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HOLMES & GRAVEN <br /> CHARTERED <br /> Attorneys at Law <br /> 470 Pillsbury Center,Minneapolis,Minnesota 55402 <br /> ROBERT A.ALSOP (612)337-9300 ROBERT C.LONG <br /> RONALD H.BATTY LAURA K.MOLLET <br /> STEPHEN J.BUBUL Facsimile(612)337-9310 BARBARA L.PORTWOOD <br /> JOHN B.DEAN JAMES M.STROMMEN <br /> MARY G.DOBBINS JAMES J.THOMSON,JR. <br /> STEFANIE N.GALEY LARRY M.WERTHEIM <br /> CORRINE A.HEINE BONNIE L.WILKINS <br /> JAMES S.HOLMES WRITER'S DIRECT DIAL GARY P.WINTER <br /> DAVID J.KENNEDY (612)337.9215 DAVID L.GRAVEN(1929.1991) <br /> JOHN R.LARSON <br /> WELLINGTON H.LAW OF COUNSEL <br /> CHARLES L.LEFEVERE ROBERT C.CARLSON <br /> JOHN M.LEFEVRE,JR. ROBERT L.DAVIDSON <br /> ROBERT J.LINDALL T.JAY SALMEN <br /> August 8, 1994 <br /> Tim Cruikshank <br /> City of Mounds View <br /> 2401 Highway 10 <br /> Mounds View, MN 55112-1499 <br /> RE: Proposed Liquor License Fees <br /> Dear Tim: <br /> You have asked for my comment on the staff report for an August 1, 1994 agenda relating to a <br /> proposed liquor license fee amendment. As you know, the legislature has amended Minnesota <br /> Statutes, § 340A.408, subd. 2 to provide that the fee for intoxicating liquor on-sale licenses "... <br /> is intended to cover the costs of issuing and inspecting and other directly related costs of <br /> enforcement." This change is not particularly significant since cities may not generally use fees <br /> as a revenue measure. That is, most, if not all, license or permit fees of the city are subject to <br /> the limitation that the amount of the fee must be reasonably related to the cost of administering, <br /> licensing, enforcing, and the like. The city should be able to sustain any fee that generally meets <br /> this standard. <br /> It would appear from the staff report that the total amount of fees which will be collected for <br /> liquor licenses is justifiable by actual costs associated with issuance and enforcement of the <br /> license. The remaining issue, then, is whether the formula suggested for allocating those fees <br /> among licensees is justifiable. <br /> As an economic regulation, the formula need only have a rational basis. That is, it cannot be <br /> arbitrary or irrational. Again, it seems to me that the proposed formula meets this test. <br /> Therefore, in my opinion, the fee schedule and formula proposed are reasonable and lawful. If <br /> you have any further questions, please give me a call. <br /> Very truly yours, <br /> Charles L. LeFevere <br /> CLL:ckr <br /> CLL74242 <br /> MU125-11 <br />