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MINUTES CITY COUNCIL NOVEMBER 12, 2014 purpose, for example, a gas station/convenience store or a drug store. The ordinance establishes a maximum display area, which the Clerk recommended be 50 cubic feet based on the survey of the General Tobacco Sales license holders. Other provisions require that the tobacco display area be located in the immediate vicinity of the business's primary point of sale, prohibits an entrance door directly to the section of the store displaying tobacco, and prohibits a separate point of sale for tobacco sales. The City Attorney also included Language that clarifies the Council's flexibility in acting on applications for Tobacco Licenses. At this point in the meeting, Tom Duray, owner of 2526 Rice Street, appeared before the Council on behalf of Kelly Ortiz who wishes to rent the property at 2526 Rice Street for a convenience store that sells tobacco products. Duray noted that the space consists of 1,200 square feet, and Mr. Ortiz would have 720 square feet dedicated to convenience items and 480 square feet to tobacco sales. Duray reported that Mr. Ortiz submitted a letter listing the tobacco products that he would sell. Duray noted that the Council has requested information substantiating Mr. Ortiz's claims that a minimum of 40% of the square footage of the store would have to be dedicated to tobacco sales in order to qualify for discounts. Mr. Ortiz submitted information from the tobacco supplies; however, it was not apparent from this information that there was a 40% display area requirement. Duray reported that Mr. Ortiz based this understanding on the way his brother operates a tobacco store in White Bear Lake. Duray also noted that it would be difficult to make a profit with merely a convenience store, and the ability to have 40% of the floor area dedicated to tobacco sales would help to make the business venture successful. Duray noted that the City Attorney recommended against the creation of a third class of tobacco license in his report. Duray asked if there was enough support on the Council for increasing the number of Tobacco Store Licenses to three if there are restrictions on that license restricting sales to only the products that Mr. Ortiz has listed in his letter. Keis pointed out that the business model proposed by Mr. Ortiz would not qualify for a General Tobacco License given the amount of floor area that would be dedicated to tobacco sales. Keis also noted that the City placed a limit on the number of Tobacco Store Licenses in order to control the number of these stores in the City. Keis did not feel that the City needs to legislate whether Mr. Ortiz has a good business plan or not. He asked if the City could issue another Tobacco Store License restricting the sale of products to those proposed by Ortiz. The City Administrator felt it would be difficult for the City to enforce a restriction on the types of products that could be sold in a tobacco store. McGraw pointed out that other cities have had problems relative to the types of products that tobacco stores can 4