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CITY COUNCIL AGENDA REPORT
MEETING DATE: November 16, 2009 ~~/
AGENDA #: 5H
PREPARED BY: Frank Boyles, City Manage
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION OF FINDINGS OF FACT
CONFIRMING REVOCATION OF THE LIQUOR LICENSE FOR O'MALLEY'S
ON MAIN FOR NON-PAYMENT OF REAL ESTATE TAXES
DISCUSSION: Introduction
The purpose of this agenda item is to request that the Council adopt a resolution
with findings of fact regarding the O'Malley's liquor license.
HistON
The City Council confirmed the City Manager's revocation of the O'Malley's on
Main on-sale liquor license for non-payment of real estate taxes and directed that
the taxes be paid in full no later than Monday, November 16, 2009 at 10 a.m.
Current Circumstances
It is desirable that the City Council adopt a resolution with findings of fact to
memorialize its rationale for revocation of the license regardless of whether the
taxes are paid.
Conclusion
The Council should determine if the findings of fact in the resolution accurately
reflect their finds, make any changes necessary, and adopt the resolution with
findings of fact.
ISSUES: Adoption of a resolution with findings of fact will memorialize the City Council's
rationale for the action it has taken for the record.
FINANCIAL The adoption of the resolution could save the City money in the event of
IMPACT: litigation.
ALTERNATIVES: 1. Adopt the resolution of findings of fact.
2. Take no action.
RECOMMENDED Alternative #1.
MOTION:
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Prior Lake, MN 55372-1714
RESOLUTION 09-xxx
A RESOLUTION ESTABLISHING FINDINGS AND CONFIRMING REVOCATION OF
AN ON-SALE LIQUOR LICENSE FOR O'MALLEY'S ON MAIN
FOR THE PERIOD NOVEMBER 16, 2009 TO JUNE 30, 2010
Motion By: Second By:
WHEREAS, O'Malley's on Main submitted an application for renewal of an on-sale liquor
license for the period July 1, 2009 through June 30, 2010; and
WHEREAS, The Police Department completed an investigation regarding the license and
found no criminal issues which would preclude license issuance; and
WHEREAS, The Finance Department confirmed with the County that first half taxes for 2009
had been paid as required by the City Code; and
WHEREAS, Subsequent to the issuance of the license the Finance Department learned that
neither second half 2008 taxes nor second half 2009 real estate taxes had been
paid; and
WHEREAS, On October 5, 2009 Paul Yeo, the owner of O'Malley's on Main was informed by
letter that second half 2008 taxes were in arrears in the amount of $4,692.15
and on October 15, 2009 second half 2009 taxes would be due in the amount of
$7,573.00; and
WHEREAS, The City Manager considered all of the information available about the
delinquent property taxes and advised Mr. Yeo that pursuant to City Code
Section 301the City was revoking his liquor license. In the same letter Mr. Yeo
was advised of his right to appeal the decision to the City Council; and
WHEREAS, Mr. Yeo in a letter dated October 15, 2009 confirmed that payment had been
made for the second half 2008 taxes, but that he wished to appeal the liquor
license revocation for non-payment of second half 2009 taxes which remained
unpaid on October 15, 2009; and
WHEREAS, A public hearing was scheduled before the City Council at its November 2, 2009
meeting. The City Council determined that the Council as a whole would
conduct the hearing on the issue of whether to uphold the City Manager's
decision to revoke O'Malley's On Main liquor license, or take some other action;
including suspension of the license for up to 60 days, impose a penalty of up to
$2000 or some combination thereof; and
WHEREAS, During the public hearing on November 2, 2009 Mr. and Mrs. Yeo were present
at the public hearing. Mr. Yeo was the only person who chose to speak during
the public hearing. Mr. Yeo asked the Council to consider a letter he had
written to the City dated November 2, 2009 which he indicated explained why
his second half 2009 taxes were not paid; and
WHEREAS, The Mayor asked Mr. Yeo to read aloud his November 2, 2009 letter. The
Council, Mayor, City ~ o~~irio~a~l~e".~t39~ney had been provided a copy of
Phone 952.447.9800 /Fax 952.447.4245
Mr. Yeo's November 2, 2009 letter. After considering Mr. Yeo's November 2,
2009 letter, the staff report delivered by the City Manager and the oral testimony
from Mr. Yeo, the City Council determined that the license should be revoked in
accordance with Prior Lake City Code Section 301 effective at 10:00 a.m.,
Monday, November 16, 2009 if said taxes remain unpaid.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council makes the following findings:
a. The applicant does not meet the statutory or ordinance criteria for licensure as
the County has confirmed and Mr. Yeo has confirmed that the second half 2009
property taxes for O'Malley's on Main in the amount of $7,573.00 remain unpaid.
b. The City has approximately sixteen other on- and off-sale licenses issued, all of
which are current on property tax payments despite valuation increases which
have occurred across commercial properties throughout Prior Lake.
c. Mr. Yeo's purchased his property on aContract-for-Deed and stated in writing
that he does not want to pay the contract owner's taxes in the event the property
reverts to the Contract Vendor for non-payment. The Council finds this excuse is
a private issue between the Contract Vendor and Mr. and Mrs. Yeo and not a
properly issue for the City Council to give consideration to.
d. The Council is sympathetic with Mr. Yeo's predicament but stated he has already
had additional time to pay his property taxes and he has not paid them; and
e. It is willing to give Mr. Yeo an additional two week period to bring his property
.taxes current, but that if Mr. Yeo fails to provide the City Manager with
satisfactory evidence that the delinquencies have been paid by 10:00 a.m. on
Monday, November 16, 2009 that the on-sale liquor license revocation imposed
by the City Manager will become effective immediately and enforced by the City
Police Department.
f. In the event the license is revoked for non-payment of property taxes, Mr. Yeo or
any subsequent applicant will be required to apply for a new license including the
payment of fees and charges associated therewith.
PASSED AND ADOPTED THIS 16t" DAY OF NOVEMBER 2009.
YES NO
Hau en Hau en
Erickson Erickson
Hedber Hedber
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
R:ICounci112009 Agenda Reports111 16 0910'Malley's License Revocation Resolution.DOG