05-12-2021 Council Packet - Laserfiche WebLink

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In early 2021, staff was informed of Mr. Nelson’s intent to sell the Hookah Hideout to another party. Both Nelson and the prospective buyer were informed of the City Code and license restrictions related to hookah establishments and indoor smoking. According to Section 802.070 of the Tobacco Code Chapter, any indoor smoking allowed under the exemption in sub-section 3 shall be prohibited if the license holder loses the license or transfers title to, relinquishes management control of, or sells the business to any other individual or entity. At this time, staff has no reason to believe that the business has been sold or there has been a change in management. In March, 2021, Community Development Director Corrin Wendell also sent a violation notice regarding a temporary sign for The Hookah Hideout that was placed in the parking lot without a permit. The Hookah Hideout owner did not reply to her attempt to contact nor did he apply for the permit, and the sign was eventually removed after approximately four weeks. Staff is notifying the City Council of these violations and non-compliance with the Minnesota Governor’s Executive Orders by the owner of The Hookah Hideout prior to consideration of the renewal of their tobacco license. Staff is requesting that the City Council consider these issues and discuss if the aforementioned violations are grounds for the termination or non-renewal of the tobacco license for The Hookah Hideout. According to the violations section of Chapter 802 of the City Code related to Tobacco Products, the business owner must be provided with the opportunity for a hearing prior to any action being taken. Section 802.105 states, “a person violating this ordinance may be issued, either personally or by mail, a citation from the city that sets forth the alleged violation and informs the alleged violator of his or her right to a hearing on the matter and how and where a hearing may be requested, including a contact address and phone number.” STAFF RECOMMENDATION: Staff recommends that no action be taken at this time related to The Hookah Hideout pending further direction by the City Council. Staff also recommends Council approval of the tobacco store license for the Little Canada Smoke Shop for the period July 1, 2021 to June 30, 2022, subject to receiving a satisfactory Sheriff’s Department background check. ATTACHMENTS: 1. Article regarding lawsuit from MN Attorney General 2. City Code Chapter 802, Tobacco