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CITY OF LINO LAKES LIQUOR LICENSES AND LAND USE ISSUES May 3, 1999 INTRODUCTION Several issues regarding liquor licenses have arisen from the extensive planning discussions occurring in Lino Lakes. As a result of these discussions, the City adopted an interim ordinance establishing a moratorium on new liquor licenses. The moratorium began August 24, 1998 and extended six months, to February 20, 1999. The purpose of the moratorium was to allow the City to assemble background information, study the issues, and prepare recommendations for amendments to official controls regarding the regulation of liquor establishments. This report was prepared to fulfill that purpose. The City of Lino Lakes is engaged in numerous planning projects designed to promote sound growth management. The City is amending its Comprehensive Plan, which in turn will lead to the examination and possible amendment of official controls such as the Zoning and Subdivision Ordinances. Planning for a new Town Center, supported by a grant through the Metropolitan Council's Livable Community program, is another major planning project underway in the City. Economic development efforts are focusing on several other locations of the City. Restaurants, hotels, and other services are important elements of commercial development areas. These uses often serve liquor and so require liquor licenses. Because of the limits established by the state legislature, Lino Lakes needs to allocate the allowed number of liquor licenses so as to promote specific land uses in the appropriate areas of the City. The appropriate areas are determined by the community planning process that culminates in the Comprehensive Plan. The City's authority to regulate liquor sales is governed by state law: specifically, Minnesota Statute 340A. This statute establishes licensing requirements including the maximum number of on -sale licenses, hours during which liquor can be sold, and others. At the state level, the statute is enforced by the Division of Alcohol and Gambling Enforcement, Department of Public Safety. A liquor license application received by a city must then be forwarded to the Division. The Division provides interpretations of the statute when the law is unclear on specific topics. The statute allows a city to establish some requirements of its own, and to be stricter than the statute in some ways. Lino Lakes regulates sales of intoxicating liquors through Section 700 of the City Code. The location of liquor sales is governed primarily by the Zoning Ordinance, though Section 700 does include a separation distance clause.