5 Liquor Ordinance & Fees
CITY OF
CHANHASSEN
'0 City Center Drive. PO Box 147
ChanhflJJen. Minnesota 55317
Phone 612.9311900
General FIlX 612.937.5739
,ngineering FIlX 612.937.9152
'ublic Safety FIlX 612.934.2524
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MEMORANDUM
TO:
Mayor
City Council
Scott A. Botcher, City ManageroA-D
5,
-
e City of Chanhassm. A f[Towinr community wilh clean lakes. aualitv schook a charmin,Mumlown. Ihrivin, businestes. and beauti/ùl parks. A ""at Dlace 10 live. work. and DIa.
FROM:
DATE:
February 23, 2000
SUBJ:
Liquor License Ordinance And Related Fees
Please find enclosed a draft copy of a memo from Karen to me making
recommendations concerning the liquor ordinance and liquor license fees. This
memo is in draft form as Karen has had a medical emergency in her family and
has been out of town on and off since this was' put in draft form. I do believe
however that it communicates largely the issues for you to consider especially
since Karen has already appeared at a work session.
I spoke with Karen today. She hopes to be able to finalize this memo prior to the
meeting on 11,10nday. We do need to move ahead with the establishment of the
fees and the adoption of the ordinance. I do not have any additional
recommendations since our work session meeting. Thank you.
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MEMORANDUM
TO:
Scott A. Botcher, City Manager
FROM:
Karen J. Engelhardt, Office Manager
DATE:
February 22, 2000
SUBJ:
Set 2000/01 Liquor License Fees and Consider Amendment to the
Liquor Ordinance
In February of each year the council establishes liquor license fees for the
upcoming licensing period of May I, 2000 to April 30, 2001. Once the fees are
established, license holders will be notified of the renewal process and the council
will consider specific license renewals in late March. I have attached a list of the
current license holders for your information.
.
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. Currently the High Timber Lounge and
Chanhassen Bowl are the only two establishments that pay the "bar" rate. The
beer IÌnd wine license fee and on-sale non-intoxicating license fees may appear
low, but when considering the types of establishments that hold these licenses, the
fees seem appropriate. State Statute establishes the license fees for club licenses
and off-sale intoxicating licenses.
No increase was proposed as a part of the 2000 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 both the
license fees and a new ordinance on Monday evening.
Also attached is a draft copy of a proposed liquor ordinance that was prepared by
the city attorney's office. The City Council has previously discussed this
ordinance in a work session setting and the attached copy represents a redIined
version to show the changes the council suggested.
Staffhas spoken with Sheriff Bud Olson regarding the compliance checks and he
stated that his office would conduct one check per year at each establishment. He
further stated that license holders would be notified in advance that compliance
checks would be conducted during a specific time frame (probably a month long
Mr. Scott A. Botcher
February 22, 2000
Page 2
time period). Sheriff Olson would like to take the positive approach and assist
license holders in any way to remain in compliance.
Staff has contacted the Minnesota Licensed Beverages Association (MLBA)
regarding training for those who serve alcoholic beverages. Liquor establishments
that are members ofMLBA (a $279 annual fee) receive one free training session
on their site per year (as well as other benefits). MLBA is also willing to conduct
training at a convenient location for non-members. There are also other
independent trainers available that the liquor establishments may hire to conduct
training. With the rate of employment turnover, staff questions whether an annual
training session is adequate. The council may want to consider requiring new
employees to complete a training session prior to the start of serving alcoholic
beverages and then an annual training session thereafter. Sheriff Olson stated that
he has seen other communities that have a training checklist in each employee's
file that indicates the date of training and the items covered, which is then signed
by both the employer and employee.
Knox box
Penalties
RECOMMENDATION
Staff recommends that there be no increase in liquor license fees for the 2000/0 I
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.
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2000/01 LIQUOR LICENSE APPLICATIONS
ON-SALE INTOXICATING LIQUOR LICENSES
Fee
· 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
$6,315
$13,304
$6,806
$15,051
$7,862
$9,609
CLUB LICENSE
· Chanhassen American Legion Post 580, 7995 Great Plains Blvd.
$700
OFF-SALE INTOXICATING LICENSES
· MGM Liquor Warehouse, 7856 Market Boulevard
· Cheers Wine & Spirits, 530 West 79th Street
· Byerly Wine & Spirits, 780 West 78th Street
$200
$200
$200
OFF-SALE NON-INTOXICATING LICENSES
· Holiday Stationstores, 10 I West 79th Street
$58
ON-SALE NON-INTOXICATING LICENSE
· Bluff Creek Golf Association, 1025 Creekwood Drive
· RSS Golf, Flying Cloud Drive
$280
$280
ON-SALE BEER & WINE LICENSES
· Na's Thai Cafe, 566 West 78th Street
· Byerly's Restaurant, 800 West 78th Street
· Guy's, Inc., 7874 Market Boulevard
· Happy Garden Restaurant, 2443 Highway 7 West
$280
$280
$280
$280
TEMPORARY ON-SALE BEER & WINE LICENSE
· St. Hubert Church, 8201 Main Street
$1
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPrER 10 OF
THE CHANHASSEN CITY CODE CONCERNING THE SALE,
CONSUMPTION, AND DISPLAY OF ALCOHOLIC BEVERAGES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
SPMion 1. Chapter 10, Article II, of the Chanhassen City Code is amended in its entirety
to read as follows:
ARTICLE n. ALCOHOLIC RRVRRAGRS
DIVISION 1. STATE LAW ADOPTED/DEFINITIONS
Sec. 10-16. Provisions of State J,aw AdQpted. Except to the extent the provisions of this
Article are rnore restrictive, the provisions of Minnesota 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 defmed as follows:
(a) Display: 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 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 agreements; bona fide open accounts or
other obligations held with or without security arising out of the ordinary and regular course of
business or selling or leasing rnerchandise, 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, 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. In determining "bona fide," the reasonable value of the
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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.
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(c) I.icensed Premises: 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.
,
(d) Operating Man~ger: 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.
(e) Properly Designated Officer: The term "Properly Designated Officer" means and
includes (i) the Chanhassen City Fire Inspector; (ii) the Chanhassen City Building Official; and
(iii) the Health Inspectors employed by Carver or Hennepin County or the State of Minnesota
acting in the course of the scope of their employment.
(f) Underage Person: The term "Underage Person" means a person who is under the
legal drinking age as provided by Minnesota Statutes Chapter 340A.
DIVISION 2. RETAIL LICENSES
Sec. 10-18. Li('pn..... Required. No person, except 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 consumption
or display of intoxicating liquor or serve any liquid for the purpose of mixing with intoxicating
liquor without fIrst obtaining a license from the City as provided in this Article.
See. 10-19. Types of Li('enses, The following types of licenses are issued under this Article:
(a) On-Sale Intoxicating I .iquor I.icense. 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' organizations if
they have been in existence for at least three years and liquor sales will only be to
members and bona [¡de guests. On-sale licenses will only be issued to exclusive
liquor stores that were licensed on January 1, 2000.
(b) Off-Sale Intoxicating I.iqnor I.icense, Off-sale intoxicating liquor licenses may be
issued to an exclusive liquor store and shall permit 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.
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(c) Wine T .i('.en~e~. Wine licenses may be issued, with the approval of the
Commissioner, 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 fifty percent
(50%) attributable to the sale of food, may also sell intoxicating malt liquors at on-sale without an
additionaIlicense.
(d) On-Sale 3 2 Percent Malt T .iquor I .icen~e. 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 I.iqllor I.icen~e. 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.
(1) On-Sale Sunday T .iqllor I .iœn~e. 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 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) TemporaJ:y On-Sale 3 2 Percent Malt T .iquor T .icen~e~. 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
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 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.
\
(h) TP.fI1POTaJ:y On-Sale Intoxicating T .iqllor T .k"n~e~. 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. § lOA. 14 a temporary license for the on-sale
of intoxicating liquor in connection with asocial 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
issued under this Section are subject to all laws and ordinances governing the sale of 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-
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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 anyone location, within a 12-month period.
Not more than one temporary license may be issued to anyone organization or registered
political committee, or for anyone location, within any 30-day period.
~
(i) Cluh I.kenses. Club licenses may be issued to clubs as provided in Minn. Stat. §
340A.404, subd. 1.
(j) Consult1Ption and Display Pennits. Consumption and display permits may be
issued to a bottle club which complies with the requirements of Minn. Stat. § 340AA14 and
which has obtained a permit 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.
Sec. 10-20. Li....n.... P..riod. 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. 10-21. R..tail Lieen.... Fees,
(a) Annual Fees. The annual fees for all licenses and temporary licenses shall be as
determined by City Council resolution in amounts no greater than those amounts provided under
Minn. Stat. § 340AA08.
(b) Prorated Fees. 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 license fee shall be pro rated, with any unexpired fraction of a
month being counted as one month.
(c) 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
control and interest in the license are unchanged, no additional investigation fee will be required.
Sec. 10-22. I,icen.... Fee 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
340AA08, subdivision 5.
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See. 10-23. J.iAbility Jn~lIran..p. Except as provided in Minn. Stat. § 340AA09, Subd. 4, all
applicants for any liquor license or consumption and display permit must, as a condition to the
issuance of the license, demonstrate proof of financial responsibility with regard to liability
imposed by Minnesota Statutes Section 340A.801 to the City, by providing proof of liquor
liability/dram shop, general liability, and workers compensation insurance coverage.
(a)
following:
(1)
(2)
T .iahility. Proof of financial responsibility shall be given by f1ling one of the
A certificate that there is in effect for the license period an insurance policy issued
by an insurer required tò be licensed under section 6OA.07, subdivision 4, or by
an insurer recognized as an eligible surplus lines carrier pursuant to section
6OA.206 or pool providing at least $50,000 of coverage because of bodily injury
to anyone person in anyone occurrence, $100,000 because of bodily injury to
two or more persons in anyone occurrence, $10,000 because 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 occurrence, 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 $100,000 in cash or securities which may legally be purchased by
savings banks or trust funds having a market value of $100,000.
(b) nram~hop. An annual aggregate insurance policy for dram shop insurance of not
less than $300,000 per policy year to cover each person, each occurrence, property damage each
occurrence, loss of rneans of support per person, loss of means of support each occurrence, and
policy aggregate.
(c) Workers' ('-Ompen~ation Tn~lIran('P., The policy limits for workers' compensation
insurance shall be as provided for by state law.
(d) Additional ReqJlirement~, 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 not 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
shall be effective for license renewals and immediately on any new applications.
See. 10-24. J .i....n~ AppJi.."tion, A license applicant shall complete the applicable
application form provided by the City Clerk. The City Clerk may waive completion of any part
of the form that is inappropriate or unnecessary.
See, 10-25. RXf'.Clltion of Appli('lltion. If the application is by an individual, it shall be signed
and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, 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
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shall be made and issued in the name of all partners. It shall be unlawful to make any false
statement in an application.
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See. 10-26. R..n..wal Appli">ltinn.
(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 true and correct except as otherwise indicated.
(b) Renewal applications for an 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.
See. 10-27. Inv~iglltinns.
(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 Operating Manager. The applicant shall further authorize the City to release
information received from such investigation to the City Council.
(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 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.
See. 10-28. Ho>aring ReqJliro>d fnr N..w I.i....nSPS.
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.
Sec. 10-29. Infnnn>ltinn Cnnsid..rf'.d fnr Li..p.nso> 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 commonly associated with on-sale liquor establishments, including but not limited to
DWI drivers, illegal sale to minors, disturbing the peace, etc.;
(d) Any other relevant information.
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Sec. 10-30, Granting or Transfer of I.iœnse.
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(a) Applicant. A license shall be issued to the applicant only, and no license shall be
transferred except as provided in this Article.
(b) Premises. 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 within such building or structure.
(c) RlliJding Onder Constmction. When a license is granted for a premises 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 J .icensee. 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 license for a period not to exceed 90 days after the death of the licensee.
Sec. 10-31. Corporations, Partnerships, or Assoriations.
(a) All corporations, partnerships, and associations must designate an Operating
Manager. 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 defmed in this Article, unless such
change is approved by the Council. The requirement concerning change in officers does not
apply to corporations whose stock is traded on the New York 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 submit written
notice to the City Clerk of 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 information 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.
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(t) 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
interim Operating Manager is rejected by the City Manager or City Manager's designee, the
corporation shaH 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.
Sec. 10-32. In..ligihl.. for I,j....n.....
(a) State I,aw No license shall be granted to or held by any person
(1) made ineligible 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;
(4) upon whom it is impractical 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.
(b) Manager Required. No licenses shall be granted to a corporation that does not
have an Operating Manager.
(c) Real Party in Interest. No license shall be granted to a person 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.
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(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.
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(e) Delinquent Taxes or C'harges. No license shall be granted for operation on any
premises on which state, city or county taxes, assessments, or other fmancial claims of the state,
city, or county are delinquent and unpaid. Notwithstanding the foregoing, if the delinquent
taxes, assessments, or fmancial 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
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.
(f) Restaurants. No on-sale intoxicating liquor license shall be issued unless at least
50% 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 50% of gross receipts from the establishment during the preceding business
year attributable to the sale of food.
(2) In the case of a new restaurant, the applicant must make a bona fide estimation
that at least 50% 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 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.
(4) For the purpose 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 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 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 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 anyon-sale intoxicating liquor licensee on probationary status for up to
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one year, when the sale of food is reported, or found to be, less than fifty percent
(50%) of gross receipts for any business year. During the probationary 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) Tn~tmctiona] PrQ1"ram. No license or renewal license shall be issued to sell
alcoholic beverages under this Article unless an applicant or license holder has an approved
program for instructing all employees at the business premises for which the license was issued,
in the legal requirements 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
custorner who appears to be under 27 years of age. No license shall be issued or renewed 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 training shall include information that the sale of alcoholic
beverages to minors is illegal, explains what proof of age is legally acceptable, and that a sale to
a minor can subject the applicant or license holder and their employees to criminal liability .
Sec. 10-33. Cooditioo~ 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 community 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.
See. 10-34. NlldiQ-' 00 T.iœo,¡pd Pn>mi_.
(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 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, anus, cleft or the buttocks, vulva
or genitals.
(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 in,
or lead to the occurrence of the acts or incidents described in paragraph (6) below.
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(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 .
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(6) Permit any person to perform acts of or acts which simulate:
a. With or upon another person sexual intercourse, sodomy, oral copulation,
flagellation or any sexual act which is prohibited by law.
b. Masturbation or bestiality.
c. With or upon another person the touching, caressing or fondling of the
buttocks, anus, genitals, or female breasts.
d. 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;
a. Acts or simulated acts of sexual intercourse, masturbation, sodomy,
bestiality, oral copulation, flagellation or any sexual act which is
prohibited by law.
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 prohibited
activities described in this section.
(b) The provisions of this Section shall not apply to any theatrical production
performed in a theater by a professional theatrical or musical company which has serious artistic
merit.
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(c) 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.
See. 10-35. FP.deral StamlJ'l. No licensee shall possess a federal wholesale liquor dealer's
special tax stamp or a federal gambling stamp. '
Sec. 10-36. Compli,mœ Ch....k~.
(a) Compliance Ch...cks. 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) Underage Per~on~. If underage 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 misrepresenting 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 identification for which he or she is asked.
Sec. 10-37. Revocation or Sllsppn~ion of I ,i~f'm¡e. 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 commitments, 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 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.
(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, unrelated to
the sale of intoxicating liquor or 3.2 percent malt liquor.
(f) That the licensee had knowledge of illegal acts upon or attributable to the licensed
premises, but failed to report the same to the police.
(g) Expiration or cancellation of any required insurance, or failure to notify the City
within a reasonable time of changes in the term of the insurance or the carriers.
Sec. 10-38. Inactive LiN'nse. 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
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1.)
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 establishment and, if
satisfactory progress is not demonstrated, the Council may revoke the license.
Sec. 10-39. Hpjlring Notiœ, 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. 10-40. Minimum Civil Pf'naltif's.
(a) PII1:pose. The purpose of this Section is to establish criteria by which the City
Council determines the length of license suspensions and the propriety of revocations, and shall
apply to an premises licensed under this Article. These penalties are the minimum penalties
appropriate for most situations; however, the Council 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 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
support the penalty selected.
(b) Minimum Penalties for Violations. The minimum penalties for convictions or
violations are as follows (unless specified, numbers below indicate consecutive days' suspension):
84472.ŒlClean (OW WP ll<i6526,(9)
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14
A ce
Type of Violation 1st 2nd 3rd 4th
1. Commission of a felony Revocation NA NA NA
related to the licensed
activity
2. Sale of alcoholic beverages Revocation NA NA NA
while license is under
suspension
3. Sale of alcoholic beverages 3 6 18 Revocation
to under-age person
4. Sale of alcoholic beverages 3 6 18 Revocation
to obviously intoxicated
person
5. After hours sale of alcoholic 3 6 18 Revocation
beverages
6. After hours display or 3 6 18 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) Multiple Violation.. At a licensee's first 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 first
appearance column in subsection (b) above. The occurrence of multiple violations is grounds for
deviation from the minimum penalties in the Council's discretion.
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(d) Suh""qup.nt Viol.tion.. Violations occurring after the notice of hearing has been mailed,
but prior to the hearing, must be tteated 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
violation to the first appearance. The same procedure applies to a second, third, or fourth
appearance before the Council.
'"
(e) Suh""qup.nt Appe.raœe.. Upon a second, third, or fourth appearance before the council
by the same licensee, the Council must impose the minimum 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 as a basis for deviating from the minimum penalty imposed by
this Section.
(t) Comput.tion of Appe.rances. After the first appearance, a subsequent appearance by the
same licensee will be detennined as follows:
(I) If the first 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 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 violation occurred within seven (7) years of the first appearance, the current
violation will be tteated as a fourth appearance.
(4) Any appearance not covered by subsection (I), (2), or (3), above will be treated as a first
appearance.
(g) Othp.r Pp.n.lties. 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 thousand
dollars ($2,000.00), to impose conditions, or take any other action in accordance with law;
provided, that the license holder has been afforded an opportunity for a hearing in the manner
provided in this Article.
DIVISION 3. RETAIL SALES REGULATION
Sec. 10-41.
Rig/1t ofIn¡q¡ectlon.
(a) Any City designated police officer displaying proper identification shall have the
unqualified right to enter, inspect, and search the premises of any licensee hereunder without a
warrant, during business hours or when owners, managers, or other employees are located on the
premises.
(b) The business records of the licensee, including Federal and State tax returns, shall be
available for inspection by the City at all reasonable times upon written request.
Sec. 10-42,
R...pon.ihiIity of T .i....n.....,
84472.03/Clean (OLD WP #66526.09)
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(a) Orderly C'ondllct. Every licensee shall be responsible for the conduct on the licensee's
place of business including conduct and 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 "mplny"". 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. 10-43.
ROlin¡ of Operatinn
(a) ROil'" ond Do)'. of Sole. 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-emplnyee. on Premi..... 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 pennitted 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
normal hours of operation when the sale of intoxicating and 3.2 percent 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 o£ 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. 10-44. Pnm11g r .i"..n""_ 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. 10-45. Bllilding C'h,,'1gJ"'. 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 OF 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. 10-46. Pllhli" C'h".....-t"T nf r ,iqllnT S,,¡"". No sale of liquor shall be made to or in
guest rooms of hotels unless:
(a) the rules of such hotel provide for the service of meals in guest rooms;
(b) the sale of such liquor is made in the manner on-sales are required to be made;
(c) such sale accompanies and is incidental to the regular service of meals to guests therein;
(d) 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. 10-47.
Rl'Otrict'inn. Involving nßlI..~ Pen¡on._
(a) No licensee, his agent, or employee shall serve or dispense upon the licensed premises
any intoxicating or 3.2 percent 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 consume
84472.03IClean (OlD WP #66526.09)
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17
any such liquors on the licensed premises; nor shall such licensee, 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
purchasing or consuming any alcoholic beverage. It is not unlawful for any person who has attained
the age of 18 years to enter licensed premises for the following purposes:
(1) to perfonn work for the establishment, including the serving of alcoholic beverages,
unless otherwise prohibited by statute;
(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 minor's parent 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 at
a place other than the household of the person's parent or guardian.
(e) Mi<r¡>.pre<enting 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 the 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 shall any such person
purchase, attempt to purchase, consume, or have another person purchase for the underage person
any intoxicating liquor or 3.2 percent malt liquor.
(0 Tc1p.ntific:ltion Rp.qlliremp.nts:.
(1) Tclentification ReqJlired. Any person shall, upon demand of the licensee, his employee,
or agent, produce and pennit to be examined one of the following fonns of
identification provided under Minnesota Statutes Section 340A.503, subdivision 6.
(2) Prima Facie Fviclenee. In every prosecution for a violation of the provisions of this
section relating to the sale or furnishing of intoxicating liquor or nonintoxicating
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 willful or intentional.
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Sec. 10-48. F""ptQ)'1'l..nt nf P..nnno IIndpr RigÞt....n VPJlro nf Ag,.. No person under
eighteen (18) years of age may serve or sell intoxicating liquor in a retail intoxicating liquor
establishment.
See. 10-49.
PrnhihitP.d Cnntlitinn!li:.
(a) Prnotin,tinn. No licensee shall knowingly pennit the licensed premises or any room in
those premises or any adjoining building directly under the licensee's control to be used by
prostitutes.
(b) C.ontrolled Snh,"'n~p... No licensee shall knowingly pennit the sale, possession or
consumption of controlled substances on the licensed premises in violation of state law.
(c) Oamhling. Gambling and gambling devices are not pennitted on licensed premises.
State lottery tickets may be purchased and sold within licensed premises as authorized by the
director of the state lottery.
Sec. 16-50. Own.....hip nf F.quipment. No equipment or fixture in any licensed place shall
be owned in whole or in part by any manufacturer or distiller except such as shall be expressly
pennitted by state law.
Sec. 10-51. DioptRY nf r ,icpmr. No on-sale liquor establishment shall display liquor to the
public during the hours when the sale of liquor is prohibited.
Sec. 16-52.
' )ptiveQ' .
(a) Re.trictinn.. Only licensed off-sale retail liquor establishments and no other dealers may
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 deliveries 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 the
store for delivery shall be carried in the delivery vehicle.
(b) n"liver:y Tick"t. R"( lired. 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 delivery, 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) T .iœn..... May R"fnse tn n..liv"r. Any 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 10 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 produce written
evidence of being 21 or more years of a¡¡e.
See, 10-53. SRmp..... Off-sale licensees may provide samples of mall liquor, wine, liqueurs,
cordials, and distilled spirits which the licensee currently has in stock and is offering for sale to the
general public without obtaining an additional license, provided the wine, liqueur, cordial, and
84472.oJ/Clean (OlD WP #66526.@j
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distilled spirits samples are dispensed at no charge and consumed on the licensed premises during
the pennitted hours of off-sale in a quantity less than 100 milliliters of malt liquor per variety per
customer, 50 milliliters of wine per variety per customer, 25 milliliters of liqueur or cordiai, and 15
milliliters of distilled spirits per variety per customer.
Sætion 2. This ordinance shall be effective immediately upon its passage and publication.
PASSED AND ADOPTED this
City of Chanhassen.
day of
, 2000, by the City Council of the
ATTEST:
Scott A. Botcher, Clerk/Manager Nancy K. Mancino, Mayor
(Published in the Chanhassen Villager on , 2000).
84472.Q3/Clean (OLD WP iHj65~^>9) 20
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