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Ordinance 002hCITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. 2H AN ORDINANCE LICENSING AND . REGULATING THE SALE AND CONSUMPTION OF INTOXICATING LIQUOR AND PROVIDING A PENALTY FOR VIOLATION THEREOF SECTION 1. PURPOSE AND INTENT RHL 3/25/82 This ordinance is enacted for the purpose and intent of promoting the health, safety, order, convenience and general welfare of the residents of the City by licensing and regulating the sale and consumption of intoxicating liquor within the City. SECTION 2. TITLE This ordinance shall be known and may be cited as the "Chanhassen Intoxicating Liquor Ordinance." SECTION 3. PROVISIONS OF STATE LAW ADOPTED The provisions of the Minnesota Intoxicating Liquor Act, being a part of Minnesota Statutes, Chapter 340, and all • laws amendatory thereof and supplementary thereto, a copy of which is on file in the office of the City Clerk, with reference to the definition of terms, application for license, granting of license, conditions of license, restrictions on consumption, provisions on sales, conditions of bonds or insurance of licensees, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of intoxicating liquor are hereby adopted and made a part of this ordinance as if fully set out herein, except as modified herein. SECTION 4. - LICENSE REQUIRED. No person, except wholesalers or manufacturers to the extent licensed and authorized under State Law, shall directly or indirectly deal in, sell, keep for sale, or deliver any intoxicating liquor without first having received a license from the City to do so as provided in this ordinance. J RHL 3/25/82 SECTION 5. TYPES OF LICENSES 5.01. Classification of Licenses. There shall be the following six 6 separate types of intoxicating liquor licenses: • 1. Off -sale intoxicating liquor license 2. On -sale intoxicating liquor license 3. On -sale wine license 4. Special club on -sale intoxicating liquor license 5. Sunday on -sale intoxicating liquor license 6. Bottle club intoxicating liquor license. 5.02. Off -Sale Intoxicating Liquor License. Licenses for the sale of intoxicating liquor to be consumed off or away from the premises where sold may be issued only to liquor stores used exclusively for the off -sale of intoxicating liquor at retail and under control of an individual owner or manager. Premises licensed for the off -sale of intoxicating liquors shall have a structural value of not less than $ 100,000 , exclusive of land costs and costs • of furnishings and fixtures. The City Council may provide for an independent appraisal at the license applicant's expense as an aid in determining the structural fair market value. In the event this requirement as to investment in structures is not complied with within one year from the date of the issuance of the license, the license may be revoked. Provided, however, that the City Council may issue not to exceed one off -sale intoxicating liquor license for premises which had been licensed for the off -sale of intoxicating liquor on the effective date of this ordinance, the structural fair market value of which is less than $ 100,000 , exclusive.of land costs and costs of furnishings and fixtures. In the event premises within the same building or contiguous buildings are licensed for the off -sale and on -sale of intoxicating liquor, the following conditions shall be strictly complied with: 1. No internal access shall be permitted between the premises licensed for off -sale and on -sale of intoxicating liquors. 2. Each premise licensed for the off -sale and on -sale of intoxicating liquors shall be separately secured with an entirely separate public and service entrance for each. -2- RHL 3/25/82 5.03. On -Sale Intoxicating Liquor License. Licenses for the sale of intoxicating liquor to be consumed on the premises may be issued only to hotels, clubs, restaurants and establishments for the sale of on -sale liquors exclusively, and shall permit the on -sale of intoxicating liquor only, and the on -sale of non -intoxicating liquors when so licensed. • Premises licensed for the on -sale of intoxicating liquors shall have a structural fair market value of not less than $500,000, exclusive of land costs and costs of furnishings and fixtures. The City Council may provide for an independent appraisal at the license applicant's expense as.an aid in determining the structural fair market value. In the event this requirement as to investment in fixtures and structures is not complied with within one year from the date of the issuance of the license, the license may be revoked. Provided, however, that the City Council may issue not to exceed three (3) on -sale licenses for the on -sale of intoxicating liquors for premises which have been licensed for the on -sale of intoxicating liquor for not less than three (3) years prior to the effective date of thislordinance. Provided, however, the City Council in its discretion may grant a variance of the financial investment requirement of this section to those premises presently licensed for the on -sale of intoxicating liquor which are displaced by the Chanhassen Downtown Redevelop- ment Project. Any such variance shall be granted only upon good cause shown by the applicant. • 5.04. On -Sale Wine License. On -sale wine licenses may be issued only to restaurants meeting the qualifications of Minnesota Statutes, Section 340.11, subdivision 20, and shall permit only the sale of wine not exceeding fourteen percent (140) alcohol by volume, for consumption on the licensed premises only in conjunction with the serving of food. 5.05. Special Club On -Sale Intoxicating Liquor License. Special club on -sale intoxicating liquor licenses may be issued, if approved by the commissioner of public safety, to a bona fide club which has been in existence for 15 years or more or to a congressionally chartered veterans' organization which has been in existence for 10 years. Such a club or veterans' organization shall be incorporated in order to be eligible to apply for a license, and the license issued shall be for the sale of intoxicating liquors to members and bona fide guests only. A bona fide club means a fraternal club which serves only members and their guests and which uses any profits derived from these sales principally for sponsoring activities beneficial to the community and not for the benefit of any individual. 5.06. Sunday On -Sale Intoxicating Liquor License. Sunday on -sale intoxicating liquor licenses may be issued only to hotels or restaurants as defined in Minnesota Statutes, Section 340.07, or to special clubs as defined in Section 5.05 hereof; provided, however, that said hotels, restaurants and special clubs comply and remain in compliance with all of the following conditions: -3- RHL 3/25/82 1 1. The licensed premises shall be properly licensed by state agencies as a restaurant. All personnel, preparation areas, service areas, and equipment must comply with all applicable laws and ordinances. • 2. Staff shall be adequate for usual and suitable preparation and service of the presented menu and adequate for proper sanitation and maintenance of preparation and service areas. 3. Meals shall be regularly furnished at tables or booths to the general public. 4. The establishment shall be under the supervision and control of a single proprietor or manager or designated assistant manager who is available on the premises to the public and City officialsiduring hours of operation. 5. Sunday on -sale of intoxicating liquors may be made only in conjunction with the serving of food. 6. On -sale of intoxicating liquors may be made only between the hours of 10:00 A.M. and • 12:00 midnight on Sunday. 7. Food service shall be maintained from one hour after opening to 10:00 P.M. 8. Food preparation equipment shall consist of not less than the following: a. Stove and broiler b. Refrigerator C. Work table d. Dish and utensil washing sink with sanitizing heater. e. City -approved grease trap or collection system. 9. Food preparation and service personnel shall consist of not less than the following: a. A chef shall be on duty during all hours of food service operation. b. One waiter/waitress or one bus boy/girl • shall be on.duty during all.hours of food service operations. -4- RHL 3/25/82 10. Food service shall consist of the following: a. Food service areas shall have table or booth seating capacity for at least 65 people, exclusive of food service at the bar. b. Food service menu shall consist of not less than three separate and distinct entrees complete with vegetable, salad, bread, and a selection of beverages. Prepackaged complete meals shall not be included in the enumerated main entrees. 5.07. Bottle Club Intoxicating Liquor License. Bottle club licenses may be issued to bottle clubs only in accordance with the provisions of Minnesota Statutes, Section 340.119; provided, however, that an unincorporated society shall not be eligible for a bottle club intoxicating liquor license. SECTION 6. PERSONS AND PR�MISES INELIGIBLE FOR LICENSE 6.01. Delinquent Taxes, Assessments and Claims. No license shall be granted, or renewed, for operation on any premises on which taxes, assessments or other financial claims of the City are delinquent and unpaid. 6.02. State Law. No license shall be issued for • premises owned by a person to whom a license may not be granted under the provisions of Minnesota Statutes, Chapter 340, and no license shall be granted to or held by any person made ineligible for such a license by state law. 6:03. Partnership or Corporation. No license shall be granted to a partnership or a corporation which does not have a managing partner or a manager who is eligible to hold a license pursuant to the provisions of this section. 6.04. Real Party in Interest. No license shall be granted to a person who is the spouse of a person ineligible for a license pursuant to the provisions of this Section 6, or who, in the judgment of the City Council is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. 6.05. Residence. A license will not be renewed if, in the case of an individual, the licensee is not a resident of the City at the time of renewal; if, in the case • of a partnership, the managing partner is not a resident of the City at the time of renewal; or, in the case of a corporation, if the manager.is not a resident of the City at the time of renewal. The time for establishing residence may, for good cause, be extended by the City Council. -5- RHL 3/25/82 SECTION 7. CONDITIONS OF LICENSE AND REGULATION OF SALE AND CONSUMPTION. 7.01. Compliance with Law. Every license shall be granted subject to the conditions of this ordinance and of any other applicable ordinance of the City or State law, or regulation. 7.02. Posting. The license shall be posted at all times in a conspicuous place in the licensed premises. 7.03. Order and Sobriety. Every licensee shall be responsible for the conduct of his place of business and for conditions of sobriety and order therein. No licensee shall keep, possess, or operate, or permit the keeping, possession, or operation of, on the licensed premises, or in any room adjoining the licensed premises, any slot machine, dice, or any gambling device or apparatus, nor permit any gambling therein, nor permit the licensed premises or any room in the same, or in any adjoining bui;ding, directly or indirectly under its control to be used as a resort for prostitutes or other disorderly persons. 7.04. Premises. No license shall be effective beyond the premises named in the license for which it was granted. 7.05. Persons to Whom Sales Are Illegal. It shall • be unlawful for any person, except a licensed pharmacist to sell, give, barter, furnish, deliver, or dispose of, in any manner, either directly or indirectly, any spirituous, vinous, malt, or fermented liquors containing more than one-half of one percent of alcohol by volume in any quantity, for any purpose, whatever, to any person under the age of 19 years, or to any intoxicated person, or habitual drunkard, or to any person to whom sale is prohibited by state law. 7.06. Employment. 1. No person under 18 years of age shall be employed in any rooms constituting the palce in which intoxicating liquors are sold at retail on -sale and no such person shall be allowed to be or remain in any such room unless such person is accompanied by his parent or guardian, except that persons under the 18 years of age may be employed as musicians or to perform the duties of a busboy • or dishwashing service in places defined as a restaurant or hotel or motel serving food in rooms in which intoxicating liquors are sold at retail on -sale. RHL 3/25/82 2. No person under 18 years of age.shall be employed at an off -sale liquor establishment to sellor deliver or aid in the delivery of off -sale liquor. 7.07. Ownership of Fixtures and Equipment. No equipment or fixture in premises licensed for the on- or off - sale of intoxicating liquors shall be owned in whole or in part by any manufacturer or distiller of intoxicating liquor except such as shall be expressly permitted by -State law. 7.08. Right of Entry. Any police officer, building inspector, fire marshal, or any properly designated officer or employee of the City shall have the unqualified right to enter, inspect, and search the premises of the licensee during business hours without a permit. 7.09. Tampering and Dilution. No licensee shall sell, offer for sale, or eepof r sale intoxicating liquors in any original package which has been refilled or partly refilled. No licensee shall irectly or through any other person dilute or in any manner tamper with the contents of any original package so as to change its composition or . alcoholic content while in the original package. Possession on the premises by the licensee of any intoxicating liquor in the original package differing in composition or alcoholic content in the liquor when received from the manufacturer or wholesaler from whom it was purchased, shall be prima • facie evidence that the contents of the original package have been diluted, changed or tampered with. 7.10. Display. No on -sale liquor establishment shall display liquor to the public during hours when the sale of liquor is prohibited- 7.11.. Federal Tax Stamps. No licensee shall apply for or possess a Federal Wholesale Liquor Dealers special tax stamp or a Federal gambling stamp. 7.12. Certain Sales Forbidden. The retail sale for beverage purposes of ethyl alcohol or neutral spirits, as defined in U.S. Treasury Department, Bureau of Internal Revenue, Regulations 125, Article II, Standards of Identity for Distilled Spirits, or substitutes therefor, possessing the taste, aroma, and characteristics generally attributed to ethyl alcohol or neutral spirits, as such, is hereby prohibited. • 7.13. Inspection of Records. For cause shown, the business records of the licensee, including Federal and State income tax returns, shall be available for inspection by a duly authorized representative of the City Council at all reasonable times. -7- RHL 3/25/82 7.14. Consumption After Hours. 1. On licensed premises no person or persons, including the licensee and his employees shall consume and no licensee shall permit the consumption of any intoxicating liquor fifteen (15) minutes after the sale of such . intoxicating liquor is prohibited. 2. No person or persons, other than the licensee or his bona fide clean-up employees, shall remain on any licensed premises for a period longer than thirty (30) minutes after the sale of intoxicating liquor is prohibited, and it shall be the duty of the licensee to enforce strict compliance with this regulation. 3. All glasses, containers, bottles and other receptacles shall be removed from all bars and tables wit)in fifteen (15) minutes after the sale of intoxicating liquor is prohibited. 7.15. Removal of Receptacles. No licensee shall permit any person to remove, and no person shall remove, from the space or building named in the license for which it was granted, any bottle or receptacle, which contains intoxicating liquor or non -intoxicating malt liquor, which has been opened, or the seal broken,or the contents of.which • have been partially removed. Each licensee shall post, in a conspicuous location near each exit from the space or building named in the license for which it was granted, a sign advising the public of this prohibition and the penalties provided in this ordinance for the violation thereof. 7.16. Restrictions Involving Minors. 1. No licensee, his agent or employee shall serve or dispense upon the licensed premises any intoxicating liquor or non -intoxicating malt liquors to any person under the age of 19 years; nor shall such licensee, or his agent or employee, permit any person under the age of 19 years to be furnished or consume any such liquors on the licensed premises; nor shall such licensee, his agent or employee permit any person under the age of 19 years is to be delivered any such liquors. RHL 3/25/82 2. No person under 19 years of age shall mis- represent his age for the purpose of obtaining intoxicating liquor or non -intoxicating malt liquor nor shall he enter any premises licensed for the retail sale of intoxicating liquor or non -intoxicating malt liquor for the purpose of purchasing or having served or delivered to him for consuming any such intoxicating liquor or non -intoxicating malt liquor nor shall any such person purchase, attempt to purchase, consume, or have another person procure for him any intoxicating liquor or non -intoxicating malt liquor. 3. No person under 19 years of age shall receive delivery of intoxicating liquor. 4. No person shall induce a person under the age of 19 years to purchase or procure or obtain intoxicating liquor or non -intoxicating malt liquor. 5. No person shall misrepresent or misstate the age of any other person for the purpose of inducing any licensee or any agent or employee of any licensee to sell, serve or deliver any intoxicating liquor or non -intoxicating malt • liquor to a person under the age of 19 years. 6. It shall be unlawful for any person under the age of 19 years to have in his possession any intoxicating liquor or non -intoxicating malt liquor with the intent to consume the same at any place other than in the presence.of his parent or guardian in the household of his parent or guardian. Possession of such non -intoxicating malt liquor or intoxicating liquor by a minor at a place other than the household of his parent or guardian shall be prima facie evidence of intent to consume the same at a place other than the household of his parent or guardian. 7.17. Restrictions Involving Motor Vehicles, Boats, Snowmobiles. 1. No person shall operate, drive or be in actual physical control of any motor vehicle, boat • or snowmobile, bicycle, horse drawn vehicle or horse, within this City while under the influence of an alcoholic beverage or narcotic drug, or combination thereof. RHL 3/25/82 2. It shall be unlawful for any person or the owner or operator of any motor vehicle or snowmobile to keep or allow to be kept in such motor vehicle or snowmobile any bottle or receptacle which contains intoxicating liquors or non -intoxicating malt liquors which has been opened, or the seal broken, or the contents of which have been partially removed, except when such bottle or receptacle shall be kept in the trunk of such conveyance, or if the conveyance does not have a trunk, in some area thereof not normally occupied by the driver or passengers. A glove compart- ment shall be deemed to be within the area occupied by the driver and passengers. 7.18. Liquor in Unlicensed Places. No person for the purpose of sale sha mix or prepare intoxicating liquor for consumption in any public -place or place of business unless it has a license to sell intoxicating liquor on -sale or a permit from the City and Commissioner of Public Safety under Minnesota Statutes, 5340.119, (Bottle Clubs) and no person shall consume intoxicating liquor in any such place. 7.19. Consumption in Public Places. No person shall consume intoxicating liquor on a public highway, public park, or other public place. . SECTION 8. LICENSE FEES. 8.01. Definition of Terms. As employed in this section for the determination of license fees, the following terms are defined as follows: 1. The term "restaurant" means any establishment under the control of a single proprietor or manager having appropriate facilities to serve meals, for seating not fewer than 125 guests at one time, where in consideration of payment therefor meals are regularly served at tables to the general public, and which employs an adequate staff for the usual and suitable service to its guests in which the principal part of the business is the serving of foods, the gross sales of which foods shall be not less than 600 of the gross sales of the establishment. • 2. The term "floor area" for the purpose of calculating the on -sale intoxicating liquor license fee shall be all of the floor area of the various floors of a licensed premises measured to the centers of all partitions, -10- RHL 3/25/82 except those areas primarily for non -service purposes including, but not limited to, dead storage, building management, toilets or restrooms, mechanical equipment rooms and kitchens. 3. "Bar" shall mean any on -sale liquor license establishment with 400 or more of annual gross sales derived from the on -sale of liquor. 8.02. Annual On -Sale Intoxicating License Fee. 1. The annual on -sale intoxicating license fee for the license year of May 1, 1982 through April 30, 1983, shall be FLOOR AREA 3000 sq.ft. or under Restaurant $5080.00 Bar 6525.00 3000-6000 sq.ft. 9430.00 Over 6000 sq.ft. $10,880.00 12,340.00 2. For license years commencing May 1, 1983 and thereafter, the annual license fee for an • on -sale intoxicating liquor license shall be established by resolution of the City Council adopted on or before the 1st day of April of each year. 3. Said fee shall be payable in two equal installments in advance, and a receipt for the first installment shall accompany the application for issuance or renewal of the license; the second installment shall be payable on or before June 30 of each year. Failure to pay the second installment of the license fee promptly when due shall be cause for revocation of any on -sale license, without notice. 8.03. Sunday On -Sale Intoxicating Liquor License. The annual license fee for a Sunday on -sale intoxicating liquor license shall be $200.00. Said fee shall be in addition to the regular on -sale intoxicating liquor license fee. 8.04. Special Clubs On -Sale Intoxicating Liquor License. Is The annual license fee for a special club on -sale intoxicating liquor license shall be as established by Minnesota.Statutes, Section 340.11,. subdivision 11. -11- RHL 3/25/82 8.05. On -Sale Wine License. The annual license fee for sale of wine for consumption on the licensed premises only in conjunction with the sale of food shall be $2,000.00, or one-half of the license fee for an on -sale restaurant license, whichever is less. 8.06. Bottle Club License. The annual license fee for bottle clubs shall be 300.00 per year. 8.07. Off -Sale Intoxicating Liquor License.- The annual fee for an off -sale intoxicating liquor license shall be $150.00. 8.08. Part of License Year. When any on -sale intoxicating liquor or wine license is issued for an unexpired portion of a license year, the fee shall be pro- rated and a receipt from the City Treasurer for the portion of the license fee due shall accompany the application, provided the minimum fee thereof shall be one-half the license fee. 8.09. Withdrawal or Rejection of Application. Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance of the license by the City Council, the license fee shall be refunded to the applicant except where rejection is for a willful misstatement of a material fact in the license application. 8.10. Expiration Date. All licenses except bottle club licenses shall expire on the 30th day of April of each year. Each license shall be issued for a period of one year. Bottle club licenses shall expire on the 30th day of June of each year pursuant to state law. 8.11. License Fee Refundment. No part of the fee paid for any license shall be refunded except as authorized by Minnesota Statutes, Section 340.112. SECTION 9. APPLICATION FOR LICENSE 9.01. Form. Every application for a license to sell intoxicating liquor shall be verified and filed with the City Clerk in the form prescribed by the State Commissioner of Public Safety. In addition to the information which may be required by the State Commissioner of Public Safety, the City Council may require such additional information on a form prescribed by the City Manager as it, in the exercise of its judgment, deems necessary or helpful • in passing on the application. No person shall make a false statement in an application. -12- RHL 3/25/82 9.02. Bond. Each application for a license shall be accompanied by a surety bond or, in lieu thereof, cash or United States Government bonds of equivalent market value as provided in Minnesota Statutes, Section 340.12. The type of such security shall be as determined by the City Council. Such surety bond or other security shall be in the sum of $ 5,000 , for an applicant for an on -sale license, 3,UUO for an on - sale wine license, and $ 3,000 for an applicant for an off -sale license. 9.03. Liability Insurance. In addition to the bond required under Section 9.02 hereof, prior to the issuance of a liquor license, the applicant shall file with the City Clerk a dram shop liability insurance policy in the amount of $ 100,00 , coverage for one person and $ 300,000 coverage for more than one person and shall comply with the provisions of Minnesota Statutes, Section 340.12 relating to liability insurance policies. 9.04. Approval of Security. The security and liability insurance offered under Section 9.02 and 9.03 hereof, shall be approved by the City Council and in the case of applicants for on -sale wine licenses,and off -sale licenses by the State Commissioner of Public Safety. The security and liability insurance policies shall be approved as to form by the City Attorney. Operation of a licensed • business without having on file with the city at all times effective security and liability insurance as required in Sections 9.02 and 9.03 hereof, is a cause for revocation of the license. • 9.05. Deposit of U.S. Bonds. In the event the City Council permits the deposit of United States government bonds with the City Clerk instead of cash or a bond with a corporate surety, such bonds shall be accompanied by a properly executed assignment, in form approved by the City Attorney, assigning such government bonds to the City, to be held subject to the conditions, forfeiture and penalties provided by the Minnesota Statutes, Section 340.12, and this ordinance. Such assignment shall also contain a stipulation and agreement that such bonds shall remain with the City Clerk, subject to the terms and conditions of such assignment and such State laws, during the term of the license in connection with which such government bonds are deposited after which time such government bonds may, with the approval of the City Council, be returned by the City Clerk to the licensee. -13- RHL 3/25/82 9.06. Deposit of Cash. In the event that the City Council requires the deposit of cash in lieu of a surety bond, or U.S. Government bonds, the deposit of such cash shall be accompanied by a written agreement and assignment upon the part of the licensee, in form approved by the City Attorney, wherein the licensee assigns such deposit to the City, to be held by the City Clerk subject • to the conditions, forfeitures, and penalties required by Minnesota Statutes, Section 340.12, and this ordinance, for the period of the license in connection with which such deposit is made, after which time such deposit may be returned, with the approval of the City Council, by the City Clerk to the licensee. 9.07. Affidavit Required for Return of U.S. Bonds or Cash. Upon application for return of United States government bonds or cash as provided for in this section, the licensee shall file with the City Clerk an affidavit stating that no action or proceeding has been commenced in any court for the forfeiture of such bonds or deposit, or for damages to any person pr persons under the terms and conditions thereof except.as to claims covered under "dram shop" liability insurance policies, and that the licensee has no knowledge of any existing claim or cause of action under the terms and conditions of the assignment and agreement relating to such government bonds or cash deposit. 9.08. Renewal Application. Application for the • renewal of an existing license shall be made at least 60 days prior to the date of the expiration of the license and shall be made in such abbreviated form as the City Council may approve. If, in the judgment of the City Council, good and sufficient cause is shown by any applicant for his failure to file for a renewal within the time provided, the City Council may, if the other provisions of this ordinance are complied with, grant the application. • 9.09. Execution of Application. An application made by a natural person shall be signed and sworn to by such person; if made by a corporation, by an officer thereof; if by a partnership, by one of the partners; if by an association, by the manager or managing officer thereof. SECTION 10. GRANTING OF LICENSES 10.01. Preliminary Investigation. On an initial application for an on -sale license and on application for transfer of an existing on -sale license, the applicant shall pay with his application an investigation fee of $500.00 and -14- RHL 3/25/82 the City Council shall conduct a preliminary background and financial investigation of the. applicant. The application in such case shall be made on a form prescribed by the state bureau of criminal apprehension and with such additional information as the Council may require. If the Council deems it in the public interest to have an investigation made on a particular application for renewal • of an on -sale license, it shall so determine. In any case, if the Council determines that a comprehensive background and financial investigation of the applicant is necessary, it may conduct the investigation itself, or through indepen- dent investigative services, or contract with the bureau of criminal investigation for the investigation. No license shall be issued, transferred, or renewed if the results show to the satisfaction of the Council that issuances would not be in the public interest. If an investigation outside the state is required, the applicant shall be charged the cost not to exceed $10,000 and shall be paid by the applicant after deducting any initial investigation fee already paid. The fee shall be payable by the applicant whether or not the License is granted. 10.02. Hearing and Issuance. The City Council shall investigate all facts set out in the application and not investigated in the preliminary background and financial investigation conducted pursuant to Section 10.01 hereof. Opportunity shall be given to any person to be heard for or against the granting of the license. After the investigation and hearing, the Council shall, in its discretion, grant or refuse the application. No on -sale wine license or off -sale license shall become effective until it, together with the security furnished by the applicant, has been approved by the Commissioner of Public Safety. 10.03. Filing With State. The City Clerk shall, within ten days after the issuance of an on -sale license, submit to the State Commissioner of Public Safety, the full name and address of each person granted a license, the trade name, effective license date, the date of expiration and any change of address, transfer, cancellation or revocation of such license by the City during the license period. 10.04. Person and Premises Licensed; Transfer. Each license shall be issued only to the applicant and for the premises described in the application. No license may be transferred to another person, firm or corporation or place without City Council approval. Any transfer of stock of a corporate licensee is deemed a transfer of the. license and a transfer of stock without prior Council • approval is a ground for revocation of the license. -15- • • • RHL 3/25/82 10.05. Enlargement, Alterations or Extension of Premises. Proposed enlargement, alteration or extension of licensed premises shall be reported to the City Clerk at or before the time application is made for a building permit for any such change, and the licensee shall also furnish such other information as may be required by the City Council. SECTION 11. SUSPENSION AND REVOCATION The Council may either suspend for not to exceed 60 days or revoke any liquor license upon a finding that the licensee has failed to comply with any applicable statute, regulation, or ordinance relating to intoxicating liquor. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a -hearing pursuant to Minnesota Statutes, Sections 15.0418 to 15.0426. SECTION 12. PENALTY Any person violating anyiprovision of this ordinance is guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $500.00 or imprisonment in the county jail for not more than 90 days, or both, and shall pay the cost of prosecution in any case. SECTION 13. REPEAL Ordinances Nos. 2, 2A, 2B, 2C, 2D, 2E, 2F, 2G and Ordinance No. 35, passed July 17, 1967, December 13, 1971, July 16, 1975, October 20, 1975, September 20, 1967, April 9, 1979, March 21, 1977, April 2, 1979, December 7, 1981, and February 24, 1969. SECTION 14. EFFECTIVE DATE This ordinance becomes effective upon its passage and publication according to law. Passed by the Council this 1982. Att es 70. ) atz City Clerk Ma ager 19th day of April Mayor Publish in the Carver County Herald June 16, 1982 -16- LARSON & MERTZ ATTORNEYS AT LAW W1 74 VO-Pil."J C/<;, -J No 1900 FIRST BANK PLACE WEST �.. C, urs is /V u C. RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE CRAIG M. MERTZ (612) 333-ISII OF COUNSEL May 6, 1982 "ir*-CP . -.1�' c��,.-.C. �.r.P,..,�;.,-t HARVEY E. SKAAR MARK C. MCCULLOUGH Y e v,. b 2. �: dC. L Q. c.. r e Chanhassen City Council c/o Don Ashworth, City Manager ZVXCL-A rrer0 A_ Box 147 r lecje, d:1'e-ass Aexr c•� Chanhassen MN 55317 -f�i7/d?a . _71 Nc La c1�:..-S Re: Intoxicating Liquor License Dear Council Members • are rw_ISV f 3 s'iFCj,_.L.% We have now made those revisions in the draft of the new intoxicating liquor ordinance which you act =n at the Council meeting of April 19th, and a copy of the revised draft is attached for your review. The ordinance.as revised can now be signed and published. Some comments relative to Section 5.05 (Special Club On -Sale Intoxicating Liquor License) seem appropriate. This type of license is authorized by Minnesota Statutes 340.11, Subd. 11, which provides in part that on -sale club licenses can be issued to eligible organizations in addition to the number of licenses, (six for Chanhassen) otherwise authorized by law. The annual license fee for an on -sale club license is governed by state law and is based on the number of memberships in the club, i.e., up to $300 for a veterans' organization or fraternal club with a membership of 200 or less, in which category the American Legion post falls. The terms "club on -sale intoxicating liquor license" under Minnesota Statutes and "special club on -sale intoxicating liquor license" under this ordinance are synonymous. I have employed the term "special" in the ordinance only to differentiate between "club" and "bottle club." Very tr ly yo r , RUSSELL H. LARSON Chanhassen City Attorney • RHL:ner enc RiZ%CO3* E.:I\I F__ n L',AY 1982 CITY OF CN11-imooc." City of Chanhassen Official, PubhimUoii'Nd. X05., . CITY SOF CARVER ANh OENNEPIN CbJNTIES, •IANQE'NO.2II �" AN ORDINANCE LICENSING>AND REGULATIN T19 S AND CONSUMPTION OF I":�J IQUOR AND PROVIDING A PENALTY FOR VIOLATION THEREOF SECTION 1. PURPOSE AND INTENT This ordinance is enacted for the purpose and in- tent of promoting the health, safety, order, conven- ience and general welfare of the residents of the Ci- ty by licensing and regulating the sale and con- sumption of intoxicating liquor within the City. SECTION 2. TITLE This ordinance shall be known and may be cited as the "Chanhassen Intoxicating Liquor Ordinance." SECTION 3. PROVISIONS OF STATE LAW ADOPTED The provisions of the Minnesota Intoxicating Li- quor Act, being a part of Minnesota Statutes, Chapter 340, and all laws amendatory thereof and supplementary thereto, a copy of which is on file in the office of the City Clerk, with reference to the definition of terms, application for license, granting of license, conditions of license, restrictions on con- sumption, provisions on sales, conditions of bonds or insurance of licensees, hours of sale, and all other matters pertaining to the retail sale, distribu- tion, and consumption of intoxicating liquor are hereby adopted and made a part of this ordinance as if fully set out herein, except as modified herein. SECTION 4. LICENSE REQUIRED No person, except wholesalers or manufacturers to the extent licensed and authorized under State Law, shall directly or indirectly deal in, sell, kee for sale, or deliver any intoxicating liquor withod, first having received a license from the City to do so as provided in this ordinance. SECTION 5. TYPES OF LICENSES 5.01. Classification of Licenses. There shall be the following six (6) separate types of intoxicating li- quor licenses: 1. Off -sale intoxicating liquor license 2. On -sale intoxicating liquor license 3. On -sale wine license 4. Special club on -sale intoxicating liquor license 5. Sunday on -sale intoxicating liquor license 6. Bottle club intoxicating liquor license. 5.02. Off -Sale Intoxicating Liquor License. Licenses for the sale of intoxicating liquor to be con- sumed off or away from the premises where sold may be issued only to liquor stores used exclusively for the off -sale of intoxicating liquor at retail and under control of an individual owner or manager. Premises licensed for the off -sale of intoxicating liquors shall have a structural value of not less than $100,000, exclusive of land costs and costs of fur- nishings and fixtures. The City Council may pro- vide for an independent appraisal at the license ap- plicant's expense as an aid in determining the structural fair market value. In the event this re- quirement as to investment in structures is not complied with within one year from the date of the issuance of the license, the license may be revoked. Provided, however, that the City Council may issue not to exceed one off -sale intoxicating liquor license for premises which had been licensed for the off- salf intoxicating liquor on the effective date of thisd napce, the structural fair market value of which is le' than $100,000, exclusive of land costs and costs of Nfnishings and fixtures.' In the event premise* within the same building or contiguous buildln80,jrellicensed for the off -sale and on -sale of intoxicating liquor, the following con- ditions shall be strictly complied with: 1. No internal access shall be permitted between the premises licensed for off -sale and on -sale of in- toxicating liquors. 2. Each premise licensed for the off -sale and on - sale of intoxicating liquors shall be separately secured with an entirely separate public and ser- vice entrance for each. Affidavit of Publication Sate of Minnesota ) SS. County of Carver ) all the time herein stated has been the publisher and printer of the news ' being drily sworn, on oath says he is and during knowledge of the facts herein stated as follows: (1) Said news newspaper known as Carver County Herald and has full paper is printed in the English language in newspaper format and in column and sheet form equivalent in printed space to at least 900 square inches. (2) Said newspaper is a weekly and is distributed at least once a week. (3) Said news paper has 50% of its news columns devoted to news of local interest to the community which it purports to serve and does not wholly duplicate any other publication and is not made up entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 75% of its total circulation currently paid or no more than three months in arrears and has entry as second-class matter in its local post -office. (5) Said newspaper purports to serve the City of Chaska in the County of Carver and it has its known office of issue in the City of Chaska in said county, established and open during its regular business hours for the gathering of news, sale of advertisements and sale of subscriptions and maintained by the managing officer of said newspaper, persons in its employ and subject to his direction and control during all such regular business hours and at which said newspaper is printed. (6) Said newspaper files a copy of each issue immediately with the State Historical Society. (7) Said newspaper has complied with all the foregoing conditions for at least one year preceding the day or dates of publication mentioned below. (8) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1, 1966 and each January 1 thereafter an affidavit in the form prescribed by the ,Secretary of State and signed by the managing officer of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper. He further states on oath that the printed 1 r-� J J hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English language, once each week, for _ successive weeks; that it was first so published on e dL _ ise the ` 7 Y of- - -_ - 19 and was thereafter printed and published on every - __- - - to and including the_.L_L sky of J uil �: 1fj2 and that the following is a printed copy of the lowercase alphabet from A to Z, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and Publication of said notice, to wit: abcdefghijklmnopgrstuvwxyz Subscribed and sworn to before me this day of �' m i"i•i , ` ,f Y` .� v' d v c �s. r #,,`. � � a +. H zn i <� ' '� r R_ � A1�' ,+' `�q •?.,� �,► ti: )TA C Y My Comm C 28. t^RR �►1 �s�.r s a►1 w�I1 �N�M�Fs'�' �` r� 19 f F , p� I ``X t J Notary public, 4" o s' _ __County, Minnesota My Coinrnission Expires _t�U'' �1 _ _ 19 ,(; 5.03. On -Sale Intoxicating Liquor License. a. A cnet snail ae on auty aurtng an nours uc LVW Licenses for the sale of intoxicating liquor to be con- service operation. 7.06. Employment. sumed on the premises may be issued only to b. One waiter/waitress or one bus boy/girl shall 1. No person under 18 years of age shall be hotels, clubs, restaurants and establishments for be on duty during all hours of food service opera- employed in any rooms constituting the place in the sale of on -sale liquors exclusively, and shall tions. which intoxicating liquors are sold at retail on -sale permit the on -sale of intoxicating liquor only, and 10. Food service shall consist of the following: and no such person shall be allowed to be or remain the on -sale of non -intoxicating liquors when so a. Food service areas shall have table or booth in any such room unless such person is accom- licensed. Premises licensed for the on -sale of intox- seating capacity for at least 65 people, exclusive of panied by his parent or guardian, except that per- icating liquors shall have a structural fair market food service at the bar. sons under the 18 years of age may be employed as value of not less than $500,000, exclusive of land b. Food sevice menu shall consist of not less than musicians or to perform the duties of a busboy or costs and costs of furnishings and fixtures. The City three separate and distinct entrees complete with dishwashing service in places defined as a Council may provide for an independent appraisal vegetable, salad, bread, and a selection of restaurant or hotel or motel serving food in rooms at the license applicant's expense as an aid in deter- beverages. Prepackaged complete meals shall not in which intoxicating liquors are sold at retail on - mining the structural fair market value. In the be included in the enumerated main entrees. sale. event this requirement as to investment in fixtures 5.07 Bottle Club Intoxicating Liquor License. Bot- 2. No person under 18 years of age shall be and structures is not complied with within one year tle club licenses may be issued to bottle clubs only employed at an off -sale liquor establishment to sell from the date of the issuance of the license, the license may be revoked. Provided, however, that in accordance with the provisisons of Minnesota Statutes, Section 340.119; provided, however, that or deliver or aid in the delivery of off -sale liquor. 7.07. Ownership of Fixtures and Equipment. No the City Council may issue not to exceed three (3) an unincorporated society shall not be eligible for a equipment or fixture in premises licensed for the on -sale licenses for the on -sale of intoxicating li- bottle club intoxicating liquor license. on- or off -sale of intoxicating liquors shall be owned quors for premises which have been licensed for the SECTION 6. PERSONS AND PREMISES IN- in whole or in part by any manufacturer or distiller on -sale of intoxicating liquor for not less thanthree ELIGIBLE FOR LICENSE of intoxicating liquor except such as shall be ex - (3) years prior to the effective date of this or- 6.01 Delinquent Taxes, Assessments and Claims. pressly permitted by State law. dinance. Provided, however, the City CounFil in its No license shall be granted, or renewed, for opera- 7.08. Right of Entry. Any police officer, building discretion may grant a variance of the financial in- tion on any premises on which taxes, assessments inspector, fire marshal, or any properly designated vestment requirement of this section to those or other financial claims of the City are delinquent officer or employee of the City shall have the un - premises presently licensed for the on -sale of intox- and unpaid. qualified right to enter, inspect, and search the icating liquor which are displaced by the 6.02 State Law. No license shall be issued for premises of the licensee during business hours Chanhassen Downtown Redevelopment Project. premises owned by a person to whom a license may without a permit. Any such variance shall be granted only upon good not be granted under the provisions of Minnesota 7.09. Tampering and Dilution. No licensee shall cause shown b the applicant. Y PP � Statutes, Chapter 340, and no license shall be sell, offer for sale, or keep for sale intoxicating - 5.04 On -Sale Wine License. On -sale wine licenses granted to or held by any person made ineligible for quors in any original package which has been re - may be issued only to restaurants meeting the such a license by state law. filled or partly refilled. No licensee shall directly or qualifications of Minnesota Statutes, Section 340.11, 6.03. Partnership or Corporation. No license shall through any other person dilute or in any manner subdivision 20, and shall permit only the sale of be granted to a partnership or a corporation which tamper with the contents of any original package so wine not exceeding fourteen percent (14%) alcohol does not have a managing partner or a manager as to change its composition or alcoholic content by volume, for consumption on the licensed who is eligible to hold a license pursuant to the pro- while in the original package. Possession on the premises only in conjunction with the serving of visions of this section. premises by the licensee of any intoxicating liquor food. 6.04. Real Party in Interest. No license shall be in the original package differing in composition or 5.05. Special Club On -Sale Intoxicating Liquor granted to a person who is the spouse of a person in- alcoholic content in the liquor when received from License. Special club on -sale intoxicating liquor eligible for a license pursuant to the provisions of the manufacturer or wholesaler from whom it was licenses may be issued, if approved by the cwunis- this Section 6, or who, in the judgment of the City purchased, shall be prima facie evidence that the sioner of public safety, to a bona fide club which has Council is not the real party in interest or beneficial contents of the original package have been diluted, been in existence for 15 years or more or to a con- owner of the business operated, or to be operated, changed or tampered with. gressionally chartered veterans' organization ander the license. 7.10. Display. No on -sale liquor establishment which has been in existence for 10 years. Such a 6.05. Residence. A license will not be renewed if, shall display liquor to the public during hours when club or veterans' organization shall be incorporated in the case of an individual, the license is not a resi- the sale of liquor is prohibited. in order to be eligible to apply for a license, and the dent of the City at the time of renewal; if, in the 7.11. Federal Tax Stamps. No licensee shall apply license issued shall be for the sale of intoxicating li- case of a partnership, the managing partner is not a for or possess a Federal Wholesale Liquor Dealers quors to members and bona fide guests only. A bona resident of the City at the time of renewal; or, in the special tax stamp or a Federal gambling stamp. fide club means a fraternal club which serves only case of a corporation, if the manager 'is not a resi 7.12. Certain Sales Forbidden. The retail sale for members and their guests and which uses any pro- dent of the City at the time of renewal. The time foi beverage purposes of ethyl alcohol or neutral fits derived from these sales principally for spun- establishing residence may, for good cause, be ex• spirits, as defined in U.S. Treasury Department, soring activities beneficial to the community and tended by the City Council. Bureau of Internal Revenue, Regulations 125, not for the benefit of any individual. SECTION 7. CONDITIONS OF LICENSE AND Article II, Standards of Identity for Distilled 5.06 Sunday On -Sale Intoxicating Liquor License. REGULATION OF SALE AND CONSUMPTION. Spirits, or substitutes therefor, possessing the Sunday on -sale intoxicating liquor licenses may be 7.01. Compliance with Law. Every license shall taste aroma, and characteristics generally at - issued only to hotels or restaurants as defined in be granted subject to the conditions of this or- tributed to ethyl alcohol or neutral spirits, as such, Minnesota Statutes, Section 340.07, or to special dinance and of any other applicable ordinance of is hereby prohibited. clubs as defined in Section 5.05 hereof; provided, the City or State law, or regulation. 7.13. Inspection of Records. For cause shown, the however, that said hotels, restaurants and special 7.02. Posting. The license shall be posted at all business records of the licensee, including Federal clubs comply and remain in compliance with all of times in a conspicuous place in the licensed and State income tax returns, shall be available for the following conditions: premises. inspection by a duly authorized representative of 1. The licensed premises shall be properly li- 7.03. Order and Sobriety. Every licensee shall be the City Council at all reasonable times. tensed by state agencies as a restaurant. All per- responsible for the conduct of his place of business 7.14. Consumption After Hours. sonnel, preparation areas, service areas, and and for conditions of sobriety and order therein. No 1. on licensed premises no person or persons, in - equipment must comply with all applicable laws licensee shall keep, possess, or operate, or permit eluding the licensee and his employees shall con - and ordinances. the keeping, possession, or operation of, on the sume and no licensee shall permit the consumption 2. Staff shall be adequate for usual and suitable licensed premises, or in any room adjoining the of any intoxicating liquor fifteen (15) minutes after preparation and service of the presented menu and licensed premises, any slot machine, dice, or any the sale of such intoxicating liquor is prohibited. adequate for proper sanitation and maintenance of gambling device or apparatus, nor permit any 2. No person or persons, other than the licensee or preparation and service areas. gambling therein, nor permit the licensed premises his bona fide clean-up employees, shall remain on 3. Meals shall be regulary furnished at tables or or any room in the same, or in any adjoining any licensed premises for a period longer than thir- booths to the general public. building, directly or indirectly under its control to ty (30) minutes after the sale of intoxicating liquor 4. The establishment shall be under the supervi- be used as a resort for prostitutes or other disorder- is prohibited, and it shall be the duty of the licensee sion and control of a single proprietor or manager ly persons. to enforce strict compliance with this regulation. or designated assistant manager who is available 7.04. Premises. No license shall be effective 3. All glasses, containers, bottles and other recep- on the premises to the public and City officials, dur- beyond the premises named in the license for which tacles shall be removed from all bars and tables ing hours of operation. it was granted. within fifteen (15) minutes after the sale of intox- 5. Sunday on -sale of intoxicating liquors may be 7.05. Persons to Whom Sales Are Illegal. It shall icating liquor is prohibited. made only in conjunction with the serving of food. be unlawful for any person, except a licensed phar- 7.15. Removal of Receptacles. No licensee shall 6. On -sale of intoxicating liquors may be made macist to sell, give, barter, furnish, deliver, or permit any person to remove, and no person shall only between the hours of 10:00 A.M. and 12:00 mid- dispose of, in any manner, either directly or in- remove, from the space or building named in the night on Sunday. directly, any spiritous, vinous, malt, or fermented license for which it was granted, any bottle or 7. Food service shall be maintained from one liquors containing more than one-half of one per- receptacle, which contains intoxicating liquor or hour after opening to 10:00 P.M. cent of alcohol by volume in any quantity, for any non -intoxicating malt liquor, which has been open - 8. Food preparation equipment shall consist of purpose, whatever, to any person under the age of ed, or the seal broken, or the contents of which have not less than the following: 19 years, or to any intoxicated person, or habitual been partially removed. a. Stove and broiler drunkard, or to any person to whom sale is pro- Each licensee shall post, in a conspicuous loca- b. Refrigerator hibited by state law. tion near each exit from the space or building c. Work table named in the license for which it was granted, a d. Dish and utensil washing sink with sanitizing sign advising the public of this prohibition and the heater penalties provided in this ordinance for the viola - e. City -approved grease trap or collection tian thereof. system. 9. Food preparation and service personnel shall consist of not less than the following: 7.16. Restrictions Involving Minors. 1. No licensee, his agent or employee shall serve or dispense upon the licensed premises any -intox- icating liquor or non -intoxicating malt liquors to any person under the age of 19 years; nor shall such licensee, or his agent or employee, permit any per- son under the age of 19 years to be furnished or con- sume any such liquors on the licensed premises; nor shall such licensee, his agent or employee per- mit any person under the age of 19 years to be delivered any such liquors. 2. No person under 19 years of age shall misrepre- sent his age for the purpose of obtaining intox- icating liquor or non -intoxicating malt liquor nor shall he enter any premises licensed for the retail sale of intoxicating liquor or non -intoxicating malt liquor for the purpose of purchasing or having served or delivered to him for consuming any such intoxicating liquor or non -intoxicating malt liquor nor shall any such person purchase, attempt to pur- chase, consume, or have another person procure for him any intoxicating liquor or non -intoxicating malt liquor. 3. No person under 19 years of age shall receive delivery of intoxicating liquor. 4. No person shall induce a person under the age of 19 years to purchase or procure or obtain intox- icating liquor or non -intoxicating malt liquor. 5. No person shall misrepresent or misstate the age of any other person for the purpose of inducing any licensee or any agent or employee of any licensee to sell, serve or deliver any intoxicating li- quor or non -intoxicating malt liquor to a person under the age of 19 years. 6. It shall be unlawful for any person under the age of 19 years to have in his possession any intox- icating liquor or non -intoxicating malt liquor with the intent to consume the same at any place other than in the presence of his parent or guardian in the household of his parent or guardian. Possession of such non -intoxicating malt liquor or intoxicating li- quor by a minor at a place other than the household of his parent or guardian shall be prima facie evidence of intent to consume the same at a place other than the household of his parent or guardian. 7.17. Restrictions Involving Motor Vehicles, Boats, Snowmobiles. 1. No person shall operate, drive or be in actual physical control of any motor vehicle, boat or snowmobile,, bicycle, horse drawn vehicle or horse, within this City while under the influence of ars alcoholic beverage or narcotic drug, or combina- tion thereof. 2. It shall be unlawful for any person or the owner or operator of any motor vehicle or snowmobile tr keep or allow to be kept in such motor vehicle snowmobile any bottle or receptacle which cont intoxicating liquors or non -intoxicating malt,,,,,_ quors which has been opened, or the seal broken, or the contents of which have been partially removed, except when such bottle or receptacle shall be kept in the trunk of such conveyance, or if the cc_ veyance does not have a trunk, in some area there not normally occupied by the driver or passenger. A glove compartment shall be deemed to be withif the area occupied by the driver and passengers. 7.18. Liquor in Unlicensed Places. No person for the purpose of sale shall mix or prepare intox- icating liquor for consumption in any public place or place of business unless it has a license to sell intoxicating liquor on -sale or a permit from the City and Commissioner of Public Safety under Min- nesota Statutes, §340.119, (Bottle Clubs) and no per- son shall consume intoxicating liquor in any such place. 7.19. Consumption in Public Places. No person shall consume intoxicating liquor on a public highway, public park, or other public place. SECTIONS. LICENSE FEES 8.01. Definition of Terms. As employed in this sec- tion for the determination of license fees, the follow. ing terms are defined as follows: I. The term "restaurant" means any establish. ment under the control of a single proprietor or manager having appropriate facilities to serve meals, for seating not fewer than 125 guests at one time, where in consideration of payment therefor meals are regularly served at tables to the general public, and which employs an adequate staff for the usual and suitable service to its guests in which the principal part of the business is the serving of foods, the gross sales of which foods shall be not less than 60% of the gross sales of the establishment. 2. The term "floor area" for the purpose of calculating the on -sale intoxicating liquor license fee shall be all the floor area of the various floors of a licensed premises measured to the centers of all partitions, except those areas primarily for non - service purposes including, but not limited to, dead storage, building management, toilets or restrooms, mechanical equipment rooms and lritrhanc 3. "Bar" shall mean any on -sale liquor license establishment with 40% or more of annual gross sales derived from the on -sale of liquor. 8.02. Annual On -Sale Intoxicating License Fee. 1. The annum on -sale intoxicating license fee for the license year of May 1, 1982 through April 30, 1983, shall be: FLOOR AREA 3000 sq.ft. 3000.600C Over 6000 or under sq.ft. sq.ft. Restaurant $5080.00 $7980.00 $10,880.00 Bar 6525.00 9430.00 12,340.00 2. For license years commencing May 1, 1983 and thereafter, the annual license fee for an on -sale in- toxicating liquor license shall be established by resolution of the City Council adopted on or before the 1st day of April of each year. 3. Said fee shall be payable in two equal in- stallments in advance, and a receipt for the first in- stallment shall accompany the application for is- suance or renewal of the license; the second install- ment shall be payable on or before June 30 of each year. Failure to pay the second installment of the license fee promptly when due shall be cause for revocation of any on -sale license, without notice. 8.03. Sunday On -Sale Intoxicating Liquor License. The annual license fee for a Sunday on -sale intox- icating liquor license shall be $200.00. Said fee shall be in addition to the regular on -sale intoxicating li- quor license fee. 8.04. Special Clubs On -Sale Intoxicating Liquor License. The annual license fee for a special club on -sale intoxicating liquor license shall be as established by Minnesota Statutes, Section 340.11, subdivision 11. 8.05. On -Sale Wine License. The annual license fee for sale of wine for consumption on the licensed premises only in conjunction with the sale of food shall be $2,000.00, or one-half of the license fee for an on -sale restaurant license, whichever is less. 8.06. Bottle Club License. The annual license fee for bottle clubs shall be $300.00 per year. 8.07. Off -Sale Intoxicating Liquor License. The annual fee for an off -sale intoxicating liquor license shall be $150.00 8.08. Part of License Year. When any on -sale in- toxicating liquor or wine license is issued for an unexpired portion of a license year, the fee shall be prorated and a receipt from the City Treasurer for the portion of the license fee due shall accompany the application, provided the minimum fee thereof shall be one-half the license fee. 8.09. Withdrawal or Rejection of Application. Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance of the license by the City Council, the license fee shall be refunded to the applicant ex- cept where rejection is for a willful misstatement or a material fact in the license application. 8.10. Expiration Date. All licenses except bottle club licenses shall expire on the 30th day of April of each year. Each license shall be issued for a period of one year. Bottle club licenses shall expire on the 30th day of June of each year pursuant to state law. 8.11. License Fee Refundment. No part of the fee paid for any license shall be refunded except as authorized by Minnesota Statutes, Section 340.112. SECTION 9. APPLICATION FOR LICENSE 9.01. Form. Every application for a license to sell intoxicating liquor shall be verified and filed with the City Clerk in the form prescribed by the State Commissioner of Public Safety. In addition to the information which may be required by the State Commissioner of Public Safety, the City Council may require such additional information on a form prescribed by the City Manager as it, in the exer- cise of its judgment, deems necessary or helpful in passing on the application. No person shall make a false statement in an application. 9.02. Bond. Each application for a license shall be accompanied by a surety bond or, in lieu thereof, cash or United States Government bonds of equivalent market value as provided in Minnesota Statutes, Section 340.12. The type of such security shall be as determined by the City Council. Such surety bond or other security shall be in the sum of $5,000, for an appliant for an on -sale license, $3,000, for an on -sale wine license, and $3,000, for an appli- cant for an off sale license. 9.63. Liability Insurance. In addition to the bond required under Section 9.02 hereof, prior to the is- suance of a liquor license, the applicant shall file with the City Clerk a dram shop liability insurance policy in the amount of $100,000, coverage for one person and $300,000, coverage for more than one person and shall comply with the provisions of Min- nesota Statutes, Section 340.12 relating to liability insurance policies. 9.04. Approval of Security. The security and liability insurance offered under Section 9.02 and 9.03 hereof, shall be approved by the City Council and in the case of applicants for on -sale wine licenses, and off -sale licenses by the State Commis- sioner of Public Safety. The security and liability insurance policies shall be approved as to form by the City Attorney. Operation of a licensed business without having on file with the city at all times ef- fective security and liability insurance as required in Sections 9.02 and 9.03 hereof, is a cause for revocation of the license. 9.05. Deposit of U.S. Bonds. In the event the City Council permits the deposit of United States government bonds with the City Clerk instead of cash or a bond with a corporate surety, such bonds shall be accompanied by a properly executed assignment, in form approved by the City Attorney, assigning such government bonds to the City, to be held subject to the conditions, forfeiture and - penalties provided by the Minnesota Statutes, Sec- tion 340.12, and this ordinance. Such assignment shall also contain a stipulation and agreement that such bonds shall remain with the City Clerk, sub- ject to the terms and conditions of such assignment and such State laws, during the term of the license in connection with which such government bonds are deposited after which time such government bonds may, with the approval of the City Council, be returned by the City Clerk to the licensee. 9.06. Deposit of Cash. In the event that the City Council requires the deposit of cash in lieu of a surety bond, or U.S. Government bonds, the deposit of such cash shall be accompanied by a written agreement and assignment upon the part of the licensee, in form approved by the City Attorney, wherein the licensee assigns such deposit to the Ci- ty, to be held by the City Clerk subject to the condi- tions, forfeitures, and penalties required by Min- nesota Statutes, Section 340.12, and this ordinance, for the period of the license in connection with which such deposit is made, after which time such deposit may be returned, with the approval of the City Council, by the City Clerk to the licensee. 9.07. Affidavit Required for Return of U.S. Bonds or Cash. Upon application for return of United States government bonds or cash as provided for in this section, the licensee shall file with the City Clerk an affidavit stating that no action or pro- ceedinA has been commenced in any court for the forfeiture of such bonds or deposit, or for damages to any person or persons under the terms and condi- tions thereof except as to claims covered under "dram shop" liability insurance policies, and that the licensee has no knowledge of any existing claim or cause of action under the terms and conditions of the assignment and agreement relating to such government bonds or cash deposit. 9.08. Renewal Application. Application for the renewal of an existing license shall be made at least 60 days prior to the date of the expiration of the license and shall be made in such abbreviated form as the City Council may approve. If, in the judg- ment of the City Council, good and sufficient cause is shown by any applicant for his failure to file for a renewal within the time provided, the City Council may, if the other provisions of this ordinance are complied with, grant the application. 9.09. Execution of Application. An application made by a natural person shall be signed and sworn to by such person; if made by a corporation, by an officer thereof; if by a partnership, by one of the partners; if by an association, by the manager or managing officer thereof. SECTION 10. GRANTING OF LICENSES 10.01. Preliminary Investigation. On an initial ap- plication for an on -sale license and on application for transfer of an existing on -sale license, the appli- cant shall pay with his application an investigation fee of $500.00 and the City Council shall conduct a preliminary background and financial investiga- tion of the applicant. The application in such case shall be made on a form prescribed by the state bureau of criminal apprehension and with such ad- ditional information as the Council may require. If the Council deems it in the public interest to have an investigation made on a particular application for renewal of an on -sale license, it shall so deter- mine. In any case, if the Council determines that a comprehensive background and financial investi- gation of the applicant is necessary, it may conduct the investigation itself, or through independent in- vestigative services, or contract with the bureau of criminal investigation for the investigation. No license shall be issued, transferred, or renewed if the results show to the satisfaction of the Council that issuances would not be in the public interest. If an investigation outside the state -is required, the applicant shall be charged the cost not to exceed $10,000 and shall be paid by the applicant after deducting any initial investigation fee already paid. The fee shall be payable by the appliant whether or 10.02. Hearing and Issuance. The City Council shall investigate all facts set out in the application and not investigated in the preliminary background and financial investigation conducted pursuant to Section 10.01 hereof. Opportunity shall be given to any person to be heard for or against the granting of the license. After the investigation and hearing, the Council shall, in its discretion, grant or refuse the application. No on -sale wine license or off -sale license shall become effective until it, together with the security furnished by the applicant, has been approved by the Commissioner of Public Safety. 10.03. Filing With State. The City Clerk shall, within ten days after the issuance of an on -sale license, submit to the State Commissioner of Public Safety, the full name and address of each person granted a license, the trade name, effective license date, the date of expiration and any change of ad- dress, transfer, cancellation or revocation of such license by the City during the license period. 10.04. Person and Premises Licensed; Transfer. Each license shall be issued only to the applicant and for the premises described in the application. No license may be transferred to another person, firm or corporation or place without City Council approval. Any transfer of stock of a corporate licensee is deemed a transfer of the license and a transfer of stock without prior Council approval is a ground for revocation of the license. 10.05. Enlargement, Alteration or Extension of Premises. Proposed enlargement, alteration or ex- tension of licensed premises shall be reported to the City Clerk at or before the time application is made for a building permit for any such change, and the licensee shall also furnish such other information as may be required by the City Council. SECTION 11. SUSPENSION AND REVOCATION. The Council may either suspend for not to exceed 60 days or revoke any liquor license upon a finding that the licensee has failed to comply with any ap- plicable statute, regulation or ordinance relating to intoxicating liquor. No suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to Minnesota Statutes, Sections 15.0418 to 15.0426. SECTION 12. PENALTY Any person violating any provision of this or- dinance is guilty of a misdemeanor and upon con- viction shall be punished by a fine of not more than $5500.00 or imprisonment in the county jail for not more than 90 days, or both, and shall pay the cost of prosecution in any case. SECTION 13. REPEAL Ordinances Nos. 2, 2A, 213, 2C, 2D, 2E, 2F, 2G and Ordinance No. 35, passed July 17, 1967, December 13, 1971, July 16, 1975, October 20, 1975, September 20, 1967, April 9, 1979, March 21, 1977, April 2, 1979, December 7, 1981, and February 24, 1969. SECTION 14. EFFECTIVE DATE This ordinance becomes effective upon its passage and publication according to law. Passed by the Council this 19th day of April, 1982. /s/Thomas L. Hamilton Mayos Attest: /s/Don Ashworth City Clerk/Manager (Publish in the Carver County Herald June 16,1982)