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C Off-Sale Liquor Licenses Allowed in City CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 9522271100 Fax 9522271110 Building Inspections Phone 9522271180 Fax 9522271190 Engineering Phone 952.2271160 Fax: 952.2271170 Finance Phone 9522271140 Fax: 952.2271110 Park & Recreation Phone: 952.2271120 Fax 952.2271110 Recreation Center 2310 Coulter Boulevard Phone 9522271400 Fax 9522271404 Planning & Natural Resources Phone 9522271130 Fax 9522271110 Public Works 1591 Park Road Phone 9522271300 Fax 9522271310 Senior Center Phone 9522271125 Fax 9522271110 Web Site www.ci.chanhassen.mn.us e - MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Karen Engelhardt, Office Manager '~ DA TE: September 16, 2005 SUBJ: Discussion Regarding Increasing the Number of Off-Sale Intoxicating Liquor Licenses Allowed in the City Staff has received a request from Tara Clawson, owner of WineStyles, for an off-sale liquor license to open a wine boutique in Market Street Station. She was informed that the city allows four off-sale intoxicating liquor licenses and that the fourth license is scheduled for a public hearing on October 10, 2005 (at Century Boulevard and Highway 5). Ms. Clawson has submitted a letter requesting that the Council consider increasing the number of off-sale licenses allowed by city code. BACKGROUND Staff researched how the city arrived at the designation of 4 off-sale licenses and found that the restriction went into effect when Byerly's applied for an off-sale license in 1994. Byerly's is located in the General Business (BG) zoning district, and off-sale licenses are not specifically listed as a use in the district. However, specialty retail was listed as a use. It was the city attorney's opinion that liquor stores were a sub-class of specialty retail. At that time, the council expressed concern that if they approved Byerly's license in the BG zone, that they would be setting a precedent for other sites in the same zoning district. Therefore, Council adopted an ordinance amendment that limited the number of licenses to 4 to eliminate that concern. Off-sale liquor stores are allowed in the Highway Business (BH) and Central Business District (CBD) zones. They are also allowed in commercial PUDs on a case by case basis, i.e. Village on the Ponds and Arboretum Shopping Center). One benefit of limiting the number of licenses allowed in the city is that the Council has control over where the stores are located in those zones. Staff contacted the ten cities identified in the Key Financial Strategies process to determine if they restrict the number of off-sale licenses in their communities. The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work, and play. Mr. Todd Gerhardt September 19, 2005 Page 2 OfT-Sale Liquor Licenses Number Number How did the city determine the City Population Allowed Issued number of ofT-sale licenses allowed? Andover 28,664 5 4 1 license for every 6,000 in population Champlin 22,620 3 3 Originally the state mandated how many licenses were allowed and they decided to keep that designation Chaska 18,961 No limit 5 Farmington 14,255 2 Municipal Liquor Inver Grove 30,708 No limit 7 Heights Lino Lakes 17,942 No limit 6 Oakdale 27,500 No limit 10 Prior Lake 17,160 No limit 6 Savage 23,220 2 Municipal Liquor Shoreview 26,478 No limit 4 Attached is a map showing the current and proposed off-sale license lo<;:ations and the distance between them. If the City Council chooses to increase the number of off-sale licenses allowed in the city, staff will process a city code amendment at a future meeting. ATTACHMENTS 1. Letter from Tara Clawson dated September 9,2005 2. Chanhassen City Code Section 10-19 3. Map of Current and Proposed Off-Sale Intoxicating Liquor Licenses 18909 Explorer TI'IIiI Eden Prairie, .. 55347" September 9, 2005 Chanhassen City Council Members 7700 Market Blvd. Chanhassen, MN 55317 Dear Chanhassen City Council Members: I would ask you to reconsider only having four off-sale ticenses avaifable and to add another so that I may open a WineStytes boutique. Although I do need an off-sale liquor license to operate my business the concept of a WineStyIes is more focused on educating dients on the tastes and flavor of wine and actually less of a typical Uquor store. The store would only carry wine and gifts and would offer an upscale environment that would be a benefit to the Chanhassen retail community. I invite you to look at the website for the franchise so that you are able to obtain a better feel for the boutique, the concept, and the value that a WineStyles would bring to the growing retail community in Chanhassen. Although I am a resident of Eden Prairie I do a large majority of my household shopping in Chanhassen and believe that the recent growth and development of the city would be a great fit for both the city and a WineStyles boutique. Currently the 600 Market Street development is the property that I am most interested in being located. When I talked with Karen Engelhardt, in the City Clerk's office, I discovered that Chanhassen only had four off-sale liquor licenses and that the fourth had just recently been secured. Again, t would ask for your consideration in adding a 511 off-sale license so that I may proceed. I am working within a timeline directed by the franchise so I do need notification on this issue as soon as possible so that I can continue working on a lease in Chanhassen or begin to look elsewhere. If you have any questions, comments, or concerns please don't hesitate to contact me at home 952- 934-1629, on my cell 612-750-0031 , or by email tdawson@vahoo.com. Your consideration and time are greatly appreciated. Respectfully, ~a Tara Clawson Owner WineStyles WineStyles - It's what's inside that counts Page 1 of 2 ~ Locations ~ Wine Club ~ Shop ~ Franchise Info ~ Wine El ':~~7 H:1 U 1;,\ (~O;. 4l' !,?s ( ~\'n:: 1I (<:'lll!;.d:l;.\'.\ .'~:J:.'i: -c'/'.'jil ':4: i:. http://www.winestyles.net/ Wtldt " your "Itls whatls inside that counts!"TM I -- _I I From the moment you walk into WineStyles, your perfect wine buying experience begins. Find yourself transported to an Old World wine cellar, surrounded by a selection of the finest wines available from around the globe, all at affordable, easy-to-swallow prices- most of our wines are priced at under $251 Our mission is to bring superb, world-class wines to wine 10 coast to coast at affordable everyday prices. Wine experts w diligently to carefully select unique labels (many exclusive tc WineStyles) and we specialize in hard-to-find wines from Ian small vineyards. WineStyles transports wine country directly to your neighbo and takes the guesswork out of selecting a wine that fits YOl individual style or occasion. We make learning about wine b easy and enjoyable. And, we offer a myriad of wine-related merchandise and a wonderful selection of gift baskets, whic be customized on the premises. While our passion for finding the best wine takes us around globe, you need only to travel minutes to bring the treasure! great wine to your table tonight. · Each WineStyles store offers 100 to 150 world-class w under $25 · Our wines are all hand selected and guaranteed for qll · WineStyles can special order most wines by the bottlE case and usually have it in 24 hours 912012005 ARTICLE II. ALCOHOLIC BEVERAGES* Page 2 of 17 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 manager. 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; (1) The city fire inspector; (2) The city building official; and (3) The health inspectors employed by Carver or Hennepin county or the state 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 M.S. ch. 340A. (Ord. No. 299, ~ 1, 3-13-00) DIVISION 2. RETAIL LICENSES Sec. 10-18. Licenses required. No person, except as otherwise provided in M.S. ch. 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. (Ord. No. 299, ~ 1,3-13-00) Sec. 10-19. Types of licenses. The following types of licenses are issued under this article: (a) On-sale intoxicating liquor license. On-sale intoxicating liquor licenses shall be granted only to hotels, bowling centers, clubs, restaurants, and exclusive liquor stores. A license shall be issued to clubs and congressionally chartered veterans' organizations if they have been in existence for at least three years and liquor sales will only be to members and bona fide guests. On-sale licenses will only be issued to exclusive liquor stores that were licensed on January 1, 2000. (b) Off-sale intoxicating liquor license. 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 off-sale intoxicating liquor licenses may be issued by the city. (c) Wine licenses. Wine licenses may be issued, with the approval of the commissioner of public safety, only to restaurants having facilities for seating of 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 50 percent attributable to the sale of food, may also sell intoxicating malt liquors at on-sale without an additional license. (d) On-sale 3.2 percent malt liquor license. On-sale 3.2 percent malt liquor license http://library12.rnunicode.comlgateway .dlllrnnlrninnesotal2617/2656/2658?f=ternplates$fn... 912012005 oC) ~~ o~en o..OW o _ en It) 0:: >< Z C) o..OW ~ 0...0 z~::i <(WO:: ......JO z<(::) Weno 0::-- 0::u....J ::)u. 00 ~' Q) .Q e .! 2- CI) ~ ~ ~ ~ III e .9 re o ::l ,r:r ~ c:: e ~ ~ \I) oS! ~ ~ Ifi ':' cj