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TO:Mayor Fischer and Members of City Council <br />FROM:Heidi Heller, City Clerk/HR Manager <br />DATE:September 27, 2023 <br />STAFF REPORT <br />RE:Request for a Stay of Non-Renewed Tobacco License for The Hookah Hideout at 3 <br />Little Canada Road East <br />ACTION TO BE CONSIDERED: <br />Consider the request by David Nelson, owner of The Hookah Hideout, for a Stay of the Tobacco <br />Store license for The Hookah Hideout located at 3 Little Canada Road East. <br />BACKGROUND: <br />At the July 26, 2023 City Council meeting, the Council denied the renewal of a tobacco store <br />license for The Hookah Hideout, citing several failed tobacco compliance checks, the violation of <br />Executive Orders 20-99 and 20-103 during the COVID shutdowns, and after hearing testimony <br />about concerns about The Hookah Hideout from neighboring businesses. The following is a <br />chronological listing of additional steps since the City Council meeting on July 26. <br />August 18, 2023 - The Hookah Hideout filed a certiorari appeal of their tobacco store <br />license denial in Minnesota District Court. <br />August 21, 2023 - The Hookah Hideout filed a motion to stay the city’s decision pending <br />the appeal. <br />September 12, 2023 - The Court of Appeals denied the stay on the basis that The Hookah <br />Hideout should have first requested a stay from the decision-maker, which in this case, is <br />the City Council. <br />September 13, 2023 - The attorney for The Hookah Hideout contacted the Little Canada <br />City Attorney and city staff to request a hearing with the City Council to consider a stay of <br />their tobacco store license. <br />September 14, 2023 - City staff notified The Hookah Hideout owner, David Nelson, and <br />his attorney, that a public hearing was scheduled at 7:30 pm on September 27, 2023 at the <br />City Council meeting to consider their request for a stay of their tobacco license. <br />The City Attorney has advised that it could be at least a few months before the court will decide <br />the appeal. City Attorney Chad Lemmons will be in attendance and will provide guidance and <br />additional details about the request for a stay and how to conduct the public hearing. <br />RECOMMENDED ACTION: <br />Staff recommends that the City Council conduct a public hearing and take testimony from any <br />interested parties. Following the public hearing, the City Council will be asked to consider the <br />request by The Hookah Hideout for a Stay of their tobacco store license until a final decision is <br />made by the District Court of Appeals regarding the appeal of their license denial.