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4. High Timber Lounge: Liquor License.1 MEMORANDUM CITY OF 4 CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Don Ashworth, City Manager 4, FROM: Karen Engelhardt, Office Manager DATE: May 2, 1996 Actiori by City Adniinl*ato7 Endorse Modified Rejected Dat 5— Date Submitted to Commission Bate Submitted to Council 47f� - (' -- 4? SUBJ: Request for an On -Sale Intoxicating Liquor License, The High Timber Lounge and Meeting Rooms, 575 West 78th Street, KDF Corporation; Public Hearing Al Schackman from National Lodging Corporat> can appeared before the city council in February regarding their desire to acquire an on -sale into! atin liquor license for the High Timber Lounge and Meeting Rooms in the old Animal-Fair building. They propose to construct a corridor from the hotel and to remodel the Animal Fair Building for meeting rooms (see attached site plan). They are trying to attract groups ;where a catered meal and liquor could be provided, The officers of the corporation are -.: °Jt7hnKlnkhammer from Chaska;.Victbni Nelson from Tonka Bay; Jerry Easley from Minnetonka; and Teri`an e P DeRo66—fi�orri Burnsville. The Public Safety Department has completed background uvesAgations on each officer, including criminal ' history, outstanding warrants, and driving record ',Ind has found no negative comments. A public hearing notice was sent to all property owners within 500 feet of the proposed liquor establishment and no comments have been received by this office. Mr. Don Ashworth May 2, 1996 Page 2 RECOMMENDATION I Staff recommends approval of the on -sale intoxicating liquor license request from High Timber Lounge and Meeting Rooms contingent upon receipt of the following documents: a $5,000 bond, ' certificate of liquor liability insurance, and a fee of $11,356. Once these documents are received, I will submit the application to the State of Minnesota, Department of Public Safety for final approval. ' u I _____________ I I I _ I I 1 i I I I I I f I � I la'/F- - 1 � I I I I I I ® I I i I I I I I I I 1 I I O o 11 l0 � 0 I 0 00000 p '�o �o .. w � x a.rrcr. uTaurf rumy .v fi.f f orfw l 011r .i, orfxl M Nrb...+ e. orn. w o.01 Il rti.�C.W Jv w,m.w, H. 0.0. tx ed e.rtvioy C.ur n. e.n r xu arv. 1>. Orew v. orIX tl.. o.IX OI01 U ' ar ' COMRIWR ROOMJ U O.IX U. 10'•WTtl4 fx' WN dl, Cluin U. .Y fm.f i24 G1 GO'Nand T.bb dl. H'Am.d T.ds Iv orIX Id orIX H. OIp 11 OIEI. ff. orm. n. o.fx1 )L O.PN )p. MIX 0!E}I awf Pw" Iw cMwf111ca RyMrM ftw a" L �m brothers, im C,AIIl=#n CQWTRY SUITES FOOD SERVICE EQUIPMENT AND DESIGN Chanhn MN xnT nxx w YM NATIONAL LODGING COMPANIES, INC. Banquet Rooms Lounge Meeting Rooms 1 CITY OF CHANHASSEN ' CARVER AND HENNEPIN COUNTIES, MINNESOTA NOTICE OF PUBLIC HEARING ' REQUEST FOR AN ON -SALE INTOXICATING LIQUOR LICENSE HIGH TIMBER LOUNGE & MEETING ROOMS, 575 WEST 78TH STREET NOTICE IS HEREBY GIVEN that the Chanhassen City Council will hold a public hearing on Monday, May 6, 1996 at 7:30 p.m. in the Council Chambers at 690 Coulter Drive, to t consider issuing an on -sale intoxicating liquor license to Country Suites Hotel, 575 West 78th Street, to sell intoxicating liquor for catered banquets, wedding receptions, and conferences; and to hotel guests and the public. Country Suites is requesting a license to sell liquor without food ' sales. All interested persons may appear and express their opinions regarding this application at ' said time and place. Chanhassen City Code requires that all property owners within 500 feet of the site be notified in writing. If you have any questions, please feel free to contact City Hall. ' Karen J. Engelhardt Office Manager Phone: 937 -1900, ext. 104 (Publish in the Chanhassen Villager on April 18, 1996) r oco American Oil Co. B.C. Burdick Chanhassen Inn P O. Box 3428 426 Lake Street 531 79th St. W. Oakbrook, IL 60522 Excelsior, MN 55331 Chanhassen, MN 55317 ' Chanhassen Retail Ltd. Prtshp Chanhassen Realty Co. c/o Weis Asset Mgmt. Inc., Ste 110 Mr. Russell Pauly t /o Mason Properties Suite 110 Pauly's Bar & Restaurant 589 Highway 7 3601 Minnesota Dr. 401 West 78th Street Hopkins, MN 55343 Minneapolis, MN 55435 Chanhassen, MN 55317 k obert Dittrich John Dorek, et al John M. Havlik, Jr. 1827 Crestview Dr. Chanhassen Bowl Box 195 F ew Ulm, MN 56073 P.O. Box 513 Chanhassen, MN 55317 Chanhassen, MN 55317 'Heritage Park Apts. Philip & Nancy Hillman Holiday Station Stores, Inc. c/o Thies & Talle Mgmt, Inc. c/o Tom & Kay Klingelhutz 4567 80th St. W. W. 78th St. Box 25 Rt. 3, Box 118A Bloomington, MN 55437 3 70 hanhassen, MN 55317 Annandale, MN 55302 erald Schlenk, Jean Von Bank Arthur & D. Kerber Al H. Klingelhutz ary Goetze 511 Chan View Gerald W. Schelnk 225 W. 78th Street Chanhassen, MN 55317 8600 Great Plains Blvd. i chanhassen, MN 55317 Chanhassen, MN 55317 Thaddseus E. Korzenowski Thomas J. and Mary Lou Krueger Market Square Associates Ltd. t 15 3rd Ave. S. 7136 Utica Lane Partnership inneapolis, MN 55419 Chanhassen, MN 55317 200 W. Highway 13 Burnsville, MN 55337 l Amy Roberts Minne asco Inc. g � Mithun Enterprises, Inc. Lodging Co. 201 7th St. S. 900 Wayzata Blvd. E. I ational 855 West 78th Street, Suite 220 Minneapolis, MN 55402 Wayzata, MN 55391 Eden Prairie, MN 55344 l Zalph G. Molnau Gary L. Brown Gale P. Pelcl Ronald F. Dubbe 1831 Koenen Cir. W. 505 Chan View S6 West 3 V Street Excelsior. MN 55331 M Chanhassen, N 55317 ll chard & Mary Rasmussen Richard S. Brose, Et Al Gerald W. & L. Schlenk 03 Chan View c/o T.F. James Co. 225 W. 78th Street Chanhassen, MN 55317 P.O. Box 24137 Chanhassen, MN 55317 ' Minneapolis, MN 55424 ark & Rose Ann Schlenk Michael J. Sorenen State Bank of Chanhassen 15 01 Chan View, P.O. 145 Rt. 2, Box 187K 680 W. 78th St. Chanhassen, MN 55317 Belle Plain, MN 56011 Chanhassen, MN 55317 Richard W. Steiner, Jr. P.O. Box 1717 Whitefish, MT 59937 Waterfront Associates 440 Union Place Excelsior, MN 55331 Twin Cities & Western Railroad 2995 12th Street East Glencoe, MN 55336 Valvoline Instant Oil Change Dean Wallentine 301 Main St. E. 507 Chan View Lexington, KY 40507 Chanhassen, MN 55317 Charles R. Wechterman Wilbar Properties Shelly E. Mehl - Wechterman 7811 Great Plains Blvd. 509 Chan View Chanhassen, MN 55317 Chanhassen, MN 55317 11 E I MEMORANDUM L CITY OF q CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 * CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: February 21, 1996 SUBJ: Consider Request from Country Suites Hotel to Amend City Code to Allow On -Sale Intoxicating Liquor Sales without Food Sales, Al Schackman, National Lodging The ownership group of the Country Suites Hotel has entered into a purchase agreement with Bloomberg Companies to buy the building directly to the east of the hotel (old Animal Fair building). They would propose to construct a corridor from the hotel and to remodel the Animal Fair building for meeting rooms (see attached site plan)._ As the plan indicates, the area would be sufficient for one large group or four smaller groups including an area where food could be brought in and catered to any one of the four rooms. I'm aware of the fact that many of our local businesses desperately need meeting rooms. The need is 'large enough for them to have contacted Country Suites and inform them that they will probably have to reduce their room commitments during the course of the year if meeting space is not provided within reasonable proximity of the hotel itself. The hotel owners believe it is critical to also have an area where conference or training session participants can socialize at the end of the day. They are proposing that the Fireplace Room be used for this purpose (again, see site plan). Country Suites is requesting that the building they will be acquiring /remodeling be allowed to serve liquor in a similar'` fashion as exists for the dinner theater. They would abide, by all of the rules established for an exclusive liquor establishment (bar); i.e. participants would not be allowed to take drinks back to their room, there would be no room service from the bar to rooms; etc. Most of the elements necessary for the hotel owners to be able to obtain a liquor license are in place, i. e. the proposed bar area would be separated from the hotel, the Animal Fair building is a separately legally described parcel, and the two facilities would be managed separately. The license being sought by the hotel group would be for an exclusive liquor establishment (bar). They would not be regularly serving food as part of the bar business. During the time frame that the Pony Express was licensed in Chanhassen, their classification was that of an exclusive liquor Mayor and City Council February 21, 1996 ' Page 2 the Pony Express was licensed in Chanhassen, their classification was that of an exclusive liquor ' establishment. Currently, Chanhassen Bowl also has that type of license. Tonight's action is not approving an exclusive liquor license for Country Suites, but instead, an ' indication by the City Council as to whether this concept is acceptable and whether the partnership should go through the time and effort to make formal application. If the City Council ' did approve the concept, I would have the City Attorney's Office verify that no other code sections would be violated and to draft the necessary conditions to ensure that the ownership was being established under state guidelines and with the conditions established locally. ' Although Country Suites will be applying for an exclusive liquor establishment designation, staff considers the potential of this operation creating some form of problem for the city or citizens ' would be far less then for a typical bar. Accordingly, staff would recommend conceptual approval. I I City Council Meeting - February 26, 1996 ' Todd Gerhardt: This district goes for another 9 years. ' Mayor Chmiel: 9 years. It's a total of 11. Okay. I don't have any questions on this either. I think what Mark said, basically would have been my sentiments if we didn't move on this. It would be the city's loss as well so I'd like to entertain a motion again. ' Councilman Berquist: I would move approval of the private redevelopment contract with CSM and the City of Chanhassen. Is there a motion back here somewhere? ' Mayor Chmiel: Yeah. Councilman Berquist: For a redevelopment agreement with CSM Corporation and their request for $401,914.60 ' in city assistance, and an amount not to exceed $140,000.00 plus $22,400.00 interest for reimbursement to the construction of Dell Road. t Mayor Chmiel: Is there a second? Councilman Mason: Second. Councilman Berquist moved, Councilman Mason seconded to approve the Private Redevelopment Agreement svith CSM Corporation and their request for 5401,914.60 in city assistance and an amount not to exceed S140,000.00 plus S22,400.00 in interest for reimbursement of the construction of Dell Road. All voted in favor ' and the motion carried unanimously. CONSIDER REQUEST FROM COUNTRY SUITES HOTEL TO AMEND CITY CODE TO ALLOW ON ' SALE INTOXICATING LIQUOR SALES WITHOUT FOOD SALES AL SCHACKMAN NATIONAL LODGING. Don Ashworth: Thank you Mr. Mayor. Ownership group for Country Suites has a purchase agreement with ' Bloomberg Companies to purchase the old Animal Fair building. They feel that it's critical to their business to be able to establish meeting rooms that would go along with the hotel. They've attached a site plan of how they would do that. In the process of analyzing their needs, they feel that this type of a facility where you're ' bringing people in during the course of the day for seminar and conference type of thing, that they would like to be able, at the end of that day to allow people to literally stay in that building and socialize, meaning they would like to be able to serve liquor to those people who had attended whatever function during the course of the day. In discussing this item with the City Attorney, there's several ways we could approach, actually ' modifying the existing ordinances so as to allow the license to actually be issued to conform with State Statute. However the basic question is really one of, is the City Council in agreement with the general idea that Country Suites is presenting so that before I ask Roger Knutson's office to go through expense in terms of having them ' make out the application, doing modification ordinances, that we have some sense that the Council generally supports the concept. So you are not approving this item tonight but more or less telling me whether or not I should have the City Attorney proceed with the ordinance modification and whether the Country Suites people ' should be invited to go through the more lengthy application process. And again, Mr. Schackman is here. I've asked him, if you make a presentation, if it could be brief. Mayor Chmiel: Good. Mr. Schackman, would you like to do that please? w City ouncil Meeting - February 26, 1996 t g ry Al Schackman: Mr. Mayor and members of the Council. My name is Al Schackman and I'm with the development and construction for National Lodging Companies. I'm not a stranger to Chanhassen. I recently expanded our 84 room hotel to 120 rooms and the request we have today is merely a further extension of ' additional services that we anticipated all along. I'm not sure how familiar all of you might be with National Lodging Companies. We're a full service hotel development, acquisition and management company based in Eden Prairie. National Lodging Companies sounds like some large national or international conglomerate and ' that we are not. We are a closely held corporation that dates back to about 1987. At that time John Klinkhammer, the current Chairman of the Board, developed or opened an 89 room motel in Coon Rapids, Minnesota. It was a Travel Suites Motel, and it was a new concept. It was limited service hotel and it had a ' totally radical concept in terms of the mix of rooms that were being offered and that hotel caught the attention of the Carlson Company and within a month of it's opening, it became the first Country Suites Hotel by Carlson. That effort now, through Carlson's franchise efforts and others, has grown to I think about, approximately 65 similar hotels nationwide. The significance here is that the first one was Coon Rapids, was , developed by the Chairman of our company and subsequently then motels were developed in Fargo, and I think it was in '89 and '91 when the original 84 room hotel opened here. National Lodging today has 4 hotels that we own. We own 5 hotels. Chanhassen, White Bear Lake, Hopkins, Fargo and Minot. We manage 13 hotels in , total encompassing about 1,200 motel rooms. So if that helps to understand a little bit what National Lodging is and may clear some things up. I've gone to other meetings where people have talked of National Lodging Company was in fact some large company based some place else and doing business worldwide. We're not. We're home grown independent business people. We currently have six hotels in various stages of development, ' Another one in Coon Rapids, Anoka, Hastings, Minneapolis, Vandais Heights and Cripple Creek, Colorado. So that's a little bit about what we're up to in addition to what we want to do here. Per the staff report our purpose here tonight is to continue rounding out the services necessary to solidify and strengthen our lodging position in ' Chanhassen. This is not an idea that just came to us recently. It was an idea that was integral with our planning when we went into the expansion to go to 120 rooms and our plans will represent that. I will make this brief but I do have 3 boards that are intended to illustrate how we're going to function. And these are done ' for purposes of communication and hope that it does that. This board, I'm positioning this so that if you were standing across West 78th Street on the curb, you'd be looking at the front of the building. The original hotel structure is that portion from there over. That's the original 84 rooms. We created a connecting link between that and built the 36 room addition here and then this cross hatched building, the Animal Fair building that this , proposal is based on. When this is done it will be a block long development from there to here and this will be connected. Lounges, meeting rooms and banquet space are not new to our hotel effort. We have lounges in four of other hotels with liquor license and they do a lot to strengthen the effort that we are making by ' providing expensive banquet rooms and expensive meeting rooms. This board then is smaller but it gives you a little bit more of a close up. It only shows a portion of the 84 room motel with the swimming pool in blue, the connecting link that is used both for access between the two hotel buildings and the additional seating ' capacity for our continental breakfast effort and it also will become some pre- function area for the meeting rooms that are going to occur here. The design of the additional 36 units included an interior walkway that now terminates at this edge of the building, and that was designed anticipating an eventual deal to connect here. This plan then shows another connecting wing here and we enter into the building and avail ourselves of various ' services there. The final, the green areas indicate just that. Those are the areas that separate the building. Those are the court yards that remain unfinished. We weren't able to get all our plantings in before freeze up and we opened December 20th, so we have a large opportunity to embellish. We have a letter of credit with the ' city for $10,000.00. We've got plenty of money to glorify that. This then shows the additional green space that we've provided. Now this drawing is colored in, not to suggest carpet colors. But merely to illustrate a little bit more clearly from where you sit, and I'm going to put it on it's side because this now then orients it the same way. If you were standing across the street, this is the way you'd be looking at it. We don't have it all on this ' 10 1 E City Council Meeting - February 26, 1996 drawing but we would access through another causeway here, into a service area of the buildin g with a men's and women's, where the men's and ladies' restrooms are. A very convenient accessway into the banquet and ' meeting rooms and into the lounge there, here and here. Mayor Chmiel: For just the viewing audience, people that are looking at it, that was the old Animal Fair. Al Schackman: That is the old Animal Fair building. This, just what this does physically for us is it provides the ability to provide a number of services to our customers and the public. We can seat 64 people in this area. 50 here. 24 and 30 so we have about 150 people who can be seated at banquet tables at one time here and if ' we went to auditorium type seating or rectangular banquet tables, we could conceivably have more. The lounge area seats about 67 people so that itself could also be used as a function here. This plan shows the location of the bar. The existing fireplace accessing here. Table seating. A lounge in front of the fireplace. Easy chairs. ' And the fire equipment is all identified here. This portion of the building I think is to service the meeting rooms and that's the catering kitchen so to speak and where food can be brought in, broke down, set up for display and served to large groups. Conceptually that's what we're doing. Why is it important to us? Number one, it's no small fact in our mind that we look at this hotel as being a flagship of our effort. It is. It's a hotel that out performs all of the other hotels in the chain. It's one that we're proud of. It's one that produces a better than industry averages. So from that standpoint we want to round out the service the same as we have in Fargo, White Bear Lake, etc. This 120 rooms represents a very significant investment for us. We have development ' agreements to take at a minimum the value for real estate tax purposes of $2 1/2 million on the original 84 rooms. $1.3 million on the addition so we're a significant taxpayer. And the perpetuation and solidification of this operation is very important. Another reason that's important to us is that the meetings and banquets ' encourage extended stay and thereby enhance our occupancy. They fill rooms that would otherwise be vacant. It provides a marketing edge for us. We have more to sell. And it will strengthen our overall application so those are some of the reasons it's important to us. In terms of importance to the city, this function would have ' provided for the rehabilitation of a portion of a very aged, run down building that can certainly stand rehab. It will, from the city's standpoint, provide a first class service highly in demand. It will strengthen the viability of the downtown businesses. It fits in with the conceptual plan for downtown redevelopment. It provides an additional downtown location for fraternal business, social, religious meetings and most certainly for weddings. ' So in a quick nutshell, that's what we're doing. That's why we're doing it. That's why we think, and why we know it's important to us and why we think it's important to the city. I'm available for any questions you may have and with that we respectfully request your concurrence that this concept is worthy and that we can move ' on with our plan. Timing is important to us. We need to keep moving. Lost opportunity exists in every day we ... that goes by. I appreciate your attention. I'm here for any questions. Mayor Chmiel: Thank you. Steve, do you have any questions? Councilman Berquist: Yes sir. I do have a couple. You mentioned, what's your last name again sir? ' Al Schackman: Schackman. S- c- h- a- c- k- m -a -n. Councilman Berquist: Mr. Schackman, you mentioned you have 8 hotels nationwide? Nationwide, your ' company has 8 hotels, is that correct? Al Schackman: No. Our company now owns five hotels. Councilman Berquist: Five hotels, four of which have liquor and this one does not at this point. I 11 City Council Meeting - February 26, 1996 Al Schackman: Right. Councilman Berquist: You've got an entrance, the existing entrance to the building will remain an entrance. Is it the plan to. Al Schackman: Are you talking about this entrance? Councilman Berquist: Yes. Al Schackman: Yeah. This plan shows a modification of it and please appreciate that these are early on conceptual. Councilman Berquist: Well the question is, if I wanted to walk in there and enjoy the lounge and I wasn't a guest at the hotel, I have that ability? Al Schackman: Absolutely. Councilman Berquist: Anyone can walk in there and partake if they so choose. Al Schackman: Absolutely. Councilman Berquist: Okay, that was one question. Let's see here. Well I can't think of a hotel that I've been in that did not offer some form of a lounge area. The ordinance modification expenses. On the back of the city? Don Ashworth: Typically. Councilman Berquist: Okay. That's all the questions I have. Mayor Chmiel: Alright. Colleen. Councilwoman Dockendorf: Well my only question was, Steve's as well, just further clarification. You plan on this being open at all times, not just specifically related to conferences? I mean it will be a functioning bar open to hotel clientele at all times? Al Schackman: Yes. Yes it will. Councilwoman Dockendorf: And also open to the public. Al Schackman: And also to the public, yes. Now under whatever hours are permissible by ordinance and by law. And we certainly aren't going to expand on that. We may contract that somewhat. Councilwoman Dockendorf: Are you planning on doing advertisement as such as a new bar in town or is it, be more low key just really geared to your hotel clientele? Al Schackman: Well our promotion and our marketing effort would be to market it as a full service banquet and conference facility. So the emphasis will not be on liquor. The emphasis will be on the full function. No, 12 F City Council Meeting - February 26, 1996 we don't intend to operate a specific purpose bar. Now certainly it's a money making venture but we're not creating a place for the hand around's to sit from the time they open until the time they close. That's a part of the business. We like the idea that the amendment to the ordinance and the restrictions under law prohibit us from room service in the hotel and prohibit anyone from taking drinks off of this licensed premise. And that makes it a lot easier for us to manage and we believe manage a clean house. If we didn't do that, the rest of our business would suffer. Councilwoman Dockendorf: Okay. I Mayor Chmiel: Michael. Councilman Mason: Well my questions were the questions that have been stated. Obviously there's going to be some discussion. Yeah, I have some concerns about general public and guests and whether we want to open a new bar in town but my specific questions have been answered so we'll wait on that, thanks. J J Mayor Chmiel: Okay, Mark. Councilman Senn: Question wise, just one I guess that hasn't already been asked. How do you, I guess how do you plan on stopping your hotel patrons from taking liquor back? I mean, you know to me that puts you in a situation you're never going to be able to enforce. I mean what are you going to do, tell hotel guests no you can't? Al Schackman: I'd be foolish Councilman Senn to say that there won't be bar people who may intend to do that but we're going to manage it to the extent that we're not going to allow the glasses to be carried to the pool. We're not going to allow people that we knowingly see taking drinks to their rooms. And that's the way we manage. But I'd be more than foolish if I tried to convince you that someone wouldn't tuck one under his coat when he walked out. That may happen. We're going to police it to the fullest extent that we can possible. We are prohibited by law in serving liquor in any other portion of this property than this premise. This is what would be licensed and we're going to do everything we can to not be in violation of any of the restrictions on our activity. From the standpoint of complying with law and also from the standpoint of attention to detail and managing our business. We don't seem to have a problem with that in other locations. At least we have not had any incidences where it's come to our attention that there's been any brushes with the law or any hotel patrons or hotel guests who may have caused a raucous because of it. It gives us teeth in our policy. Councilman Senn: The rest I have is for discussion. Mayor Chmiel: The other thing, just one other thing with that. The time that's being spent on this Don, and cost associated with this. Would this be picked up by the proposer? Don Ashworth: The Council could establish that as a condition. I see most of the cost being associated with the hotel themself in the actual preparation of the application. Most of the work completed by the City Attorney's office is going to be in terms of verifying that there won't be any other ordinances I think the Council may recall 4 -5 years ago we established zones in that area and I think there needs to be some additional research as to whether or not those zones need to be modified. Maybe it was less time than that. Maybe it was 2 to 3 years but generally when you make those kinds of, I'll call it general ordinance amendments, the city typically stands behind it. You should also realize there will be a fairly good fee associated with this. I mean 13 City Council Meeting - February 26, 1996 we're going to come out very well. If Council would like, I think it's fair to say that I can ask Roger's office to ensure that costs associated with modification would be kept under $500.00. ' Mayor Chmiel: Okay. So we're at a point whether this concept is acceptable. And whether the partnership should really go through that time and effort to make a formal application. If Council does approve the concept, ' as Don has mentioned, we would have the City Attorney draft the necessary language to either accept or not accept, according to Council's wishes. So with that, is it consensus to proceed with that concept? Councilman Berquist: I would be in favor of them pertaining a liquor license application. ' Mayor Chmiel: Colleen. Councilwoman Dockendorf: As would I. I mean it's not inconsistent with what the Dinner Theater allows and I ' think it's part of hotel business. Mayor Chmiel: Mike. ' Councilman Mason: I would agree. Mayor Chmiel: Mark. ' Councilman Senn: I guess I have to say this isn't what I expected tonight. I mean basically, based on the ' information we have in the report, I really thought what we were dealing with here was something that was going to be tied to the meetings and conferences. You know a place for people after meetings and conferences to meet afterwards, as it says in the report and stuff. You know I guess I've said it in the past and I guess I'll say it again, generally I have some concerns over granting additional liquor licenses without food service and ' that effectively is what we're opening the door here to. And I guess lastly, if I can work through those problems and make it work, I guess I have a real hard time understanding how we can say yes to something like this when we just said no to a local restaurant who wanted liquor. ' Mayor Chmiel: A little different location. Councilman Senn: Well, a little different location. You know a lot of the same concerns. I mean I heard ' concerns about kids being around the shopping center. Well I can tell you, I've stayed in this hotel and there's a ton of kids around this hotel all the time. Especially on weekends. And stuff like that and I just have a real hard time separating where we draw the line on those sort of things. ' Mayor Chmiel: Well that's normally why Council makes those decisions as they do. I guess, pardon. Yes Al? Al Schackman: I believe I might comment, respectfully Councilman Senn. We're not proposing anything ' different than any other large, similar hotel would not be requesting. And in terms of setting a precedent, and I appreciate that it does that. However, I think restrictions could be placed on this approval whereby it's only by virtue of the 120 room adjacent hotel that this action would be taken. The other point that I'd like to make is ' that we would not do the conference and meeting rooms unless we had the lounge service available. Not at this location. Economically it just doesn't work for us. We need the influence that that lounge will have in enhancing longer stays and promoting conferences where we have people occupying rooms that would not ' 14 1 L t r City Council Meeting - February 26, 1996 otherwise be occupied. It's a service that's necessary for us to move ahead with the proposal. So that, I think I've given you all the information I can to base your deliberations on. Councilman Senn: Well, I'll take exception with your remark because I've stayed in many, many limited service hotels, none of which have lounges. Limited service hotels... say, I find lacking lounges as much as I find having them so to say that all hotels of this size have major lounges I think is a mis- statement. A] Schackman: I think it is a mis- statement. What I meant to say is that all hotels of this size that have significant meeting room space. Banquet space. Mayor Chmiel: Michael. Councilman Mason: Considering what I'm sensing from the rest of the Council, I think that's kind of a moot point anyway at this point. Councilwoman Dockendorf: Well I do have a question however of our attorney. Can we put any limitations on how advertising is done? My concern is that you'll want to go head to head with Pauly's or one of the other bars. Al Schackman: I guess I'll stand here before you and stake my professional reputation on the statement that we're not going to have glitzy beer signs in the windows. We're not going to advertise hot dogs and brats with your ... It's totally a different operation. Councilwoman Dockendorf: But can we put any kind of stipulation? Mayor Chmiel: Sure we can. Elliott Knetsch: We can be more restrictive than State law when it comes to liquor licensing. Advertising is an area that is now regulated by the State but I don't think that's an area, because of First Amendment concerns, that we could, you can't say no 2 for 1 advertising. That sort of thing. But you could address it in other ways, such as hours that it could be open. Things of that nature which would try to be, allow it to be used for the conference banquet type things but perhaps not open the full range of hours that bars are. Mayor Chmiel: Okay. I guess Council has given their position on this and we'll proceed with that and come back with something to see whether or not it's going to be fully accepted by Council. So I guess the next procedure would be to provide that information back to us. Okay. AI Schackman: I'm leaving here then... that we have Council's concurrence that the concept is workable for the issuance of the license? Mayor Chmiel: Until the final issuance of that license and full review of it prior that time, yes. Al Schackman: Thank you for your time and attention. Looking forward to continuing to work with... strengthening business here in Chanhassen. Mayor Chmiel: Good, thank you. 15