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HomeMy WebLinkAbout9A Section 301 Relating to Liquor E u trii 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: August 10, 2015 AGENDA#: 9A PREPARED BY: SARAH SCHWARZHOFF, GRJN PRESENTED BY: MARK ELLIOTT, CHIEF OF POLICE AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE AMENDING SECTION 301 OF THE PRIOR LAKE CITY CODE RELATING TO LIQUOR DISCUSSION: Introduction The purpose of this agenda item is to amend the city liquor ordinance section 301 in its entirety History The liquor ordinance has not been updated in several years. There seems to be a desire to amend the ordinance to reflect the changes the State of Minnesota has made in recent years allowing Sunday liquor sales at 8:00am, and adding the classifications or Brewpub and Taproom and associated definitions. In 2011 The Minnesota legislature added laws allowing and regulating Brewpubs and Taprooms. From 2011 to 2012 the state saw the number of breweries increase by 82% after allowing the brewpubs. The trend has continued with businesses popping up in neighboring communities like Waconia, Shakopee, Montgomery, and Lakeville. In 2015 the legislature allowed Sunday morning on-sale liquor sales to move from 10:00am to 8:00am. Several cities have already moved to amend their ordinances to reflect the state law. Current Circumstances Recently there were some requests from current on sale license holders for a change to the City of Prior Lake's liquor ordinance to allow Sunday morning sales at 8:00 am in conjunction with the State of Minnesota making the change. The current ordinance does not permit Sunday morning sales until 10:00 am. When reviewing the ordinance for this change staff worked with our city attorney firm, Gregerson, Rosow, Johnson & Nilan, to revise the ordinance and clean up some language as well as add some language to reflect ordinances recently adopted by peer cities that reflect the addition of definitions Taprooms, Brewpubs, and Growler sales. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com We do not currently have any requests for these additions but have seen the recent popularity of them in surrounding communities and anticipate a future demand for these type of establishments. Adding them into our city ordinance now, in a manner reflective of state statute, should prevent further staff time needed for these additions at a later date. Additionally the fees for these licenses need to be added by ordinance and adopted into the city fee schedule. The proposed fees are $650 for a Brewpub or Taproom On sale license and $200 for a Brewpub (Growler) Off sale. Conclusion It is recommended that the city council amend the city code, section 301, and associated fee schedule as per recommended by staff. ISSUES: These changes will revise the liquor ordinance to be reflective of peer cities ordinances and state statute. FINANCIAL No financial impact IMPACT: ALTERNATIVES: 1. Adopt the Ordinance amendments to Section 301 as recommended by staff. 2. Adopt another amendment to Section 301. 3. Leave The Ordinance as it currently is. 4. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED Alternative #1 MOTION: 2 o. PRfr h u 4646 Dakota Street SE 4'7lvivssolt" Prior Lake, MN 55372 RESOLUTION 15- A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, On the City Council adopted Ordinance No. amending Part 3 of the Prior Lake City Code by amending Section 301 relating to liquor licensing and regulation; and WHEREAS, Minnesota Statutes requires publication of an Ordinance in the official newspaper before it becomes effective; and WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the Council finds that the summary is an accurate representation of the Ordinance; and WHEREAS, The City Council desires to publish a summary of the amendments to Part 3 of the Prior Lake City Code and has determined the publication of a summary of this ordinance will meet the intent of the statute. 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. Ordinance No. is lengthy. 3. The text of summary of Ordinance No. , attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. 4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier or eight-point type. 5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document Center on the City of Prior Lake Website after PASSED AND ADOPTED THIS 10th DAY OF AUGUST, 2015 VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager Exhibit A SUMMARY ORDINANCE NO. CITY OF PRIOR LAKE ORDINANCE NO. AN ORDINANCE AMENDING PART 3 OF THE PRIOR LAKE CITY CODE BY AMENDING SECTION 301 RELATING TO LIQUOR LICENSING AND REGULATION. The following is only a summary of Ordinance No. . The full text will be available for public inspection after by any person during regular office hours at City Hall or in the Document Center on the City of Prior Lake Website. SUMMARY: The Ordinance amends Section 301 relating to liquor licensing and regulation. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this Day of 2015. ATTEST: Frank Boyles, City Manager Kenneth L. Hedberg, Mayor Summary published in the Prior Lake American on the day of , 2015. 2 C-PRID 4646 Dakota Street SE Prior Lake, MN 55372 B CITY OF PRIOR LAKE ORDINANCE NO. AN ORDINANCE AMENDING PART 3 OF THE PRIOR LAKE CITY CODE BY AMENDING SECTION 301 RELATING TO LIQUOR LICENSING AND REGULATION. THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS: Section 1. City Code Section 301 is hereby deleted in its entirety and replaced with the following: 301.100: PROVISIONS OF STATE LAW ADOPTED: The provisions of Minnesota Statutes, Chapter 340A, relating to alcohol are adopted and made a part of this ordinance as if set forth fully herein. Except to the extent the provisions of this Section are more restrictive, the provisions of Minnesota Statutes, Chapter 340A, as amended,regarding the terms, licensing, consumption, sales, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of intoxicating liquor and 3.2 percent malt liquor are adopted and made a part of this Section as if set out in full. (Amd. Ord 105-21 —pub 9/17/05) 301.200: DEFINITIONS: The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: Alcohol-related product: Any food or beverage containing more than one-half of one percent(0.5%) alcohol by volume, including but not limited to liquor, malt liquor, and wine. Applicant: A person who completes or signs an application for a license to sell alcohol- related products. Brew pub. A brewer who also holds one or more retail on-sale licenses and who manufactures fewer than 3,500 barrels of malt liquor in a year, at any one licensed premises, the entire production of which is solely for consumption on tap on any licensed premises owned by the brewer, or for off-sale from those licensed premises as permitted by Minnesota 2015 Session Laws Chapter 9, Article 1, Section 3 to be codified as Minnesota Statutes § 340A.24, subdivision 2. Brewer. A person who manufacturers malt liquor for sale. Brewer Taproom. A brewer licensed under Minnesota Statutes § 340A.301, subdivision 6, clause (c), (i), or (j) who also holds a retail license to sell on-sale malt liquor produced by the brewer for consumption on the premises of or adjacent to a brewery location owned by the brewer. Exclusive Liquor Store: An establishment used exclusively for the sale of those items authorized in Minnesota Statutes § 340A.412, Subd. 14. Food Service: Regular service of meals prepared on the premises and served at tables to the general public. Prepackaged snack foods or foods reheated in a microwave or toaster oven do not qualify as"food service". Growler. Malt-liquor sold off-sale by a small brewer or brew pub, which has been produced and packaged by the brewer in 64-ounce containers commonly known as growlers or in 750 milliliter bottles. Intoxicating Liquor: Ethyl alcohol, distilled, fermented, spirituous, vinous, and malt beverages containing more than three and two-tenths percent (3.2%) of alcohol by weight. Licensed Premises: The premises described in the approved license application. In the case of on-sale licenses located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated. License Holder: An applicant who, pursuant to an approved application, holds a valid, current, unexpired license to sell alcohol-related products, which has neither been revoked nor suspended. For the purposes of this Section, license holder also includes owners, agents and employees of the license holder. Manufacturer. Any person who, by any process of manufacturing, fermenting, brewing, distilling, refining, rectifying, blending, or by the combination of different materials,prepares or produces alcohol-related products for sale. Malt Liquor. Any beer, ale, or other beverage made from malt by fermentation and containing not less than one half of one percent alcohol by volume. 3.2%Malt Liquor. Malt liquor containing not less than one half of one percent alcohol by volume nor more than 3.2%alcohol by weight. Off-Sale: The sale of alcohol-related products in original packages for consumption off the licensed premises only. On-Sale: The sale of alcohol-related products for consumption on the licensed premises only. Person: One (1) or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the State; or any other entity. Small Brewer. A brewer licensed under Minnesota Statutes § 340A.301, subdivision 6, clause (c), (i), or (j) who also holds a retail license to sell off-sale malt liquor at its licensed premises which has been produced and packaged by the brewer. Page 2 of 18 Wholesaler. Any person who is engaged in the business of selling alcoholic-related products to retail dealers. Wine. The product made from the normal alcoholic fermentation of grapes, including still wine, sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry and sake, in each instance containing not less than one half of one percent nor more than 24% alcohol by volume for nonindustrial use. 301.300: LICENSE TYPES: The following types of licenses may be available from the City for the sale of alcohol-related products: 301.301 On-Sale Intoxicating Liquor License: On-sale intoxicating liquor licenses may be granted only to hotels, clubs (either private or public), restaurants, bowling alleys and excursion boats on Prior Lake. A license may be issued to a congressionally chartered veterans' organizations if it has been in existence for at least three (3) years and liquor sales will only be to members and bona fide guests. On-sale intoxicating liquor licenses are subject to the following conditions: (1) Where the licensed premises is a free standing building, the building (exclusive of land) shall have a minimum valuation of$200,000 as established by the Scott County Assessors determination of fair market value; (2) Where the licensed premises is located in a shopping center, office building, or free standing structure, the licensed premises shall provide seating and food service for a minimum of 30 guests at one time. (3) No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. or before 8 a.m. Monday through Saturday. No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. on Sunday without an on-sale Sunday liquor license. 301.302 Off-Sale Intoxicating Liquor License: Off-sale intoxicating liquor licenses may be issued to exclusive liquor stores. No sale of intoxicating liquor may be made for consumption off-premises on Sundays or before 8 a.m. or after 10 p.m. Monday through Saturday. 301.303 On-Sale 3.2 Percent Malt Liquor. On-sale 3.2 percent malt liquor licenses may be issued to restaurants having facilities for seating at least twenty-five (25) guests at one time, congressionally chartered veterans' organizations, and hotels having seating and food service for a minimum of 30 guests at one time. No sale of 3.2 percent malt liquor for consumption on the licensed premises may be made after 2 a.m. or before 8 a.m. Monday through Saturday,nor between 2 a.m. and 10 a.m. on Sunday. Page 3 of 18 301.304 Off-Sale 3.2 Percent Malt Liquor License. Off-sale 3.2 percent malt liquor licenses may be issued to general food stores as defined in Minnesota Statutes § 340A.101 and to drug stores as identified in Minnesota Statutes § 340A.412, Subd. 7. No sale of 3.2 percent malt liquor for consumption off-premises may be made after 2 a.m. or before 8 a.m. Monday through Sunday. 301.305 On-Sale Malt Liquor Brewer Taproom License. On-sale malt liquor brewer taproom licenses may be issued to brewer taprooms. On-sale malt liquor brewer taproom licenses are subject to all conditions and restrictions contained in Minnesota 2015 Session Laws Chapter 9, Article 1, Section 4 to be codified as Minnesota Statutes § 340A.26. No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. or before 8 a.m. Monday through Saturday. No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. on Sunday without an on-sale Sunday liquor license. 301.306 Off-Sale Malt Liquor Small Brewer (Growler) License. Off-sale malt liquor small brewer licenses may be issued to small brewers. Off-sale malt liquor small brewer licenses are subject to all conditions and restrictions contained in Minnesota 2015 Session Laws Chapter 9, Article 1, Section 4 to be codified as Minnesota Statutes § 340A.28 and 340A.285. No sale of intoxicating liquor may be made for consumption off the licensed premises before 8 a.m. or after 10 p.m. Monday through Saturday or at any time on Sundays, except that malt liquor in growlers only may be sold off-sale on Sundays between the hours of 8 a.m. and 10 p.m. 301.307 On-Sale Malt Liquor Brew Pub License. On-sale malt liquor brew pub licenses may be issued to brew pubs. On-sale malt liquor brew pub licenses are subject to all conditions and restrictions contained in Minnesota 2015 Session Laws Chapter 9, Article 1, Section 4 to be codified as Minnesota Statutes § 340A.24. No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. or before 8 a.m. Monday through Saturday. No sale of intoxicating liquor for consumption on the licensed premises may be made after 2 a.m. on Sunday without an on-sale Sunday liquor license. 301.308 Off-Sale Malt Liquor Brew Pub (Growler) License. Off-sale malt liquor brew pub licenses may be issued to brew pubs. Off-sale malt liquor brew pub licenses are subject to all conditions and restrictions contained in Minnesota 2015 Session Laws Chapter 9, Article 1, Section 4 to be codified as Minnesota Statutes § 340A.24 and 340A.285. No sale of intoxicating liquor may be made for consumption off the licensed premises before 8 a.m. or after 10 p.m. Monday through Saturday or at any time on Sundays, except that malt liquor in growlers only may be sold off-sale on Sundays between the hours of 8 a.m. and 10 p.m. 301.309 On-Sale Wine License. On-sale wine licenses may be issued to restaurants having facilities for seating at least twenty-five (25) guests at one time. Notwithstanding the prohibition contained in subsection 301.400 hereof, the holder of an on-sale wine license who also holds an on-sale 3.2 percent malt liquor license may sell malt liquor containing in excess of 3.2% of alcohol by weight at on-sale without an additional Page 4 of 18 license. No sale of wine for consumption on the licensed premises may be made after 2 a.m. or before 8 a.m. Monday through Sunday. 301.310 On-Sale Sunday Liquor License. On-sale Sunday liquor licenses may be issued to a hotel, bowling alley, club, or restaurant, each with facilities for serving not less than thirty (30) guests at one time, to which an on-sale intoxicating license has been issued. Such licenses may permit the sale of liquor to be consumed on the premises between the hours of 8:00 a.m. on Sunday and 2:00 a.m. on Monday in conjunction with the serving of food provided that the license holder is in conformance with the Minnesota Clean Air Act and provided a public hearing is held prior to the issuance of the license. No Sunday license is needed for on-sale 3.2 percent malt liquor or on-sale wine licenses. (Amd. Ord. 04-29,pub. 10/23/05) 301.311 Temporary On-Sale Intoxicating Liquor License. The City Council may issue to: (1) a club or charitable, religious or nonprofit organization, comprised of at least 35 members, in existence for at least three (3)years,or(2) a political committee registered under Minn. Stat. §10A.14, a temporary license for the sale of intoxicating liquor in connection with a social event within the City sponsored by the license holder. (1) The license may authorize the sale of alcohol-related products for not more than four (4) consecutive days, and may authorize sales on premises other than premises the license holder owns or permanently occupies. The license may provide that the license holder may contract for catering services with the holder of a full-year on-sale liquor license issued by the City. The licenses are subject to the terms, including license fee, imposed by the City. In addition to any terms and conditions that the City Council may impose as a condition of approval for a temporary on-sale license, the licenses issued under this subsection are subject to all laws and ordinances governing the sale of alcohol-related products except Minnesota Statute § 340A.409 and §340A.504, subd. 3, paragraph (d). Temporary licenses need to be approved by the Minnesota Commissioner of Public Safety before they become valid. (2) The City may not issue more than three (3) four-day temporary licenses, four(4)three- day licenses, six (6) two-day licenses, or twelve (12) one-day licenses, in any combination not to exceed 12 days per year to any one organization or for any one location. No more than one temporary license may be issued to any one organization or for any one location within any 30-day period, unless the licenses are issued in connection with an official community festival, designated as such by the City. 301.312 Temporary On-Sale Malt Liquor Licenses. The City Council may issue a club or charitable, religious, or nonprofit organization a temporary on-sale license for the sale of 3.2 percent malt liquor. (Amd. Ord. 105-21 —pub 9/17/05) 301.400: LICENSE REQUIRED AND PROHIBITED SALES: 301.401 License. No person shall directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, charge for possession or otherwise dispose of any alcohol-related products at any place in the City without first obtaining a license as required by this Page 5 of 18 Section and paying the accompanying license fee. This subsection does not apply to (1) to possession or handling for sale or otherwise of sacramental wine or to any representative of any religious order or for use in connection with a legitimate religious ceremony; (2) to such potable liquors as are prescribed by licensed physicians and dentists for therapeutic purposes; (3) to industrial alcohol and its compounds not prepared or used for beverage purposes; (5) to sales by manufacturers to wholesalers duly licensed as such by the State of Minnesota and to sales by wholesalers to persons holding on-sale or off-sale licenses from the City. 301.402 Prohibited Sales. No person shall sell, offer for sale, give away, furnish, or otherwise deliver any alcohol-related product: (1) To any person under the age of twenty-one(21)years. (2) By any means, or to any other person, prohibited by Federal, State, or local law, ordinance provision, or other regulation. 301.403 Instructional Program. Other than temporary licenses issued under subsections 301.311 and 301.312, no person shall be issued a license or renewal license to sell alcohol- related products unless the applicant has a program for instructing all employees in the legal requirements pertaining to the sale of alcohol-related products, including, but not limited to, reviewing the law on the sale of alcohol-related products, providing information on the health risks of using alcohol-related products, and requiring employees to request identification where age may be in doubt. The training shall include information that the sale of alcohol-related products to minors is illegal, explains what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal and/or civil liability. At the request of the City, a license holder or applicant shall provide copies of written and other materials used in connection with the program. No license shall be issued unless the applicant or license holder signs a City form attesting that each employee of the applicant or license holder has received training and instruction on the sale of alcohol- related products and the date such training occurred. Any new employee of the license holder who begins employment during the license period shall participate in the training prior to serving or selling any alcohol-related product. 301.500: APPLICATION FOR AND ISSUANCE OF LICENSE: 301.501 Application: An application for a license to sell alcohol-related products shall be made on a form prescribed by the proper Department of the State of Minnesota,together with such additional information as the City may desire. If State forms are not prescribed, then applications shall be made on forms provided by the City. Information required may vary with the type of entity making application. All questions asked or information required by the application forms shall be answered fully and completely by the applicant. No person shall make a false statement in an application. The completed application along with the documents described herein, shall be submitted to the City Manager or designee for approval by the City Council. Page 6 of 18 301.502 Documents to Accompany Application. At the time of application, the following shall be provided by the applicant: (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 and are issued for less than a full year may be prorated on a monthly basis based on the date of issuance of the license. The license fee is non- refundable except as provided in Minnesota Statute § 340A.408, Subd. 5. (2) Investigation Fee. Other than applications for temporary licenses issued under subsections 301.311 and 301.312, all applications for an initial license or transfer of an existing license shall also include payment of an investigation fee of Five Hundred ($500.00) dollars. If an investigation outside of the State of Minnesota is required, the applicant shall pay the $500 fee plus all actual costs of the out of State investigation, prior to consideration of the license application by the City Council. The investigation fee is non-refundable. (3) Legal Documents. All applications shall be accompanied by copies of each summons received by the applicant under Minnesota Statute § 340A.802 during the preceding year. (4) General Liability Insurance. Proof of financial responsibility shall be given by filing a certificate that there is in effect for the license period an insurance policy or pool providing at least $500,000 of coverage because of bodily injury to any one person in any one occurrence, $1,000,000 because of bodily injury to two or more persons in any one occurrence, $500,000 because of injury to or destruction of property of others in any one occurrence, $500,000 for loss of means of support of any one person in any one occurrence, and$1,000,000.00 for loss of means of support of two or more persons in any one occurrence. The insurance policy shall provide that the insurer will provide the City with thirty (30) days' notice prior to the termination of insurance or any change in insurance coverage. (5) Workers' Compensation Insurance. The policy limits for workers' compensation insurance shall be as provided for by state law. (6) Financial Responsibility. Liquor licenses shall be issued, maintained, or renewed only if the applicant demonstrates financial responsibility as defined in Minnesota Statute § 340A.409 for the applicant's liability under Minnesota Statute § 340A.801 ("Dram shop liability"). Such proof of financial responsibility shall be filed with the Minnesota Commissioner of Public Safety and a copy filed with the City with the application for a license. The sale of alcohol-related products without having on file with the City effective proof of financial responsibility is subject to the provisions of subsection 301.1704. (7) Partial Refund. In circumstances where an existing license holder discontinues its license before the termination date and a new license is issued for the same location for the remainder of the license period, a pro rata refund for the remainder of the license Page 7 of 18 term may be granted at the discretion of the City Council subject to the following: a. The request for refund shall be made during the term for which the license was issued. b. A refund will be considered only for license fees not for investigation fees. c. If the pro rata refund is less than$1,000 no refund shall be issued. d. An administrative fee of$400 shall be charged for every refund. e. The reason the license was discontinued is a result of the issuance of a new license at the same location. f. License discontinuation is not the result of a violation of this Section. (Ord 107-04—adopted 1/27/07) 301.503 Review. If the City Manager determines that an application is incomplete or without supporting documentation, he or she shall return the application to the applicant with notice of the deficiencies. If the City Manager determines the application is complete, he or she shall review the application, supporting documents, and the result of a background investigation, and prepare a report to the City Council, recommending: (i) approval; (ii) approval with conditions; (iii) denial; or(iv) delay of any action for such reasonable period of time to permit the City to complete any additional investigation of the application or the applicant deemed necessary. The report shall include the basis for the recommendation and shall indicate whether the licensed premises will be subject to a Conditional Use Permit. 301.504 Hearing. Following written notice to the applicant, the City Council shall hold a hearing to review the application and supporting documents and shall hear testimony from any person who requests to be heard for or against the granting of the license. 301.505 Action. After the investigation, review and hearing, the Council shall, in its discretion, grant or deny the issuance of the license. No license shall become effective until approved by the Commissioner of Public Safety if required by Minnesota Statute Chapter 340A. The City Council may impose reasonable conditions on the issuance of any license. If the licensed premises is subject to a Conditional Use Permit, the conditions applicable to the Conditional Use Permit are incorporated in and apply to the liquor license. If the City Council, and the Commissioner of Public Safety if required, approve issuance of the license, a license shall be issued to the applicant. If the City Council denies issuance of the license, a notice of denial along with the reasons for the denial shall be sent to the applicant at the address provided on the application. If a license is mistakenly issued, it shall be revoked by the City Manager upon the discovery of the mistake. (Ord.Amd. 111-05,publ. 06/11/11) 301.600: DENIALS: The following shall be grounds for denying the issuance, transfer, or renewal of a license under this Section. The following list is not exhaustive or exclusive: (1) The applicant is under the age of twenty-one(21)years. Page 8 of 18 (2) The applicant has within the past five (5) years violated any provision of this Section, City Code, or a Federal, State, or local law, ordinance provision, or other regulation relating to alcohol-related products. (3) The applicant or license holder has had a license to sell alcohol revoked within the preceding five (5)years of the date of application. (4) The applicant fails to provide any information required on the City license application, or provides false or misleading information. (5) The applicant or license holder has outstanding fines, penalties or property taxes owed to the City, County or State. (6) The applicant is directly or indirectly the owner of any current license issued under this Section. (7) The proposed licensed premises is ineligible for a license under state law or the City Code. (8) Taxes, assessments, fines or other financial claims of the City, County or State are delinquent and unpaid as to the premises to be licensed. Notwithstanding the foregoing, if the delinquent taxes, assessments, fines or financial claims are against a landowner, and the applicant is a tenant of landowner and has no financial interest in landowner, then the City Council may, in its discretion, but shall not be required to, grant a license to an applicant so long as the applicant is not delinquent on any taxes, assessments, fines or financial claims as set forth herein. (9) The premises to be licensed is located within 300 feet of any church or school; except that in the City Council's discretion and with the written consent of the church and/or school, temporary on-sale malt liquor licenses and temporary on-sale intoxicating liquor licenses may be issued for: church property, property within 300 feet of any church, or property within 300 feet of any school. No license shall be issued for school property. (10) It is impractical to conduct a background or financial investigation due to the unavailability of information or the results of the background or financial investigation show that issuance would not be in the public interest. (11) The applicant is not of good moral character and repute. 301.700: RENEWALS: The renewal of a license under this Section shall be handled in the same manner as the original application and issuance. Any person intending to apply to renew a liquor license shall submit a renewal application, on a form provided by the City, and pay the investigation and license fee. A license renewal application shall be submitted to the City no later than forty-five (45) days prior to the expiration of the Page 9 of 18 license. The issuance of a license under this ordinance is a privilege and not an absolute right and shall not entitle the holder to an automatic renewal of the license. A late fee of Fifty dollars ($50.00) will be imposed on any license holder who fails to submit a timely renewal application. 301.800: TERM: All licenses are issued for a period of one (1) year. The license period is from July 1 to June 30. 301.900: TRANSFERS: All licenses issued under this Section shall be valid only on the licensed premises and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Council. Any sale or transfer of stock of a corporate license holder is deemed a transfer of the license, which, without Council approval, is grounds for revocation of the license. 301.1000: NON-EMPLOYEES ON PREMISES: A license holder shall not allow non-employees on the licensed premises from twenty (20) minutes after the sale of alcohol-related products is prohibited until the sale is again permitted except as hereinafter provided. Non-employees are allowed on the on-sale premises of a hotel, restaurant, club, or bowling alley during normal hours of operation. During the hours that the sale of alcohol-related products is prohibited, there may be no sale, consumption, or display of alcohol-related products. The license holder shall close off all access to alcohol-related products or any bar area in a manner approved by the City. 301.1100: DISPLAY: Every license shall be conspicuously posted at the licensed premises and shall be exhibited to any person upon request. 301.1200: RIGHT OF INSPECTION: Any Prior Lake police officer, City official, or any properly designated officer displaying proper identification shall have the unqualified right to enter, inspect,and search the licensed premises of any license holder hereunder without a warrant, during business hours or when owners, managers, or other employees are located on the licensed premises. The business records of the license holder, including Federal and State tax returns, shall be available for inspection by the City at all reasonable times upon written request. 301.1300: MOVEABLE PLACE OF BUSINESS: No license of any type shall be issued for any business whose physical location is not permanent or is capable of being moved or changed, including but not limited to kiosks or trailers. "Moveable place of business" does not include golf carts when used on golf course property, excursion boats on Prior Lake, or any moveable structure when specifically permitted by the City Council under subsection 301.1400 herein. Page 10 of 18 301.1400: OUTDOOR AREAS IN ON-SALE ESTABLISHMENTS: All outdoor areas in on-sale licensed establishments are subject to the following limitations: (1) Every outdoor area needs to be approved as part of the original licensed premises or by the granting of an application for expansion of the license premises. No sales may be made nor may alcohol-related products be consumed in parking lots or any portions thereof without a permanent or temporary license approval from the City. (2) Regardless of the type of license issued to an outdoor area, the City Council may regulate and restrict the hours, days, nature, volume, and other aspects of alcohol- related product sales and entertainment in any outdoor area to protect the safety and welfare of residents, businesses and other uses near the licensed premises. (3) The City Council may authorize temporary entertainment not otherwise allowed under the liquor license in an outdoor area by permit for special events. Applications for such permits shall be accompanied by a fee as established by the City Council. (4) Customers shall not be allowed to occupy the outdoor area in numbers greater than the seating capacity permits. (5) No bar shall be located in an outdoor area except a service bar for the exclusive use of employees of the license holder. (6) The license holder shall provide food service to the outdoor area during all hours of operation of the outdoor area, (7) Access to and from the outdoor area shall be through the licensed premises or through property controlled by the license holder. (8) No sales of alcohol-related products may be made on any public or private property open to the public for passageway purposes except as specifically authorized by the City Council. The City Council may regulate and restrict the hours, days, nature, volume and other aspects of sales in these areas, and may require the license holder to procure insurance naming the City as an additional insured to protect the safety and welfare of residents, businesses and other uses near the licensed premises. 301.1500: OBSCENITY AND NUDITY: No liquor license holder shall: (1) Employ or use any person in the sale or service of alcohol-related products or as employees while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the pubic hair, anus, cleft of the buttocks,male or female genitals,or the female breast below the top of the areola; (2) Employ or use the services of any wait person while such person is unclothed or in such attire, costume or clothing as described in paragraph(1)above. (3) Encourage or permit any person on the licensed premises to touch, caress or fondle the Page 11 of 18 breast,buttocks, anus or genitals of any other person; (4) Permit any employee or person to wear or use any device or covering exposed to view, which simulates the breast, genitals, anus,pubic hair or any portion thereof 301.1600: PROHIBITIONS: No liquor license holder, or its owners, agents, and/or employees shall: (1) Knowingly permit the licensed premises or any room in those premises or any adjoining building directly under the license holder's control to be used by prostitutes. (2) Knowingly permit the sale, possession or consumption of controlled substances on the licensed premises in violation of federal, state or local law nor shall any license holder permit consumption of alcohol-related products on the licensed premises more than twenty(20)minutes after the hour when a sale thereof can be legally made. (3) Except for charitable gambling as defined and permitted under state law, gambling and gambling devices are not permitted on licensed premises. State lottery tickets may be purchased and sold within licensed premises as authorized by the director of the state lottery. (4) Employ or use any person in the sale or service of alcohol-related products or as employees for the purpose of staging any nature of "lingerie show" in or upon the licensed premises while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, or genitals. (5) Fail to comply with the conditions of a Conditional use Permit whether the conditions are set out in City Code Section 1102.1103 (5) a-e or were imposed by the Planning Commission or City Council upon approval of the Conditional Use Permit. (6) Violate any portion of this Section. (7) Violate any applicable Federal, State or local, civil or criminal statute, ordinance, or regulation pertaining to alcohol-related products. (8) Violate a condition under which the license was granted, including, but not limited to, the timely payment of real estate taxes or other charges. (9) Violate a Federal, State or local law regulating the sale of alcohol-related products or controlled substances. (10) Create a public nuisances, as described in the City Code, on the premises or in the surrounding area. (11) Suffer or permit illegal acts upon the licensed premises or on property owned, controlled by, or adjacent to the licensed premises, whether related or unrelated to the sale of alcohol-related products. Page 12 of 18 (12) Have knowledge of illegal acts upon or attributable to the licensed premises,but fail to report the same to the police. (13) Fail to comply with a condition of the license imposed by the City Council or fail to meet a deadline for any such condition. (14) Commit any act which would allow for denial of a license under this Section. 301.1700: CIVIL PENALTIES;REVOCATION AND SUSPENSION: 301.1701 Violations. Any violation of this Section shall be considered an act of the license holder for purposes of imposing a civil penalty, license suspension, or revocation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. The license holder shall be responsible for the conduct of its agents and employees on the licensed premises. A civil penalty, revocation, and/or suspension may be pursued and imposed regardless of any criminal adjudication. 301.1702 Notice of Violation. Upon occurrence of a violation, the Police Department shall inform the City Manager of the suspected violation. The City Manager shall then send to the license holder a written notice of the violation. The notice shall advise the license holder of the penalty and the license holder's right to request a hearing regarding the violation pursuant to subsection 301.1800. 301.1703 Civil Penalties. Each license issued hereunder shall be subject to suspension or revocation and/or imposition of a civil fine of up to Two Thousand Dollars ($2,000.00) for violation of any provisions of this Section or the laws of the State of Minnesota as follows: (1) Presumptive Civil Penalties; Purpose. The purpose of this subsection is to establish a standard by which the City Council determines the length of license suspension, the propriety of revocations, and the amount of fines, and shall apply to all premises licensed under this Section. These penalties are presumed to be appropriate for every case; however, the Council may deviate in an individual case where the Council finds that there exist substantial reasons making it appropriate to deviate, such as, but not limited to, a license holder's efforts in combination with the State or City to prevent the sale of alcohol-related products to minors. When suspending or revoking a license or imposing a fine for a violation of this Ordinance, the Council will provide written findings that support the penalty selected. Further, when deviating from the standard set forth herein,the Council shall set forth in writing the rationale for the deviation. (2) Presumptive Penalties for Violations. The minimum penalties for civil violations as determined by the City Council shall be presumed as follows (unless specified, number indicate consecutive days' suspension): Page 13 of 18 Appearance Type of Violation 1st 2n 3rd 4th d Commission of a felony related to Revocation N NA NA the licensed activity. A Sale of alcohol-related products Revocation N NA NA while license is under suspension A Sale of alcohol-related products to 1 and 6 18 Revocati underage person $1,000 (1 on day suspension and $500 suspended for 1 year and dismissed if no same or similar violations in that year) Sale of alcohol-related products to 3 6 18 Revocati obviously intoxicated person on After hours sale of alcohol-related 3 6_ 18 Revocati products on After hours display or 3 6 18 Revocati consumption of alcohol-related on products Refusal to allow City Inspectors or 5 15 Revocati NA Police admission to inspect on premises Illegal gambling on premises 3 6 18 Revocati on Failure to take reasonable steps to 3 6 18 Revocati stop person from leaving premises on with alcohol-related products Sale of intoxicating liquor where Revocation N NA NA only license is for 3.2 percent malt A liquor (Ord. Amend. 114-09,publ. 04 26 14) 301.1704 Automatic Suspension. Any license issued under this Section shall be immediately suspended, without further action by the City Council, upon notice from the City Manager to the applicant or license holder for lapse of required insurance, including but not limited to dram shop insurance, lapse of financial responsibility, or failure to Page 14 of 18 notify City within a reasonable time of any modifications to insurance or financial responsibility. 301.1705 Automatic Revocation. Any license issued under this Section shall be immediately revoked, without further action by the City Council, upon written notice from the City Manager to the applicant or license holder of the mistaken issuance or renewal of a license. 301.1706 Multiple Violations. At a license holder's first appearance before the Council, the Council may act upon all of the violations that have been alleged in the notice sent to the license holder. The Council in that case shall consider the presumptive penalty for each violation under the first appearance column in subsection 301.1703 above. The occurrence of multiple violations is grounds for deviation from the presumed penalties in the Council's discretion. 301.1707 Subsequent Violations. Violations occurring after the notice of hearing has been mailed, but prior to the hearing, shall be treated as a separate violation and dealt with as a second appearance before the Council, unless the City Manager and license holder agree in writing to add the violation to the first appearance. The same procedure applies to a second,third,or fourth appearance before the Council. 301.1708 Computation of Appearances. After the first appearance, a subsequent appearance by the same license holder will be determined as follows: (1) If the first appearance was within three (3) years of the current violation, the current violation will be treated as second appearance. (2) If a license holder has appeared before the Council on two (2)previous occasions, and the current violation occurred within five (5) years of the first appearance, the current violation will be treated as a third appearance. (3) If a license holder has appeared before the Council on three (3)previous occasions, and the current violation occurred within seven(7)years of the first appearance,the current violation will be treated as a fourth appearance. (4) Any appearance not covered by paragraphs (1), (2) or (3) above will be treated as a first appearance. 301.1709 Other Penalties. Nothing in this Section shall restrict or limit the authority of the Council to suspend the license up to sixty (60) days, revoke the license, impose a civil fine not to exceed two thousand dollars ($2,000.00), to impose conditions, or take any other action; provided, that the license holder has been afforded an opportunity for a hearing in the manner provided in subsection 301.1800. Penalties imposed under this Section do not require a prior criminal adjudication. 301.1710 Reinstatement. A license shall be reinstated following expiration of the suspension period and upon payment of all fines by the license holder. No license shall be Page 15 of 18 reinstated, and no sales of alcohol-related products may be made until all fines have been paid. The sales of any alcohol-related products while a license is under suspension shall constitute a violation of subsection 301.1705 and result in the automatic revocation of the license. 301.1711 Other Enforcement of Action. A civil penalty, suspension or revocation or combination thereof under this Section does not preclude any private civil action or any criminal prosecution under this Section or any other federal, state or local law, statute, ordinance or regulation. • 301.1800: HEARING ON DENIAL OR VIOLATION: Following receipt of a notice of denial issued under subsection 301.505 or a notice of a violation and penalty issued under subsection 301.1700, an applicant or license holder may request a hearing before the City Council. The City Council may appoint a hearing examiner who shall be a member of the City Council, or may conduct a hearing itself A request for a hearing shall be made by the applicant or license holder in writing and filed with the City Manager within ten (10) days of the mailing of the notice of denial or notice of violation. If a hearing examiner conducts the hearing, the hearing examiner shall report its findings and make a recommendation to the full Council. If, after the hearing, the applicant or license holder is found ineligible for a license, or in violation of this Section, the Council may affirm the denial, impose a fine, issue a suspension or revocation, or impose any combination thereof The City Manager shall mail notice of the denial, fine, suspension or revocation and the reason therefor to the applicant or license holder. If the applicant or license holder has been provided written notice of the denial or violation and if no request for a hearing is filed within the ten (10) day period, then the denial, penalty, suspension or revocation imposed shall take immediate effect without any further notice. The City Police Department shall investigate compliance with the suspension or revocation. 301.1900: CRIMINAL VIOLATIONS AND PENALTIES: 301.1901 Criminal Violations: License Holder and Employees. As set forth in Minnesota Statutes Chapters 340A.503 and 340A.705, it shall be a gross misdemeanor for anyone to sell, furnish, or provide alcohol-related products to a person under the age of twenty- one (21)years. It shall be a gross misdemeanor for anyone under the age of twenty-one (21) years to sell, furnish, or give away any alcohol-related products. This subsection shall not apply to an employee of the license holder under the age of twenty-one (21) but over the age of eighteen(18)years while serving alcohol-related products. 301.1902 Criminal Violations. (1) No person under the legal drinking age shall enter a licensed premises for the purpose of purchasing or consuming any alcohol-related product. It is not unlawful for any person who has attained the age of 18 years to enter licensed premises for the purposes Page 16 of 18 of (a) performing work at the licensed premises, including the serving of alcohol- related products, unless otherwise prohibited by statute, (b) consuming meals, or (c) attending social functions that are held in a portion of the licensed premises where alcohol-related products are not sold. (2) It shall be a misdemeanor for anyone under the age of twenty-one (21) years to use, purchase, attempt to purchase, or possess alcohol-related products. This subsection shall not apply to a person under the age of twenty-one (21) but over the age of eighteen (18) years who purchases or attempts to purchase alcohol-related products while under the direct supervision of a responsible adult for training, education, research or enforcement purposes. (3) No underage person shall misrepresent the person's age for the purpose of obtaining alcohol-related products, nor shall the person enter any licensed premises for the purposes of purchasing or having served or delivered any alcohol-related product. Nor shall any such person purchase, attempt to purchase, consume, or have another person purchase for the underage person any alcohol-related products. (4) Any person shall, upon demand of the license holder, its employee, or agent, produce and permit to be examined one of the forms of identification provided under Minnesota Statutes§340A.503, subd. 6. (5) No person shall possess open containers of alcohol-related products or consume alcohol-related products on public property including but not limited to public streets, sidewalks, parking lots, or in parks except where specifically permitted by ordinance. No person shall possess open containers of alcohol-related products or consume alcohol-related products in parking lots under the control of a license holder outside the licensed premises or on private property generally open to the public unless possession or consumption for a specific event on such property is approved by the City Manager in advance of the event. The requesting party for such approval shall submit an application to the City Manager on a form authorized by the City. (6) No person shall consume nor any license holder permit consumption of alcohol-related products on licensed premises more than twenty (20) minutes after the hour when a sale thereof can be legally made. 301.1903 Criminal Enforcement. Upon discovery of a suspected violation of any portion of this subsection, the City Police Department or other appropriate authority shall issue a criminal citation to the individual offender and license holder where appropriate. 301.2000: AFFIRMATIVE DEFENSE: A license holder may reasonably and in good faith rely on proof of age as described in Minnesota Statute § 340A.503, Subd. 6, in making sales of alcohol-related products. In every appearance before the City Council for a violation of the provision of this Section relating to the sale or furnishing of alcohol-related products to underage persons, the fact that the underage person involved has obtained and presented to the license holder, its employee or agent, a form of identification identified in Minnesota Statute. § 340A.503, Subd. 6 from which it appears that said Page 17 of 18 person was not an underage person and was regularly issued such identification, shall be prima facie evidence that the license holder, its agent or employee is not guilty of a civil violation of this Section and, when proven by a preponderance of the evidence, shall be conclusive evidence that a violation, if one has occurred, was not willful or intentional. 301.2100: COMPLIANCE CHECKS: All licensed premises shall be open to inspection by the City police or other authorized City officials during regular business hours. From time to time, but at least once per year, the City shall conduct compliance checks. Such compliance checks may involve, but are not limited to, engaging minors to enter the licensed premises to attempt to purchase alcohol-related products. If minors are used for compliance checks, they shall not be guilty of unlawful possession of alcohol- related products when such items are obtained as a part of a compliance check. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age, and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the license holder or his or her employee and shall produce any identification for which he or she is asked. 301.2200: SEVERABILITY: If any provision of this Section is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this Section. Section 2. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this day of , 2015. ATTEST: Frank Boyles, City Manager Kenneth L. Hedberg, Mayor Summary published in the Prior Lake American on the day of , 2015. Page 18 of 18 ePalO 60C' 4646 Dakota Street SE Prior Lake. MN 55372 Solt` CITY OF PRIOR LAKE ORDINANCE NO. AN ORDINANCE AMENDING PART 1 SUBSECTION 106.600 OF THE PRIOR LAKE CITY CODE WHICH ESTABLISHES THE CITY FEE SCHEDULE BY AMENDING THE FEES RELATING TO LIQUOR LICENSING AND REGULATION. THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS: Section 1. City Code Section 106.600 is hereby amended by inserting the following new fees into the "Liquor Licenses" section of the City Fee Schedule: On-Sale Malt Liquor Brewer Taproom $650.00 Off-Sale Malt Liquor Small Brewer(Growler) $200.00 On-Sale Malt Liquor Brew Pub $650.00 Off-Sale Malt Liquor Brew Pub(Growler) $200.00 Section 2. City Code Section 106.600 is hereby amended by deleting the fees for "Consumption&Display License" and"Consumption& Display License (Temporary)" from the "Liquor Licenses" section of the City Fee Schedule. Section 3. City Code Section 106.600 is hereby amended by renaming the fee for"Club License"to "On Sale Intoxicating—Club" in the "Liquor Licenses" section of the City Fee Schedule. Section 4. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this day of , 2015. ATTEST: Frank Boyles, City Manager Kenneth L. Hedberg, Mayor Published in the Prior Lake American on the day of , 2015.