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MOUN-DIS, VVIEW City of Mounds View Staff R1 Item No: Meeting Date: Type of Business City Administrator Review: To: Honorable Mayor, and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: City of Mounds View Liquor License Fees Introduction: 06 09/05/2023 WS As you know, the City of Mounds View reviews the City fee schedule once a year. Because liquor license fees have not been reviewed/increased for many years, Staff is requesting that the Council review these fees for a possible increase. Discussion: It appears that the first fee schedule the City has on file is from 1990. Since that time the City has revised the liquor license fees only by adding or deleting fees. All fees relating to non -intoxicating (3.2%) basically have been removed except for on- and off - sale 3.2%, in which we only issue one license (Speedway for off -sale). Over the years the City has added fees such as multiple brewer, growler sales and microdistillery license fees, in which we have no licenses issued at this time. It appears that the City of Mounds View has not revised/raised basic on- and off -sale liquor license fees since 1990 except in 1994, on -sale was revised as follows: 1990 - $5,000 plus $85 per 100 square feet of public area not to exceed $10,000 per year. 1995 - $0.65 per square foot for that space which is used primarily as bar area and $0.53 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. This is where the fee remains today. In 2019, off -sale intoxicating (liquor stores) went from $200 to $260 and off -sale malt liquor/3.2 (Speedway) went from $100 to $200 annually. Staff surveyed a few surrounding cities regarding how often they review/raise liquor license fees, what the fees are at this time, and also if an investigation fee (background check fee) is charged. See Exhibit A attached. Minnesota State Statute allows cities to regulate their fees for on -sale and off -sale 3.2 liquor and for on -sale intoxicating liquor, with the exception of clubs. For clubs, the fees range from $300 (under 200 members) to $3,000 (over 6,000 members). According to State Statutes, the maximum license fee for intoxicating liquor off -sale that can be charged by a city of Mounds View's population is $380. A Thriving Desirable Community