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e Agenda Item — 4A Staff Originator: Ann J. Blair, City Clerk Date: March 8, 2004 Topic: First Reading: Ordinance No. 05 -04 Amending the City Code, Section 700, the Liquor Code, by Adding Section Relating to Sale of Strong Beer in Conjunction with Wine and 3.2% Beer Sales Votes Required: Simple Majority (3/5) Background Section 700 of the City Code relating to Liquor and Beer Licensing was last updated in 2002. I am reviewing legislative changes and anticipate bringing forward a recommendation for a few updates in this area. At present, however, I have only one change which I recommend the Council consider. At your regular meeting of February 9, 2004, you approved a wine and 3.2 % beer license for Mansetti's Pizza. Minn. Stat. 340A.404, subd. 5 provides that a City may allow the sale of strong beer at an on -sale establishment that already has a wine and a 3.2% beer license as follows: (relevant excerpt) Subd. 5. Wine licenses. (b) The governing body of a municipality may by ordinance authorize a holder of an on -sale wine license issued pursuant to paragraph (a) who is also licensed to sell 3. 2' percent malt liquors at on -sale pursuant to section 340A.411, and whose gross receipts are at least 60 percent attributable to the sale of food, to sell intoxicating malt liquors at on -sale without an additional license. The wine/beer license at Mansetti's is the only one of its type in the city at this time. However, I anticipate that in the future, there may be similar establishments that wish to sell only wine and both types of beer. The only way for an establishment to do so at present is to have an on -sale license, which allows sales of all types of liquor. You will notice that the wording of the Statute states that a city "may by ordinance" (emphasis mine) allow this. Bill Hawkins and I discussed this and he gave the opinion that our ordinance, as written, does not allow for this. He also stated that the language provided here would be sufficient to make this change, should the Council wish to do so.