01-28-2026 Council Packet - Laserfiche WebLink

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Staff Report To: Mayor Fischer and Members of the City Council From: Heidi Heller, City Clerk/HR Manager Date: January 28, 2026 Re: Ordinance 929, Amending City Code Chapter 802, Tobacco Products Action To Be Considered: Motion to approve, table, or deny the following: • Adopting Ordinance 929, Amending City Code Chapter 802 to reduce the number of tobacco store licenses allowed, and removing the tobacco store licensing ownership and location restrictions, and approve the publication of a summary ordinance. Background: The city has two types of tobacco licenses: Tobacco Stores and General Sales & Display. The General Sales & Display licenses are issued to retailers that only have a small space dedicated to tobacco products, such as gas stations and liquor stores. On May 25, 2022, several amendments were made to Chapter 802, Tobacco Products, including sunsetting all tobacco licenses. This particular code change allowed only existing tobacco license holders to reapply for a tobacco license – tobacco licenses would no longer be issued to any new person or business. The change to not issue any tobacco license to a new person greatly decreased, or even removed, the ability for an existing gas station or tobacco store owner to sell their business. In late 2022, city staff was contacted by the then-owner of the bp gas station. He needed to sell the station, but no buyers were interested without being able to receive a tobacco license. The Council discussed how reducing tobacco sales is preferable for public health, but also felt the city should not be diminishing an existing city business’s value. In October 2023, Council approved a code amendment to allow General Sales & Display licenses to be issued to a new owner of a business in existence prior to May 25, 2022. The City Council has indicated they are supportive of making this same amendment for tobacco store licenses, along with removing the requirement that the business must stay in the same location. Staff discussed with the current tobacco store owner of the only Tobacco Store license issued by the City, and he stated he intended to sell the store to his son upon his retirement. His son has been managing the store in anticipation of future ownership, but the current code language would not allow for this. A City Code amendment is required before he can become the owner. This amendment will also reduce the number of allowed tobacco store licenses from two to one since the city’s second tobacco store has closed, and the City Code will not allow any new tobacco stores to open.