02-08-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 8, 2012 provides that tobacco stores that have held a license to sell tobacco products for at least six months prior to enactment of the sampling ban are grandfathered in. The Attorney noted the additional provision that the exemption is prohibited if the license holder loses the license or transfers title to, relinquishes management or control of, or sells the business to any other individual or business entity. The Attorney noted the previous discussion of the grandfathering issue and indicated that this clause could be struck if the Council desired to allow the grandfathering of sampling if the business changes hands. Keis questioned that a tobacco license was transferrable. The City Attorney replied that the license is not transferrable. The Attorney indicated that if the provision is struck, it would allow an owner in good standing to transfer his business to someone else and the business would continue to be exempt from the sampling prohibition. The Attorney indicated that the question is whether or not the Council wants the provision that nullifies the exemption from the sampling ban if the license holder loses the license or transfers title to, relinquishes management or control of, or sells the business to any other individual or business entity. Blesener clarified that the way the ordinance amendment is written is that the exemption to the sampling prohibition applies to the current license holder only. The City Attorney replied that that was correct. With regard to the provision that no more than 50% of gross revenues may be derived from the sale of tobacco - related devices, the City Attorney indicated that in discussing compliance with this provision, it would be the City's intent to keep verification as simple as possible. Blesener asked if there was anything that would prevent the current tobacco store from converting to a hookah lounge. The City Attorney replied there was not in the ordinance amendment as drafted. The Attorney felt such a change in the business model would be unlikely given The Hookah 1- Iideout is just three doors down from the Little Canada Smoke Shop. Council discussed this issue, and the consensus was to not include additional restrictions of this nature. David Nelson, The Hookah Hideout, noted that Section 7 of the ordinance amendment states that no more than 50% of gross revenue can come from the sale of tobacco - related devices, yet in Section 1 the definition of a tobacco - related device include tobacco product as well as a pipe, rolling papers, ashtray, etc. He also questioned the requirement in Section 3 that an application to renew a tobacco license must include sufficient financial information to show compliance with the requirement that 90% of gross revenue is derived from the sale of approved products. The City Attorney 4