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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Heidi Heller, City Clerk/HR Manager <br /> DATE: May 12, 2021 <br /> RE: Annual Tobacco Store Licenses <br /> License Period July 1, 2021 through June 30, 2022 <br /> <br /> <br />ACTION TO BE CONSIDERED: <br />Consider the Tobacco Store licenses for the Little Canada Smoke Shop and The Hookah Hideout <br />for the period July 1, 2021 – June 30, 2022. <br /> <br />BACKGROUND: <br /> <br />TOBACCO STORE LICENSES <br />Little Canada Smoke & Specialties, 27 Little Canada Road E. <br />The Hookah Hideout, 3 Little Canada Road E. <br /> <br />The City Code allows for two tobacco store licenses, which are currently issued to Little Canada <br />Smoke Shop and The Hookah Hideout. Both businesses have been located in Little Canada at the <br />Thunder Bay Mall for over 10 years and sell tobacco products and offer hookah smoking. Both <br />stores have been allowed to continue offering indoor smoking since they were operating prior to <br />the City Code change in 2013 that no longer allows any indoor smoking. <br /> <br />The Minnesota Governor’s Executive Orders in 2020-2021 had a significant impact on these <br />tobacco store businesses since they have been required to shut down for periods of time and were <br />not allowed to sell tobacco. This restriction was eventually relaxed and tobacco stores and hookah <br />establishments were allowed to be open for sales and smoking, however their hours and customer <br />capacity was greatly reduced, similar to restaurants and bars. <br /> <br />In late 2020, staff received complaints that the Hookah Hideout was continuing to open during <br />times that the Governor’s Orders required hookah establishments to be closed, and that they were <br />remaining open much later than the required closing time of 10:00 PM for hookah establishments. <br /> <br />After receiving complaints, the Ramsey County Sheriff’s Department made contact with the <br />owner of the Hookah Hideout, David Nelson, in an attempt to gain cooperation from Mr. Nelson <br />to follow the Minnesota Governor’s Executive Order. Mr. Nelson continued to disregard the <br />Ramsey County Sheriff’s request and the Governor’s Executive Orders and be open for indoor <br />smoking. The Minnesota Attorney General’s Office also received complaints of multiple ongoing <br />violations of the Executive Order and ultimately sued Mr. Nelson for violating Governor’s <br />Executive Order. This ultimately resulted in a $4,000 fine and a stayed civil penalty of $15,000.