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HomeMy WebLinkAbout7B Iron Range BBQ Liquor License Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 14, 2016 AGENDA #: 7B PREPARED BY: JANET RINGBERG, ACCOUNTING SPECIALIST PRESENTED BY: FRANK BOYLES, CITY MANAGER AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF AN ON-SALE INTOXICAT- ING LIQUOR LICENSE FOR IRON RANGE BBQ DISCUSSION: Introduction The purpose of this agenda item is to conduct a public hearing to consider ap- proval of an on-sale intoxicating liquor license for Iron Range BBQ, located at 16211 Main Avenue. History Sassy’s Inc. dba Memories on Main and Log House Tavern has held an on-sale intoxicating liquor license for 16211 Main Avenue since 2011. They have closed and Iron Range BBQ a different business entity has opened in their place. Current Circumstances Iron Range BBQ has begun operating in the building previously licensed by Sassy’s Inc. dba Memories on Main. Liquor licenses cannot be transferred from one licensee to another, therefore Iron Range BBQ is seeking approval of an on- sale intoxicating liquor license. They are also applying for a Sunday on-sale li- cense which will allow them to sell liquor on Sundays. Iron Range BBQ will also be leasing, not owning, the building. They will not be applying for a 2 AM liquor li- cense with the state as they plan on closing before 2 AM each day. Conclusion The Prior Lake Police Department has completed an investigation of this applicant to ensure that all requirements and issues concerning public safety and compli- ance have been met. ISSUES: The city code specifies eight reasons for denial of a liquor license. Section 301.600 of the city code states that the council can deny a license request if all taxes, assessments, fines or other financial claims of the city, county, or state are not current. It also states that if the financial claims are against a landowner, and the applicant is a tenant, the council, at its discretion, can grant a license to the ap- plicant so long as the applicant is not delinquent on any taxes, assessments, fines or financial claims. The applicant, Iron Range BBQ currently has no outstanding financial claims to the city, county, or state. Memories on Main has an outstanding city water bill for $151.95 and outstanding liquor license violation fines of $3,000.00. The Loghouse Tavern has an outstanding city water bill for $218.19. 2 Iron Range BBQ is a tenant of 16211 Main Avenue and is not financially responsi- ble for the past due bills of the landowner. It would be the staff’s intent to subtract these amounts from the amounts Memories on Main would be reimbursed for the unused portion of their license. This would bring Memories on Main into compli- ance with the city code since they will have paid any fines, penalties or fees due to the city. It has been the city’s practice to conduct a public hearing for initial license issu- ance but not for renewals. Therefore the city council should conduct a public hear- ing to determine if substantial information is offered which would be germane to this topic. Once the hearing is conducted, the city council could take action it deems appropriate. FINANCIAL IMPACT: Iron Range BBQ has paid the $500.00 investigation fee, the $200.00 On-Sale Sunday License fee, and the prorated On-Sale Intoxicating License fee of $4,200.00 ALTERNATIVES: 1.Conduct the public hearing and if no new information is offered, approve the resolution issuing an on-sale intoxicating liquor license, including Sun- day sales for Iron Range BBQ for the period November 14, 2016 to June 30, 2017 as proposed or with conditions. 2.Take no action and direct the staff to obtain additional information relative to the license issuance or denial. 3.Direct staff to prepare a resolution with findings of fact denying the license request. RECOMMENDED MOTION: Alternative #1. N:\City Council\Resolutions\2016\16-XXX Iron Range BBQ.docx 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION TO CONSIDER APPROVAL OF AN ON-SALE INTOXICATING LIQUOR LICENSE FOR IRON RANGE BBQ Motion By: Second By: WHEREAS, Minnesota Statutes Chapter 340A authorizes the City to issue on and off sale liquor and 3.2 malt liquor license, Sunday licenses, and club licenses, and WHEREAS, Prior Lake City Code sets forth the application investigation and approval process for such licenses, and WHEREAS, Iron Range BBQ has submitted an on-sale intoxicating liquor license application, and WHEREAS, Iron Range BBQ is leasing the premises of 16211 Main Avenue, and WHEREAS, Pursuant to the Prior Lake City Code section 301.600, “no license shall be granted for operation on any premises on which taxes, assessments or other financial claims of the City are delinquent or unpaid.” WHEREAS, City Code section 301.600 also states “Notwithstanding the foregoing, if the delinquent taxes, assessments, fines or other 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, at 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.” 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 liquor license for the premises of Iron Range BBQ, 16211 Main Avenue is hereby approved for the period November 14, 2016, to June 30, 2017 and, 3. All property taxes for the premises of the 16211 Main Avenue are paid and current in compliance with Prior Lake City Code 301.600. There are past due water bills and ordinance violation fines that are unpaid by the landowner. All property taxes for the premises of 16211 Main Avenue are current. PASSED AND ADOPTED THIS 14th DAY OF NOVEMBER 2016 2 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager