The URL can be used to link to this page

Home My WebLink About10A - Hours Of On-Sale Liquor CITY COUNCIL AGENDA REPORT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: October 18, 2004 ~ AGENDA#: 10A PREPARED BY: Frank Boyles, City Manage., AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE AMENDING THE PRIOR LAKE CITY CODE REGULATING HOURS FOR ON-SALE LIQUOR SALES, AND A REQUEST FROM O'MALLEYS ON MAIN TO AUTHORIZE ON-SALE LIQUOR HOURS UNTIL 2AM. DISCUSSION: Historv: Prior Lake City Code Section 301 regulates the sale of on-sale liquor. The hours for sale of on-sale liquor are established in the ordinance by referencing State Statutes 340A which regulates such matters statewide. Before July 1, 2004, the hours for liquor sales were limited to 8am to 1 am, Monday through Saturday, and noon to 1 am on Sundays. Current Circumstances: The legislature adopted new hours for the sale of on- sale liquor effective after July 1, 2004. The new law allows sales from 8am to 2am, Monday through Saturday, and noon to 2am on Sundays. For on-sale establishments to remain open pursuant to the new 2am provision, three things must happen: · The liquor licensee must apply to the state for a 2am extension and pay a fee of $200 to $600 the amount of the fee depends upon the volume of sales. · The City, as part of the license application, must confirm that the license has been approved at an official meeting of the local governing body and/or the City approves the sale of alcoholic beverages until2am. · The City must revise its ordinances to provide for 2am opening. Conclusion: In July 2003 Captain Jack's submitted an application for a 2am on- sale license, and Hooligans has inquired as well about an extension. (Minutes are attached of the council's previous discussion). Most recently Shelby Armit on behalf of O'Malley's on Main has asked the Council to consider 2am opening on Thursday, Friday, Saturday and holidays. Ms. Armit believes she has lost business to Savage and Shakopee competitors because her clients would leave at 1am to take advantage of 2am closing elsewhere. Now, she says, they have substituted other facilities for her, because of the closing hour. The Council could take one of three actions: 1. Modify the City Code to allow 2am openings on Thursday, Friday, and Saturday. 2. Amend the City Code to allow 2am sales on Friday and Saturday nights and the nights before holidays for some or all liquor licensees. 3. Make no ordinance changes and thereby retain a 1 am closing time for all on- sale liquor. www.cityofpriorlake.com N:\2AM LIQUOR SALES. DOC Phone 952.447.4230 / Fax 952.447.4245 ISSUES: ALTERNATIVES: (1) RECOMMENDED MOTION: Were the Council to select #1 or #2 above, O'Malley's on Main would have to submit a license request to the State and pay the fee for 2am service. Once the City confirms to the State that the 2am sales request is appropriate, O'Malley's could remain open until 2am. The Council could treat on-sale establishments differently based upon their location. For example, some on-sale establishments are in C-3, others are in C-4 and one is in R-1. The Council may find there is a rationale for distinguishing between locations. This approach may lead to problems between vendors, complicate enforcement efforts and confuse the public. Any change in the on-sale liquor hours will have an impact upon the Police Department. According to Chief O'Rourke, the 2am closing could necessitate modest additional overtime as our current schedule is more geared for 1 am closing. He believes that the key impact of the 2am closing will be to delay police activity for one hour, meaning that activities now occurring between 1 am and 2am will occur between 2am and 3am. Volume and response times are not expected to change dramatically. Few resident complaints are received regarding noise associated with 1 am closing. Those that are received are typically associated with larger volume weekends and holidays. We do not expect the 2am closing to dramatically increase such activity. Each year on-sale vendors within the City conduct a total of four to six outdoor events. City Code restricts these events to no later than midnight as opposed to outdoors. The extension of on-sale hours will allow patrons of such events to remain in the establishment until 2am, which will delay by one hour any impact; their leaving has on the surrounding neighborhood. The Council may also wish to consider competition between Prior Lake businesses and those of neighboring cities. Shakopee has already taken action to allow 2am sales seven days a week. Savage has taken the position that they will consider 2am closing on a case-by-case basis. There are some facilities in Savage who have been approved for 2am closing. The Council may wish to consider 2am closing for Friday and Saturday nights and the evenings before certain holidays. This approach is beneficial to the business owners, continues to protect residents during the traditional workweek and entails less impact on the Police Department than extending the closing hours seven days a week. (2) (3) Take no action, which will maintain the existing 1 am closing time for all on sale vendors. Adopt an ordinance authorizing 2am closing on Thursday night, Friday night, Saturday night and holiday eves as requested. Adopt an ordinance authorizing 2am closing on Friday night, Saturday night and holiday eves. As determined by the city council. The attached ordinance would allow 2am closing on Friday and Saturday night and certain holiday eves. If the council amends the ordinance to provide for 2am closing, they would have the opportunity to act upon license applications submitted by other liquor establishments who wish to e open until 2am as well. N:\2AM LIQUOR SALES.DOC 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY OF PRIOR LAKE ORDINANCE NO. 03- XX AN ORDINANCE AMENDING SECTION 301 OF THE PRIOR LAKE CITY CODE REGULATING ON- SALE LIQUOR SALES The City Council of the City of Prior Lake does hereby ordain that: 1. Section 301-301 (3) of the Prior Lake City Code is hereby amended as follows: 301.301 (3) No sale of intoxicating liquor for consumption on the licensed premises many be made: · between one o'clock a.m. (1am) and eight o'clock am (8am) on the days Monday through Friday. · between two o'clock a.m. (2am) and eight o'clock am (8am) on Saturday and Sunday. · between two o'clock a.m. (2am) and eight o'clock am (8am) on New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 18th day of October, 2004. ATTEST: City Manager Mayor Drafted By: City of Prior Lake 16200 Eagle Creek Avenue Prior Lake, MN 55372 r:\ordinanc\2am liquor sales.doc www.cityofpriorlake.com PAGE I Phone 952.447.4230 / Fax 952.447.4245 Rve: Explained that C.R. Horton has Gensmer. City Council Meeting Minutes Jul ,2003 roval of an Ordinance Approving a Rezoning from C-5 to '-1 for Pro , 03-048). in the Deerfield Industrial Since areels. The 4.25 acres is owned by Messenbrink and MOTION BY LE , SECOND BY BLOMBERG TO ADOPT ORDINANCE 03-10 AM G SECTION 1101.700 OF THE PRIOR CITY CODE AND THE OFFICIAL ZONING MAP FOR THE CITY OF PRIOR VOTE: Ay y Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried. NEW BUSINESS Consider Approval of an Ordinance Amending the Prior Lake City Code Regulating Hours for On-Sale Liquor Sales, and a Request from Captain Jack's to Authorize On-Sale Liquor Hours Until 2am. Bovles: Reviewed the agenda item in connection with the staff report. Petersen: Commented that changing to the 2am closing certainly moves the issues for police from 1am-2am to 2am-3am. Support retaining the 1 am closing time, advising that Prior Lake is predominantly a residential community, and the legislature extended the hours for bars where west coast athletic events are shown. LeMair: Asked if the closing time was extended for Captain Jacks, would the closing apply to all bars in Prior Lake. Bovles: Advised that the bars would have to apply to the state and be granted a license extension, but any establishment would within Prior Lake would have that option if the 2am closing were adopted. LeMair: Believed that imposing a 1 am restriction puts Prior Lake establishments at a disadvantage. Prior Lake is an entertainment community. The question becomes if you are going to stay in Prior Lake or go to Shakopee or Lakeville. Suggested implementing a 2am extension for holidays and Friday and Saturday nights. Zleska: Commented that changing an ordinance applies to all establishments in Prior Lake. Captain Jacks does have some unique circumstances being situated in a residential neighborhood. We heard from residents in the neighborhood on the issue of outdoor events. Although the issue of outdoor concert issue is separate, it does exemplify the corporate culture of Captain Jacks. If the closing remains at 1am, it doesn't change how they already operate. Given the past issues, he is not willing to support extending the closing time. Lemair: Asked if it was another bar would the decision be different? 12 City Council Meeting Minutes July 7, 2003 Zieska: Responded that he may support it at some future time, but since Captain Jacks is the only applicant. and they have not followed the intent of City ordinances, nor have they been a good neighbor. His inclination is to error on the side of caution. Blombera: Advised that she has wrestled with this issue back and forth. After hearing the comments of other Councilmembers, she feels comfortable with her initial decision to support the 1 :OOam closing. Very concerned with traffic patterns that may result. Added that this is not about Captain Jack's, it is the location of the bar in a residential area. leMair: Pointed out that the issues are being confused between specific to Captain Jacks, and all bars. Sympathized with the neighbors. Agreed that Captain Jacks has issues with outdoors events and being a good neighbor. All bars need to be considered as a whole. Blombera: Noted that she is not basing her decision on Captain Jacks as an establishment, but rather its residential location and traffic patterns. It is a difficult issue and feels comfortable with maintaining the 1am closing. LeMair: Also concerned about looking at recruitment of restaurants to Prior Lake. Hauaen: Commented that there are some complexities with respect to Captain Jacks, but the focus of this discussion must be whether the City wishes to extend bar times beyond 1am for Prior Lake as a whole. Petersen: Asked if the episodes taking place talked about tonight are a result of those participating in outdoor concerts or on weekends, or regularly occur. Bovles: Suggested that under State Statutes, the City could separate the districts into Downtown or residential areas. The Statutes currently extends closing times to 2:00am, but unless the City signs the permit and forwards it to the state, the extension cannot take place. Blombera: Repeated that she is not putting the two issues of outdoor events and the extended closing together. With respect to the Friday/Saturday 2:00 am closing, Shakopee stays open to 2:00 am 7 days a week, so the issue of hopping from one community to another still exists. leMair: Believed the largest number of people attending those establishments are primarily on Friday and Saturday nights. Zieska: Noted that earlier this evening we extended liquor license for Hollywood Bar & Grill. Asked why the police might deny this type of extension. Bovles: Advised that failure to comply with past ordinances, such as outdoor events, or past citations for underage drinking, ect. Zieska: Repeated that failure of a business to comply with City ordinances in the past has been grounds for denial of future licensing or permits. Hauaen: Suggesting that maybe the City needs to have different activity of enforcement or set different expectations for compliance to ordinances. Commented that prior to the June 14 outdoor event at Captain Jack's, he had not heard any complaints. Believed if this was a big issue for years and years, n would be more of an issue over time. Recognized the June 14th event was a problem but that examining the issue in the bigger picture is necessary. It is just as important to recognize that people may choose not to go to Captain Jacks at all if they know that bar closes earlier. 13 City Council Meeting Minutes July 7, 2003 LeMair: Acknowledged the problems of the last event at Captain Jacks, but Captain Jacks also brings something to this community. He would hate to see it experience a setback. Is having a hard time with the fact that if M were someone else applying, the tone of the conversation might be different. Zieska: Stated that he did not intend to be derogatory to Captain Jacks because the business does bring value to the community. However, didn't think there was significant benefit to our community by extending the hours. Did not believe it appropriate to change an ordinance for one applicant. Blombera: Would like more time to think about it. Petersen: Agreed with Council member Zieska, since only one establishment is applying to stay open to 2:00am, it does not appear to be a pressing issue at this time. Hauaen: Comfortable with Zieska's suggestion in seeing how this plays out with respect to other businesses. Zieska: Concerned with the State's time line. It sounds like there is leeway. Does not want to table the discussion since a further request could take 10 years. Suggested being specific at 1 :OOa.m. until the staff comes forward and tells us it is necessary to reconsider. MOTION BY ZIESKA, SECOND BY PETERSEN, ADOPTING ORDINANCE 03-11 RETAINING THE 1:00 AM CLOSING FOR SALE OF INTOXICATING LIQUOR. VOTE: Ayes by Haugen, Blomberg, Petersen and Zieska, Nay by LeMair, the motion carried. Blombera: Asked how many spa roval of a Resolution Denying an Amendment to the Comprehensive Plan for the ~ et (Wensmann- Case File #03-054). Rye: Reviewed the agen 'tem in connection with the staff report. Rye: Responded that the number of spaces s back to the earlier vacation uest that was deferred. The initial plan had approximately 20 parking stalls, but included the ation of the 33 foot rig -of-way along Erie Avenue. The exact number will depend on the trail location, entrance feature to L front Park, and e rain garden project. Further advised that when this was brought to the Planning Commission, the intent wa r 2 pa ng spaces per unit in the building. Since the parking was intended for senior residents, the parking demand is lower. Kelly Murrav: Advised that the intent was to keep residents m ing in the "L" shaped lot in the commercial areas. There are 78 residential units and 78 parking stalls in the ge. There 14 Zieska: Asked the lot length. Murray: Approximately 37.5 feet wide by 200 Zieska: Believed the Planning Commi Ion made a wise decision, in that this is piecemeal amendm to the Comp Plan. Suggested that the Comp Plan a ndment should be considered with another piece of property, espec width. Lemalr: Agreed with Co cilmember Zieska to a certain extent, but agreed that more parking is needed downtown. can't re-build Downto without parking. This mayor may not be the perfect situation. Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division (AGED) 444 Cedar Street, Suite 133, St. Paul, MN 55101-5133 Telephone 651-296-6979 Fax 651-297-5259 TTY 651-282-6555 www.dps.state.mn.us Application for Optional 2 AM Liquor License License type code: 2AM License Expiration Date ID# (For Othce Use Only) Licensee Name: Trade Name: Licensed Location Address: City, State, Zip Code: Business Phone: If the above named licensee is a corporation, partnership, or LLC, complete the following for each partner/officer: Partner/Officer Name (First Middle Last) DOB Social Security # Home Address Partner/Officer Name (First Middle Last) DOB Social Security # Home Address Partner/Officer Name (First Middle Last) DOB Social Security # Home Address Licensee must report previous 12 month on sale alcoholic beverage gross receipts by checking one of the boxes below. Next to the box you check is your 2 AM license fee. Make check payable to: Alcohol and Gambling Enforcement Division (AGED). Mail this application and check to : AGED, 444 Cedar St., Suite 133, St. Paul, MN 55101-5133. o $200 2 AM license fee - Up to $100,000 in on sale gross receipts for alcoholic beverages D $500 2 AM license fee - Over $100,000, but not over $500,000 in on sale gross receipts for alcoholic beverages D $600 2 AM license fee - Over $500,000 in on sale gross receipts for alcoholic beverages D $200 2 AM license fee - 3.2% On Sale Malt Liquor licensees or Set Up license holders D $200 2 AM license fee - Did not sell alcoholic beverages for a full 12 months prior to this application D Yes D No Does your city or county licensing official allow the sale of alcoholic beverages until 2 AM? City Clerk/County Auditor Signature Date (I certify that the city or county of Licensee Minnesota Tax ID Number (Required) approves the sale of alcoholic beverages until 2 AM) Licensee Signature (I certify that 1 have answered the above questions truthfully and correctly) Date Licensee: Prior to submitting this application to the Alcohol and Gambling Enforcement Division, it must be signed by your local city or county licensing official. (2AM-2004)