1f 1999/00 Liquor Licence FeesCITYOF
'CiO, Ce, ter Drive, PO Box 147
hanhassen, Mimmota 55317
Phone 612.937. I900
General Fax' 612. 937. 5739
~gineeri,g Ea.v 612937.9152
blic SafeO, £ax' 612.934.2524
% wwm cl. chanhasse,, mn. us
MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Todd Gerhardt, Acting City Manager
Karen Engelhardt, Office Manager
February 16, 1999
Set 1999/00 Liquor License Fees
In February of each year the council establishes liquor license fees for the
upcoming licensing period of May 1 to April 30. Once the fees are established,
license holders will be notified of the renewal process and the council will act On
specific license requests in late March. Attached is a list of all current liquor
license holders and the type of license they hold.
Also attached is a survey of license fees from eleven other communities° As can
be seen, Chanhassen's on-sale intoxicating liquor license fee remains relatively
high by comparison. Our fees are calculated based on the square footage of the
building (excluding kitchen area, restrooms, hallways) and whether the business is
primarily a restaurant or a bar. All of Chanhassen's on-sale intoxicating liquor
license holders meet the restaurant definition except for the High Timber Lounge
and the Chanhassen Bowl.
The city's on-sale non-intoxicating liquor license fee may seem fairly low, but
when considering the only license holder in this category (Bluff Creek Golf
Association) sells beer for only several months out of the year, the fee seems
appropriate. The same can be said for the beer and wine license fee. The
restaurants that sell beer and wine are smaller operations that don't have a
separate bar area..
No increase was proposed as a part of the 1999 Budget. The last time that fees
were increased was back in 1994 (4% increase). A notice has been sent to liquor
license holders advising them that the city council will be considering this item
Monday evening.
Also attached is a draft copy of a proposed liquor ordinance that was prepared by
the city attorney's office. This draft was also sent to the liquor license holders and
they were advised that'the council will be considering first reading of this
pro. posed ordinance on March 8th.
City ofChanhassen. A wvwin~ commum~ w/th clean lakes, ¢t~a&, schools, a charming downtown, thriving businesses, and beautiful parks. A great place to live, work, and pla~.
Mr. Todd Gerhardt
February 16, 1999
Page 2
RECOMMENDATION
Staff recommends that there be no increase in liquor license fees for the 1999/00
license year and that the attached resolution be adopted by the city council.
ATTACHMENTS
1. List of current liquor license holders.
2. Fee survey of neighboring communities.
3. Proposed liquor ordinance.
1998/99 LIQUOR LICENSE APPLICATIONS
ON-SALE INTOXICATING LIQUOR LICENSES
Axel's, 560 West 78th Street
Chanhassen Dinner Theatres, 560 West 78th Street
Applebee's Neighborhood Grill & Bar, 590 West 79th Street
Chanhassen Bowl, 581 West 78th Street
High Timber Lounge & Meeting Rooms, 545 West 78th Street (no Sunday Sales)
Houlihan's, 530 Pond Promenade
Fee
$6,315
$13,304
$6,806
$15,051
$7,862
$9,609
CLUB LICENSE
· Chanhassen American Legion Post 580, 7995 Great Plains Blvd.
OFF-SALE INTOXICATING LICENSES
$700
· MGM Liquor Warehouse, 7856 Market Boulevard
· Cheers Wine & Spirits, 530 West 79th Street
· Byerly Wine & Spirits, 780 West 78th Street
$200
$200
$2O0
.OFF-SALE NON-INTOXICATING LICENSES
· Holiday Stationstores, 101 West 79th Street
· Oasis Market, 594 West 78th Street
ON-SALE NON-INTOXICATING LICENSE
$58
$58
· Bluff Creek Golf Association, 1025 Creekwood Drive
ON-SALE BEER & WINE LICENSES
· The Great Wall, 566 West 78th Street
· Byerly's Restaurant, 800 West 78th Street
· Guy's, Inc., 7874 Market Boulevard
· Frankie's, Inc., 7850 Market Boulevard
· Happy Garden Restaurant, 2443 Highway 7 West
TEMPORARY ON-SALE BEER & WINE LICENSE
$280
$280
$280
$280
$280
$280
· St. Hube~Church, 8201MainStreet
TOTAL
$1
$62,044
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AME~G CHAPTER 10 OF
THE CHANttASSEN CITY CODE CONCERNING THE SALE,
CONSUMPTION, AND DISPLAY OF ALCOHOLIC BEVERAGES
THE 'CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
Sect. ion 1. Chapter 10, Article II, of the Chanhassen City Code is amended in its
entirety ro read as follows:
ARTICLE II. ALCOHOLIC. BEVERAGES
DIVISION 1. STATE LAW ADOPTED/DEFINITIONS
Sec. 10-16. . .Pr. 0visions of State Law ..A. do_pted.. Except to the extent the provisions of this
Article are more restrictive, the provisions of Mi~mesota Statutes, Chapter 340A, as amended,
regarding the terms, licensing, consumption, sales, hours of sale, and all other matters pertaining
to the retail sale, distribution, and consumption of intoxicating liquor and 3.2 percent malt liquor
are adopted and made a part of this Article as if set out in full.
Sec. 10-17. Definitions. For the purposes of this Article, and in addition to those definitions
contained in Minnesota Statutes, Chapter 340A, as amended, the terms used in this Subsection
are defined as follows:
(a)
~: The term "Display" means the keeping, storing, or permitting to be kept or
stored of an alcoholic beverage which has been poured, dispensed or has had its package
seal broken on, in, or at any table, booth~ bar or other area of a licensed premises
accessible to the general public, except when the alcoholic beverage is stored in a nom~al
storage area during non-sale hours.
Interest: The term "interest" as used in this Article includes any pecuniary interest in
the ownership, operation, management or profits of a liquor establisbauent, but does not
include: bona fide loans; bona fide fixed sum rental agreements; bona fide open accounts
or other obligations held with or wkhout security arising out of the ordinary and regular
course of business or selling or leasing merchandise, fixtures or supplies to such
-establishment; .ar any interest o~ 5 percent or less in any eorporatio'n holding a City
liquor license. A person who receives monies, from time to time, directly or indirectly
from a licensee in the absence of a bona fide consideration therefor and excluding bona
fide gifts or donations, shall be deemed to have a pecuniary interest in such retail license.
;0~2/16/99 TTLTE 13:08 F.k'( 612 452 5550 CA)IPBELL ~]003
In determining "bona fide," tah.e reasonable value of the goods or things received as
consideration for the payment of the licensee and all other facts reasonably tending to
prove or disprove the existence of any purposeful scheme or arrangement to evade any
prohibitions under this Article shall be considered.
Licensed Premise_s: The term "Licensed Premises" is the premises described in the
approved license application. In the case of a restaurant, club, or exclusive liquor store
licensed for on-sales of alcoholic beverages and located on a golf course, "licensed
premises" means the entire golf course except for areas where motor vehicles are
regularly parked or operated.
~: The term "Operating Manager" as used in this Article means a
person designated by the license holder who works full-time at the licensed premises and
is in charge of day-to-day liquor sales.
Properly .Designated Officer: The term "Properly Designated Officer" means and
includes (i) the Chanhassen City Fire Inspector; (ii) the Chad~assen City Building
Official; and (iii) the Health Inspectors employed by Carver or Hmmepin County or the
State of Minnesota acting in the course of the scope o[ theh' employment.
Uz~dera~e Person: The term "Underage Persmx" means a person who is under the legal
drinking age as provided by Mianesota Statutes Chapter 340A.
DIVISION 2. RETAIL LICENSES
Sec. 10-18. Licenses Required. No person, except as otherwise provided in Mirmesota
Statutes Chapter 340A shall directly or indirectly deal in, sell, keep for sale or deliver an)'
intoxicating liquor, 3.2 percent malt liquor, or wine as part of a commercial transaction without
f~rst having received a license to do so as provided in this Article; nor shall any private club or
public place, directly or indirectly, or upon any pretense or by any device, allow the
consumption or display of intoxicating liquor or serve any liquid for the purpose of mixing with
i~toxicating liquor without first obtaining a license from the City as provided in this Article.
Sec. 10-19. Types of License. The following types of licenses are issued under this Article:
(a) On-Sale Intoxicating Liquor License. Omsale intoxicating liquor licenses shall
be ~anted only to hotels, clubs, restaurants, and exclusive liquor stores. A license shall be
issued to clubs and congressionally chartered veterans' organizations if they have been in
existence for at least three years and liquor sales will only be to members and bona fide guests.
On-sale intoxicating liquor licenses are subject to the following conditions:
(1)
where the licensed premises is a free standing building, the building
~(exclusive of land.) must have a minimum valuation of $500,000;
66526.0/, ~ 2 -
Rev:2/16/99
~02/16/99 TI_rE 13:09 FAX 612 452 5550 CA,~IPBELL ~]004
(2)
where the licensed premises is located in a shopping center, the licensed
premises:
ad
may not be an exclusive liquor store;
may not permit live music or dancing; and
must a have a minimum of 150 seats for dining.
(3)
where the licensed premises is located in an office building the licensed
premises must have a minimum of 150 seats for dining.
(b) Off-Sale Intoxi. catin.~ Liq,u. or License. Off-sale intoxicating liquor licenses may
be issued to an exclusive liquor store and shall pemfit off-sale of intoxicating liquor and 3 ~2
percent malt liquor. No more than four (4) off-sale intoxicating liquor licenses may be issued
by the City.
(c) Wine Licenses. Wine licenses may be issued, with tt~e approval of the
Cornnfissioner, only to restaurants having facilities for seating at least 25 people at one time for
the sale of wine not exceeding 14 percent alcohol by volume and for consumption on the
licensed premises only in conjunction with the sale of food. The holder of a wine license who
· is also licensed to sell 3.2 percent malt liquor on-sale and whose gross receipts are at least sixty
percent (60%) attributable to the sate of food, may also sell intoxicating malt liquors at on-sale
without an additional license.
(d) On-Sale 3.2 Percent Malt Liquor License. On-sale 3.2 percent malt liquor license
may be issued to bona fide clubs, restaurants, and hotels where food is prepared and served for
consumption on the premises only.
(e) Off-Sale 3.2 Percent Malt Liquor License. Off-sale 3.2 percent malt liquor
license may be issued to general Ibod stores and drug stores and permit the sale of 3.2 percent
malt liquor at retail in the original package for consumption off the premises only.
(f) On-Sale Sunday Liquor...Lieense. On-sale Sunday liquor licenses may be issued
only to a hotel or restaurant, with facilities for serving not less than fifty (50) gmests at one time,
to which an on-sale intoxicating license has been issued° Such license may permit the sale of
liquor to be consumed on the premises between the hours of 10:00 a.m. and 1:00 a.m. on
Monday in conjunction with the serving of food provided that the licensee is in conformance
with the Minnesota Clean Air Act and provided a public hearing is held prior to the issuance of
the license. No Sunday license is needed for on-sale wine licenses,
(g) T.e..mporary On-Sale 3.2 Percem Malt Liquor.Licenses. Temporary on-sale 3.2
percent malt liquor licenses may be issued to a club or charitable, religious, or nonprofit
organization in existence for at least 3 years. The license may authorize the on-sale of 3.2 malt
liquor for not more than 3 consecutive days, and may authorize on-sales on premises other than
premises the lieenxe-e owns r>r permanently occupies. The license may provide that the licensee
may contract for 3.2 malt liquor with the holder of a full-year on-sale liquor license issued by
the City. The licenses are subject to the terms, including the license fee, normally imposed by
~02/16/$9 TI.~ 13:09 FAX 612 452 55~0 CAMPBELL ~005
the City. The licenses issued in this Section are subject to all laws and ordinances governing
the sale of liquor, including furnishing a form of proof of financial responsibility~
(la) Tempo.rat_'y On-Sale Intoxicati..n.g Li.quor License~s. The City Council may issue
to a club or charitable religious or nonprofit organization in existence for at least three (3) years
or to a political committee registered under Minn, Stat. § 10A. 14 a temporary license for the
on-sale of intoxicating liquor in connection with a social event within the City sponsored by the
licensee. The license may authorize the on-sale of intoxicating liquor for not more than four (4)
consecutive days, and may authorize on-sales on premises other than premises the licensee owns
or permanently occupies. The license may provide that the licensee may contract for intoxicating
liquor catering services with the holder of a full-year on-sale liquor license issued by the City.
The licenses are subject to the terms, including license fee, imposed by the City. The licenses
issuedUnder this Section are subject to all laws and ordinances governing the sale o'f intoxicating
liquor except Minn. Stat. § 340A.409 and § 340A.504, Subd, 3, paragraph (d), and the laws and
ordinances which by their nature are not applicable. Temporary licenses must first be approved
by the Commissioner of Public Safety before they become valid, No more than three (3) four-
day, four (4) three-day, or six (6) two-day temporat3~ licenses, in any combination not to exceed
twelve (12) days per year, may be issued for the sale of alcoholic beverages to any one
organization or registered political committee, or for any one location, within a 12~montl~ period.
Not more than one temporary license may be issued to any one organization or registered
politic, al committee, or for any one location, within any 30-day period.
(i) Club Licenses. Club licenses may be issued to clubs as provided in Mitre. Stat~
§ 340A.4tM, subd. 1.
(j) Consumption and Display Permits. Consumption and display permits may be
issued to a bottle club which complies with the requirements of Mime. Stat. § 340A.414 and
whichhas obtained a pemfit from the Commissioner of Public Safety. Consumption and display
permits shall not be issued in the City, except to establishments that had been issued such a
license on or prior to the effective date of this ordinance.
See. 10-20. License Period. Each renewal license shall be issued for a maximum period of
one year. Temporary licenses shall expire according to their terms. All intoxicating liquor
licenses, 3.2 percent malt liquor licenses, and consumption and display licenses expire on April
30 of each year.
Sec. 10-ll. Retail Li,cense Fees..
(a) Annual Fees. The annual fees for all licenses and temporary licenses shall be as
de~ennined by City Council resolution in amounts no greater than those amoums provided under
Minn. Stat. § 340A.408,
(b) Prorated Fees. If a license application is made during the l~cense year, the license
shall be issued ~for .the-remainder .of the year and, except in the case o~' wine licenses and off-sale
intoxicating liquor licenses, the license fee shall be pro rated, with any unexpired fraction of a
month being counted as one month.
0___2/16/99 'r[.~ 13:10 FAX 612 452 5550 CAMPBELL ~ 006
(c) Payment. The fees for on-sale intoxicating liquor licenses may be paid in two
equal installments, with the first payment required with the application for renewal, and the
second payment on or before June 15. License fees shall be paid into. the general fund.
(d) Investigation Fees. Investigation fees shall be determined by City Council
resolution. Investigation fees are non-refundable. No investigation fee shall be charged for a
renewal application. At any time that an additional investigation is required because of a change
in the control of a corporate license, change in manager, change in location, or enlargement of
the premises, the licensee shall pay an additional investigation fee. Where a new application is
filed as a result of incorporation or a change of name by an existing licensee and the ownership
comrol and interest in the license are unchanged, no additional investigation fee will be required.
Sec. 10-22. Licen, seFee Refunds. License fees shall be refunded if an application for a license
is denied by the City Council, except where rejection is for a willful misstatement in the license
application. No part of the fee paid for any issued license shall be refunded except as authorized
under Minnesota Statutes Section 340A.408, subd. 5, upon application to the City Clerk within
20 days of the happening of any event provided under Minnesota Statutes Section 340A.408,
.subdivision 5.
Sec. 10-23. Liability. Insurance. Except as provided in Minn. Stat. § 340A.409, Sub& 4, 'all
appl.icam.~ for any liquor license or consumption and display permit nmst, as a condition to the
ismance of the license, demonstrate proof of financial responsibility with regard to liability
imposed by Minnesota Statutes Section 340A.801 to fl~e City, by providing proof of liquor
liability/drmn shop, general liability, and workers compensation insurance coverage.
(a)
Liability. Proof of financial responsibility shall be given by filing one of the
following:
(1)
A certificate that there is in effect for the license period an insurance
policy issued by an insurer required 'to be licensed under section 60A.07,
subdivision 4, or by an insurer recognized as an eligible surplus lines
carrier pursuant to section 60A.206 or pool providing at least $50,000 of
coverage because of bodily injury to any one person in any one
occurrence, $100,000 because of bodily injury to two or more persons in
any one occurrence, $i0,000 because of injury to or destruction of
property of others in any one occurrence, $50,000 for loss of means of
support of any one person in any one occurrence, and $i00,000 for loss
of mean of support of two or more persons in any one occurrence;
(2)
A certificate of the State Treasurer fl~at the licensee has deposited with the
State Treasurer $100,000 in cash or securities which may legally be
purchased by savings banks or trust funds having a market value of
$100,000.
Dramshop. An annual aggregate insurance policy for dram shop insurance of not
less than $300,000 per policy year to cover each person, each occurrence,
~2716/~9 "i%~ 15:11 FAX 612 452 5550 CAMPBELL
007
property damage each occurrence, loss of means of support per person, loss of
means of support each occurrence, and policy aggregate.
(c) Workers' Compensation Insurance,. The policy limits for workers' compensation
immrance shall be as provided for by state law.
(d) Additional Requirements. For purposes of Paragraphs (a) and (b) under this
Section, the City shall be named as additional insured on the liability insurance policy. The
liability insurance required by this section must provide that it may n°t be canceled for any cause
by either the insured or the insurer unless the canceling party has first given ten days' notice in
writing to the City of intent to cancel the policy. The insurance limits outlined in this section
become effective on L , ~, for license renewals and immediately on any new
applications.
Sec. 10-24. License Application. A license applicant shall complete the applicable application
form provided by the City Clerko The City Clerk may waive completion of any part of the form
that ~s inappropriate or unnecessary.
Sec. 10-25, Execution of Appl_ication, If 'the application is by an individual, it shall be
signed and sworn to by such person; it' by a corporation, by an officer thereof; it' by a
parmerslfip, by one of the partners; if by an incorporated association, by the operating officer
or managing officer thereof. If the applicant is a partnership, the application, license, and
insurance policy shall be made and issued in flee r~ame of all partners. It shall be unlawful to
make any false statement in an application°
Sec, 10-26. Renewal Apn!ication.,
(a) Applications for the renewal of an existing license shall be made at least forty-five
(45) days prior to the date of the expiration of the license, and shall state that everything in the
prior applications remains tree and correct except as otherwise indicated.
Co) Renewal applications for ~ on-sale license for a restaurant shall include a
Certified Public Accountant statement showing total sales, food sales, liquor sales~ and
percentage of total sales for the previous year. The Council shall not renew the license unless
m least sixty (60%) percent of the establishment's annual gross sales is from the serving of
prepared food.
Sec. 10-27. Investigations.
(a) At the time of making an initial application, renewal application, or request for
approval for a new manager, the applicant shall, in writing, authorize the City to investigate all
facts set out in the application and do a personal background and criminal record check on the
applicant and Qperadrlg Manager. The applicant shall further authorize the CiD' to release
information received-from such investigation to the City Council.
~2i16i~9 ,TI_~ 13:~2 F.~ 612 4~2 5550 CAMPBELL
0O8
(b) Should the City Council deny the applicant's request for a license due, partially or
solely, to the applicant's prior conviction of a crime, the City Council shall notify the applicant
o£ the grounds and reasons lbr the den/al; the appIkable complaint and grievance procedure as
set forth in Minnesota Statutes, section 364.06; the earliest date the applicant may reapply for
a license; and that all competent evidence of rehabilitation will be considered upon rcapplication.
Sec. 10-28. Hearing Required for New License,~.
A public hearing for the issuance of a license for a new premises, or for a different
licensee at the same premises, or for a different licensee at the same premises shall be preceded
by ten (10) days' published notice. In addition, the public hearing for the issuance of a license
for a new premises shall also be preceded by a ten (10) days' mailed notice to all owners of
property located within five hundred (500) feet of the boundaries of the property on which the
business that is the subject of the application is located. A public hearing is not required for
temporary license applications_
See. 10-29. Information Conside, red for License Approval_. The City Council shall consider
.the following in addition to conformity with state statutes and city' ordinances in determining
whether a new or renewal license shall be granted:
(a) The investigative and staff report submitted by the City Clerk;
· (b) Information received through the public hearing process;
(c) Whether the applicant has or will take affirmative action to minimize public safety
problems conmaonly associated with on-sale liquor establishments, including but not linfited to
DWI drivers, illegal sale to minors, disturbing the peace, etc.;
(d) Any other relevant information.
Set.. 10-30. Granting or Transfer of License.
(a) Applicant.. A license shall be issued to the applicant only, and no license shall
:be u'amfe~ed except as provided in flus Article.
Co) p_remise.[. Each license shall be issued only for the exact rootns and square
footage described in the application. A license is valid only in the compact and contiguous
building or sU'ucture situated on the premises described in the license, and all transactions
relating to a sale under such license must take place within such building or structure.
(c) _Building_Under Construction. When a license is granted for a premises where
rte building is under construction or otherwise not ready for occupancy, the City Clerk shall not
/ssue the license until notified by the Building Official that the building is ready for occupancy,
02/16/99 T[~ 13:12 FAX 612 452 §550 CAMPBELL ~009
(d) Death of Licen.s...ee. in the event of thc death of a person holding a license, thc
personal represe--~tative of that person shall be allowed to continue to operate the business within
the terms of the license for a period not to exceed 90 days after the death of the licensee.
Sec. 10-31. Coyporations, Partnerships, or Associations.
(a) Al1 corporations, partnerships, and associations must designate an Operating
M,'mager. The Operating Manager must be a person working full-time at the licensed premises
who is in charge of day-to-day liquor sales.
(b) Licenses issued to corporations shall be valid only so long as there is no change
in the officers or ownership interest of the corporation, as defined in this Article, unless such
change is approved by the Council. The requirement eoncern~,ng change in officers does not
apply ro corporations whose stock is traded on the New York or American Stock Exchanges.
(c) Licenses issued to associations or pa~lnerships shall be valid only so long as there
is no change in the partnership or association, unless such change is approved by the Council.
(d) Corporations, partnerships, or associations holding licenses shall submit written
notice to the City Clerk o/' any changes described herein on or before 30 days prior to the
effective date of any such change. Notwithstanding the definition of "interest'* as defined in this
Article, in the case of a corporation, the licensee shall notify the City Clerk when a person not
listed in the application acquires an interest that, when combined with. that of a spouse, parent,
brother, sister, or child, exceeds 5 percent and shall give all infom~ation about said person as
is required of a person pursuant to the provisions of this Article.
(e) Corporations holding licenses shall submit written notice to the City Clerk of any
change in Operating Managers prior to the effective date of such change. The written notice
shall designate the new Operating Manager. The new Operating Manager shall be subject to the
investigation required by this Article.
(f) The designation of a new Operating Manager shall not cause the corporation's
license to become invalid before a decision is rendered by the City Manager or City Manager's
designee, provided proper notice and application are made by the applicant. A proposed new
Operating Manager shall be referred to as the interim Operating Manager. In the event an
h~terim Operating Manager is rejected by the City Manager or City Manager's designee, the
corporation shall, designate another interim Operating Manager and make the required application
within 15 days of the decision by the City Manager or City Manager's designee. In any event,
a corporation shall be limited to 2 successive interim Operating Managers.
See. 10-32. Ineligibl~..f0r Licen.~¢.
(a) ~. No license shall be granted to or held by an3' person
(1) made ineligible by State law;
:~02/16/99 TUE 13:13 FAX 612 452 5550 CA~IPBELL [~010
(2) who is a person under 21 years of age;
(3) who is not a citizen of the United States or a resident, alien;
(4)
upon whom it is ira.practical to conduct a background and financial
investigation due to the unavailability of information.;
(5)
who has had a liquor license revoked within five years of the license
application, or to any person who at the time of the violation owns any
interest, whether as a holder of more than five percent of the capital stock
of a corporation licensee, or to a corporation, partnership, association,
enterprise, business, or firm in which any such person is in any manner
interested;
(6) who is not of good moral character and repute;
(7)
who has a direct or indirect interest in a manufacturer, brewer, or
wholesaler; or
(8)
who, within five years of the license application, has been convicted of a
felony' or a willful violation of a federal or state law or local ordinance
governing the manufacture, sale, distribution, or possession for sale or
distribution of an alcohol beverage and who cannot show competent
evidence under Minnesota Statutes Section 364.03 of sufficient
rehabilitation and present fitness to perform the duties of a licensee.
Co) Manager. Required. No licenses shall be granted to a corporation that does not
have an Operating Manager.
(c) Real P. art3, in Interest. No license shall be granted to a person who is the spouse
of a person ineligible for a license under this Article or who, in the judgment of the Council,
is not the real party in interest or beneficial owner of the business operated, or to be operated,
under the license.
(d) Residency..Requirements. A license will not be renewed if, in the case of an
individual, the licensee is not a resident of the State at the time of the date for renewal; if, in
the case of a partnership, the managing partner is not a resident of the State at the time of the
renewal; or in the case of a corporation, if the Operating Manager is not a resident of the State
at the time of the date of renewal. The time for establishing residency within the State may, for
good cause, be extended by the Council.
(e) Delinquent Taxes or Charges. No license shall be granted for operation on any
premises on which state, city or county taxes, assessments, or other financial clahns of the state,
c}t3', or county are-iSeTmquent and unpaid. Notwithstanding ~t~e far~aing~ Jf rthe delinquent,'
taxes, assessments, or financial claims are against a landowner, and licensee is a tenant of
landowner and has no financial interest in landowner, then the City Council may, in its
665~6.0~
O2/16/99 T[~ 13:14 FAX 612 452 5550 CA~fPBELL ~011
discretion, but shall not be required to, grant a license to an applicant so long as the applicant
is not delinquent on any taxes, assessments, or financial claims as set forth herein.
Sec. 10-33. Conditions of Approval. At the time a license is issued pursuant to this Article
or a consumption and display permit is approved, the City Council may attach special conditions
to the approval based upon the nature of the business, the location of the business, and verified
complaints, if any, to protect the health, safety, welfare, and quietude of the conmmnity and
ensure harmony with the location where the business is located. Violation of any of the
conditions shall be grounds for revocation of the license.
Sec. 10-34. Nudity on Licensed Premises,
(a) It is unlawful for any person on premises licensed under this article to:
Employ or use any person in the sale or service of alcoholic beverages in or upon
the licensed premises while such person is unclothed or in such attire, costume
or clothing so as to expose or to view any portion of the female breast below the
top of the areola or of any portion of the pubic hair, amis, cleft or the buttocks,
vulva or gerdtals.
(2)
Employ or use services of any host or hostess while such host or hostess is
unclothed or in such attire, costume or clothing as described in paragraph (1)
above.
(3)
Employ or use any dancers, musicians, or other performers or entertainers, who
are unclothed or in such attire, costume or clothing as described in paragraph (1)
above.
(4)
Directly or indirectly sponsor any contests which may foreseeably cause, result
h~ or lead to the occurrence of the acts or incidents described in paragraph (6)
below.
(5)
Encourage or permit any person on the licensed premises to touch, caress or
fondle breasts, buttocks, anus or genitals of any employee of the licensee or any
performers or entertainers who are employed or whose services are used by the
licensee.
(6) Permit any person to perform acts of or acts which simulate:
With or upon another person sexual intercourse, sodomy, oral copulation,
flagellation or any sexual act which is prokibited by law.
b. Masturbation or bestiality.
With or upon another person the touching, caressing or fondling of the
buttocks, anus, genitals, or female breasts.
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The displaying of pubic hair, anus, vulva, genitals or female breasts below
the top of the areola.
(7)
Permit any person to use artificial devices or inanimate objects depicting any of
the prohibited activities described.
(8)
Permit any person to remain in or upon the licensed premises, or any area owned
or controlled by the licensee upon the licensee's premises, who permits the public
to view any portion of his genitals or anus.
(9)
Permit the showing of film, still pictures, electronic reproduction or other visual
reproduction depicting;
ao
Acts or sknulated acts of sexual intercourse, masturbation, sodomy,
bestiality, oral copulation, flagellation or any sexual act which is
prohibited by law.
Any person being touched, caressed or fondled on the breast, buttock,
anus, or genitals.
c. Scenes wherein a person displays the vulva, the anus or the genitals.
Scenes wherein artificial devices or inanimate objects are employed to
depict, or drawings are employed to portray, any of the prohibited
activities described in this section..
(b)
Both the licensee and the person(s) actually engaging in any of the acts prohibited
by subsection (a) shall be criminally liable. Any violation of this section shall
also constitute grounds for revocation or suspension of the licensee's license.
Sec. 10-35. F__ederal Stamps. No licensee shall possess a federal wholesale liquor dealer's
special tax stamp or a federal gambling stamp.
Sec. 10-36. Revocation or S.usoension of License. The Council may suspend or revoke any
license for the sale of intoxicating or 3.2 percent malt liquor for any of the following reasons:
(a) False or misleading statements made on a license application or renewal, or failure
to abide by the connnitments, promises or representations made to the City Council.
(b) Violation of any special conditions under which the license was granted,
including, but not linfited to, the timely payment of real estate taxes, and all other charges.
(c) Violation of any Federal, State, or local law regulating the sale of intoxicating
liquor, 3.2 percent malt liquor, or controlled substance.
(d) Creation of a nuisance on the premises or in the surrounding area.
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(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~ urn'elated to
the sale of intoxicating liquor or 3.2 percent malt liquor,
(f) That the licensee had knowledge of ill.egai acts upon or attributable to the licensed
premises, but failed to report thc same to the police.
(g) Expiration or cancellation of any required insurance, or failure to notify the City
within a reasonable time oi' changes in the te~n of the insurance or the carriers.
Se~ 10-37. Ina.~tive License. The City Council may revoke the intoxicating liquor or 3.2
percent malt liquor license of any establishment granted a license that is not under construction
and exhibiting satisfactory progress toward completion within 6 months from its issuance, or any
establishment that ceases operation for a period of 6 months. A hearing shall be held to
determine what progress has been made toward opening or reopening the establislu-nent and, if
satisfactory progress is not demonstrated, the Council may revoke the license,
Sec. 10-38. Hearing No.~ce. Revocation or suspension of a license by the City Council shall
be preceded by public hearing 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 given at least 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.
Sec. 10-39. Presumptive Civ~il Penalti_____....~e.s.~
(a) .Pu~rpose~. Tile purpose of this Section is to establish a standard by which the City
,Council determines the length of license suspensions and the propriety of revocations~ and shall
.apply to all premises licensed under this Article. These penalties are presumed to be appropriate
for every case; however, the Council may deviate in an individual case where the Council finds
thai there exist substantial 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. When deviating from these standards, the Council will provide written findings that
gnpport the penalty selected.
Co) p. resumptive. PenaIties..for Violations. The mirfimum penalties for convictions or
vielations must be presumed as follows (unless Sl~-ecified, numbers below indicate consecutive
~ys' suspension):
, _ ......... Appearance ..-.
...... 1 I
1. Conun[$sion of a felon~y Revocation NA NA NA
.related-to .~he licensed
activity
02/16/99 TI.~ 13:16 FAX 612 452 5550 CAMPBELL
014
Appearance
:2. Sale of alcoholic Revocation NA NA NA
beverages while license is
under suspension
3. Sale of alcoholic 3 6 18 Revocation
beverages to under-age
person
4. Sale of alcoholic 3 6 18 Revocation
beverages to obviously
intoxicated person
5. After hours sale of 3 6 18 Revocation
alcoholic beverages
6. After hours display or 3 6 ! 8 Revocation
consumption of alcoholic
beverages
7. Refusal to allow City 5 15 Revocation NA
inspectors or Police
admission to inspect
premises
8. Illegal gambling on 3 6 18 Revocation
premises
9. Failure to take reasonable 3 6 18 Revocation
steps to stop person from
leaving premises with
alcoholic beverages
10. Sale of intoxicating liquor Revocation NA NA NA
where only license is for
3.2 percent malt liquor
(c) Multi¢le Violations. At a licensee's first appearance before the Council, the Council
nmst 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 presumptive penalty for eacl~ violation under the first
appearance column in subsection Co) above. The occurrence of multiple violations is grounds for
deviation from the presumed 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
~iolaiion :to .fl~ .~rst appearance. The same proeedm'e 'applies w a ~econd, third, or fourth
appearance before the Council.
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(e) Sub~ uent A earances~ Upon a second, third, or fourth appearance before the
courmil by the same licensee, the Council must impose the presumptive penalty for the violation or
violations giving rise to the subsequent appearance without regard to the particular violation or
'violations that were the subject of the first or prior appearance. However, the Council may
consider the amount of time elapsed between appearances ~-s a basis for deviating from the
presnmpfiv~ penalty imposed by this Section.
(f) Computatio..n of Appearances. After the first appearance, a subsequent appearance
by the same licensee will be determined as follows:
O)
If the first appearance was within three (3) years of the current violation, the
current violation will be treated as second appearance.
If a licensee has appeared before the Council on two (2) previous occasions, and
the current violation occurred within 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 current violatiou occurred within seven (7) years of the first appearance, the
current violation will be treated as a fourth appearance.
(4)
Any appearance not covered by subsection (1), (2), or (3). above will be treated as
a first appearance~
(g) Other Penalties.. Nothing in this Section shall restrict or limit the authority of the
Council to suspend up to sixty (60) days, revoke the license, impose a civil fine not to exceed two
fl~ousand dollars ($2.000.00), to impose conditions, or take any other action in accordance with law;
provided, that the license holder Ires been afforded an opportunity for a hearing [n the manner
provided in this Article.
DIVISION 3~ RETAIL SALES REGULATION
,See. 1040. Right of In. spection.
(a) Any Chanhassen police officer or any properly designated officer displaying proper
identification shall have the unqualified right to enter, inspect, and search the premises of any
licensee hereunder without a warrant, durir~g business l~ours or when owners, managers, or other
employees are located on the premises.
Co) The business records of the licensee, including Federal and State tax returns, sl~alI
be available for inspection by the City at ali reasonable times upon written request.
Sec. 1041. Responsibility of Licensee.
(a) Orderly Conduct. Every licensee shall be responsible for the conduct on the
lk. emee'.s.place nf business includhlg conduct and activit..y attributable to the business on property
owned or'e~itrollexl'byx'he licensee. Every licensee shall also cooperate with the City in.controlling
activity attributable to the business in surrounding areas.
,02/16/99 'TI.~ 13:17 FAX 612 452 5550 CA~IPBELL ~016
(b) Act of Employee... The act of any employee in violation of this Article on the
licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all
penalties provided by this Article and other laws equally with the employee.
Sec. 10-42, Hours of_ Operation.
(a) .II. ours and Days of..Sale. Hours and days of sale shall be as allowed by state law.
There shall be no consumption or display of intoxicating or 3.2 percent malt liquor during the hours
that sale is prohibited by state law.
(b) Non-crop!crees on Premises.. A liquor licensee shall not allow non-employees on
the business premises from fifteen (15) minutes after the sale of intoxicating liquor is prohibited
until the sale is again permitted except as hereinafter provided. On-sale intoxicating liquor licensees
and on-sale 3.2 percent malt liquor licensees may permit non-employees on the premises during its
nornml hours of operation when the sale of intoxicating and 3.2 percem malt liquor is prohibited,
provided, that there be no sale, consumption, or display of intoxicating or 3.2 percent malt liquor
during the hours in which the sale or consumption of liquor is prohibited, and provided that the
licensee has closed off all access to the bar area in a manner approved by the City.
Sec. 10-43. Posting Licens. e. All liquor licensees shall have the license posted in a conspicuous
place that is visible to the public in the licensed establishment at all times.
Sec. 10-44. Building.Changes. Proposed enlargement or substantial alteration which changes
the character of the establishment, or extension of premises previously licensed shall be reported
to the City Clerk at or before the time application is made for a building permit for any such
change. The enlargement, substantial alteration or extension shall not be allowed unless the Council
approves an amendment to the license.
Sec. 10-45, Public Clmracter of Liquor Sales, No sale of liquor shall be made to or in guest
rooms of hotels unless:
(a)
(b)
(c)
(d)
the rules of such hotel provide for the service of meals in guest rooms;
the sale of such liquor is made in the manner on-sales are required to be made;
such sale accompanies and is incidental to the regular service of meals to guests
therein;
the rules of such hotel and the description, location, and number of such guest
rooms are fully set out in the application for the liquor license.
Sec. 10-46. .,Restrictions Involving Underage,. Persons.
(a) No licensee, his agent, or employee shall serve or dispense upon the licensed
premises any intoxicating or 3.2 percem malt liquor to a person under the legal drinking age; nor
shall such licensee, or his agent or employee, permit any such person to be furnished or allowed
to constant any such liquors on the licensed premises; nor shall such licensee, his agent, or
employee, permit any such person to be delivered any such liquors.
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~2/16/99 T[~ 13:t~ FAX 612 4§2 5§$0 CA~IPBELL ~017
(b) No person under the legal drinlcing age shall enter a licensed premises for the
purpose of purd~asing or consuming any alcoholic beverage. It is not unlawful for any person who
has retained the age of 18 years to emer licensed premises for the following purposes:
(i)
(:~)
(3)
to perform work for the establislmaent, including the serving of alcoholic beverages,
unless otherwise prohibited by statute;
to consume meals; and
to attend social functions that ate held in a portion of the establishment where
liquor is not sold.
(¢) No person under the legal drinking age shall consume or receive delivery of
intox~ca'dng or 3.2 percent malt liquor except in the household of the minor's parem or guardian,
and then only with the consent of such parent or guardian.
(d) No person under the legal drinking age shall possess any intoxicating or 3.2 percent
malt liquor. Possession of an alcoholic beverage by a person under the legal drinking age at a place
other than the household of the parent or guardian is prima facie evidence of intent to consume it
g a place other than the household of the person's parent or guardim.
(e) Misrepresenting Age. No underage person shall misrepresent the person's age for
the purpose of obtaining intoxicating liquor or 3.2 percent malt liquor~ nor shall thu person enter
any premises licensed for the retail sale of intoxicating liquor or 3.2 percent malt liquor for the
purposes of purchasing or having served or delivered any alcoholic beverage. Nor sh~tl any such
person pur~hase, attempt to purchase, consume, or have another person purchase for the underage
p~son any intoxicating liquor or 3.2 percent malt liquor.
(f) Identification ~e_ments.,
O)
!de.ntifica. tion Require.~.d~ Any person shall, upon demand of ii~e licensee, his
employee, or agent, produce and permit to be examined one of the following forms
of identification provided under Minnesota Statutes Section 340A.503, subdivision
6.
(~)
Prima Faqie Evidence,. In every prosecution for a violation of the provisions of this
section relating to the sale or furnishing of intoxicating liquor or nonimoxicating
malt beverages to underage persons and in every proceeding before the Council
with respect thereto, the fact that the underage person involved has obtained and
presented to the licensee, his employee or agent, a driver's license, passport or
identification card from which it appears that said person was not an underage
person and was regularly issued such identification card, shall be prima facie
evidence that the licensee, his agent or employee is not guilty of a violation of such
a provision and shall be conclusive evidence that a violation, if one has occurred,
was not wilful or intentional.
Sec. 10-47, Emplo~m'tent of Persons lJnde..r_.Ei§hteen Years or.A~re. No person under eighteen
(18) years of age may serve or sell intoxicating liquor in a retail intoxicating liquor establislunent.
~6526. Bt,
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Sec. 10~48. Prohibited Conditions.
(a) Prostitution. No licensee shall knowingly permit the licensed premises or any room
in those premises or any adjoining building directly under the licensee's control to be used by
prostitutes.
Co) Controlled Substances. No license~, shall knowingly permit the sale, possession or
consumption of controlled substances on the licensed premises in violation of state law.
(c) Gambling. Gmubling and gambling devices are not permitted on licensed premises,
State lottery tickets may be purchased and sold within licensed premises as author[zed by the
director of the state lottery.
See. 10-49. .Ovmership of Eqtfipment. No equipment or fixture in any licensed place shall be
owned in whole or in part by troy manufacturer or distiller except such as shall be expressly
permitted by state law.
Sec. 10-50, _Display of Litmor, No on-sale liquor establishment shall display liquor to the
public during the hours when the sale of liquor is prohibited.
Sec. 10-51. Delivery,
(a) Restrictions. Only licensed off-sale retail liquor establislunents and no other dealers
ma}, make deliveries of intoxicating liquor from their stores to the residence of the purchaser or
· .other location. Such delivery shall be made only to a person 21 or more years of age. No
tleliveries may be made to a beer tavern or other public or private place in violation of law. No
deliveries may be made to purchasers in any location where the sale or delivery thereof is prohibited
by law. No deliveries may be made of any intoxicating liquor during the hours when off-sale of
liquor is prohibited by state law or municipal ordinance. Only alcoholic beverages ordered and
packed at fl~e store for delivery shall be carried in the delivery vehicle.
(b) D.elivery Tickets Required. The person in charge of any vehicle delivering
intoxicating liquor to purchasers shall carry an invoice or delivery slip stating the date and names
and addresses of the seller and purchaser, itemizing the number, size, and brands of intoxicating
liquor to be delivered. Upon deliver),, the invoice shall be signed by the person accepting delivery
and by the deliverer and the signed copy preserved on the retainer's premises for a period of six
months.
(c) Licensee May Refuse to D.eliver. Ally licensee, or employee or agent of the
licensee, may refuse to sell or deliver intoxicating liquor to any person whom they have reasons to
believe is ineligible to buy such liquor, or whom they have reason to believe intends to deliver the
intoxicating liquor to ineligible consumers. They may require a person of doubtful age to prodt~ce
written evidence of being 21 or more years of age.
Sec. 10-52. .Samples, Off-sale licensees may provide samples of malt liquor, wine, liqueurs,
cordials, and distilled spirits which the licensee currently has in stock and is offering for sale to the
general .public w~haut ~o. bmining an additional license, provided the withe, liqueur, cordial, and
rlistillefl xpirits.~samples are dispensed at no charge and consumed on the licensed premises dur. ing
the permkted hours of off-sale in a quantity less than 100 milliliters of malt liquor per variety per
66526.1~
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~2116tg9 T[~ 13:19 FAX 612 452 $550 CAMPBELL ~019
customer, 50 milliliters of wine per variety per customer~ 25 milliliters of liqueur or cordial, and
15 milliliters of distilled spirits per variety per customer.
Section 2. This ordinance shall be effective immediately upon its passage and publication.
PASSED AND ADOPTED this
of the City of Chanhassen.
~ da~ of
1999, by the City Council
ATTEST:
Todd Gerhardt, Acting Clerk/Manager
Nancy K. Mancino, Mayor
(Published in the Chanhassen Villager on
,1999).
aev:2/161gg -~8 -