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Item No: 08A <br />Meeting Date: May 23, 2011 <br />Type of Business: Consent <br />Administrator Review: ____ <br /> <br />City of Mounds View Staff Report <br /> To: Honorable Mayor and City Council <br /> <br /> From: Desaree Crane, Assistant City Administrator <br /> <br /> Item Title/Subject: Resolution 7781, Approving a Revision to the 2011 Fee <br />Schedule by Adding the Alcohol Consumption and Display <br />Permit Fee <br /> <br /> <br />Introduction: <br /> <br />A Consumption and Display Permit may be issued by the Minnesota Department of Public <br />Safety (with approval by the City Council by Resolution) to allow restaurants or 3.2 Malt <br />Liquor licensed establishments to permit the consumption and display of intoxicating liquor <br />on the premises. This permit does not authorize the sale of intoxicating liquor. This allows <br />restaurants and establishments that hold 3.2 Malt Liquor Licenses to allow customers to <br />bring in their own intoxicating liquor. In accordance with §502.03, subd. 5 of the City Code <br />relating to liquor: <br /> <br />Consumption and Display Permits: Consumption and display permits are <br />issued by the Commissioner and regulated by the provisions of Minnesota <br />Statutes Section 340A.414. Consumption and display permits issued by the <br />Commissioner must be approved by the City Council before they are effective. <br /> <br /> <br />Discussion: <br /> <br />Although the City Code allows this type of permit, the City has not established a fee in the <br />2011 Fee Schedule. In accordance with Minnesota Statute §340A.414, subd. 6: <br /> <br />Permit Fees. The annual fee for issuance of a permit under this section is $250. <br />The governing body of a city of county where is establishment is located may <br />impose an additional fee of not more than $300. <br /> <br />At the May Work Session it was the consensus of the City Council to impose the maximum <br />fee of $550, as established by Minnesota Statute. $250 would go directly to the Minnesota <br />Department of Public Safety (Alcohol Division), and $300 would go directly to the City. <br /> <br />Also at the May Work Session, the City Council was concerned about enforcement issues <br />with this type of license. According to the Police Chief, establishments that hold this type of <br />permit are subject to the same penalties as other liquor sales establishments as stated in <br />Minnesota State Statute §340A,503., subd. 1 (attached). Any business with this permit has