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CITY COUNCIL <br />AGENDA ITEM 3A <br /> <br />STAFF ORIGINATOR: Julie Bartell, City Clerk <br /> <br />MEETING DATE: May 11, 2020 <br /> <br />TOPIC: Pro Rata Fee Refunds and Payment Schedule Amendment for <br />Annual Business Licenses <br /> <br />VOTE REQUIRED: 3/5 <br /> <br />BACKGROUND <br /> <br />The City issues annual licenses for intoxicating beverage sales and the renewal date for these <br />licenses is July 1, 2020. The restaurants and bars in the City that hold these licenses have <br />been greatly impacted by Governor Walz’s mandated closures related to the COVID 19 virus. <br />Since these establishments have been mostly unable to sell on-sale beverages, staff has been <br />looking at measures that could provide some type of refund or fee consideration. <br /> <br />Minnesota Statutes provide that cities may refund a pro rata share of an annual license fee when <br />a business ceases to be lawful for a reason other than a license revocation. <br /> <br />Staff is asking that the City Council consider the following: <br />- Pro rata refund of license fees for months when establishments were not able to be open <br />for a majority of days in the month due to the Governor’s emergency orders; <br />- The city code currently requires that all applications shall be accompanied by payment <br />in full of the license fee. It is proposed that one half of the license fee be required upon <br />application for the coming license period and one half be due after six months. <br />- Since it is uncertain exactly how long these establishments will be mostly unable to sell <br />beverages, any refund would be considered as a credit to future fees. <br />- The refund and split fee option would apply only to On-Sale Liquor, On-Sale Wine, On- <br />Sale Beer, On-Sale Club, On-Sale Taproom and Sunday Sales licenses. Investigation <br />fees are not included. <br />- The changes proposed relate only to the current emergency situation. <br /> <br />Other Business Licenses. Other licenses issued by the City that have been impacted by the <br />current emergency situation are Massage, Peddler and some Tobacco. Staff proposes that the <br />Tobacco and Massage licenses be included in the refund and split fee option. Peddler licenses <br />are issued for a period of six months; it is proposed that the impacted months for this activity be <br />allowed as an extension to their license period. <br /> <br />RECOMMENDATION <br /> <br />Staff requests direction from the council on proceeding with proposed measures to address <br />licensing in the current emergency situation. <br /> <br />ATTACHMENTS <br /> <br />List of Business Licenses