05-04-2020 Council Work Session Packet

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WS – #8 WORK SESSION STAFF REPORT Work Session Item No. 8 Date: May 4, 2020 To: City Council From: Julie Bartell, City Clerk Re: Annual License Fee Refunds Background The City issues annual licenses for intoxicating beverage sales and the renewal date for these licenses is July 1, 2020. The restaurants and bars in the City that hold these licenses have been greatly impacted by Governor Walz’s mandated closures related to the COVID 19 virus. Since these establishments have been mostly unable to sell on-sale beverages, staff has been looking at measures that could provide some type of refund or fee consideration. Minnesota Statutes provide that cities may refund a pro rata share of an annual license fee when a business ceases to be lawful for a reason other than a license revocation. Staff is asking that the City Council consider the following: - Pro rata refund of license fees for months when establishments were not able to be open for a majority of days in the month due to the Governor’s emergency orders; - The city code currently requires that all applications shall be accompanied by payment in full of the license fee. It is proposed that one half of the license fee be required upon application for the coming license period and one half be due after six months. - Since it is uncertain exactly how long these establishments will be mostly unable to sell beverages, any refund would be considered as a credit to future fees. - The refund and split fee option would apply only to On-Sale Liquor, On-Sale Wine, On-Sale Beer, On-Sale Club, On-Sale Taproom and Sunday Sales licenses. Investigation fees are not included. - The changes proposed relate only to the current emergency situation. Other Business Licenses. Other licenses issued by the City that have been impacted by the current emergency situation are Massage, Peddler and some Tobacco. Staff proposes that the Tobacco and Massage licenses be included in the refund and split fee option. Peddler licenses are issued for a period of six months; it is proposed that the impacted months for this activity be allowed as an extension to their license period.