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48 <br /> MEMORANDUM <br /> TO: Michael Morrison, City Manager <br /> FROM: Jerry Gilligan <br /> DATE: April 25, 2002 <br /> RE: Issuance of On-Sale Liquor Licenses <br /> You have advised me that at its meeting on May 28`h the St. Anthony City <br /> Council may consider calling a special election to submit to the voters of the City the question <br /> whether the City should be authorized to issue on-sale liquor licenses to hotels and restaurants. <br /> In connection with this request you have asked me to advise the City with respect to certain <br /> questions regarding the holding of the special election and the issuance of on-sale liquor licenses <br /> by the City. <br /> Special Election Authorizing Issuance of On-Sale Liquor <br /> Since the City owns and operates municipal liquor stores,the issuance by the City <br /> of on-sale liquor licenses is governed by Minnesota Statutes, Section.340A.601. This statute <br /> provides that a city which owns and operates a municipal liquor store may issue on-sale liquor <br /> licenses to hotels,clubs and restaurants. However, the City may not issue licenses to a hotel or <br /> restaurant until authorized by voters of the City voting on the question at a special election called <br /> for that purpose. The issuance of licenses to clubs does not require voter approval. <br /> The special election may be ordered by the City Council on its own motion or is <br /> required to be held by the City upon receipt by the City of a petition signed by a number of <br /> voters equal to 20% of the votes cast at the last City general election. The special election may <br /> be held in conjunction with the general election or may be held on a-date selected by the City <br /> Council, other than a date within 40 days after the state general election. In addition in a year <br /> ending in two no special election may be held by the City during the 19 weeks prior to the State <br /> primary election. Since this provision applies this year the earliest the City may now hold an <br /> election in 2002 will be on the date of the September primary election. The question on the <br /> issuance of the on-sale liquor licenses passes if it is approved by a majority of the voters voting <br /> on the question. <br /> Issuance of Licenses if Referendum is Approved <br /> If the issuance of on-sale licenses is approved by the voters, and the City Council <br /> determines to authorize the issuance of on-sale licenses,the City Council will need to adopt an <br /> ordinance setting forth the requirements and regulations relating to the issuance of the on-sale <br /> licenses. The adoption of a licensing ordinance by the City Council is discretionary and there is <br /> no requirement that the City Council adopt such an ordinance if the voters approve the issuance <br /> of on-sale liquor licenses. The number of on-sale liquor licenses that may be issued by a city is <br />