3 MGM Liquor License Hearing
CITY OF
CHANBASSEN
7700 Ma1lœt &ulMrd
PO Box 147
Chanhassen. MN 55317
Administration
Phone: 952.227.1100
fax: 952.227.1110
Building Inspeclloos
Phone: 952.227.1180
Fax: 952.227.1190
Englne..lng
PIlone: 952.227.1160
Fax: 952227.1170
Finance
PIlone:952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
RecrealionCenter
2310 Cooner BoulMrd
PIlone: 952.227.1400
Fax: 952227.1404
Plannhlg &
Halural Resooltn
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591Park Road
Phone: 952227.1300
Fax: 952227.1310
Senior Cenllr
Phone: 952227.1125
Fax: 952227.1110
Web Sill
rfflW.ci.chanlkissen.mn.us
8
MEMORANDUM
TO:
Mayor
City Council
FROM:
Todd Oerhardt, City Manager
~~
DATE:
March 7, 2002
SUBJ:
Public Hearing on Intoxicating Liquor License Violation, MOM
Liquor Warehouse, 7856 Market Boulevard
Attached please find a letter and hearing notice sent to MOM Liquor Warehouse
concerning an alleged intoxicating liquor license violation in May of 2001
where a clerk sold liquor to a minor. Mr. Maglich, President of MOM, will be
present at Monday's hearing. Attached is a copy of the City Code concerning
liquor license violations.
MOM has provided information to the City Attorney's office regarding a new
$15,000 cash register system that has been installed since this violation
occurred. The new system will not allow the sale of liquor without the driver's
license being scanned by the computer. Only a manager, not a clerk, may
override the system.
The City Attorney will present the Council with a Stipulation of Facts and Civil
Sanction Agreement on Monday night for discussion and Council action.
The City 01 Chanhanen . A growing communi~ wilh clean lakes. qualily schools. a channing downlown, Ihriving businesses, winding Irails, and beautiful parks. A greal place 10 live, work, and play.
i
U~'~IIU~ ~/;d~ r'4A Uð~ 4bZ ÖÖ5U
(;AJU'IŒLL KNIJTSON
.. CIlANBASSEN CH
141004
CITY OF CHANBASSEN
CARVER COUNTY, MINNESOTA
InRe:
City of Chanba~~en Liquor
Licensing Complaint Against
BEARING NOTICE REGARDING ALLEGED
LIQUOR LICENSE VIOLATIONS
MOM Wme & Spirits Inc.,
d/b/a MOM Liquor Warehouse
TO: MOM WINE & SPIRITS INC., DfB/A MOM liQUOR W AREßOUSE, ATIN:
TERRANCE J. MAGLICH, PRESIDENT, 7856 MARKET BOULEY ARD,
CHANHASSEN, MN 55317.
FROM:
CAMPBELL KNUTSON, PROFESSIONAL ASSOCIATION, CITY ATTORNEYS
FOR THE CITY OF CHANHASSEN.
YOU, AS A LIQUOR LICENSEE, ARE HEREBY INFORMED that on the 11th day of
March, 2002, at 7:00 p.m., in the Council ChamberS of the CbanbllS8CIl City Hall, 7700 Market
Boulevard, Ch~nbAo<JeIl, Minnesota, ther.hAn},aOsen City Council will conduct a hearing, pw:suant
to Section 10-39 of the Chanhassen City Code and Minnesota Statote §340AA15, regarding
allegations that the licensee violated provisions of State law and City ordinances reg\ll.mng liquor
. establishments, as follows:
L On May 31, 2001, Ms. Sara Jean Bollig, an employee ofMGM, did sell intoxicating
liquor to an underage person on the licensed premises of MOM in violation of Chanhassen .~ty
Code Section 10-47(a).
If your establishment is found to be in violation as charged, the City Council may revoke the
license, impose a suspension for up to sixty (60) days, or impose a civil fine not to exceed
$2,000.00 for each violation.
02/27/02 17:34 FAX 651 452 5550
CAMPBELL KNlITSON
.. CIlANBASSEN CH
141005
You are entitled to be present at the hearing and to be represented by an attorney. If the:
hearing is contested, you are entitled to call witnesses, present probative evidence, cross-examine
witnesses, :rod submit rebuttal evidence, all as allowed by Minnesota Statute § 14.60.
Dated:
:}.\'ð'l
.2002
CAMPBELL KNUTSON
Professional Association
By:
~
Elliott B. Knetsc 68130
Chanhassen City Attorneys
§ 10-37
CHANHASSEN CITY CODE
(e) That the licensee suffered or permitted illegal acts upon the licensed premises or on
property owned or controlled by the licensee acljacent to the licensed premises, unrelated to the
sale of intoxicating liquor or three and two-tenths (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.
(Ord. No. 299, § 1, 3-13·00)
Sec. 10-38. Inactive license.
The city council may revoke the intoxicating liquor or three and two-tenths (3.2) percent
malt liquor license of any establishment granted a license that is not under construction and
exhibiting satisfactory progress toward completion within sui'{6) months from its issuance, or
any establishment that ceases operation for a period of six (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,
(Ord. No. 299, § 1, 3-13-00)
Sec. 10·39. Hearing notice.
Revocation or suspension of a license by the city council shall be preceded by a 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 ten (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.
(Ord. No. 299, § I, 3-13-00)
~
Sec. 10-40. Minimum civil penalties.
(a) Purpose. 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 all 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 fmds 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
fmdings 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);
Supp. No. 12
558
LICENSES, PERMITS, BUSINESS REGULATIONS § 10-40
Appearance
Type of Violation 1st 2nd 3rd 4th
1. . Commission of a felony re- Revocation NA NA NA
lated to the licensed activity
2. Sale of alcoholic beverages Revocation NA NA NA
while license is under sus-
pension
3. Sale of alcoholic beverages to 3 6 18 Revocation
under-age person
4. Sale of alcoholic beverages to 3 6 18 Revocation
obviously intoxicated person
5. After hours sale of alcoholic 3 6 18 Revocation
beverages
6. After hours display or con- 3 6 18 Revocation
sumption of alcoholic bever-
ages
7. Refusal to allow city inspec- 5 15 Revocation NA
tors or police admission to
inspect premises
8. Illegal gambling on premises 3 6 18 Revocation
9. Failure to take reasonable 3 6 18 Revocation
steps to stop. person from
leaving premises with alco-
holic beverages
10. Sale of intoxicating liquor Revocation NA NA NA
where only license is for three
and two-tenths (3.2) percent
malt liquor
(c) Multiple violations. 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.
(d) Subsequent violations. Violations occurring after the notice of hearing has been mailed,
but prior to the hearing, must be treated as a separate violation and dealt with as a second
appearance before the council, unless the city manager and licensee agree in writing to add the
violation to the first appearance, The same procedure applies to a second, third, or fourth
appearance before the council.
(e) Subsequent appearances. 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
Su"", No. 12
559
§ 1040
CHANHASSEN CITY CODE
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.
(0 Computation of appearances. After the first appearance, a subsequent appearance by the
same licensee will be determined as follows:
(1) 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 treated as a fourth (4th) appearance.
(4) Any appearance not covered by subsection (1), (2), or (3), above will be treated as a first
appearance.
(g) Other penalties. Nothing in this section shall restrict or limit the authority ofthe 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.
(Ord. No. 299, § 1, 3·13-00)
DIVISION 3. RETAIL SALES REGULATION
Sec. 10·41. Right of inspection.
(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.
<Ord. No. 299, § I, 3-13·00)
See. 10-42. Responsibility of licensee.
(a) Orderly conduct. 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.
Supp. No. 12
560
03/08/02 13:58 FAX 651 234 6237
CAMPBELL KNUTSON PA
~002
CAMPBELL KNUTSON
Thorn.. J. Campbo!l
ROA'cr N. Knut$01\
Tho"",, M. ScOTT
Elliott 13. Kn.""h
oo! J. Jamnlk
Andrea Ml.:DoweU Poehler
M.,th.", K- Broldo
.. .A.hlllrmlJ(d ill Wüamsin
Professional Alssociation
Attomeys at Law
(651) 452·5000
Fax (651) 452-5550
John F. Kelly
Matthew J. Foli
Soren M. Mattick
Maruuerile M. McC3m:m
Gina M. Br-.tnd[
March 8, 2002
Mr. TemmceJ. MagHch
Mr. NtichaelG. Maglich
MOM Wine & Spirits Inc.
1124 Larpenteur AvelUle W.
SI. Paul, MN 55113-6300
VIA FACSIMILE
Re: Intoxicating Liquor License Violation at MGM Liquor Warehouse
Dear Sirs:
Pursuant to my telephone conference with Terrance on March 7, 2oo~, enclosed please fmd a
Stipulation of Facts and Civil Sanction. The Stipulation provides for a $1,000 civil sanction in lieu of a
three day suspension.
This Stipulation replaces the one I faxed to you yesterday. If the Stipulation is acceptable, please
execute and fax a copy to me by noon on Monday and bring the origi nal to the Council meering on
Monday, March 11, 2002.
It is my understanding mat Michael will be present at the meeting on behalf of MOM.
Please caU if you have any questions.
Very truly yours,
CAMPBELL KNUTSON
Professìono./ Associa fion
.~
netsch
By:
EBK;nme
enc.
cc: Todd Gerhardt (via facsimile only)
Karen Engelhardt (via facsimile only)
Suire 317 . Eagandale Office Center . 1380 Corporate Center Curve · Eagan, MN 55121
----23/08/02 13:58 FAX 651 234 6237
CAMPBELL KNUTSON PA
taJ003
CITY OF CIlANBASSEN
CARVER COUNTY, MINNESOTA
In Re:
City ofChanhassen Liquor
Licensing Complaint Against
STIPULATION OF FACTS
AND CIVIL SANCTION
MOM Wine & Spirits, Inc.,
d/b/a MOM Liquor Warehouse
The City of ChAnbA~Sen, through its undersigned attorney, and MGM Wine & Spirits Inc.,
d/b/a MOM Liquor Warehouse: (''MOM''), through its undersigned authorized officer, hereby agree
and stipulate as follows:
1. MGM is licensed tmder Chanhassen City Code: Chapter 10, Article II, to operate an
off-sale liquor establishment at 7856 Market Boulevard, in the City of Chanhassen.
2. On May 31, 2001, Ms. Sara Jean Bollig, an empl(,yee of MOM, did sell intoxicating
liquor to an underage person on the licensed premises ofMGM ill violation ofChanhassc:n City
Code Section 10-47(a).
3. Copies of the Carver County Sheriff's DepartmelJt reports regarding this incident are
incorporated into this Stipulation by reference.
4. This constitutes MGM's First Appearance before the City Council pursuant to
Chanhassen City Code §10-40.
5. Since this violation occurred, MOM has installed a new state of the art computerized
cash register system, at a cost of over $15,000, which requires the customer's identification card to
be scanned before a sale is made. A sales clerk cannot ovenide the system.. Only a store manager
with a key can override the system.
_ 03/08/02 13: .59 FAX 651_ 234 6p7
CAMPBELL KNVTSON PA
~004
6. MOM's off-sale liquor license is suspended for thne (3) consecutive days. The
imposition of the suspension is stayed until March 11, 2005, on tl:.e following conditions:
a. Payment of a civil sanction of$I,Oooby April 11, 2002.
b. No further violations of state law or Chanhassen ordinances relating to
alcoholic beverages.
c. Payment of all real estate taxes.
d If a new violation occurs, the tlu-ee (3) day suspension will not be imposed
until MOM has been afforded an opportun:.ty for a hearing before the City
Council.
e. If there are no violations of these conditions, the tlu-ee (3) day suspension
will be discharged on March 11. 2005.
7. MOM waives its right to the hearing provided by Minnesota Statute §340A.415 and
Chanhassen City Code Section 10-39.
8. The civil sanction set forth in Section 6 is contingent upon the CbanblLqsen City
Council's approval. Ifthe City Council rejects the sanction agreed to in this Stipulation in favor of
more severe sanctions, MOM has the absolute right to withdraw this Stipulation and its waiver of
hearing and to have a hearing before the City Council.
Dated:
S(1
,2002
CAMPBELL KNUTSON
Professional Assoc.ration
By:
Elliott B. Knetsc
Ch,,"¡'A~set: City ttomeys
317 Eagane.a1e Office Center
1380 Corporate Center Curve
Eagan. MN 55121
Telephone: (651) 452-5000
03/08/02 13:59 FAX 851 234 8237
Dated:
.2002
CAMPBELL KNUTSON PA
MGM WINE & SPIF1TS INC..
DIBIAMGMLlQUClR WAREHOUSE.
By:
Title:
141005
CITY OF CHANHASSEN
CARVER COUNTY, MINNESOTA
InRe:
City of Chanhassen Liquor
Licensing Complaint Against
FINDINGS OF FACT
AND DECISION
MOM Wine & Spirits, Inc.,
d/b/a MOM Liquor Warehouse
The City Council of the City of Chanhassen hereby makes the following Findings of Fact
and Decision in the above-captioned matter:
FINDINGS OF FACT
1. The City Council has jurisdiction in thiß matter to make this decision, and the
licensee was properly served the Hearing Notice Regarding Alleged Liquor License Violation.
2. The City Council adopts and accepts the licensee's Stipulation of Facts and Civil
Sanction as executed by the licensee and the City Attorney.
3. The Hearing Notice Regarding Alleged Liquor License Violation and the
Stipulation of Facts and Civil Sanction are incorporated into this Findings of Fact and Decision
by reference.
4. This constitutes MOM's First Appearance before the City Council pursuant to
Chanhassen City Code §1O-40.
5. The City Council finds there is a substantial reason to deviate from the
presumptive penalty as follows:
a. Since this violation occurred, MOM has instaJled a new state of the art
computerized cash register system, at a cost of over $15,000, which
requires the customer's identification card to be scanned before a sale is
99418
made. A sales clerk cannot override the system. Only a store manager
with a key can override the system.
6. On the basis of the Stipulation of Facts, the City Council finds and concludes that
the licensee, MOM Wine & Spirits Inc., d/b/a MOM Liquor Warehouse ("MOM"), violated state
law and the Chanhassen City Code as set forth in the Stipulation.
DECISION
MGM is sanctioned as follows:
1. MOM's off-sale liquor license is suspended for three (3) consecutive days. The
imposition of the suspension is stayed until March 11, 2005, on the following conditions:
a. Payment of a civil sanction of $1,000 by April 11,2002,
b. No further violations of state law or Chanhassen ordinances relating to
alcoholic beverages.
c. Payment of all real estate taxes,
d. If a new violation occurs, the three (3) day suspension will not be imposed
until MOM has been afforded an opportunity for a hearing before the City
Council.
e. If there are no violations of these conditions, the three (3) day suspension
will be discharged on March 11,2005.
Dated:
,2002
CITY OF CHANHASSEN
BY:
Linda C. Jansen, Mayor
AND:
Todd Oerhardt, City Manager
99418