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Mounds View City Council October 26, 2009 Regular Meeting Page 5 is not letting Mr. Moritko “off the hook” in any way. He stated this business is in trouble and 1 when that occurs, the Council welcomes them to address the issues to see if solutions can be 2 found. Mayor Flaherty stated he appreciates the comments of Mr. Halverson, who is an astute 3 businessman, who had previously indicated to him that Moe’s complements their business. With 4 regard to the number of times the Council will consider an extension, Mayor Flaherty stated the 5 Council will consider it as long as there is a plan in place and a time limit. He asked what would 6 happen if the delinquent taxes are not up-to-date by May 1, 2010, and the Council revokes the 7 liquor license. Mr. Moritko stated he is not asking for the Council to look past May 1 and he is 8 100% confident it will not be an issue. 9 10 Mayor Flaherty requested a legal opinion. City Attorney Riggs stated this consideration is within 11 the Council’s authority and the May 1, 2010, deadline could easily be added to the resolution. 12 13 Council Member Mueller stated she wants the business to succeed and no jobs lost but her 14 business is in collections and this business owner had already presented a payment plan this past 15 spring that was not followed. To her, this was a broken promise. Council Member Mueller 16 referenced Code sections indicating that a liquor license will not be issued if payments are 17 delinquent and that delinquencies are grounds for revocation or suspension. She felt the 18 revocation of the liquor license would be punitive because not paying the State sales tax already 19 removes the ability to get deliveries of beer and liquor. She felt the first priority for Moe’s was 20 to bring State sales tax current because all assume if beer and liquor is not served, there will not 21 be a lot of restaurant business. However, not all diners drink beer or liquor so it would not 22 entirely shut down this operation. Mr. Moritko stated he does not want to speculate but thinks 23 the banquet business currently booked is based on having a bar available. He stated they stocked 24 up on liquor, wine, and bottled beer but currently they do not have keg beer available. 25 26 Council Member Mueller recommend the Council verify the sales tax is paid within 45 days and 27 look again at progress made by January 1, 2010. She felt that if substantial progress had not been 28 made by that date, there was no sense to prolong the extension to May 1, 2010. 29 30 Mr. Moritko stated they have earmarked close to $17,000, will bring sales tax current, and will 31 pay $7,500 in December toward the property taxes. He asked if that will be considered 32 “substantial progress.” The Council indicated it would. 33 34 Clerk-Administrator Ericson suggested language to revise the resolution that would require the 35 owner to provide monthly documentation to the City. 36 37 Council Member Stigney stated he also wants an update on the bank financing by January 1, 38 2010, so things do not drag on. 39 40 Council Member Mueller stated it is unusual to consider a second extension but she believes Mr. 41 Moritko is a good community partner, supports the community festival, high school band, 42 pancake breakfast, and invested over $1 million in the community. She stated she hopes things 43 turn around for all Mounds View businesses. 44 45