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G. 8 4 v CITY OF 14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.cl.hugo.mn.us Wn EST. 1906 January 26, 2018 Victor Shevchuk MGM Wine & Spirits of Hugo 5441140th Street North Hugo, MN 55038 Dear Victor, Thank you for meeting with us to discuss the notice we received from MN Alcohol and Gambling Enforcement regarding a violation of MN Statute 340A.415 at your Hugo store. You indicated it was clear that you now understand the legal requirements of purchasing and selling alcohol and will do so in compliance with state law. This incident is also a violation of City Code, Chapter 6 ALCOHOLIC BEVERAGES, Sec.6-61 Suspension and Revocation, that prohibits the selling and purchasing of alcohol beverages from another retailer for the purpose of resale and requires you to comply with applicable state statutes. The ordinance also allows the Council to revoke the license, suspend the license for up to 60 days, or impose a civil penalty of up to $2,000, ora combination of these sanctions. I have enclosed a copy of the ordinance for your reference. As discussed in the meeting, the typical fine for most first-time liquor violations is $300. Staff will be recommending Council approve this same penalty for MGM Wine & Spirits of Hugo with the understanding that subsequent violations will results in stricter penalties. Keep in mind, the Council has the discretion to impose a harsher penalty for this current violation if they wish. This item will be on the Council agenda for their meeting on Monday, February 5, 2018 at 7 p.m. Staff anticipates placing it on the Consent Agenda, and it is suggested you be in attendance should this item be removed from the Consent Agenda for discussion. Please contact City Clerk Michele Lindau at 651-762-6315 if you have any questions. Sincerely, A ryanBear City Administrator Cc: Mayor and Council !"Al