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HomeMy WebLinkAbout8A - On-Sale Liquor License for Jazz Company Cafe O~ PR104> ~ (" t ';P u ~ I't1 I\rlNNESO~~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT April 5, 2010 @ 8A Frank Boyles, City Manager Public Hearing to Consider Approval of the Issuance of an On-Sale Liquor License for Jazz Company Cafe. Introduction The purpose of this agenda item is to have the City Council conduct a pub- lic hearing to receive information about the Jazz Company Cafe application for an on-sale intoxicating liquor license.. Historv Camille Myser, dba Jazz Co. Cafe, 4616 Colorado, was granted an on-sale beer and wine license by the City Council on April 8, 2009. The license was conditioned upon the construction of a wall and door separator in the common foyer of the building. The separation was constructed, the permit was issued and beer and wine has been served at the Jazz Company Cafe since July 1, 2009. Current Circumstances Jazz Co. Cafe has applied for a full on-sale liquor license which would au- thorize them to serve beer, wine and mixed drinks. Prior Lake City Code Section 301.503 provides that with respect to a liquor license request, the City Council "shall hear testimony from any person who requests to be heard for or against the granting of the license. After investigation and hearing the Council shall, in its discretion, grant or deny the issuance of the license." The purpose of tonight's hearing is to receive comments from the public on the application and then consider whether the Council desires to issue an on-sale liquor license for Jazz Co. Cafe. The license requirements for an on-sale liquor license are the same as for an on-sale beer and wine license which Jazz Co. Cafe has already been granted. Accordingly, the City already has on file a police background re- port, insurance certificates and other relevant documents. If issued, the on-sale liquor license would be valid from the date of approv- al (April 5 or 19) to June 30, 2010. Pursuant to ordinance, the $6,300 an- nuallicense fee has been prorated and the applicant has paid $1,050 as- suming a May 1, 2010 start date. All taxes for the property in which the Cafe is located are current and there are no financial obligations that either the property owner or liquor license applicant has to the City. The Police Department has completed the background investigation as well. www.cityofpriorlake.com Phqne95Z,447.9800 / Fax 952.447.4245 Conclusion The Council should receive the staff report, open the public hearing, re- ceive testimony, close the public hearing and then take action on the re- quest. ISSUES: When the beer and wine license was approved, it was conditional upon the construction of a separator wall in the common entry foyer so patrons of other portions of the building would be separated from the alcohol service area. The wall and door remain in place and appear to be effective for the intended purpose. There is a common restroom on the first floor. It is possible that a patron could order an alcoholic drink, beer or wine and bring it into the restroom. The Council may wish to consider as a condition of the license approval, the addition of a sign that says, "No Alcohol Allowed in Restrooms" or out- side of the Jazz Company Cafe. The Prior Lake Police Department has reviewed the Jazz Co. Cafe plans for alcohol storage. The Department has concluded that the plans can be relied upon to reasonably and effectively allow liquor access only to Jazz Co. Cafe employees who are granted access to the storage area. The proposed license DOES NOT include a request for an outdoor service area for on-sale liquor pursuant to Section 301.1500. If it did, the applicant would have to come into compliance with all applicable sections of the City Code. Therefore, liquor sales and consumption mav onlv occur within the licensed oremises and not outside. The Police Department has reviewed its files and noted that there has been only one incident since Jazz Cafe began serving beer an wine on July 1, 2009. The incident occurred on the evening of Ladies Night Out. Aside from this incident (alcohol consumed outside the licensed premise) the Po- lice Department is not aware of any other issues related to the on-sale li- cense application and Jazz Co. Cafe has passed all "sales to minor testing" which have occurred since it received its license. There has been ongoing friction between the owner of the building, where Jazz Co. Cafe is a tenant, and Jazz Co. Cafe. This friction resulted in a considerable delay between the approval of the beer and wine license and its actual issuance because of disagreement regarding the sale of liquor on premise and the design of the wall. There are numerous other examples of the friction; many of which have impacted the City, and staff under- stands that the parties are considering steps to address this matter. A sim- ilar issue could arise regarding the on-sale liquor license vs. the beer and wine license. The City may only address the license application to the ex- tent it is found to impact the public health, welfare and safety. In and of itself, the on-sale liquor license is not seen by the staff as being a greater risk to public safety, health and welfare than a beer and wine license. 2 The City Attorney and Building and Transportation Services Director visited the facility this week. It is their opinion that with the exception of adding signage to the restroom, the configuration and operation of the facility ef- fectively separates the liquor service area from non-service area. FINANCIAL IMPACT: Approval of the license does provide a prorated license fee which will help defray costs of compliance checks. ALTERNATIVES: The City Council has the following alternatives: 1. Adopt a motion directing the staff to prepare a resolution with findings of fact supporting the approval of the on-sale liquor license request to be placed upon the April 19, 2010 Consent Agenda. 2. Adopt a motion directing the staff to prepare a resolution with findings of fact opposing the request to be placed upon the April 19, 2010 Con- sent Agenda. 3. Close the hearing and defer any further action pending receipt of spe- cific additional information by the Council. RECOMMENDED Unless new information is supplied at the public hearing, Alternative #1. MOTION: 3