05-12-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Heidi Heller, City Clerk DATE: May 12, 2021 RE: 2021-2022 On-Sale Liquor License Fees ACTION TO BE CONSIDERED: Discuss a reduction in the 2021-2022 on-sale liquor license fees due to the continued COVID-19 pandemic restrictions for bars and restaurants. BACKGROUND: The COVID-19 pandemic that began in March 2020 and still continues today, has required bars and restaurants to be closed for weeks at a time, and operate at greatly reduced capacities and with reduced business hours for the last year. Many restaurants did not survive these restrictions, but luckily all of Little Canada’s bars and restaurants are still open. The Council decided not to increase the on-sale liquor license fees in 2020 and 2021, and gave a credit to most of the 2020- 2021 license fees by approximately 23% (based on 12 weeks of closure for bars & restaurants from March 17 - May 31, 2020). The Fiesta Feliz Event Center license fee was credited for 19 weeks because they could not reopen for a much longer period of time since the indoor capacities were so limited that they were not getting any business. Staff is requesting the Council again consider crediting the 2021-2022 liquor license fees for the closures and reduced customer capacity since July 1, 2020. Bars and restaurants were closed except for take-out again for 28 days from November 21 - December 18, and no indoor dining allowed for another 23 days from December 19 – January 10. Restaurants have been restricted to 50% capacity for nine months: from June 10, 2020 – March 14, 2021, except for the 51 days they were closed or not allowed to have indoor dining. Since March 15, 2021, the restrictions on capacity have been loosening, and there will be no capacity limits starting on May 28, 2021. The owner of Gordie’s has stated that they were closed for 107 days in the last year, and Fiesta Feliz was closed for several months due to capacity restrictions. The State of Minnesota is waiving their 2 AM liquor license fees in 2021, so reducing or waiving the city’s license fee is another option for the Council to consider. Gordie’s and the Hoggsbreath are the only Little Canada businesses that are approved for the optional 2 AM liquor licenses with annual city license fees of $375 and $500. All eight of the on-sale liquor license holders also pay an additional $200 per year for their Sunday Sales license. Staff is anticipating the American Rescue Plan funds that the City will receive may be used for revenue shortfalls.