (20) minutes after the hour when a sale thereof can be legally made. 301.1903 Criminal Enforcement. Upon discovery of a suspected violation of any subsection of this Section, the City Police or other appropriate authority shall issue City of Prior Lake 301/p16 Business Regulations a criminal citation to the individual offender and licensee where appropriate. 301.2000: AFFIRMATIVE DEFENSE: A license holder may reasonably and in good faith rely on proof of age as described in subsection 301.1902(4) of this Section, in making sales of alcohol-related products. In every appearance before the City Council for a violation of the provision of this Section relating to the sale or furnishing of alcohol related products to underage persons, the fact that the underage person involved has obtained and presented to the licensee, his employee or agent, a driver's license, passport or identification card form which it appears that said person was not an underage person and was regularly issued such identification card, shall be prima facie evidence that the licensee, his agent or employee is not guilty of a civil violation of this Chapter and, when proven by a preponderance of the evidence, shall be conclusive evidence that a violation, if one has occurred, was not willful or intentional. 301.2100: COMPLIANCE CHECKS: All licensed premises shall be open to inspection by the City police or other authorized City officials during regular business hours. From time to time, but at least once per year, the City shall conduct compliance checks. Such compliance checks may involve, but are not limited to, engaging minors to enter the licensed premises to attempt to purchase alcohol and alcohol related products. If minors are used for compliance checks, they shall not be guilty of unlawful possession of alcohol when such items are obtained as a part of a compliance check. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age, and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the licensee or his or her employee and shall produce any identification for which he or she is asked. 301.2200: EXCEPTIONS: All license holders at the time of the passage and adoption of this ordinance are specifically exempt from the requirements set forth in subsection 301.301. Said exemption shall remain in effect so long as the license holder meets all other applicable requirements and provisions of this Section. 301.2300: SEVERABILITY: If any provision of this Section is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this Section. City of Prior Lake 301/p17 f:..J2~(L1. 'fJ?-C,.Q. IJ Q~o' "".';-, 'l.Ovy ~ 7.:D 16211 Main Avenue Prior Lake MN, 55732 October 15th 2009 Dear Mr. Boyle, In response to your letter dated 10/13 and in accordance with Prior Lake city code section 301.1800, I am requesting a hearing before the Prior Lake City Council. Please note also that as of today, October 15th 2009, our 2008 property taxes are paid in full. Sincerely, ~~r 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 October 16,2009 Mr. Paul Yeo 16211 Main Ave. POBox381 Prior Lake, MN 55372 SUBJECT: Appeal of Liquor License Revocation Dear Mr. Yeo: I am in receipt of your Oct. 15, 2009 letter appealing my deten:nination that your license should be revoked for non payment of real estate taxes for the second half of 2008 and second half of 2009. Your letter verifies that you have recently paid the second half of 2008 real estate taxes in the amount of $4692.15. We are pleased that you made this payment but the amount of$7,573.00 plus interest remains in arrears for the second half of your 2009 property taxes. Therefore, it is my opinion that the ordinance criteria are not satisfied and the revocation should remain in force. In accordance with city code, the revocation will be delayed until the city council has conducted a hearing on this topic pursuant to Prior Lake City Code Section 301.1800. The hearing is scheduled for Monday, November 2, 2009 at 6 p.m. at City Hall or as soon as possible thereafter. At that meeting you will have the opportunity to state why you believe the revocation is inappropriate and what steps, if any, you are willing to abide by to resolve this matter. The entire council will conduct the hearing. They may affirm, amend or void my determination or defer the matter if appropriate. The agenda report will be available to you the Friday before the meeting. Please let me now if I can provide you with additional information. Ifnot, I will see you on November 2, 2009. ti2+- Frank Boyles Prior Lake City Manager cc Mayor and Council Bill O'Rourke Janet Ringberg www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 SCOTT COUNTY Scott County Treasurer 200 4th Avenue West Shakopee, MN 55379 (952)-496-8150 PAYMENT RECEIPT Type Real Property Description Bill Number: 12875 Bill Year: 2008 PIN: 250010231 Primary Owner: 16211 MAIN LLC Property Addr: 16211 MAINAVE SE Property Desc: SubdivisionName CITY OF PRIOR LAKE Lot 010 Block 003 Subdivision Received By: Location: Session: Balance 4,692.15 Net Tax 4,190.00 Thank you for your payment! This is not a valid receipt until your check has been honored. Totals: Tender Information: Check #3324 Total Tendered 4,692.15 4,190.00 acdonnj Counter acdonnj-10152009-0 Receipt Number: Receipt Year: Date Received: Page 1 of 1 U09.11269 2009 10/15/2009 Fees Current Current Balance Interest Penalties Due Paid Remaining 395.55 106.60 4,692.15 4,692.15 0.00 395.55 4,692.15 Real Property 4,692.15 Total Charges Scott County Scott County Treasurer 200 4th Avenue West Shakopee, MN 55379 Charge Summary: 106.60 4,692.15 4,692.15 By Whom Paid: OMALLEYS OF PRIOR LAKE PO BOX 831 PRIOR LAKE MN 55372 BALANCE REMAINING CHARGES PAID CHANGE 0.00 4,692.15 4,692.15 0.00 4,692.15 4,692.15 0.00