11-22-95 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 22, 1995 Cossack stated some communities are lowering their liquor license fees. Cossack pointed out that the City has a liquor license available, and no one has asked for it. Cossack felt that the liquor business is not a good business to be in today. Cossack felt the liquor business was no different than operating a gas station, for example. Cossack felt that all businesses in the City should pay a license fee in order to spread the need for revenue over all the businesses. Morelan stated that he crunched the numbers and at $4,000 per license the City would generate $20,000 in on-sale license fees, which he calculated is 32% of what other cities would charge. The results of the survey show seven cities charge liquor license fees higher than Little Canada's while two charge less. Morelan stated that this tells him Little Canada's fees are below the average of the cities surveyed. Morelan stated that a liquor license fee is very difficult to justify and is a"sin" tax. But right or wrong, cities charge fees for liquor licenses over and above what it costs to provide services to the business. Morelan felt that the best way to charge the liquor license fee would be based on sales, however, that can't be done. Square footage is another option, however, it is difficult to determine what square footage is directly related to sales. An across-the- board fee punishes the smaller business and sends the message that the City does not like small business. Morelan stated that he knows this is not the case, but it is a message that is sent. Morelan stated that he would encourage a sliding fee based on the size of the business. Scalze pointed out that Mounds View and New Brighton have established minimum fees. Mounds View~s is $3,000 and New Brighton's is $4,000. Therefore, a small business is not paying a small fee. Morelan stated that he liked Vadnais Heights' system. Under that system businesses are categorized and the fee based on square footaqe. LaValle suggested that staff look into the possibility of enacting a general business license. LaValle pointed out that in addition to the liquor license fee paid by the owners of Gordies, Gordies generated $3,437.55 in 10% gambling tax. LaValle stated that perhaps the $500 increase would not put a liquor establishment out-of-business, but an additional $1,000 7