Agenda Packets - 2017/11/27 - Laserfiche WebLink

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MEMORANDUM To: Mayor, & City Councilmembers From: Jon Sevald, City Planner/Supervisor Re: 2018 Fee Schedule (supplement to Nov 27, 2017 Item 9B) Date: November 22, 2017 This memorandum is intended to supplement the November 27th Council Agenda, item 913; Resolution 8852, a Resolution to Consider and Approve the 2018 Fee Schedule, specific to fees for liquor licensing of movie theaters. A memorandum was distributed to the City Council on November 1, 2017, and discussed during the November 6th Council Work Session, with the Council requesting further investigation. New Vision Cinema plans a major renovation to the Mounds View 15 Theater (Wynsong 15) in 2018, including the addition of a bar. Patrons would be able to purchase alcohol at the bar and consume drinks anywhere within the theater. Under the 2017 fee ordinance, the theater would pay the maximum fee, $10,000 ($.65 X 72,240 sq ft = $46,956), in addition to fees for Sunday Sales and Investigation fees. 2017 Fees: On -Sale, Intoxicating $.65 per square foot for that space which is used primarily as bar area and $.53 per square foot for that space which is used primarily as dining area with a minimum fee of $3,000 and a maximum fee of $10,000. The City has two On -Sale Intoxicating Liquor Licenses; Moe's $ 3,235 total fee (2017) The Mermaid $10,200 total fee (2017) It is Staff's opinion that the 2017 fee schedule is inadequately structured for the theater. Staff researched the fee schedules of those cities with known theaters with bars, and calculated what the Mounds View 15 Theater would pay if in each of those cities. Fees varied widely ($2,600 - $13,025), and averaged $7,875 (On -Sale fee + Sunday Sales fee + Investigation fee). Staff is proposing that the theater pay $3,000 (On -Sale Intoxicating) + $100 per theater room where alcohol may be consumed ($100 X 15), + an investigation fee. Depending on the investigation fee, the 2018 total fee will be about $5,000, higher than Moe's but less than the metro average ($7,875). If the City Council agrees with this, no action is necessary. If the Council disagrees, the Council should amended the recommended 2018 Fee Schedule.