HomeMy WebLinkAbout5E SMSC Liquor MOU
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 13, 2016
AGENDA #: 5E
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING
APPROVAL OF A THIRD RENEWAL OF MEMO OF UNDERSTANDING
(MOU) WITH THE SMSC FOR LIQUOR SALES ON THE MEADOWS AT
MYSTIC LAKE
DISCUSSION: Introduction
This agenda item requests City Council consideration of a Third Renewal
of a Memorandum of Understanding with the SMSC to sell alcoholic
beverages by beverage cart on fee lands in the golf course.
History
Some years ago, the SMSC purchased the old Lone Pine Golf Course. The
course was redesigned and opened in 2005. A portion of the golf course is
on trust land. This is land purchased by the SMSC, but held in trust for
them by the Federal government. The Meadows Golf Club building is on
trust land, while much of the golf course itself is on fee land. The SMSC
has added alcoholic beverages to their list of amenities. In order to do so,
the SMSC had to secure Federal approval and approval from the Business
Council. In addition, the SMSC adopted a liquor ordinance as well as an
alcohol implementation plan.
On March 11, 2013, the City Council approved the MOU but amended the
agreement so it would be considered for approval each year at the same
time liquor licenses are considered.
Current Circumstances
The SMSC is authorized to issue a license allowing the service of alcoholic
beverages on land that has been placed in trust. However, land that
remains in fee title is not contemplated in the licensure or ordinance.
For most SMSC facilities, this is not a problem with the exception of the
golf course. The SMSC desires to sell liquor both in the clubhouse and on
the course using beverage carts, as is a common practice at golf courses.
SMSC representatives have discussed this matter with the Minnesota
Department of Public Safety who does not object to a MOU between the
City and SMSC to allow liquor sales on the golf course on any property
whether held in fee or trust.
2
Conclusion
The City Council should determine if it is amenable to renewing the MOU
for a third time.
ISSUES: The MOU confirms the intent of the two parties that only one liquor license
is issued for SMSC properties regardless of their ownership status. It also
confirms that liquor sales are to be limited to beverage carts on the course.
The Police Department is expected to continue its criminal compliance
checks while the SMSC is responsible for the civil checks.
The SMSC has insurance and the MOU provides a hold harmless for the
City and an indemnification agreement as well. The third MOA renewal is
for one year and would be considered together with other license renewals
in June 2017.
The Police Chief reports that over the last year there have been no
incidents reported with respect to the sale of liquor from beverage carts on
fee property. Therefore, renewal of the MOU is recommended.
FINANCIAL
IMPACT:
The MOU does not provide for any fee payment.
ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution
approving the Third Renewal of the MOU and authorizing the Mayor
and City Manager to execute it.
2. Remove the item from the consent agenda for further discussion.
RECOMMENDED
MOTION:
Alternative # 1.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-XXX
A RESOLUTION AUTHORIZING APPROVAL OF A THIRD RENEWAL OF A MEMO OF
UNDERSTANDING (MOU) WITH THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
(SMSC) FOR LIQUOR SALES ON THE MEADOWS AT MYSTIC LAKE
Motion By: Second By:
WHEREAS, the City and SMSC have worked together to craft a Memorandum of Understanding
(MOU) allowing liquor to be served by beverage carts on fee land located at
Meadows on Mystic; and
WHEREAS, both parties believe that the agreement affords protections to all parties, and
WHEREAS, the MOU has been in force since March 11, 2013 and no incidents have been
reported.
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. The second renewal of the Memorandum of Understanding dated March 18, 2013 is hereby
approved.
3. The Mayor and City Manager are authorized to execute the Memorandum of Understanding
on behalf of the City.
PASSED AND ADOPTED THIS 13TH DAY OF JUNE 2016.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager