HomeMy WebLinkAbout9D - Prorata Liquor Licenses
CITY COUNCIL AGENDA REPORT
February 19, 2002 'b
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Frank Boyles, City Manager>\.
AGENDA ITEM: CONSIDER APPROVAL OF ORDINANCE AMENDMENT REVISING PRIOR
LAKE CITY CODE SECTION 301 RELATING TO LIQUOR LICENSES.
DISCUSSION: History: Prior Lake City Code authorizes the issuance of on-sale liquor, malt
liquor and wine licenses. Under current ordinance language, the license may be
issued from July 1st to June 30th of each year. If a business desires to open at
any other time of year, they must purchase a license for the full year even if the
benefit is for less than that period of time. We have received a request from an
applicant to obtain a license commencing on May 1, 2002. Under present
ordinance, the applicant will be required to pay the full annual license fee for the
right to sell liquor for two months. The present annual fee for an on-sale liquor
license is $5300. The present annual fee for an on-sale wine license is $1250.
For each license fee, there is also an investigation fee which is based upon our
actual costs. The investigation fee would not be affected by this proposal.
ISSUES:
FINANCIAL
IMPACT:
Current Circumstances: Minnesota Statutes dictate what the City may and may
not do with respect to liquor license issuance. The statutes do not prohibit
proration of license fees. In fact, under certain circumstances, they provide for a
refund of part year fees. The statutes also suggest that a relationship should
exist between the fee charged and the cost of the City to administer the license.
Conclusion: The staff is proposing that for liquor licenses exceeding $500,
applicants be allowed to prorate the fee on a monthly basis. In the above
example, this would mean that the applicant would pay the full investigation fee
plus 1/6th of the annual fee because he is receiving two months benefit.
The purpose of the proposed change is to relate less than full-year license
requests more reasonably to the City costs to administer the license. In doing so,
the City will be somewhat more customer-oriented for the most expensive
licenses we issue. Practically speaking, we can expect that only one or two such
applications or less would be received annually. On the other hand, others may
request proration of other kinds of City-issued licenses. This change could help
us to determine the appropriateness of any future action of this nature. We are
checking with the League of Minnesota Cities to determine how many other cities
prorate their license fees.
Assuming one pro-rated license per year as the average, the City would lose less
than $2750 annually by this practice.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
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ALTERNATIVES: (1) Take no action and direct the staff to provide additional information.
(2) Approve the ordinance amendment as submitted or with modifications.
RECOMMENDED
MOTION: Alternative 2.
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CITY OF PRIOR LAKE
ORDINANCE
AN ORDINANCE AMENDING SECTION 301 OF PRIOR LAKE CITY CODE
WITH RESPECT TO ISSUANCE OF LIQUOR LICENSES.
The City Council of the City of Prior Lake does hereby ordain:
1. Section 301.502 of the Prior Lake City Code is hereby amended as follows:
(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 are not 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.
This ordinance shall become effective after its passage and publication.
Passed by the City Council of the City of Prior Lake this 19th day of February, 2002.
ATTEST:
City Manager
Mayor
To Be published in the Prior Lake American on the 23rd day of February, 2002.
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447A230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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