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Mounds View City Council June 27, 2011 Regular Meeting Page 2 A. Continued Public Hearing, Resolution 7784, a Resolution to Consider an On-1 Sale Intoxicating Liquor License Renewal for Moe’s located at 2400 County 2 Highway 10. 3 4 Acting City Administrator Beer stated this was a continued public hearing from the June 13th 5 Council meeting. He explained the issue at hand was the outstanding payment of property taxes. 6 The recommendation was to continue the public hearing and take public comment. 7 8 Mayor Flaherty continued the public hearing. 9 10 Jeff Moritko, owner of Moe’s at 2400 County Highway 10, reviewed the current financial 11 position of his restaurant. He explained he had been working with a bank to refinance over the 12 past six or seven months. The paperwork has been finalized and the closing date was set. 13 14 Mike McGrath, attorney for Moe’s, explained that US Bank commenced foreclosure proceedings 15 on Moe’s. These proceedings including the business, structure and outstanding property taxes. 16 Mr. McGrath indicated the foreclosure concerns have been resolved with US Bank and the 17 redemption period has been extended to allow for a closing, which will occur no later than July 18 31st. He understood the property taxes had to be paid, and requested the Council approve the 19 liquor license with taxes being paid no later than July 31st. Mr. McGrath indicated the license 20 could be revoked if all property taxes were not paid in full by said date. 21 22 Mr. McGrath explained that Moe’s has sought an alternative funding source to finance the 23 property tax expense. He stated this would be an extremely expensive alternative, but Moe’s 24 would proceed if the Council would not allow for the other option. 25 26 Hearing no additional public input, Mayor Flaherty closed the public hearing at 7:19 p.m. 27 28 Council Member Stigney asked if any payments have been made on the delinquent property 29 taxes. Mr. Moritko stated no payments have been made as the property has been in the process 30 of foreclosure. 31 32 Mayor Flaherty questioned if Mr. Moritko was on the State’s “no buy” list. Mr. Moritko 33 indicated he was not on that list. Acting City Administrator Beer explained this only occurred if 34 alcohol taxes were not being paid and Mr. Moritko was current with these taxes. 35 36 Mayor Flaherty stated this was a tough position for the Council as Moe’s has had several issues 37 over the past several years. Mr. McGrath apologized for the situation and further explained that 38 the economic downturn has made the banking climate extremely difficult. He stated that the 39 refinancing took a great deal more time than first anticipated because of this downturn. Mr. 40 Moritko indicated he has worked diligently with US Bank to work through the foreclosure 41 proceedings and redemption period. He stated he has fought to resolve the financial situation and 42 was looking to make a long-term commitment to the City of Mounds View. 43 44 Council Member Stigney questioned if the liquor license fees had been paid. Acting City 45