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Home My WebLink About10D Amendment of Prior Lake City Code Relating to Liquor Licensestom, PRIo U \ so'�f 4646 Dakota Street SE Prior Lake_ MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: June 6, 2011 AGENDA M 10D PREPARED BY: Suesan Lea Pace, City Attorney PRESENTED BY: Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF AN AMENDMENT TO SECTION 301 OF THE PRIOR LAKE CITY CODE RELATING TO LIQUOR LICENSES DISCUSSION: Introduction The Council recently passed an amendment to Section 1102.1103 (5) to the Zon- ing Ordinance, adding a new Section 1102.1103 (5) (e), to make restaurants with liquor in a C -2 Zoning District that are located less than 100 feet from a residential property line eligible for a CUP, subject to stricter conditions than those applicable to restaurants with liquor that meet the 100 foot setback. Two regulatory schemes apply to restaurants with liquor — zoning and licensing The purpose of the proposed amendments to City Code Section 301 — LIQUOR CONTROL are to provide a more pragmatic and efficient method to enforce against the violation of a condition(s) applicable to a Conditional Use Permit for a restaurant with a liquor license in the "C -2" — Neighborhood Commercial Zoning District. Hi story Violations of the Zoning Ordinance or any permit issued there under are criminal matters subject to prosecution as a misdemeanor. The prosecution of a misde- meanor violation takes some time. The prosecution is handled by the Scott Coun- ty Joint Prosecution Service. In egregious situations the City may file an injunctive action asking the court to act quickly to order the illegal activity to cease, but this approach is more costly. A liquor license violation is a civil matter and the means to deal with a violation are more straightforward — upon a finding that a violation has occurred the Council may impose penalties or revoke or suspend a liquor license, subject to complying with due process requirements. The proposed amendments make the violation of a condition of a Conditional Use Permit a civil matter for the purpose of licensing under Section 301. Current Circumstances For the sake of illustration assume the Council has approved a CUP for a restau- rant with liquor in a C -2 zoning district. The restaurant with liquor is located 67 feet from property in the R -1 District. The Conditional Use Permit is subject to the conditions in Section 1102 -1103 (5)(e) which applies to restaurants with liquor that are less than 100 feet from residentially zoned property; including restrictions on the hours when alcohol may be served. The restaurant ignores the conditions in the CUP and serves liquor until 1:00 or 2:00 am. If the Council has not incorporated and made the conditions in the CUP applicable to the liquor license the City is limited to enforcing the CUP violation as a misde- meanor under the Zoning Ordinance. If the liquor license is approved subject to the licensee complying with all of the conditions set out in the CUP, the City may use Section 301.1701 - Civil Violations and Penalties to proceed against a viola- tion. Civil penalties include imposing a fine of up to $2000, license suspension or license revocation for "violation of any provision of this Section or the laws of the State of Minnesota...." The proposed amendment would allow the City to proceed as a civil matter without depending on an underlying misdemeanor conviction. The following amendments are recommended: 1. Amend the last sentence in Section 301.401 to read as follows: Every license issued pursuant to this subsection is subject to the conditions in the following subsections and any other applicable ordinance; including but not limited to Section 1102.1103 (5) a -e of the Zoninq Ordinance state law or reg- ulation. 2. Amend Section 301.503 to read as follows: The City Manager shall review the application, supporting documents, and the results of the background investigation, and prepare a report 4eGGnyAend to the City Council recommending either approval, approval with conditions or denial of the license and the basis of the recommendation or may recommend the City Council delay action for a reasonable period of time to permit the City to complete any additional investigation of the application or the applicant deemed necessary. The report shall indicate whether the location of the busi- ness applying for the license is subject to a Conditional Use Permit... The City Council may impose reasonable conditions on the issuance of any license to protect the public. If the location of the licensed business is subject to a Con- ditional Use Permit the conditions applicable to the CUP are incorporated in and apply to the liquor license...." 3. Amend Section 301.1001 — Grounds for Revocation or Suspension — to add a new Subsection 301.1001 (8) and (9) to read as follows: (8) "The license holder, its owners or employees, has violated a condition of a Conditional Use Permit." (9) "The license holder, its owners or employees, has failed to meet a dead- line in the license to comply with a condition of the license imposed by the City Council " 4. Amend Section 301. 600 — Denials — to add a new paragraph at the end of the first paragraph under Exception read as follows: Exception "If the location of the licensed business requires a Conditional Use Permit pursuant to Section 1102.1103 (5) a - e of the Zoning Ordinance. adopted February 7, 2011 the City Council may issue a liquor license condi- tioned upon the licensed business obtaining a Conditional Use Permit by a date certain specified in the license. Failure to obtain the Conditional Use Permit within the time specified in the license is grounds for revocation, sus- pension or non - renewal of the license." 5. Amend Section 301.1700 to add a new Subsection 301.1702 (5) to read as follows: "For the purpose of the Liquor Control Ordinance, Section 301, the failure of a licensee to comply with the conditions of a Conditional Use Permit applicable to the location of the licensed business, whether the conditions are set out in Section 1102.1103 (5) or were imposed by the Planning Commission or City Council upon approval of the CUP, is a civil violation of the Liquor Control Or- dinance. The authority of the City Council to pursue a violation of this nature as a civil matter shall not depend on an underlying misdemeanor conviction. Conclusion The proposed amendments apply to a Restaurant and Club and Lodge with Liquor in a C -2 Zoning District and incorporate, as a condition of a liquor license, the conditions set out in Section 1102.1103 (5) a -e and set out in a Conditional Use Permit for property used for restaurant with liquor. The amendments described above allow the City to enforce the violation of a condition in a Conditional Use Permit a civil matter rather than first prosecuting the violation as a criminal viola- tion (misdemeanor.) The amendments permit the Council to approve a liquor license for a location that requires a Conditional Use Permit pursuant to Section 1102.1103 (5) a of the Zon- ing Ordinance subject to the owner of the premise obtaining a Conditional Use Permit by a date certain set out as a condition in the liquor license. ISSUES: Although the Liquor Control Ordinance already has language that allows the Council to "reasonable conditions on the issuance of any license to protect the public" (Section 301.503) this language may not be adequate to incorporate condi- tions that apply to a Conditional Use Permit. A court could reasonably find that the "reasonable conditions... to protect the public" are conditions that are general in nature; and that, if the Council intended to incorporate and attach the conditions of a Conditional Use Permit to a liquor license then the language in the ordinance should have been more specific. The amendment to Section 301.503 make it clear that the conditions of a CUP are also conditions of the liquor license. The amendment to Section 301.1700 makes the violation of a condition in a CUP a civil matter for the purpose of the Liquor Control Ordinance. The amendment to Section 301.600 allows the Council to approve a liquor license where "[the] loca- tion of the licensed business is ineligible for a license under state law or the City Code ", subject to the owner of the premise where the licensed business operates from obtaining a Conditional Use Permit within a prescribed time prescribed in the license. FINANCIAL None. IMPACT: ALTERNATIVES: 1. Approve amendments to Sections 301.401, 301.503 and 301.600 of the City Code and adding new Subsections 301.1001 (8) and (9), and 301.1702 (5). 2. Deny the amendments to Sections 301.401, 301.503, and 301.600 of the City Code and adding a new Subsection 301.1001 (8) and (9), and 301.1702 (5). 3. Defer action to a date certain and provide direction. RECOMMENDED 1. Alternative #1. MOTION: r -1- 4646 Dakota Street SE Prior Lake. MN 55372 ORDINANCE NO. 111 -XX AN ORDINANCE AMENDING SECTIONS 301.401, 301.503 AND 301.600 OF THE LIQUOR CONTROL ORDINANCE AND ADD NEW SUBSECTIONS 301.1001 (8) -(9) AND 301.1702(5) TO THE LIQUOR CONTROL ORDINANCE Motion By: Second By: WHEREAS, A liquor license is granted as a privilege and not as a matter of right; and WHEREAS, Liquor licenses are subject to the applicant and location meeting the criteria set out in City Code Section 301.600 and subject to the location of the licensed premise meeting criteria set out in state law and the City's Zoning Ordinance; and WHEREAS, In order to protect the health, welfare and safety of the public and to mitigate, where appropriate, against the possible adverse affects or secondary impacts associated with businesses that sell or dispense liquor the City Council may impose conditions on its approval of a liquor license; and WHEREAS, If the location of the business with a liquor license is subject to a Conditional Use Permit, the conditions applicable to the Conditional Use Permit should also be applicable to the liquor license and any violation of the Conditional Use Permit should be a liquor license violation subject to enforcement as a civil matter. NOW THEREFORE, THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA DOES ORDAIN: SECTION 1. New language is indicated by underscoring and deleted language is indicated by strike - through. SECTION 2. City Code Section 301.401 is amended to read as follows: Every license issued pursuant to this subsection is subject to the conditions in the following subsections and any other applicable ordinance; including but not limited to Section 1102.1103 (5) a -e of the Zoning Ordinance state law or regulation. SECTION 3. City Code Section 301.503 is amended to read as follows: The City Manager shall review the application, supporting documents, and the results of the background investigation, and prepare a report n4ay4eGGn4mend to the City Council recommending either approval, approval with conditions or denial of the license and the basis of the recommendation or may recommend the City Council delay action for a reasonable period of time to permit the City to complete any additional investigation of the application or the applicant deemed necessary. The report shall indicate whether the location of the business applying for the license is subject to a Conditional Use Permit ... The City Council may impose reasonable conditions on the issuance of any license to protect the public. If the location of the licensed business is subject to a Conditional Use Permit the conditions applicable to the CUP are incorporated in and apply to the liquor license.... SECTION 4. City Code Section 301.600 is amended to read as follows: Exception If the location of the licensed business requires a Conditional Use Permit pursuant to Section 1102.1103 (5) a — e of the Zoning Ordinance, adopted on February 7, 2011, the City Council may issue a liquor license conditioned upon the licensed business obtaining a Conditional Use Permit by a date certain specified in the license. Failure to obtain the Conditional Use Permit within the time specified in the license is grounds for revocation, suspension or non - renewal of the license." SECTION 5. City Code Section 301.1001 is amended to add new Subsections 301.1001 (8) and (9) to read as follows: (8) The license holder, its owners or employees, has violated a condition of a Conditional Use Permit. (9) The license holder, its owners or employees, has failed to meet a deadline in the license to comply with a condition of the license imposed by the City Council. SECTION 6. City Code Section 301.1700 is amended to add a new Subsection 301.1702 (5) to read as follows: (5). For the purpose of the Liquor Control Ordinance, Section 301, the failure of a licensee to comply with the conditions of a Conditional Use Permit applicable to the location of the licensed business, whether the conditions are set out in Section 1102.1103 (5) a — e or were imposed by the Planning Commission or City Council upon approval of the CUP, is a civil violation of the Liquor Control Ordinance. The authority of the City Council to pursue a violation of this nature as a civil matter shall not depend on an underlying misdemeanor conviction. This ordinance shall be effective upon passage and publication. Passed by the City Council of the City of Prior Lake this 6 th day of June, 2011. ATTEST: City Manager Mayor Published in the Prior Lake American on the 11 day of June, 2011. 2