7 Axel's Liquor License Violat7
CITYOF
7700 Market Boulevard
PO Box 147
Channassen. MN 55317
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MEMORANDUM
TO:
FROM:
DATE:
Todd Gerhardt, City Manager
Karen J. Engelhardt, Office Manager
December 3, 2002
SUB J:
Hearing on Intoxicating Liquor License Violation,
Axel's, 560 West 78th Street
Attached please find a Hearing Notice Regarding Alleged Liquor License
Violation for Axel's. As a part of complianCe checks conducted in October of
2002, a bar employee allegedly sold intoxicating liquor to a minor.
Attached is a copy of the City Code concerning liquor license violations. You
will note that City Code requires a 3-day suspension of the liquor license.
However, City Code further states that, "The Council may deviate in an
individual case where the Council finds that there exist reasons making it more
appropriate to deviate, such as, but not limited to, a licensee's efforts in
combination with the state or city to prevent the sale of alcohol to minors..."
Ms. Linda Young will be present at Monday's hearing on behalf of Axel's to
address the Council. If Axel's presents information that supports deviation from
the ordinance, the Council may choose to impose a fine (not to exceed $2,000)
instead of the suspension. (Note: In the previous cases of MGM Liquor
Warehouse and the Chanhassen Dinner Theatre, the Council chose to fine each
establishment $1,000.)
' · , .......... :, ~!vc. work, and play.
The Cily of Chanhassen, ~ arov, mc communi~i' v,'i¢ cl~an !al:es. oua[itt' *"hO~,i~ a cha,,,Tdng downtown, thriving businesses, winding trails, and beautifd~ parks. "' g~at place to ",".
CITY OF CHANHASSEN
CARVER COUNTY~ MINNESOTA
In Re:
City of Chanhassen Liquor
Licensing Complaint Against
Charlie Rae Inc.,
d/b/a Axel' s Restaurant
HEARING NOTICE REGARDING ALLEGED
LIQUOR LICENSE VIOLATIONS
TO: CHARLIE RAE INC., d/b/a AXEL'S, Attention: Tonya I. Swenson, 560 West
78th Street, Chanhassen, MN 55317
FROM: CAMPBELL KNUTSON, P.A., CITY ATTORNEYS FOR THE CITY OF
CHANHASSEN.
YOU, AS A LIQUOR LICENSEE, ARE HEREBY INFORMED that on the 9th day of
December, 2002, at 7:00 p.m., in the Council Chambers of the Chanhassen City Hall, 7700 Market
Boulevard, Chanhassen, Minnesota, the Chanhassen City Council will conduct a hearing, pursuant
to Section 10-39 of the Chanhassen City Code and Minnesota Statute §340A.415, regarding
allegations that the licensee violated provisions of State law and City, ordinances regulating liquor
establishments, as follows:
1. On October 7, 2002, Ms. Jessica Lynn Glover, an employee of Charlie Rae Inc.,
d/b/a Axel's, did sell intoxicating liquor to an underage person On the licensed premises of Axel's in
violation of Chanhassen City Code Section 10-47(a).
If your establishment is found to be in violation as charged, the City Council may revoke the
license, impose a suspension for up to sixty (60) days, or impose a civil fine not to exceed
$2,000.00 for each violation.
103655
You are entitled to be present at the hearing and to be represented by an attorney. If the
hearing is contested, you are entitled to call witnesses, present probative evidence, cross-examine
witnesses, and submit rebuttal evidence, all as allowed by Minnesota Statute § 14.60.
Dated: ~k} 01/' ~- ~ .., 2002
CAMPBELL KNUTSON
Professional Association
By:
Elh"ott'/BJKne{sch, #168130
Chanh~sen City Attomeys
1O3655
§ 10-37
CHANHASSEN CITY CODE
(e) That the licensee suffered or permitted illegal acts upon the licensed premises or on
property owned or controlled by the licensee adjacent to the licensed premises, unrelated to the
sale of into.,dcating liquor or three and two-tenths (3.2) percent malt liquor;
(I3 That the licensee had knowledge of illegal acts upon or attributable to the licensed
premises, but failed to report the same to the police;
(g) Expiration or cancellation of any required insurance, or failure to notify the city within
a reasonable time of' changes in the term of the insurance or the carriers.
(Ord. No. 299, § l, 3-13-00)
See. 10-38. Inactive license.
The city council may revoke the intoxicating liquor or three and two-tenths (3.2) percent
malt liquor license of any establishment granted a license that is not under construction and
exhibitin~ satisfactory progress toward completion within six (6) months front its issuance, or
any establishment that ceases operation for a period of six (6) months. A hearing shall be held
to determine what pro~m'ess has been made toward opening or reopening the establishment
and, if.satisfactory progress is not demonstrated, the council may revoke the license.
I Ord. No. 299, § 1, 3-13-00)
See. 10-39. Itearingnotice.
Revocation or suspension of a license by the city council shall be preceded by a public
'hearin~ conducted in accordance with Minnesota Statutes Section 14.57 to 14.70. The city
council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice
shall be Wen at least ten (10) days prior to the hearing, include notice of the time and place
of the hearing, and state the nature of the charges against the licensee.
(Ord No. 299, § 1, 3-13-00)
Sec. 10-40. Minimum civil penalties.
(a Purpose. The purpose of this section is to establish c,'iteria by which the city council
determines the len~h of license suspensions and the propriety of revocations, and shall apply
to all premises licensed under this article. These penalties are the minimum penalties
appropriate for most situations; however, the council may deviate in an individual case where
the council finds that there exist reasons making it more appropriate to deviate, such as, but
' I
not limited to, a hcensee s efforts in combination ~vith the state or city to prevent the sale of
alcohol to minors, when deviating from these standards, the council will provide written
findings that support the penalty selected.
Ib~ Jfi, imum penalties ~'or t'iolations. The minimum penalties for convictions or violations
are as follows (unless specified, numbers below indicate consecutive days' suspension);
Supp. No. 12
558
LICENSES, PERMITS, BUSINESS REGULATIONS
§ 10-40
Appearance
Type of Violution 2~d 3rd 4th
NA
1st
1. Commission of a felony re- Revocation NA NA
lated to the licensed activity
2. Sale of alcoholic beverages Revocation NA NA NA
while license is under sus-
pension
3. Sale of alcoholic beverages to 3 6 18 Revocation
under-age person
4. Sale of alcoholic beverages to 3 6 18 Revocation
obviously intoxicated person
5. After hours sale of alcoholic 3 6 18 Revocation
beverages
6. After hours display or con- 3 6 18 Revocation
sumption of alcoholic bever-
ages
Refusal to allow city inspec- 5
'tots or police admission to
inspect premises
8. Illegal gambling on premises 3 6 18 Revocation
9. Failure to take reasonable 3 6 18 Revocation
7. 15 Revocation NA
10. Revocation NA NA NA
steps to stop person from
leaving premises with alco-
holic beverages
Sale of intoxicating liquor
where only license is for three
and two-tenths !3.2/percent
malt liquor
(c) Multiple violations. At a licensee's first appearance before the council, the council must
act upon all of the violations that have been alleged in the notice sent to the licensee. The
council in that case must consider the minimum penalty for each violation under the first
appearance column in subsection (b) above. The occurrence of multiple violations is grounds
for deviation from the minimum penalties in the council's discretion.
(d) Subsequent violations. Violations occurring after the notice of hearing has been marled,
but prior to the hearing, must be treated as a separate violation and dealt with as a second
appearance before the council, unless the city manager and licensee agree in writing to add the
violation to the first appearance. The same procedure applies to a second, third, or fourth
appearance before the council.
(e) Subsequent appearances. Upon a second, third, or fourth appearance before the council
by the same licensee, the council must impose the minimum penalty for the violation or
violations giving rise to the subsequent appearance without regard to the particular violation
Supp. No. 12
§ 10-40
CHANHASSEN CITY CODE
or violations that were the subject of the first or prior appearance. However, the council may
consider the amount of time elapsed between appearances as a basis for deviating from the
minimum penalty imposed by this section.
(fl Computation of appearances. After the first appearance, a subsequent appearance by the
same licensee will be determined as follows:
(1) If the first appearance was within three (3) years of the current violation, the current
x'iolation will be treated as second appearance.
(2) If a licensee has appeared before the council on two (2) previous occasions, and the
current violation occurred ~vithin five (5) years of the first appearance, the current
violation will be treated as a third appearance.
(3) If a licensee has appeared before the council on three (3) previous occasions, and the
cun'ent violation occurred within seven (7) years of the first appearance, the current
violation will be treated as a fourth (4th) appearance.
(4i Any appearance not covered by subsection (1), (2), or (3), above will be treated as a first
appearance.
(g) Othcrpc~c~lties. Nothin8 in this section shall restrict or limit the authority of the council
to suspend up to sixty (60i days, revoke the license, impose a civil fine not to exceed two
thousand dollars ($2,000.00/, to impose conditions, or take any other action in accordance with
law; provided, that the license holder has been afforded an opportunity for a hearing in the
manner pro. vialed in this article. ~
lOrd. No. 299, ~ 1, 3-13-00i
DIVISION 3. RET.ML SALES REGULATION
Sec. 10-41. Right of inspection.
(a) Amy city designated police officer displa?fing proper identification shall have the
unqualified right to enter, inspect, and search the premises of any licensee hereunder without
a warrant, during business hours or when owners, managers, or other employees are located
on the premises.
(b) the business records of the licensee, including federal and state tax returns, shall be
available for inspection by the city at all reasonable times upon written request.
(Ord. No. 299, § 1, 3-13-00)
Sec. I0.42. Responsibility of licensee.
(a) Orderh, co,duct. Every licensee shall be responsible for the conduct on the hcen~ee s
place of business including conduct and activity attributable to the business on property owned
or controlled by the licensee. Every licensee shall also cooperate with the city in controlling
activity attributable to the business in surrounding areas.
Supp. No. 12
56O