2. Liquor Ordinance/Fees
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CITY OF CBANHASSEN
CARVER AND HENNEPIN coUNTIES, MINNESOTA
ORDINANCE NO.
¡
AN ORDINANCE AMENDING CHAPTER 10 OF
THE CBANBASSEN CITY CODE CONCERNING THE SALE,
CONSUMPTION, AND DISPLAY OF ALCOHOLIC BEVERAGES
THE cITY COUNCIL OF THE CITY OF cHANHASSEN ORDAINS:
Section 1. Chapter 10, Article n, of the ÇnAnna.qscn City Code is amended in its entirety to
read as follows:
ARTICLE n. ALCOHOLIC BEvEltAGES
DMSION 1. STATE LAW ADOPTEDIDEFINITIONS
Sec:. 10-16. Provisions of State Law AdODted. Except to the extent the provisions of this
Article are more restrictive, the provisions of Minnesota Statutes, Chapter 340A, as amended,
regarding the terms, licensing, consumption, sales, hours of sale, and all other U18.tters pertaining to
the retail sale, distribution, and consumption of intoxicating liquor and 3.2 percent malt liquor are
adopted and U18.de a part of this Article as if set out in full.
Sec. 10-17. Df\finitions. For the purposes of this Article, and in addition to those dclinitions
contained in Minnesota Statutes, Chapter 34OA, as amended, the terms used in this subsection are
defined as follows:
(a) Disolav: The teml "Display" means the keeping, storing, or permitting to be kept or
stored of an alcoholic beverage wbich bas 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
geneBl public, ~cept when the alcoholic beverage is stored in a normal storage area during non-
sale hours.
(b) Interest: The term "interest" as used in this Article includes any pecuniary interest in
the ownership, operation, management or profits of a liquor establishment, but does not include:
bona fide loans; bona fide fixed sum rental a¡rcements; bona fide open accounts or other
obligations held with or without security arising out of the ordinary and regular course ofbnsiness
or selling or leasing merchandise, fixtures or supplies to such establishment; or any interest of 5
percent or less in any corporation holding a City liquor license. A person who receives monies,
ttom 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. In detl""n';n;ng "bona ñde," the reasonable value of the goods or things received
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as consideration for t11c payment of t11c licensee and all other 1àcts reasonably tending to prove or
disprove the existeace of any purposeful sc:hcme or IIIDIIlgement to evade any prohibitions under
this Article sha1I be considered
(c) Licensed Premises: The term "Licensed Premises" is the premises descn'bed in the
approved license application. In the case of a restaurant, club, or exclusive liquor store licensed for
on-sales of alcoholic bcvmIges and located on a golf course, "licensed premises" means the entire
golf course except for areas where motor vehicles are regularly patked or operated.
(d) QperatiIlI! ManAIler, The term "Operating Manager" as used in this Article means a
person designated by the license holder who worlcs full-time at the licensed premises and is in
charge of day-to-day liquor sales.
(e) ProDerlV Desilrnated Officer. The term "Properly Designated Officer" means and
includes (i) the r.hAnhassen City Fire Inspector; (ü) the Chanhassen City Building Official; and (üi)
the Health Inspcctœs employed by Carver or Hennepin County or the State of Minnesota acting in
the course of the scope of their employment.
(f) Underal!e Person: The term "Underage Person" means a person who is under the
legal drinking age as provided by Minnesota Statutes Chapter 340A.
DMSION 2. RETAIL LICENSES
See. 10.18. Licenses Reauired. No person, eJCCept as otherwise provided in Minnesota Statutes
Chapter 340A shall directly or indirectly deal in, sell, keep for sale or deliver any intoxicating
liquor, 3.2 percent malt liquor, or wine as part of a commercial transaction without first 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 consmnption or display of
intoxicating liquor or serve any liquid for the purpose of mixing with intoxicating liquor without
fust obtaining a license ;&om the City as provided in this Article.
Sec.lO-19. Tvoes of Licenses. The following types oflicenses are issued under this Article:
(a) On-Sale Intoxicatin~ Uauor License. On-sale intoxicating liquor licenses shall be
granted only to hotels, clubs, restaurants, and exclusive liquor stores. A license shall be issued to
clubs and congressionally chartered veterans' OIganizations 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 fi= standing building, the building (exclusive of
land) must have a minimum valuation of$500,OOO.
(2)
where the licensed premises is located in a shopping center, the licensed premises
must have a IIIÌJilinum of 150 seats for tlin;T1g
(3)
where the licensed premises is located in an office building the licensed Premises
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(4)
must have a ¡ninimum. of 150 seats for dining.
where the licensed premises is an ex.clusi,"e liquor store, the license premises must
be located y.ritbin or attached to a hotel or motel, as those terms are defined in
Chapter 20 of the Chanhassen City Code, providing at least 60 units for lodging.
(b) Off-Sale lntoxi"Arinl! T .;ouor Lil'.erlse. Off-sale intoxicating liquor licenses may be
issued to an exclusive liquor store and shall permit off-sale of intoJdcating liquor and 3.2 pereent
malt liquor. No more than four (4) off-sale intoxicating liquor licenses may be issued by the City.
(c) Wine Lic:-IleS. WIDe licenses may be issued, with the approval of the
COIllIIÙssioner, only to restaurants having facilities for seating at least 25 people at one time for the
sa1e of wine not exceMi1\g 14 percent alcohol by ,"olume 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 sale of food, may also sell intoxicating malt liquors at on-sale without an
additional license.
(d) gn-Sale 3.2 Percent Malt Liauor Lir.M1se. On-sale 3.2 percent malt liquor license
U18.y 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 Liouor License. Off-sale 3.2 percent malt liquor license
may be issued to general food 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 Snndav Liouor License. On-sale Sunday liquor licenses may be issued only
to a hotel or restaurant, with facilities for serving not less than fifty (50) guests at one time, to which
ao on-sale intoxicating license has been issued. Such license may permit the sale of liquor to be
consumed on the premíses 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) Tem1JoraIV On-Sale 3.2 Percent Malt Liauor Li,..,.,ges. 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 licensee owns or permanently occupies, The license may provide that the licensee
U18.y 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 the City.
The licenses issued in this Section are subject to all laws and ordinances governing the sale of
liquor, including furnishing a fonn of proof of financial responsibility.
(h) TemooraIV On.Sale Jntoxicatinl! LiQUOr LiCP.nses. The City Council U18.y issue to a
club or charitable religious or nonprofit organization in existence for at least three (3) years or to a
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political committee registered under MinD. Stat. § lOA 14 a temporary licensc for the on-sale of
intoxicating liquor in ~1WCtion with a social event witlrln 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 PRD11Ïses other than premises thc licensee owns or permanently
occupies. The license may provide that thc licensee may contract for intoxicating liquor catering
se1VÏces with the holder of a full-year on-sale liquor license issued by thc City. The'licenses are
subject to the terms, including license fee, imposed by the City. The licenses issued under this
Section are subject to all laws and oIdinances govc:ming the salc of intoxicating liquor except Minn.
Stat. § 340A.409 and § 340A5Q4, Subd. 3, paragraph (d), and the laws and ordinances which by
their nature are not applicablc. TemPOIlU)' licenses must first bc approved by the Commissioner of
Public Safety befoœ they become valid. No more than tbrec (3) four-day, four (4) three-day, or six
(6) two-day temporary licenses, in any combination not to exceed twelve (12) days per year, may be
issued for the sale of alcoholic beverages to anyone organization or registered political committee,
or for any ODe location, within a 12-month period. Not more than one temporary license may be
issued to any one organization or registered political committee, or for anyone location, Within any
30-day period.
(i) Club Licenses. Club licenses may be issued to clubs as provided in Minn. Stat. §
340A404, subd. ].
(j) Consumntion and Displav Permits. Consumption and display permits may be
issued to a bottle club which complies with the requirements ofMinn. Stat. § 340A414 and which
has obtained a permit Û'otn the Commissioner of Public Safety. Consumption and display permits
shall not be issued in thc City, exoept to establishments that had been issued such a license on or
prior to the effective date of this ordinance.
See. 10-20. I'¡""'''se Perlo4. Each renewal license shall bc issued for a maximum period of one
year. Temporary licenses sha11 expire according to their terms. All intoxicating liquor licenses, 3.2
Percent malt liquor licenses, and co.nsumption and display licenses expire on April 30 of each year.
See. 10-21. Retaß License Fees.
(a) . Annual Fee.q. The annual fees for all licenses and temporary licenses shall bc as
detennined by City Counci1 resolution in amounts no grearer than those amounts provided under
Minn. Stat. § 340A.408.
(b) Prorated Fee!!. If a license application is made during the license year, the license
shall be issued for the remainder of the year and, except in the case of wine licenses and off-sale
intoxicating liquor licenses, the licCllSC fee shall bc pro rated, With any unexpired 1Ì"actíon of a
month being counted as one month.
(c) Pavment. The fccs for on-sale intoxicating liquor licenses may bc paid in two equal
installments, With thc fi~t payment required with the application for renewal, and the second
payment on or before June 15. License fees shaI1 be paid into the general ftmd.
(d) !nvestil.anon Fees. Investigation fees shall be determined by City Council
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resolution. Investigation fees aze non-ret1...,bnle.No investigation fee sDall be charged for a
renewal øpp1icatÏon. /ú. any time that an additional inv~~on is required because of a change in
the ooutrol of a corporate license. change in manager, change in location. or cnlargClllent of the
premises, the n<:(:"- sDall pay lID. additional investigation fee. Where a new øpp1ication is filed as
a result of incorporation or a clumge ofI\llIftf by an existiJIg licensee and the ownersmp control and
interest in the license are unchanged, no additional investigation fee will be required.
See. 10-12. Ut'.el1se Fee Refunds. License fees sbaI1 be ~..rl if an application for a license
is denied by the City Council, except wheIe rejection ø me a willful misstatement in the license
application. No part of the fee paid for any issued license shaD 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 340AA08,
subdivision 5.
See. 10-23. LiabiHtv Insurance. Except as provided in Minn. Stat. § 340A.409, Subd. 4, all
applicants for any liquor license or consumption and display permit must, as a condition to the
i5suance of the license, demonstrate proof of financial responsibility willi regard to liability
impo5ed by Minnesota Statutes Section 340A.801 to the City, by providing proof of liquor
liability/dram shop, gcneralliability, and workers compensation insUrance coverage.
(a)
following:
(l)
(2)
Liabilitv. Proof of financial responsibility sDall be given by filing one of the
A certificate that there i5 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 elig¡"le surplus 1ines carrier pursuant to section 60A.206 or
pool p~oviding at least $50.000 of covcmge because of bodily injury to anyone
person in anyone occurrence, $lOO,Ooo becaUSe of bodily injury to two or more
pfØOl1S jn any Q%lC OCC\.lu...nct\, $10,000 becanse of injury to or destruction of
property of others in anyone occurrence, $50,000 for loss of means of support of
anyone person in anyone occurrencc:, and $100,000 for loss of mean of support of
two or more persons in anyone occurrence;
A certificate of the State Treasurer that the licensee has deposited with the State
Treasurer $loo,Ooo in cash or securities which may legally be purchased by savings
banks or trust fimds having a market valueofSloo,OOO.
(b) nr..m"lhoo. An annual aggregate insoranœ policy for dram sbop insurance of not
less than $300,000 per policy year to cover each p~on, each occurrence, property damage each
OCCUlTCllce, loss of means of support per person. loss af-means of support each occurrence, and
policy aggregate.
.
(c) Workers' Comnensation ~ The policy limits for workers' compensation
insurance shall be as provided for by state law.
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,,,Yitinnal R.....l1irements. For purposes of Paragraphs (a) and (b) under this
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Section, the City sba11 be named as additional insured on the liBbility insurance policy. The liability
insurance required by this section must provide that it may not be canceled for any cause by either
the insured or the insurer unless the canceling party bas first given ten days' notice in writing to the
City ofinteo.t to caoccl the policy. The insurance limits outlined in this section sha11 be effective for
license renewals and immediately on any new applications.
See:. 10-24. License AUDJication. A license applicant shall complete the applicable application
fonn provided by the City Clcrlc. The City Clerk may waive completion of any part of the fonn that
is inapþ<opriate or unnecessary.
See. 10-25. Execn1ion of ApDHeation. If the application is by an individual, it sha11 be signed
and sworn to by such person; ifby a coxporation, by an officer thereof; if by a partnership, by one of
the partners; ifby 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 the name of all partners. It shall be unlawful to make any false statement in an
application.
See. 10-26. Renewal ADnllcatioJt.
<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 remAinR true and correct except as otherwise indicated.
(b) Renewal applications for IUJ on-sale license for a restaurant sha11 include a Certified
Public Accountant statement showing total sales, food sales, liquor sales, and percentage of total
sales for the previous year.
Sec.l0-27. Investi2ations.
(a) At the time ofmaking an initial application, renewal application, or request for approval
for a new manager, the applicant sbaIl" in writing, authorize the City to investigate all facts set out
in the application and do a personal background and crúninal record check: on the applicant and
Operating Manager. The applicant sba11 further authorize the City to release infonnation received
from such investigation to the City Council.
(b) Should the City Counci1. 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 of
the grounds and reasons for the denial; the applicable 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 reapplication.
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See. 10-28. lIe.rinl!! F....nired for New licenses.
A public hearing for the ÌSS\J8DCC of a license for a new premises, or for a different licensee
at the same preuùses. or for a different licensee at the same premises shall be preceded by ten (10)
dAys' pnblished notice. In addition, the public hearing for the issuance: of a li~ for a new
premises shall also be preceded by a ten (10) days' mailed notice to all ~WDers of ~perty lO,cated
within five hundred (500) feet of the boundaries of the property on which the busmess that IS the
subject of the application is located. A public hearing is not required for temporary license
applications.
Sec. 10-29. Jnforumtion Consi~ed for license Auuroval. 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 staffreport 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 commonly associated with on-sale liquor establishments, including but not limited to
DWl drivers, illegal sale to minors, disturbing the peace, etc.;
(d) Any other relevant information.
See. 10-30. Grantinl!! or Transfer ofLkense.
(a) Anolicant. A license shall be issued to the applicant only, and no license shall be
transftm"ed ~cept as provided in this Article.
(b) PrC!I1Íses. Each license shall be issued only for the exact rooms and square footage
described in the application. A license is valid only in the compact and contiguous building or
structure situated on the premises described in the license, and all transactions relating to a sale
under such license must take place witbin such building or strLlcture.
(c) BuiItiin<! Under Con!ltruction. When a license is granted for a pxeroises where the
building is under construction or otherwise not ready for occupancy, the City Clerk shall not issue
the license until notified by the Building Official that the building is ready for occupancy.
(d) Death of Li('P.n~ee. in the event of the death of a person holding a license, the
personal representative of that person shall be allowed to continue to operate the business within the
terms of the ticense for a period not to exceed 90 days after the death of the licensee.
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See. 10-3L Comorations. Partnenhinst. or AssOP.¡..tiODII.
(a) ARallpOIIItions, partnerships, and associations must designate an Operating
Manager. The Ü}-odh.g Manager must be a person working full-time at the licensed premises who
is in chaIge of day-to-day liquor sales.
(b) Liceoses issued to corporations shall be valid only so long as there is no change in
the officers or oWDCI'Ship interest of the corporation, as defined in this Article, unless such change is
approved by the Con,,<il. The requirement concerning change in officers does not apply to
COIpOIations who.se stock is traded on the New Yode; or American Stock Exchanges.
(c) Licenses issued to associations or partnerships 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 sulnnit written
notice to the City Clerk of any changes described herein on or before 30 days prior to the effective
date of any such chønge. Notwithstanding the definition of "interest" as defined in this Article, in
the case of a OOIpOration, the licensee shall notifÿ 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
clúld, exceeds 5 percent and shall give all information about said person as is required of a person
pursuant to the provisions of this Article.
(e) CoIporations 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 OOIpOIation'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 ManagClf shall be referred to as the interim Operating Manager. In the event an interim
Operating Manager is rejected by the City Manager or City Manager's designee, the corporation
sha1l designate anotiJ.er 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.. In.oNøibJe for I.i....-'!se.
(a) StM.. Law. No license shall be granted to or held by any person
.
(1) made inelig¡.òle by State law;
(2) who is a person under 21 years of age;
(3) who is not a citizen of the United States or a resident alien;
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(4)
(5)
(6)
(7)
(8)
upon: wbom it is impractical to conduct a background and financial investigation due
to the unavailability of information;
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, wl1ether as a holder
of more than five pereent of the capital stock of a corporation licensee, or to a
cOrporation, partnersbip, association, enteqrrise, business, or fum in which any such
person is in any manner interested;
who is not of good moral characteI and repute;
who bas a direct or indirect interest in a manufacturer, brewer, or wholesaler; or
who, within five years of the license application, bas 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 perfoxm the duties
of a licensee.
(b) Manaller Reauired. No licenses shall be granted to a corporation that does not have
an Operating Manager.
(c) R=1 party in Interest. No license shall be granted to a person who is the spouse of a
person ineligible for a license =der 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) Residencv ReauiremP.ntq. 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 partnersbip, 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 ofreoewal. The time for estab!isbing residency within the State may, for good cause, be
~tended by the Council.
(e) Delinouent Taxes or Chanzes. No license shall be granted for operation on any
premises on whicb state, city or county taxes, assessments, or other financial claims of the state,
city, or county are delinquent and unpaid. Notwit:bst8nÆng the fDresoing, if the delinquent taxes,
assessments, or financial claims are against a landowner, and licensee is a tenant oflandowner and
has no financial interest in landowner, then the City Council may, in its 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.
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(f) R...tm_. No on-sale ÍDto¡dcating liquor license shall be issued unless at least
SOOA, of the gross receipts of the establishment will be attributable to the sale of food. This
requirement sbaIl be IegUlatcd as follows:
(2)
(3)
(4)
(1)
Each on-sale intoxicating licensee shall have the continuing obligation to have at
least 50% of gross receipts fi'om the establishment durii1g the preceding business
year attributable to the sale oUoad.
In the case of a new restaurant, the applicant must make a bona fide estimation that
at least SO% of the gross receipts of the establishment during its first year of
business wiIl be attributable to the sale of food.
For the purpose of this section, "establishment" shall include the food and beverage
portion of a multi-service establishment. Financial records for the food and
beverage portion must be maintained separately from the records of the remainder of
the establishment.
,
For the ¡nupose of this section, "sale of food" shall include gross receipts
attributable to the sale of food items, soft·drinks and nonalcoholic beverages. It
shall not include any portion of gross receipts attributable to the nonalcoholic
components of pllÙn or mixed alcoholic beverages, such as ice, soft-drink mixes or
other mixes.
(S) The City may require the production of such documents or information, including
but not limited to books, records, audited financial statements or pro forma financial
statements as it deems necessary or convenient to enforce these provisions. The
.. City may also obtain its own audit or review of such documents or infonnation, and
all licensees shall cooperate with such a review, including prompt production of
requested records.
(6) In addition to other remedies that it may have available, the City may place the
license of anyon-sale into¡dcating liquor licensee on probationary status for up to
one year, when the sale of food is reported, or found to be, less than _% of gross
receipts for any business year. During the probationaIy period, the licensee shall
prepare any plans and reports, participate in any required meetings, and take other
action that the City may require to increase the sale of food.
(g) Instructionall'rollral11. No license or renewal license shall be issued to sell alcoholic
beverages under this Article unless an applicant or license holder bas an approved program for
instructing all employees at the business preroises for which the license was issued, in the legal
rcquirem",'ÚS pertaining to the sale of alcoholic beverages, including. but not limited to, reviewing
the law on the sale of alcoholic beverages, providing information on the health risks of using
alcoholic beverages, and requiring employees to request identification from every customer who
appears to be under 27 years of age. No license shall be issued unless the applicant or license
holder signs a City form attesting that each employee of the applicant or license holder has received
training and instruction on the sale of alcoholic beverages and the date such training occurred. The
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1laiDing ~ include in:fomI,at.ion that the sale of al.ooñnüc.beverages to minors is illegal, explains
what proof .ofll.gt= is 1~'acceptabie, ami tblta.SIIletÐ a minor can subject the applicant or
license holder and their employees to aimirIal1iJililjty·
Sec.l0-34. Nudih' on LlC"'nsed P.-em;Aes.
''See. 16-33. . ,. - -.. .. afA1J'tIl'm'aL At.dlo1iJœ 11.1it:a1se is issued pursuant to this Article or
a consumption and display pamit is øpproved, tbc City eóuncil may attach special conditions to
the approval based upon the t!atUIC of the b'--', the 10cation of the business, and verified
OOØ!P1aints,ií~, ÌD~ ø-.hÞaltb, safety.~ and quietude of the community and ensure
harmony with the location wheIe the business is 10cøtM Violation of any of the conditions shall be
grounds for revocation of the license.
(a) It is unlawful for any person on premises licensed under this article to:
(1 ) Employ or use any person in the sale or service of alcoholic beverages in or upon
the ti«Ðsed. premises while such person is unclothed or in such attire, costume or
clotbiDg~ as to expose or to view any portion of the female breast below the top of
the meola or of any portion of the pubic bair, anus, cleft pI the buttocks, vulva or
gmitalL
(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 (l) above.
(3) Employ or use any dancers. musiciam, or other performers or entertainers. who are
'\1Ilc1othed or ill. such attire. costmnc or clothing as described in paragraph (1) above.
(4) DireI:t1y or iDdiRdly sponsor any contests which may foreseeably cause, result in, or
lead to the ov .........-.e of the actsoriDDidcDts described in paragraph (6) below.
(5) Encourage or permit any person on the Hccnsed 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) Pc:mIÍt any person to perform acts of or acts wbich simulate:
a.
WiIh or ~ another pw;;tm semal inœ:OoUISe, sodomy, oral copulation,
flagellation or any sexum act wlúcl1 is prolu"bited by law.
Masturbation or besfialiiy.
b.
d.
With or upon another p"'.soa the ton"n;ng, caressing or fondling of the
buttoc'ks, anus, genitals, or female breasts.
The displaying of pubic bait, IIII1IS, vulva, genitals or female breasts below
the top of the areola.
c.
0052S.07
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_.. ----- '-.-..- -
JaJ013
----
(7)
Permit any person to use artificial devices or inanùnate objects depìcting any of the
prohibited activities described.
Pcnnit any person to remain in or upon the lioensed premises, or any area owned or
coniroUed by the licensee upon the licensee's premises, who permits the public to
view any portion ofhis genitals or anus.
Permit the showing of film, still pictures, electronic reproduction or other visual
reproduction depicting;
a. Acts or sùnulated acts of sexual intercourse, masturbation, sodomy,
bestiality, oral copulation, flagellation or any sexual act which is prohibited
by law.
(8)
(9)
b. 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.
,
d. Scenes wherein artificial devices or inAnimate objects are employed to
depict, or drawings are employed to portray, any of the proluòited activities
described in this section.
(b) The provisions of this Section shall not apply to any theatrical production perfonned
in a theater by a professional theatrical or musical company which has serious artistic merit.
(c) Both the licensee and the person(s) actually engaging in any of the acts proluòited
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.
See.. 10-35. Federal StAmns. No licensee shall possess a federal wholesale liquor dealer's
special tax stamp or a federal gambling stJImp.
See.. 10-36. CoronU..nc:e Checks.
(a) Con¡nlianc:e Cñecks_ From time to time, the City shall conduct compliance checks.
Such compliance checks may involve, but are not limited to, engaging underage persons to enter the
licensed premises to attempt to purchase alcohol and alcohol related products.
(b) Underave Persons. Ifunderage persons are used for compliance checks they shall
not be guilty of unlawful possession of alcohol when such items are obtained as a part of a
compliance check. No underage person used in compliance checks shall attempt to use a false
identification miSJ:C.l'l«>enting the person's age, and all underage persons lawfully engaged in a
compliance check shall answer all questions about the person's age asked by the licensee or his or
her employee and shall produce any identiiication for which he or she is asked.
66526.07
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141014
See. 10-37. ße'Vocation or Sum..n1ion of J """"'se. The Council may suspend or revoke any
license for the sale of intoxicating or 3.2 percent malt liquof for any of the following reasons:
(a) False or misleading statements made on a license application or reneWal, or failure
to abide by the coxumitments, promises or representations made to the City Council.
(b) Violation of any special conditions under which the license was granted, including.
but not limited to, the timely payment of real estate taxes, and all other charges.
(c) Violation of any Federal, State, or locu1 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.
(e) That the licensee suffered or permitted illegal acts upon the licensed premises or on
property owned or controned by the licensee adjacent to the licensed premises, unrelated to the sale
of intoxicating liqUOf or 3.2 percent malt liquor.
(f) That the licensee had knowledge of illegal acts upon Of attributable to the licensed
premises, but failed to rcport the same to the police.
(g) Expiration or cancellation of any required insuIance, or failure to notify the City
within a reasonable time of changes in the temJ. of the insurance or the carriers.
See. 10-38. Inactive 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 sÞa1l be held to determine
what progress has been made toward opecing or reopening the establishment and, if satisfactory
progress is not demonstrated. the Council may revoke the license.
Sec. 10-39. ReArm!!: Notice. Revocation or suspension of a license by the City Council shall be
precederl 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.
00:;21\.07
Røv.3l3Ol99
-13-
_~1~~1:24~ 651~~~__--£MIPBELL KNUTSON
19J015
See. 10-40. Minimum Civil Penalties.
(a) Purnose. The purpose of this Section is to establish criteri~ by wmch the City
Council determines the length of 1ioense suspensions and the propriety of revocations, and shall
apply. to all premises licensed under this Article. These penalties are the minimum penalties
appropriate for most situations; however, the Counc.iJ. may deviate in an individual case where the
Council finds that there exist reasons making it more appropriate to deviate, such as, but not limited
to, a licensee's efforts in combination wjth the State or City to prevent the sale of alcohol to minors.
When deviating ftom these standards, the Council win provide written nnilil1gs that support the
penalty selected.
(b) 1'vfinimum Penalties for Violations. The minimum penalties for convictions or
violations are as fonows (unless specified, nmnbers below indicate consecutive days' suspension):
Appearance
1ÿpe ofV"lOlation 1st 2nd 3rd 4th
1. Commission of a felony Revocation NA NA NA
re1ated to tho licensed
activity
2. Sæeof~oholic~~ Revocation NA NA NA
while license is under
~ion
3. Sale of æcoholic beven¡ges 3 6 l8 Revocation
to under-a¡e person
4. Sale of alcoholic beverages 3 6 18 Revocation
to obviously intoxicated
person
5. After hours sale of alcoholic 3 6 l8 Revocation
beverages
6. After hours display or 3 6 18 Revocation
consumption of a1coholic
beve¡a¡es
7. Refusal to allow City 5 l5 Revocation NA
inspectors or Police
admission to inspect
premises
8. illegal gambling on premises 3 6 18 Revocation
9. Failure to take reasonable 3 6 l8 Revocation
steps 10 stop person from
leaving premises with
alcoholic beve¡a¡es
66526.07
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141016
Appearance
10. Sale of intoxicating liquor Revocation NJ\. NA NA
where only }lccDSC is for 3.2
petœnt malt liquor
(c) Multinle Violorions. At a licensee's fust appearance before the Council, the Council must
act upon all of the violations that have been alleged in the notice sent to the licensee. The Council in
that case must consider the minimum penalty for each violation under the fust appearance column In
subsection (b) above. The occurrence of multiple violations is grounds for deviation front the
minDnum penalties in the Council's discretion.
(d) Sub~ent ViolatiODl. Violations oCCUITing after the notice of hearÍDg has been mailed,
"but prior to the ~ must be treated as a separate violation and dealt with as a second appearance
before the Council, unless the City Mamger and licensee agree in writing to add the violation to the
fust appearance. The same procedure applies to a second. third, or fourth appearance before the
Council.
( e) ~ub"""u...,t Anneorance8. Upon a secood. third, or fourth appearance before the council by
the same licensee, the Cooncil must impose the minimum peoalty for the viola1ion or violations giving
rise to tÞe 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 as a basis for deviating from the minimum penalty imposed by this
Section.
(f) Cnmmrtation of Anneamnces. After the first appearance, a subsequent appearance by the
same licensee will be determined as follows:
(1) If the fust appearance was within three (3) years of the current violation, the current
violation will be treated as second appearance.
(2) If a licensee has appeared before the Council on two (2) previous occasions, and the current
violation occurred within five (5) years of the first appearance, the cwrent violation
will be treated as a tlrlrd appeaxauœ.
(3) If a licensee bas appeared before the Council on tbrec (3) previous occasions, and the
current violation occurred within seven (7) years of the first appearance, the cuxrcnt
violation will be treated as a fourth appeanmce.
(4) Any appearance not covered by subsection (1), (2), or (3), above will be treated as a first
appearance.
(g) pt""" penalties. Nothing in this section shall restrict or limit the authority of the Council
to suspend up to sixty (60) days, revoke the license, impOSC a civil fine not to exceed two thousand
dollaIs ($2,000.00), to impose conditions, or take any other action ÍI1 accorcIance with law; provided,
that the lk:ense holder has been afforded an opportunity for a hcariDg In the manner provided in this
Article.
6652ti.07
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~017
DIVISION 3. RETAIL SAIJ!S REGULATION
See. 10..fl.
Ril!'ht oflmDectlon.
(a) Any City ð.esi¡nated police officer displayjDg proper identification shall have the
unquaIifíM right to enter, inspect, and search the premises of any licensee bmeunder without a
warnmt, during businoss hours or when owners. managers, or other employees are located on the
premises.
(b) The business records of the licensee, includin¡ Federal and State tax retums, shall be
available for inspection by the City at all reasonable times upon written requost.
See. 10-41.
ResDODSibDltv of Licensee.
(a) Orderly Conduct. EvCIy licensee shall be re~jble for the conduct on the licensee's
place of business inclUding conduct aDd activity attributable to the business on property owned or
controlled by the licensee. Every licensee shall also cooperate with the City in controlling activity
attributable to the business in surrounding areas.
(b) Act of Rmnlovee. The act of any ~loyee in violation of this Article on the licensed
premises is deen1ed the act of the licensee as well, aDd the licensee shall be liable for all penalties
provided by this Article and other laws equally with the employee.
See. 10-43.
Hours of Ooeratlon.
(a) Hours ~nt! Davs of Sale. Hours aDd 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-ernnlovees on PMm;ses. A liquor licensee shall not allow non·employees on the
business premises from fifteen (lS) mmutas after the sale of intoxicating liquor Is prohibited until the
sale is again permitted except as hereinafter provided. On-sale intoxicating liquor licensees aDd on-
sale 3.2 percent malt liquor licensees may permit non-employees on the preJ11ises during its normal
hours of opemtion when the sale of intoxicating aDd 3.2 percent malt liquor is prohibited, provided,
that thc:re 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 mllnn~ approved by the City.
Sec.1CJ.44. Postfnl!' License. All liquor liceasees shall have the license posted in a
conspicuous place that is visible to the public in the licensed establishment at all times.
Sec:. 10-45. BolldiDI!' Chanl!'es. Proposed enlargement or substantial alteration which chanses
the chancter of the cstabli.h","'Dt, or extension of premises previously licensed shaJJ be reported to
the City Clerk at or before the time application is made for a building petmit for any such change. The
eoIar¡¡ement, substantial alteration or extension shall not be allowed unless the Council appl'OVe5 an
~m""<tment to the license.
See. 10-46. l'ublic Cbara!Úl" ofLiouor Sales. No sale of liquor sball be made to or in guest
rooms of hotels unless:
66526.07
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-" --.--.-- - - ---.-- -
141018
(a) the roles of such hotel provide for the setYice of meals in guest roo¡ns;
(b) the sale of such 1i.quo1' is made in the manner OI1-sales are required to be made;
(c) such sale accompanies and is incidental to the regular service of meals to guests therein;
(d) the roles of such hotel end the description, location, and number of such guest rooms are
fi1lly set out in the application for the liquor license.
Sec:. 10-47.
(a) No licensee, his agent, or e1I1P1oyee shall serve or dispense upon the licensed prenUses any
intoxicating or 3.2 percent malt liquor to a peISOn under the legal drinking age; nor shall such licensee,
or his agent or employee, permit any such person to be furnished or allowed to consume any sucb
liquotS on the licensed premises; nor shall such 1icensee, his agent, or employee, pennit any such
person to be delivered any such liquors.
(b) No person under the legal drinking age shall enter a licensed premises for the purpose of
purt'n..ing or conswning any alcoholic beverage. It is not UDlawful for any person who bas attained
the age of 18 years to enter licensed premises for the followiDg purposes:
(1) to perfœm work for the estab\isbnlenl:, including 1I1e serving of alcoholic beverages, unless
otherwise prohibited by statute;
Restrictions IDvolvine: Underat!B PerS!!ns.
(2) to consume meals; and
(3) to attend social functions that are held in a portion of the establishment where liquor is not
sold.
(c) No person under the legal drinking age shall consume or receive delivery of intoxicating or
3.2 percent malt liquor except in the household of the minors pam>.t 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 bevemge by a perS01'I under the legal drinking age at a place other
than the household of the parent or guardian is prima facie evideDce of intent to COIISUlXIe it at a place
other than the household of the person's parent or ¡uardiaD.
(e) MJsreore.QMrinø AItC. No underage person shall misrepresent the person's age for the
purpose of obtaining into¡dœting liquor or 3.2 percent malt liquor. nor shall the person enter any
premises licensed for the retail sale of intoxi~'I1g liquOl' or 3.2 percent malt liquor for the puIPoses of
purchasing or having served or delivered any alcoholic beverage. Nor shall any such person purchase,
attempt to purchase, consume, or have anotJ1P.T person pUrChase for the underage person any
intoxicating liquor or 3.2 pen:ent malt liquor.
Identification Rean;rements.
(f)
(l)
TdentifiC'.m;nn 'RMuUed. MY person shall, upon demaDd of the licensee, his employee, or
agent, pICduce and pennit to be ~.m;ned one of the following fonns of identification
86526.07
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01/18/00 11:24 FAX 651 452 5550
_-SMœI!mJ. KNUTSON
1aJ019
-..-.----.------
_~-~ .....>IOA.S03. .........
(2) Prima Pacie Evidence. In every ~on for a violation of the provisiona of this section
œIatiDg to the sale or fiimishiug of intoxicating liquor or noointoxicating malt
boverages to underage ¡J..sona and in every proceeding before the CotmCil with
~~~the~~the~~~on~~~O~and~~
to the licensee, his empl01ee or ageøt, a driver's license, passport or identification
card &om which it appea/'s that said person was not an underage ~on and was
regu1arly issued such idc!ntiticatíon card, Shan be prima fucle evidence that the
licensee, his agent or r is not guilty of a violation of such a provision and
shall be conclusive evi that a violation, if one has 0CCU1'red, was not wilful or
intentional. ~
Sec. 10-48. EDlDlovment of Persons UDder Ei~hteen Years of A~e. No person under
eighteen (18) years of age may serve Or sell intoxicating liquor in a mall intoxicating liquor
establishment. I
See. 10.:49. Prohibited Conditions.
(a) Prostitution. No licensee sœJ knowingly pennit the licensed premises or any room in
those p1'en1Ïses or any adjoining building <Íirectly undar the licensee's contJ'Ol to be used by prostitutes.
(b) Contml1ed Substances. No þcensee shall knowingly pennit the sale, possession or
consumption of controlled substances on the licensed premises in violation of s1ate law.
(c) Gambling. Gambling and Jbling devices are not pennitted on licensed premises. State
lottery tickets may be purchased and SOldr' licensed premises as authorized by the diæctor of the
s1ate lottery.
See. 10-50. e . of e . No equipment or fixt1l1'C in any licensed place shall be
owned in whole or In part by any manu or distiller except such as shall be expressly pennitted
by state law.
I
See. 10-51. Disolav of Liauor. fo on-sale liquor establishment sha1l display liquor to the
public during the Jwun when the sale of li.quor is prohibited.
See. 10-52.. Dellverv. I
(a) R.es1rlctions. Only licensed ~;:;e retail liquor establil:b...."'lts and no other dealers may
make deliveri811 of intoxicating liquor their stores to the residence of the purchaser or other
location. Such delivery shall be made y to a ~on 21 or more years of age. No deliveries may be
made to a beer tavern or other public ore' Ovate place in violation oflaw. No deliveries may be made
to purc~ers in lilY IocatlOl1 where the sale or deliYelY thereof is prohibited by law. No deliveries
may be made of.y intoxicating liquor, . the hours when off-sale of liquor is prohibited by state
law or munici.paJ. ordinance. Only alcoholic beverages ordered and packed at the store for delivery
shaU be camed in the delivery vehicle. I
° (b) Deliverv Tickets Renuired. JIhe person in charge of any vehicle delivering intoxicating
Itquor to purchasers shall cany an invoice or delivery slip stating the date and naxnes and addresses of
the seller and purchaser, itemizing the ~, size, and brands of intoxicating liquor to be delivered.
66526.07
Rev:3IJOJ99
-18-
01/18/00 11: 24 FAX CS1i5t ~ c.d1"BEU. JUUJl-suN
..------------
141020
Upon deliveIY,the bM>iœ sImll be.si¡ned by the person accepting delivery and by the deliverer and
tMsig!le41:O.PY l"'J....~1OIi__1~t'"""";""" b'&peri.od ofsixmooths.
(0) T ;_ Mav "1)..r;,... to n..1iw::r. ÂSI¥ lic--.,e, or em.ployee or agent of the licensee, may
N1Usø to JICI1l ør .w;..... ~"IJ ~to ~ paoa whoJ1\ they bave reasons to beliO"e is
ineli¡ible ~bIIy .c111iqm.... or~_œ~~ to believe iD1ends to deliver the intoxicating
liquor to;" 1·~~ -. ~~ ~a 1*'00 of doubtful &ge to produce written
evidence 0fbeÎIIi"21 or 1JlID)'eBlI or..
See. 10.s!' S>-....,,~()ft:.&aie 1io; ns may provide samples of malt liquor, wine, liqueuxs.
cordials. and ctistilledspi1'its wbich tbe lic....- c;UØI!Idly bas in stock and is offering for sale to the
general publü: ~ ~ñ1g BB additional li'-"". provided the wine, 1iqueur, cordial. and
distilled spirits samples axe dillpensed at no charge and consumed 00 the licensed premises during the
permitted houn of off-saJe in a quantity Jess than 100 milliliters of malt liquor per variety per
customer. 5û milliliters of wine per variety per custmner, 25 milliliters of liqueUr or cordial. and 15
mil\ilitelS ofdistiJled1lpÏrltS1IC1' variety perQUStoInm'-
SectiÒII.1.. 1'bis............... sha11 be efIiIcIive imJnedia1ely upon its passage and pubHcation.
PASSIJ> AND ADOl'TED tbis
City ofChaDhassen-
day of
, 1999, by the City Council of the
ATTEST:
Nancy K. Mancino. Mayor
Todd QeiÞ="t..Acting C1eàJManager
(Published in the Çh2nñu~ Villager on
, 1999).
-,
66626.07
Ré\t.3l3OJ!!9
-19-
...~
01/18/00 11: 25 FAX 651 452 5550 CAllPBELL ~SON
-----------------
1aJ021
OPTION1 PROVISION
The City Council may be intcrcsted in 1"f~g the ~ of on-sale ~¡cicating Iiq~
licenses to rest.aurIlIÚS, where the restaurant can establish that It 15 in fact an establishment that 15
primarily engaged in the sale of food, and not and establishment masquerading as a restaurant in
order to obtain an on-sale Ïßtoxicating liquor license. While many cities attempt to rœtrict on-sale
licenses to "actual" restauIants, the requirements imposed vary. We checked with approximately 10
metro cities, of which 5 had some sort of restriction onrestanrants.
MiDnetonka: requires 50% of the gross receipts of the establishment to be attributable to
the sale of food.
Eagan: requires: 1) appropriate fàcilities for the serving of meals consisting of a full menu
rather than fast-food fare; 2) meals to be served at tables, with seating for not
less than 50 guests; and 3) 50% of the gross receipts of the establishment to
be attributable to the sale of food
Ri~hfi'Id: requires: 1) meals sClVCd at tables with seating capacity for at least 40
guests; 2) diJúng area of at least 4,000 square feet; 3) a $\1bstantial part of all
business to be the serving of food and 4) that the revenues for the sale of
liquor shall not constitute the principal part of revenues derived for the
business activities.
Eden Prairie: requires that 50% or more of the gross receipts be attributable to the serving of
foods.
Bloomington: requires: I) seating for not less than SO guests at one time; 2) 40% or more of the
combined sale of food, non-alcoholic bcverages and alcoholic beverages
must be ftom the sale of food, including non-alcoholic beverages; 3) in the
case of a restaurant in a bowling center or nightclub, the amount must be not
less than 30%.
The fonowing rœtrictions on restal1rants applying for on·sale intoxicating liquor licenses is
proposed to be included as anew subsection (f) at Section 10-32:
(j) Restaurants. No on-sale trztoxicating liquor license shall be issued unless at least
_% of the gross receipts of the establishment will be attributable to the sale of food. This
requirement shall be regulated as follows:
(1) Each on-sale intoxicating licensee shall have the continuing obligation to have at
least _% of gross receipts from eh establishment duri/lg the preceding business
year attributable to the sale of food.
(2) In the case of a new restaurant. the applicant lmISt make a bona fide estimation that
01/18/00 11:25 FAX 651 452 5550 CAMPB~'L KNUTSON
-------------~
1aJ022
at least -Yó of the gross receipts of the establishment during its first year of
business will be attributable to the sale of food.
(3) For the purpose of this section, "establishment" shall Í1JClude the food and beverage
portion of a multi-service establishment. Financial records for the food and
beverage portion must be maintained separately from the records of the remainder
of the establishment.
(4) For the purpose of this section, "sale of food" shall i1lclude gross receipts
attributable to the sale of food items. soft-drin/Πand nonalcoholic beverages. It
shall 1Iot include any portion of gross receipts attributable to the nonalcoholic
components of plain or mixed alcoholic beverages, such as Ice. soft-drink mixes or
other mixes.
(5) The City may require the production of such documents or informati01l. including
but not limited to boob. records. audited financial statements or pro forma financial
statements as it deems necessary or conwl1Iient to enforce these provisions. The City
may also obtain its own audit or review of such documents or information, and all
licensees shall cooperate with such a review. including prompt production of
requested records.
(6) In addition to other remedies that it may have available. the City may place the
license of any on-sale intO)CÍcating liquor licensee on probationary status for up to
one year. when the sale of food is reported. or found to be. less than _% of gross
receipts for any business year. During the probationary period. the licensee shall
prepore any plans and reports, participate in atr)I required meetings, and take other
action that the City may require to increase the sale of food.
I! 0
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