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City Council Regular Meeting Minutes January 14, 2003 Page 6 City Attorney Gilligan reviewed the ordinance amending the City Code to provide for the issuance of on-sale liquor licenses to restaurants and hotels. He stated the ordinance also 3 contains provisions with respect to issuance of wine licenses,off-sale and on-sale 3.2 beer 4 licenses and temporary wine and on-sale 3.2 beer licenses. 5 6 City Attorney Gilligan stated that many of the provisions concerning the issuance by the City of 7 on-sale liquor licenses and other licenses for the sale of alcoholic beverages are set forth by 8 Minnesota Statutes. He said the City can place additional restrictions beyond those contained in 9 Minnesota Statutes. He noted that additional restrictions proposed to be included in the 10 ordinance are the following: alcohol awareness training is required for employees of the licensed 11 establishment, no more than 15%of the seating capacity of the establishment may be located at a 12 bar or service counter, at least 50%of the gross receipts of the establishment for the sale of food 13 and non-alcoholic beverages,no license may be issued to any property located within 300 feet of 14 a church or school or to any property used as a sexually oriented business, and adult 15 entertainment is prohibited on the licensed premises. 16 17 City Attorney Gilligan said the ordinance provides for investigation fees of up to $500 for an in- 18 state investigation and up to $10,000 for an out-of-state investigation. He said this is the 19 maximum investigation fee permitted by Minnesota law. He stated the annual license fee for an 20 on-sale liquor license is proposed to be $8,000, with a reduction of$500 on the license fee for an 21 annual renewal if compliance checks have been passed in the prior year with no violations 22 carrying a penalty of$500 or greater. 9 City Attorney Gilligan stated the ordinance lists what places are eligible for license. 25 26 Councilmember Faust stated he would like to be more restrictive with the ordinance since it is 27 new for the City. He stated he would prefer to allow for three violations instead of four. He 28 stated he also disagrees with giving a$500 incentive to renew liquor licenses. He said instead of 29 issuing six licenses he would prefer issuing two, plus a municipal. 30 31 Councilmember Horst stated he agrees with Councilmember Faust in allowing three violations 32 versus four. 33 34 Councilmember Horst asked City Attorney Gilligan if a daycare facility would be considered 35 property within 300 feet ineligible for a license. City Attorney Gilligan said the ordinance does 36 cover daycare facilities. 37 38 Mayor Hodson asked how the City could assert their law regarding off sale license. City 39 Attorney Gilligan stated it depends on how the law is passed. He said they would have to come 40 to the City to get a license and the City could either deny the license or give additional 41 restrictions. City Attorney Gilligan stated off sale is currently limited to municipal liquor stores. 42 43 City Manager Mornson mentioned that new applications would require public hearings in front 44 of the City Council,but renewals would not. 0 Motion by Councilmember Horst to approve first reading of Ordinance 2003-001, re: Liquor 47 licensing.