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There is no question that the liquor establishments are such as to require regulation
and certainly a reasonable license fee is justified, and my clients certainly do not object
to paying a license fee, or for that matter, doing whatever else is necessary as responsible
business establishments within the City, and to that end, engage in self regulating
at their own expense.
Considering the population of the City of Mounds View, that is approximately 16,000 people,
and a police department having 11 men including the chief, it would certainly appear that
no extra policemen are on the police department because of the presence of a hospitals ty
industry in the City, thus the police department is probably at a minimum man power level
to, provide adaquate services to the people of Mounds View, even if there were no liquor
or caberet establishments at all.
In sum and substance, there has been no showing that regulating the liquor and caberet
business in Mounds View, justifies an increase in cost in license fees as proposed. It
is obvious that there is a need of the City for raising revenues, that can't be obtained by
property taxation. It would thus appear that the substantial increase in the license
fees is due to the financial pinch of the City looking for additional revenue from a source
where existing license fees are adaquate to cover the cost of regulation. Increased police
salaries in and of itself does not justify raising present liquor and caberet licensing fees.
The answer probably lies in new licenses where there are needs for regulation greater
than homes or other general businesses. An example of such businesses that could very
well need additional regulation or call upon the City for additional services over and above
the norm, is such businesses as shopping centers or apartments.
If there are some areas where the fees under consideration are low, commensurate with
the cost of regulating, this would probably be on restaura.rts and possibley on the caberet
fees, but then, if there is to be an increase fee on restaurants or caberets then this should
not be a duplicated license fee, in other words, such as an on sale liquor establishment
and restaurant together, or a liquor establishment and a caberet, or an establishment
having all three. If restaurant and caberet fees are found to be low, then some means
of ir apportionment should be used such as size or seating capacity or hours of operation.
It should also be pointed out that the on sale liquor establishments pay substantial real
estate taxes, and contribute a substantial payroll within the City of Mounds View for some
240 employees.
The council should also bear in mind that the on sale liquor establishments do have com-
petitors in neighboring cities, so that a licensing fee should not be such as to put Mounds
View Business establishments in an unfavorable competitive position as to its competitors
in neighboring cities. The purposed increase would have the liquor and caberet license fees
for Mounds View the highest per capitoeicense fees in this area. On sale liquor establish-
ments are entitled as tax paying citizens within the City to have the council consider the
economic effect of the licensing fee on its business citizens while the City also considers
a means for acquiring the necessary increase in revenues to provide the services which
the citizens expect the City to provide.
Thank you for your consideration.
Respectfully submitted,
JGB :mmp