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-2- <br />There is no question that the liquor establishments are such as to require regulation <br />and certainly a reasonable license fee is justified, and my clients certainly do not object <br />to paying a license fee, or for that matter, doing whatever else is necessary as responsible <br />business establishments within the City, and to that end, engage in self regulating <br />at their own expense. <br />Considering the population of the City of Mounds View, that is approximately 16,000 people, <br />and a police department having 11 men including the chief, it would certainly appear that <br />no extra policemen are on the police department because of the presence of a hospitals ty <br />industry in the City, thus the police department is probably at a minimum man power level <br />to, provide adaquate services to the people of Mounds View, even if there were no liquor <br />or caberet establishments at all. <br />In sum and substance, there has been no showing that regulating the liquor and caberet <br />business in Mounds View, justifies an increase in cost in license fees as proposed. It <br />is obvious that there is a need of the City for raising revenues, that can't be obtained by <br />property taxation. It would thus appear that the substantial increase in the license <br />fees is due to the financial pinch of the City looking for additional revenue from a source <br />where existing license fees are adaquate to cover the cost of regulation. Increased police <br />salaries in and of itself does not justify raising present liquor and caberet licensing fees. <br />The answer probably lies in new licenses where there are needs for regulation greater <br />than homes or other general businesses. An example of such businesses that could very <br />well need additional regulation or call upon the City for additional services over and above <br />the norm, is such businesses as shopping centers or apartments. <br />If there are some areas where the fees under consideration are low, commensurate with <br />the cost of regulating, this would probably be on restaura.rts and possibley on the caberet <br />fees, but then, if there is to be an increase fee on restaurants or caberets then this should <br />not be a duplicated license fee, in other words, such as an on sale liquor establishment <br />and restaurant together, or a liquor establishment and a caberet, or an establishment <br />having all three. If restaurant and caberet fees are found to be low, then some means <br />of ir apportionment should be used such as size or seating capacity or hours of operation. <br />It should also be pointed out that the on sale liquor establishments pay substantial real <br />estate taxes, and contribute a substantial payroll within the City of Mounds View for some <br />240 employees. <br />The council should also bear in mind that the on sale liquor establishments do have com- <br />petitors in neighboring cities, so that a licensing fee should not be such as to put Mounds <br />View Business establishments in an unfavorable competitive position as to its competitors <br />in neighboring cities. The purposed increase would have the liquor and caberet license fees <br />for Mounds View the highest per capitoeicense fees in this area. On sale liquor establish- <br />ments are entitled as tax paying citizens within the City to have the council consider the <br />economic effect of the licensing fee on its business citizens while the City also considers <br />a means for acquiring the necessary increase in revenues to provide the services which <br />the citizens expect the City to provide. <br />Thank you for your consideration. <br />Respectfully submitted, <br />JGB :mmp <br />