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26 less costs incurred by the City as determined by the Clerk,in the event that the application is withdrawn by the applicant or denied by the Council. Subd.2 On-Sale Intoxicating Liquor License Renewal Fee. A business with an On-Sale Intoxicating Liquor License that passes the annual compliance checks,with no violations carrying a penalty of$500 or greater,under the presumptive penalty provisions contained in Subsection 1000.14,shall be eligible for a reduction in the annual license fee for the following year. The annual license fee reduction shall be$500. Subd. 3 Refunds. A monthly pro-rata share of the annual license fee for a Wine License or an On-Sale Intoxicating Liquor License issued pursuant to this Section may be refunded,less the cost of issuance as determined by the Clerk,if: A. The business permanently ceases to operate; B. The license is transferred to a new licensee in accordance with Section 1000.13 and the City receives a license fee for the remainder of the license term from the transferee;or C. A premises licensed to sell wine receives an On-Sale Intoxicating Liquor License prior to the expiration of the Wine License. In this instance,a pro-rata share of the Wine License fee may be refunded. Subd.4 Investigation Fees.Upon application for a new or the transfer of an existing Wine License,On- Sale Intoxicating Liquor License,On-Sale 3.2 Liquor License or Off-Sale 3.2 Liquor License,the applicant shall deposit$500.00 with the City for the investigation fee. If the investigation requires an out-of-state investigation,an additional$2,000.00 shall be deposited before further processing of the application by the City.The Clerk may from time to time require the deposit of additional investigation fees up to the limits provided herein before further processing of the application if the cost of investigation exceeds the amounts previously deposited.The cost of the investigation shall be based on the expense involved,but in no event shall it exceed$500.00 if the investigation is limited to the State or$10,000.00 if outside the State.All deposited monies not expended on the investigation shall be refunded to the applicant.All investigative expenses incurred in excess of the deposit shall be paid prior to consideration of the license application by the Council. Investigation fees for license renewal shall not exceed$200.00 unless there is a change of ownership of more than 10%cumulatively over the then existing license period. 1000.08 Persons Ineligible for License. The following restrictions apply to any applicant who is a natural person,a general partner if the applicant is a partnership,or a corporate officer if the applicant is a corporation. No license shall be granted to: A. Any manufacturer,brewer, or wholesaler as defimed in M.S. 340A.101,or any manufacturer of 3.2 percent malt liquor,or to any person who has a financial interest,directly or indirectly,in such manufacturer,brewer or wholesaler. B. Any person under the State established legal drinking age. C. Any person convicted of any willful violation of any law of the United States or any provision of State Law or this Code with regard to the manufacture,sale or distribution of liquor. D. Any person not eligible under M.S.340A.402 or the regulations of the Commissioner. E. Any person who has(i)been convicted, within the five years prior to the application for a license,of any violation of any law of the United States,the State,or any other state or territory,or of any local ordinance with regard to:(a)the manufacture,sale,distribution or possession for sale or distribution of intoxicating liquor or other controlled substances as defined by State Statute,(b) gambling,(c)theft,or(d)vice;or(ii)had an,intoxicating liquor license,including a wine on-sale license,revoked for any violation of any statutes,ordinances or regulations relating to the manufacture,sale,distribution or possession of liquor or wine. -7-