4 Liquor License FeesCITYOF
CI I SE
690 CiO, Ce,ter Ddve
PO Box 147
Chanhasse,, Mi, nesota 55317
Phone
952.93Z 1900
Ge, eral Fax
952.93Z5739
Engineering Department Fax
952.937.9152
&dlding Department Fax
952.934.2524
Web Site
u,mt~ d. c]m,hasse,, m,. ns
MEMORANDUM
TO:
Scott A. Botcher, City Manager
FROM: Karen Engelhardt, Office Manager
DATE: March 30, 2001
SUB J:
Public Hearing Concerning Raising Certain Liquor License Fees
On February 26, 2001, the City- Council considered establishing liquor license
fees for 200 i. The Council directed staff to schedule a public hearing and notify
affected license holders of the potential increase. Mayor Jansen nan'owed the
notification process to only the on-sale beer and wine license holders and the
on-sale 3.2 malt liquor license holders, as the other license fees seemed to be
more in line with other communities (survey attached). Staff notified affected
license holders 30 days in advance and published a notice of public hearing in
the Chanhassen Villager on March 29, 2001.
Setting liquor license fees is at the Council's discretion; however,-State statute
requires that the fee for an on-sale beer and wine license may not exceed
one-half of the license fee charged for an on-sale intoxicating license, or $2,000.
whichever is less. In Chanhassen's case, S2,000 would be the maximUm fee
allowed for an on-sale wine and beer license. No state statute restrictions apply
for 3.2 malt liquor licenses.
Staff is requesting adoption of a resolution establishing the fees for 2001.
g:\usefikaren\liquor~raising fees 2001.doc
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE OF PUBLIC HEARING
TO CONSIDER INCREASING LIQUOR LICENSE FEES
NOTICE IS HEREBY GIVEN, that the Chanhassen City Council will hold a public
hearing on Monday, April 9, 2001, at 7:00 p.m. in the City Council Chambers at 690 City Center
Drive, to consider increasing license fees for on-sale beer & wine licenses and on-sale 3.2 beer
licenses.
All interested persons may appear and express their opinions regarding this application at
said time and place. 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 Chamhassen Villager on March 29, 2001)
Public Hearing Notices Regarding Raising Liquor License Fees was sent to the
license holders below on March 6, 2001.
ON-SALE NON-INTOXICATING LICENSE (3.2 Beer)
· Bluff Creek Golf Association, 1025 Creekwood Drive
· RSS Golf. 850 Flying Cloud Drive
ON-SALE BEER & WINE LICENSES
Na's Thai Cafe, 566 West 78th Street
Byerly's Restaurant. 800 West 78th Street
· Guy's. Inc.. 7874 Market Boulevard
· Happy Garden Restam'ant. 2443 Highway 7 West
$280
$280
$280
$280
$280
$280
City Council Meeting - February 26, 2001
CONSENT AGENDA: Councilman Ayotte moved, Councilman Kroskin seconded to approve the
following consent agenda items pursuant to the City Manager's recommendations:
Resolution #2001-11: Approve Resolution Supporting the Use of 2001 CDBG Funds in the
Villages on the Ponds and Santa Vera Apartments.
c. Approve Findings of Fact, Variance 00-14, 960 Carver Beach Road, Anita Benson.
d. Approve A~nended Development Contract for Arvidson's Addition, Project 00-12.
e. Approval of Bills.
Approval of Minutes:
- City Council Work Session Minutes dated February 12, 2001
- City Council Minutes dated February 12, 2001
Receive Com~nission Minutes:
- Park and Recreation Commission Minutes dated January 23,2001
All voted in favor and the motion carried unanimously 4 to 0.
B. APPROVE RESOLUTION ESTABLISHING 2001 LIOUOR LICENSE FEES.
Mayor Jansen: Councihnan Kroskin, you removed item 1 (b) from the consent agenda for separate
discussion. -
_
Cotmcillnan Kroskin' Yes. I ~,as looking at the spreadsheet for on-sale beer and wine, as xvell as the on-
sale non-intoxicating and I guess I'd like a little bit more input, and just looking at the spreadsheet as far
as the averages. I didn't run the numbers but just by eye-bailing it, the averages of some of the other
cities on the spread sheet, and I just saw a bit ora discrepancy that we're running on the wine license fee,
you know it looks like we've got an average of $900 roughly with the other cities and we're at about
$280 and I'm looking at an average on the 3.2 of you know maybe $500-$600 and we're at $280 and I
xvas just, I'd like to have some discussion on that as far as maybe getting our license fees a little bit more
in line there. I wanted to get some feedback from my other councilmen.
Mayor Jansen: I actually looked at that same issue when I went through this and the average on the 3.2
beer came out to ahnost $400, and your average on the wine license was about the same. And part of
why I did take a look at that was staff noted that we have not had an increase in the fees since 1994 so
just looking for whether or not we're being consistent with the other communities, and whether or not
there was any roo~n for adjustment, it does appear that the on-sale intoxicating fee is certainly reasonable
as far as not doing an adjustment there. Are there other council people with comments? On those two
issues. Are you co~nfortable with the fee? Would you be.
Councihnan Labatt: I'm not opposed to putting us more in line with the average. I certainly don't think
we should be the leader in license fees but I'm not opposed to meeting the average.
Mayor Jansen: Okay. Any comment?
Ci~, Council Meeting - February 26, 2001
Couneihnan Ayotte: I don't have all opinion one way or the other. I don't have enough information
really to see why there is that disparity. There's got to be a reason for it, but I don't know what that
reasoI1 is.
Mayor Jansen: Okay. Cotmcilman Kroskin, do you have any recommendations as to tile fee amount?
Councihnan Kroskin: Well if, did you just say you did do the math on the wine license fee?
Mayor Jansen: Yes. The average is $994 of the other 9 communities listed.
Councilman Kroskin: And xvhat was tile 3.2?
Mayor Jansen: Was $392.
Councilman Kroskin: Well, you know maybe a 50% increase on tile 3.2 beer fee and then 100% increase
in the wine license fee fi'om where we are right now.
Mayor Jansen: Staff comment?
Scott Botcher: It's certainly a policy call.
Councihnan Kroskin: We're still, even at 100% increase on tile wine license we're 50% of the average.
Scott Botcher: Here's the rationale behind it, and this certainly changes fi'om council to council and it's
been since '94 so it probably needs to be addressed. But this has been tile rationale. If you look at who
holds tile types of licenses. I think that ill tile past has generally been tile concern as to what tile rates are.
If you look at the spreadsheet, the city has put the emphasis obviously on the on-sale intoxicating fee as a
major revenue generator, just partially because of how many people have that license but also maybe it's
not alxvays fair, who pays it. And I can't disagree with what you said. I mean we are lagging and it
maybe needs to be addressed. I think, but realistically that's been sort of the rationale. You've got the
small businesses there, absent probably Byerly's, that pay that small amount. Secondly though, and I
think more importantly, xvhatever you want to change on this, if you want to increase the fees, you do
need to have a public hearing. We'll publish it and we'll come back and you need to do it in that manner.
Councilman Kroskin: That'd be fine. Wily don't we get some public input.
Scott Botcher: Just so you knov,' that.
Mayor Jansen: So we'll need a motion to table to move it to a public hearing if we're going to increase
them.
Scott Botcher: Yeah, you can just instruct tile staff'to call a public hearing as soon as practicable and
that gives, you know your constituents an opportunity to contact you with their thoughts, but I can't
disagree.
Mayor Jansen: Councilman Labatt, are you comfortable with that?
Councilman Labatt: Yeah.
City Council Meeting - February 26, 2001
Councilman Ayotte: Yes ma'mn.
Mayor Jansen: Okay. If I could have a motion to table with direction to staffto set the public hearing
date.
Councilman Kroskin: Motion to table with direction to staffto set a public hearing date so we can hear
from the community.
Mayor Jansen: And do I have a second for that motion?
Councihnan Ayotte: I'll second that.
Mayor Jansen: Any more discussion of the motion?
Councilman Kroskin moved, Councilman Ayotte seconded to table establishing the 2001 Liquor
License Fees and directing staff to set a public hearing date on this item. All voted in favor and the
motion carried unanimously 4 to 0.
VISITOR PRESENTATIONS: CARVER COUNTY QUALITY OF LIFE REPORT, PAUL
MOLINE.
Mayor Jansen: Hi Paul. Thanks for joining tis tonight.
Paul Moline: Thank you for having mei I'm going to use the screen here if it works out okay. My.
name's Paul Moline ~vith the Carver County Planning Department and I'd like to just make a couPle
introductions here before I start. Colmnissioner Swanson is here. Teresa Pesch from Ridgevie~v Medical
Center and Nancy Rhinehart who is with the University of Minnesota-Extension.
Mayor Jansen: Thanks for joining us.
Paul Moline: ... mailed the city about a month ago but if anybody doesn't have one I've got a few extra
copies.
Mayor Jansen: Everybody set?
Nancy Rhinehart: We also want your input as we present the report and so if there's anything that you'd
like to jot down, give us input on...
Paul Moline: Hopefully by the end of this evening, well at the end of 15 minutes or so, I'd like to have
these questions answered. Essentially what are quality of life indicators? Why is the County talking
about this? Why are we making an effort tonight in your city council meeting to talk about this? And
~vhat does the report say that is referenced here? And lastly, where are we going from here with this
project? Just to set the stage a little bit. I ~know most of you are familiar with the changes we've seen in
the county here. This graph represents just population changes since the turn of the century. You can
really see the last couple decades the rapid rise in population, and just to give a couple examples of that
for folks, I think if you were to look back beginning of even this decade, you would see a lot less traffic
on Highway 5. You would see a downtown here in Chanhassen that is markedly smaller than it is today.
And other facilities in the county for example the Ridgeview Medical Center in Waconia would be a
much smaller medical facility in the 90's. Again, this is stuff that's been in the newspapers. We've seen