5. Chanhassen Bowl: Renewal of Liquor License.1
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CITY OF '
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • C r= 1HASSEN, MINNESOTA 55317
(612) 937 -1900 •FAX (s <A'. 937 -5739
MEMORANDUM
' TO: Don Ashworth, City Manager
FROM: Karen Engelhardt, Office Manager. °
DATE: April 18, 1996
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SUBJ: Request for Renewal of On -Sale Intoxicating Liquor License, 581 West 78th
Street, Chanhassen Bowl, Inc., Dan Dahlin
As you may recall, the Chanhassen Bowl's liquor license renewal was not considered in March
because they had not submitted the necessary documentation. All of the paperwork has now
been received except for the $5,000 surety borO, which is in progress.
The background investigation conducted by the Public Safety
found no negative comments. However, in checking with the
that there is approximately $400,000 in delinquent taxes again
of City Code states that, "No license.required by this division
operation on any premises on which! taxes, assessments, or o ;
are delinquent and unpaid." Attached is a letter from the Cha
the upcoming changes at the Bowling Center with the develop
Center. They indicate their willingness to pay the first half of
May 1; and that the delinquent taxe 's will be "paid "as apart of
Center. The Chanhassen Bowl is requesting a W' aiver from the
be paid prior to renewal and approval of their liquor license.
Department on the applicants has
County Auditor's office, we find
st the property. Section 10 -55(a)
shall be granted, or renewed, for
ther financial claims against the city
nhassen Bowl's attorney explaining
ment of the new Entertainment
the current years taxes on or before
I
nancing for the new Entertainment
City Code requirement that taxes
Managers Comments: The city attorney advises me that`the section under city ordinance
requiring full payment of property taxes is discretionary on the part of the city council.
Specifically, the council could use this section to revoke or not renew the Bowling Center's
liquor license. However, should the city council that the owner should have an
opportunity to see if he can obtain the financing for his portion of the Entertainment Complex,
the council could approve the license for a six month period or some other term. In my own
mind, it seems more logical that Mr. Dahlin be given that opportunity to put together financing,
and thereby pay off the delinquent taxes, versus placing him in further financial straits by
revoking the license. Approval of extending the license for six months on the condition that full
payment of property taxes be made within that six months is recommended.
P
LICENSES, PERMITS, BUSINESS REGULATIONS § 10 -107
edge 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.
(Ord. No. 2H, §§ 9.02, 9.06, 9.07, 4- 19 -82; Ord. No. 2 -I, § 4, 2- 14 -83)
State law reference —Bond, § 340A.412, subd. 2.
Sec. 10 -105. Proof of financial responsibility.
(a) In addition icy r2.6S faond c1 ..„ �r security xwC�'tiF <e4t. 1nC:,ha se( } `';,a 1 0 0 4 pr ior � Ghka
issuance or renewal of an on -sale or off- sa�,.,�� intoxicating liquor license, tine applicant shall file
with the state � )n.,.- iissioner of public. „ayky and the city proef of fir .. 1 responsi'r)ility with
regard to liability imposed by Minnesota Statutes section 340A.801, as a condition of the
issuance or renewal of his license. Proof of financial responsibility shall be given by filing a
certificate of compliance with Minnesota Statutes section 349A.409. Any liability policy
required by this section shall provide that it may not be cancelled without first giving ten (10)
days' notice to the city in writing of intention to cancel it, addressed to the city clerk.
(b) The operation of an off -sale or on -sale licensed business without first having on file at
all times with the city proof of financial responsibility as defined in this section shall be
grounds for revocation of the license. Failure to file with the city replacement proof of
financial responsibility as defined in this section within ten (10) days of receipt by the city of a
notice of cancellation of any insurance policy furnishing such proof of financial responsibility
shall be grounds for suspension of the license until such time as such proof of financial
responsibility has been filed with the city. Operation of an off -sale or on -sale business during
the period of any such suspension shall be grounds for revocation of the license.
(Ord. No. 211, § § 9.03, 11, 4- 19 -82; Ord. No. 2 -I, § § 5, 7, 2- 14 -83)
State law references — Liability insurance, M.S. § 340A.409; license revocation or sus-
pension, M.S. § 340A.415.
Sec. 10 -106. Approval of bond, insurance, etc.
The bond or other security and the proof of financial responsibility required by this
division shall be approved by the city council, and, in the case of an off -sale intoxicating liquor
license, by the state commissioner of public safety.
(Ord. No. 2 -I, § 6, 2- 14 -83)
Sec. 10 -107. Persons and premises ineligible.
(a) No license required by this division 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.
(b) No license shall be issued for premises owned by a person to whom a license may not
be granted under the provisions of state law, and no license shall be granted to or held by any
person made ineligible for such a license by state law.
(c) 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.
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tPR.- 18'96JflU) 11:19 1100 LAW CENTER TEL :6122238151
' Rummel Law .Firm, LTD
'
Suite 11oo, capital Contre
386 North Wabasha E treet
5t, Paul, Minnesota 5E102
Te!- (612) 223.8100
'
Fax (612) 2-23 -8151
April 18, 199r
' The Honorable Mayor &
City Council
City of Chanhassen
' 690 Coulter E7 ^ive
P.O. Box 147
Chanhassen, N13 55317
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Attorneys at Law
RE: Chanhassen Bowl Liquor License
Gerald C. Rummel
Dear Mr. Mayes & City Council Members:
I am writing you in behalf of my client regarding the renewal of
P. 00?
its liquor license.
Daniel Dahlia has been the owner and operator of the Chanhassen
Bowl for a number of years. At times he has had severe financial
struggles to keep the business open and which resulted at times in
his inabilit - q► to pay the real estate taxes on the property.
As you are ai� Mr. Dahlin and others, Including Russ Pauly, are
in the proce.3s of doing a private development of what is known as
an Entertair. Center with help from the City through TIF
District No. 4. A lease has now been finalized with Russ Pauly
wherein he will be commencing to build out in the bowling center
property a new restaurant. The space he will be leasing is now
occupied by what is now known as "fillies" and the "Backstretch Bar
and Restaurant". He plans to commence work to build out this new
restaurant June 1996 and have it completed by August - September
1996. Mr. Dahlin and the other participants in the development of
the Entertainment Center are now proceeding to obtain financing for
the redevelc?pment with a new facade, boardwalk, and parking
facilities. The present time table is to have this financing
completed by June 15 1996. In order to obtain such financing, any
unpaid real estate taxes must be paid at that time.
My client i;> respectfully requesting that you renew his liquor
license so es to enable him to continue to operate "Fillies" and
the "Backstretch Bar and Restaurant" for the next few months while
Russ Pauly i:: building his new restaurant. Mr, paulys license then
would be re_-ocated and the liquor license of my client would be
terminated. In addition to my client paying the normal licensing
APR. -18' 96 MU) 11:19 1100 LAW CENTER
TEL:6122238151
fees, furnishing proof of insurance, and the standard bond he will
also pay on o:- before May 1, 1996 the first half of the real estate
taxes payable in 1996. He then would be willing to have you review
the matter or his license on June 15, 1996 if the unpaid real
estate taxes Eor previous years has not been paid in full through
the planned financing as outlined above
Very truly ycrars
Rummel Law Firm, LTD
Gerald C. Rurtmel
GCR:pjb
P. 003
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