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CITY COUNCIL AGENDA ITEM 3C STAFF ORIGINATOR: Julie Bartell, City Clerk MEETING DATE: January 9, 2012 TOPIC: Second Reading and Adoption of Ordinance No. 23-11, Amending Title 700, Chapters 701 and 702 of the Lino Lakes Code of Ordinances, regarding Liquor and Beer Licensing, adding On -Sale Brewer Taproom License VOTE REQUIRED: 3/5 INTRODUCTION The Minnesota Legislature recently enacted legislation that allows state licensed breweries to offer their product on -sale at their brewery facility. The impetus of this change was a local based brewing company, Surley Brewing Company, who has proposed the development of a new brewery in Minnesota that would include a restaurant, beer garden and event center. The new legislation allows this type of on -sale activity only if the municipality in which the brewery is located allows it. BACKGROUND The Lino Lakes City Council directed staff to prepare an amendment to the city's Code of Ordinances to include this new type of license, an On -Sale Brewer Taproom License. The attached Ordinance No. 23-11 would add On -Sale Brewer Taproom as a city issued liquor license and would also add language to the Beer Code recognizing this type of sales. The On - Sale Brewer Taproom license would only be available for a brewery licensed by the state that meets both the overall requirements of the city code and the requirements of the Minnesota Statutes and after city council approval. One requirement of obtaining a city liquor license is location within an appropriately zoned area. Consideration of city zoning code amendments for brewer taproom activities has been reviewed by the Planning and Zoning Board and is currently being forwarded to the council by the Community Development Department. Related to adding this new license to the City Code is the establishment of an appropriate license fee. The established fee should correlate to the city's cost of licensing and enforcement. The background check requirement for a liquor license and the fee associated with that will also apply.