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HomeMy Public PortalAbout242CITY OF MEDINA ORDINANCE NO. ,;i/J, AN ORDINANCE REPEALING SECTIONS 625.01 THROUGH 625.35 OF CHAPTER 6 OF THE MEDINA CODE OF ORDINANCES AND ADOPTING NEW SECTIONS 625.01 THROUGH 625.28 RELATING TO ALCOHOLIC BEVERAGE LICENSES The City Council of the City of Medina ordains as follows: Section I: Sections 625.01 through 625.35 of the Medina Code of Ordinances are repealed in their entirety and the following new Sections 625.01 through 625.28 are hereby adopted. CHAPTER 6 BUSINESS REGULATIONS AND LICENSES 625. ALCOHOLIC BEVERAGE LICENSES 625.01 Provisions of State law adopted. The provisions of Minnesota Statutes Chapter 340A, as amended, are hereby adopted and made a part of this ordinance as though fully set out herein. 625.02. Definitions. The following terms shall have the meanings given to them unless the context clearly indicates otherwise. Subd. 1. Alcoholic Beverage. "Alcoholic beverage" is any beverage containing more than one-half of one percent alcohol by volume. Subd. 2. Bottle Club. "Bottle Club" is any private club or public place which permits members, guests or patrons to provide, display and consume their own intoxicating liquor on the premises, while providing by retail sale liquid mixes, glasses, and other services and goods used in the consumption of intoxicating liquor. Subd. 3. Club. "Club" is an incorporated organization organized under the laws of Minnesota for civic, fraternal, social and business purposes, for intellectual improvement, for sports promotion, or a congressional charter veterans' organization, which; (1) has more than 50 members; (2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; and (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wage fixed and voted each year by the governing body. Subd. 4. Hotel. "Hotel" is an establishment where food and lodging are regularly furnished to transients and which has: (1) a resident proprietor or manager; (2) a dining room serving the general public at tables and having facilities for serving at least 30 persons at one time; and 2 (3) at least 10 guest rooms. Subd. 5. Intoxicating Liquor. "Intoxicating Liquor" or "liquor" is ethyl alcohol, distilled, fermented, spirituous, vinous, and malt beverages containing more than 3.2% of alcohol by weight. Subd. 6. License Period. "License Period" or "License Year" is the effective period of all liquor licenses, that is, from July 1 in the year of license issue to June 30 of the following year. Subd. 7. Licensed Premises. "Licensed premises" is the premises described in the approved license application. Subd. 8. Minor. A minor is any person under 21 years of age. Subd. 9. Non -Intoxicating Malt Liquor. "Nonintoxicating malt liquor" is malt liquor containing not less than one-half of one percent alcohol by volume nor more than 3.2 percent alcohol by weight. Subd. 10. Off -Sale. "Off -Sale" is the sale of alcoholic beverages in original packages for consumption off the licensed premises only. Subd. 11. On -Sale. "On -Sale" is the sale of alcoholic beverages for consumption on the licensed premises only. Subd. 12. Restaurant. "Restaurant" is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly served at tables open to the general public and having a minimum seating capacity of 30. 3 Subd. 13. Retail. "Retail"is sale for consumption. Subd. 14. Sale. "Sale" or "sell" means to furnish any intoxicating liquor, nonintoxicating malt liquor or wine through exchange, barter, gift, trade, prize, or purchase. Subd. 15. Wine. "Wine" is sparkling and carbonated wine, wine made from condensed grape must, wine made from agricultural products other than sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry and sake, in each instance containing not less than seven percent nor more than 24 percent alcohol by volume for nonindustrial use. 625.03. Licensed Required. Subd. 1. Except as provided in this ordinance, no person may directly or indirectly, on any pretense or by any device, sell, keep for sale, allow the display or consumption, or otherwise dispose of alcoholic beverages as part of a commercial or retail transaction without having first obtained the appropriate license. Subd. 2. License Types: Intoxicating Liquor. Intoxicating liquor licenses shall be of four kinds: "On -Sale," "Off -Sale," "Club License," and "Sunday Sales." (a) "On -Sale" licenses shall permit on the premise sales and consumption of intoxicating liquor and non - intoxicating malt liquor. (b) "Off -Sale" licenses shall permit the sale of intoxicating liquor and nonintoxicating malt liquor for consumption off the premises. 4 (c) "Club Licenses" shall be issued only to clubs which have been in existence for twenty years. A club license shall permit the sale and consumption of intoxicating liquor and nonintoxicating malt liquor on the licensed premises only. (d) "Sunday Sale" licenses shall be granted only to clubs, hotels or restaurants which have facilities for serving not less than 30 guests at one time. A Sunday sale license shall permit the sale and consumption of intoxicating liquors only on the licensed premises on Sundays, and only in conjunction with the serving of food. Subd. 3. License Classes: Intoxicating Liquor. The on - sale licenses under which intoxicating liquor may be sold shall be divided into the following three classes, which shall be based upon the size of the licensed premises: (a) Class A: A license premise in excess of 9,000 square feet in area; (b) Class B: A licensed premise in excess of 3,000 square feet, but less than 9,000 square feet in area; or (c) Class C: A licensed premise less than 3,000 square feet in area. Subd. 4. Nonintoxicatinq Malt Liquor License. A nonintoxicating malt liquor license shall permit a retail establishment to sell nonintoxicating malt liquor either on -sale or off -sale. Any person licensed to sell intoxicating liquor on- 5 sale shall not be required to obtain an on -sale license under this subdivision and may sell nonintoxicating malt liquor without further license. Any person licensed to sell intoxicating liquor off -sale shall not be required to obtain an off -sale license under this subdivision and may sell nonintoxicating malt liquor off -sale without further license. Subd. 5. Set-up License. A set-up license shall permit a bottle club to allow the on -premise consumption or display of intoxicating liquor, nonintoxicating malt liquor or wine. Subd. 6. Wine License. A wine license shall permit the on - premise sale and consumption of wine only. Subd. 7. Combination Licenses. An on -sale and an off -sale intoxicating liquor license may be issued to the same licensee or, in lieu of separate licenses, a combination on -sale and off - sale sale license may be issued. Subd. 8. Outdoor Areas. A licensee whose license permits the on -sale of alcoholic beverages shall be permitted to sell, serve and allow consumption of alcoholic beverages in an outdoor area, provided that the following conditions are met: (a) the outdoor area is immediately adjacent to the building or structure comprising the remainder of the licensed premises and such outdoor area is specifically described as part of the licensed premises in the approved license application; (b) the outdoor area is completely enclosed by a fence or other barrier preventing any external ingress or egress from the area; 6 (c) access to the outdoor area is available only through the interior portions of the licensed premises; (d) no bars or pass -through windows shall be permitted in the outside area; (e) there shall be no music audible off the property nor exterior lighting which casts direct light off the premises; (f) no alcoholic beverages shall be served after 10:00 p.m. nor consumed after 10:30 p.m. in the outside area; and (g) outside area shall 5e compact in size and shall not exceed an area as may be considered reasonable by city council. For the purpose of determining the appropriate on -sale license class, the outdoor area shall be included in the licensed premises but at a rate equal to one- half the actual square footage of the outdoor area. 625.04. License Application. Subd. 1. Every license application shall be verified and filed with the city clerk -treasurer. An on -sale license application shall be in a form and request information of the applicant as determined by the city council. An off -sale license application shall be on the form approved by the Minnesota commissioner of public safety. The application shall be completed in its entirety according to the instructions provided with the application. The city clerk - treasurer shall return any application not properly completed. No applicant shall knowingly make any false statement on the license application. 7 Subd. 2. Application Fee. Every license application shall be accompanied by the application fee established by the city council from time -to -time by resolution. Subd. 3. Proof of Financial Responsibility. Each license application shall be accompanied by proof that the applicant has obtained the appropriate bond or liability insurance, if required. 625.05. Bond. No intoxicating liquor license shall be issued unless the applicant has filed with the city clerk -treasurer a bond with corporate surety, or cash, or United States government bond in the amount of $5,000 for on -sale licenses or $3,000 for off -sale licenses. The bond must be conditional on the licensee obeying all laws and ordinances governing the business and paying all taxes, fees, penalties and other charges, and must provide that the bond is forfeited to the City of Medina upon a violation of law. Each bond filed for an off -sale license must also be approved by the Minnesota commissioner of public safety. 625.06. Liability Insurance. Subd. 1. No license of any type shall be issued, maintained or renewed unless the applicant files with the city clerk -treasurer proof of financial responsibility. The minimum requirements for proof of financial responsibility are as follows: (a) A certificate that there is in effect for the license period an insurance policy or pool providing at least 8 $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for a loss of means of support of any one person in any one occurrence, $100,000 for loss of means of support of two or more persons in any one occurrence, and an annual aggregate policy limit for dram shop insurance of not less than $300,000 per year; (b) A bond of a surety company with a minimum coverage as provided in clause (a); or (c) A certificate of the Minnesota 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 for trust funds having a market value of $100,000. The liability insurance required by this subdivision is in addition to and apart from the bond required by section 625.05 of this ordinance. Subd. 2. Any liability insurance required by this ordinance must provide that it may not be cancelled for any cause by either the insured or the insurer unless the cancelling party has first given ten days advanced written notice to the city clerk - treasurer. 9 625.07. General Requirements, Financial Responsibility. The issuer or surety on any liability insurance policy or bond required under this ordinance shall be duly licensed to do business in Minnesota. All insurance and bond documents for on - sale licenses shall be approved as to content and form in advance of execution by the city attorney. Insurance and bond documents for off -sale licenses shall be in a form approved by the Minnesota commissioner of public safety. The licensees and the City shall be named as joint insureds on the liability insurance policy. The bond and/or insurance policy effective dates must coincide with the licensing period. 625.08. Exceptions. Subd. 1. The following persons are exempt from the bond and insurance provisions of this ordinance: (a) on -sale nonintoxicating malt liquor licensees with sales of less than $10,000 of nonintoxicating malt liquor for the preceding year; (b) off -sale nonintoxicating malt liquor licensees with sales of less than $20,000 of nonintoxicating malt liquor for the preceding year; (c) on -sale wine licensees with sales of less than $10,000 of wine for the preceding year; or (d) holders of a temporary license issued under this ordinance. Subd. 2. Any applicant claiming an insurance exemption under this section must submit with the completed license 10 application a sworn affidavit demonstrating the basis for the exemption. The city clerk -treasurer may require additional evidence of the basis for the claimed exemption. 625.09. Site Plan. Subd. 1. Each application for a on -sale intoxicating liquor license shall be accompanied by a site plan, drawn to scale. The site plan must contain the following information: (a) a legal description of the property upon which the proposed licensed premises is situated; (b) a plot plan; (c) the exact location on the property of the licensed premises, all customer and employee parking areas, all accesses onto the property, all entrances into the premises, and all outdoor serving areas; (d) the location of and distance from the nearest church, school, hospital and residences; and (e) a floor plan of the licensed premises. 625.10. Investigations. Subd. 1. Prior to granting an initial application, renewal of an existing license, or transfer of an existing license, the City shall conduct a preliminary background and financial investigation of the applicant. Every individual or person having any beneficial interest in the license shall be investigated. The investigation shall be conducted by the chief of police and the results shall be reported to the city council. 11 The chief of police shall verify the facts stated in the application, and shall report all convicted violations of state or federal law or municipal ordinances involving the applicant, interested persons, or the licensed premises while under the applicant's proprietorship. The scope of the investigation and of the investigation report shall be within the sole discretion of the chief of police. The chief of police may report suspected civil or criminal law violations only if a verified complaint, indictment or tab charge has been filed in a state or federal court. If the City or the Minnesota bureau of criminal apprehension determines that a comprehensive background investigation is necessary, the chief of police may conduct such an investigation or the City may contract with the Minnesota bureau of criminal apprehension to do so. Subd. 2. Investigation Fee. All applicants shall be charged a fee for the costs of investigation of an application for initial issuance or transfer of an on -sale license or for reinvestigation for a renewal of an on -sale license. If there is more than one applicant for a license, a separate investigation fee shall be charged for each applicant. The fee shall be the actual costs incurred by the City in investigating the applicant and reporting the investigation findings to the city council, as determined by city clerk -treasurer, but shall not exceed $500 for an investigation conducted wholly within the state nor $10,000 if investigation is required outside the state. The applicant shall be notified of the total investigation fee prior to the city 12 council's final action on his or her license application, and the fee shall be payable upon terms established by the city clerk - treasurer. 625.11. Corporate Licenses. Licenses may be issued to corporations as the licensee, but only if the corporation is incorporated within the State of Minnesota. It is a condition of every license issued to a corporation that the city clerk - treasurer promptly be furnished with a correct list of all stockholders of the corporation and the number of shares held by each, either individually or beneficially for others. It is the continuing duty of each corporate licensee to notify the city clerk -treasurer promptly of any change in ownership interest of such shares. Any change of ownership interest of the shares of stock entitled to be or beneficial or beneficial voted at any meeting of the stockholders of the corporation which results in a change of voting control shall be deemed equivalent to a transfer of the license issued to the corporation, and any such license shall be revoked and terminated 30 days after any such change in ownership or beneficial interest unless the city clerk -treasurer shall have been notified of such change in writing and the city council approved the license transfer. The city clerk -treasurer may at any reasonable time examine the stock transfer records and minutes of any corporate licensee, and the city council may cancel and terminate any license issued to a corporation upon determination that any change of ownership of stock has resulted 13 in a change of control of such corporation so as to materially affect the integrity and character of its management and its operation of any license premises. However, no action may be taken against any corporation licensee until after a hearing conducted by the city council on 30 days' written notice to the license. 625.12. Granting of License. After review of the investigation report, the city council may grant or deny the application for a new, renewed or transferred license. No license shall be effective unless the license, bond and proof of insurance have been approved by the Minnesota commissioner of public safety. Each license so granted shall be effective only during the license period. 625.13. Persons ineligible for a license. Subd. 1. No license of any type or class shall be issued to: (a) a person not a citizen of the United States or a resident alien; (b) a person under 21 years of age; (c) a person who within five years of the license application date has been convicted of a willful violation of federal or state law or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution, of intoxicating liquor or nonintoxicating malt liquors; 14 (d) a person who has had an intoxicating liquor or non - intoxicating liquor license revoked within five years of the license application, or to any person who at the time of the violation owned any interest, whether as a holder of more than 5% of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted therein, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; (e) a person whom the city council determines not to be of good moral character and repute; or (f) any person to whom the city council determines, after investigation and hearing, that issuance, transfer, or renewal of the license would not be in the public interest. 625.14. Places ineligible for license. Subd. 1. No license shall be issued, transferred or renewed for any place or for any business if: (a) taxes, assessments or other financial claims of the City or the state of Minnesota on the premises are delinquent or unpaid; (b) if the place is located within 300 feet of any school or church; (c) where operation of the licensed premises would violate zoning ordinances; or 15 (d) the applicant's present license was issued conditioned upon the applicant making specified improvements to the licensed premises or the property of the licensed premises which have not been completed. 625.15. Conditional Licenses. The city council may grant any application for a new, renewed or transferred license conditioned upon the applicant making reasonable improvements to the proposed licensed premises or the property upon which the licensed premises is situated. The city council, in granting such a conditional license shall specify when such modifications must be completed. Failure to comply with the conditions of the license shall be sufficient grounds for the city council to revoke or deny renewal of the license in the future. 625.16. License Fee. Subd. 1. Every applicant who receives a new, renewed or transferred license shall pay a license fee established by the city council from time -to -time by resolution. The applicant shall either pay the license fee in full prior to June 1 of the license year, or pay one-half prior to June 1 and one-half prior to December 1 of that license year. 625.17. License Limitations. Each license shall be issued to the applicant only, and only for the licensed premises as described in the application. A license is only effective for the premises specified in the approved license application. 16 625.18. Term; Expiration; Pro Rata Fee. Each on -sale license shall be issued for a period of one year, except that if the application is made during the license year, a license may be issued for the remainder of the license year for a pro rata fee, but not less than $400. Any unexpired fraction of a month shall be counted as a complete month. Every license shall expire on June 30 of the license year. 625.19. Refunds. The city clerk -treasurer shall refund a pro rata share of the annual license fee for an on -sale license if: (a) the business ceases to operate because of destruction or damage; (b) the licensee dies; (c) the business ceases to be lawful for a reason other than a license revocation; or (d) the licensee ceases to carry on the licensed business under the license. 625.20. Death of Licensee. Subd. 1. In the case of the death of a licensee, the personal representative is authorized to continue operation of the business for not more than 90 days after the licensee's death. 625.21. License Transfer. No license issued pursuant to this ordinance may be transferred, except upon application to and approval by the city council. The application for a license 17 transfer shall be treated as a new license application for purposes of all application forms, fees, and investigations. The proposed license transferee shall be considered to be the applicant. 625.22. License Renewal. Any license holder desiring to have an existing license renewed beyond the end of the license period shall file a completed application for renewal no later than June 1 of the license period. The city council shall grant the renewal if it determines, after review of the renewal application and investigation report, that both the licensee and the licensed premises remain eligible for a license under the provisions of this ordinance and state law. 625.23. Temporary License. A club or charitable, religious, or non-profit organization may be issued a temporary on -sale license for the sale of nonintoxicating malt liquor, subject to all other provisions of this ordinance except for the following matters; (a) a non-refundable fee of $10.00 shall accompany each application for temporary license; (b) temporary licenses shall become effective and shall expire at the times determined by the city council, but shall not be issued for a period greater than 72 hours; and (c) temporary license applications shall be in a form as determined by the city council. 18 625.24. Conditions of License. Subd. 1. Every license granted is subject to the provisions of this ordinance, and state law and to the following conditions: a) every licensee shall be responsible for the conduct of his or her place of business and shall maintain conditions of good order and sobriety therein; b) except for sales by clubs made to members in good standing who pay regular monthly membership fees, no sale of any alcoholic beveri,,ge shall be made to anyone on credit; c) any peace officer, health officer, or any properly designated officer or employee of the City or the state, including representatives of the Minnesota commissioner of public safety, shall have the unqualified right to enter, inspect and search the licensed premises during business hours without a warrant; d) no alcoholic beverage may be served or consumed outside of the compact and contiguous space specified as the licensed premises, in the approved license application; e) no person may sell or in any way procure for another an alcoholic beverage for the use of an obviously intoxicated person; f) no licensee shall permit any minor to consume alcoholic beverages on the licensed premises. It shall be unlawful for any person to sell alcoholic beverages to a minor, except that a parent or guardian of a minor may give alcoholic beverages to that person solely for consumption and solely in the household of the parent or guardian; and 19 9) a violation of any term or condition of any other permit or license granted by the City of Medina regarding the property upon which the licensed premises is located shall be deemed to be a violation of the license granted under this ordinance. 625.25. Employment. Subd. 1. No person under 18 years of age may serve or sell intoxicating liquor in a licensed premises. 625.26. Entertainment. The licensee is responsible to insure that the provisions of this ordinance are fully enforced during all private social gatherings held on the licensed premises. The provisions of section 600 of the Medina city code are also applicable. 625.27. Hours and Days of Sale. Subd. 1. On -sale Intoxicating liquor. No sale of intoxicating liquor or wine for consumption on the licensed premises may be made: (1) between 1:00 a.m. and 8:00 a.m. on the days of Tuesday through Saturday; (2) between 12:00 midnight and 8:00 a.m. on Mondays; (3) after 1:00 a.m. on Sundays, except as provided by Subd. 3; or (4) between 8:00 p.m. on December 24 and 8:00 a.m. on December 25, except as provided by Subd. 3. 20 Subd. 2. On -Sale Nonintoxicatinq Malt Liquor. No sale of nonintoxicating malt liquor may be made between 1:00 a.m. and 8:00 a.m on the days of Monday through Saturday, nor between 1:00 a.m. and 12:00 noon on Sunday. Subd. 3. Sunday On -sales. A club, hotel or restaurant which holds an on -sale intoxicating liquor license may sell intoxicating liquor or nonintoxicating malt liquor for consumption on the premises in conjunction with the sale of food between the hours of 12:00 noon and 12:00 midnight on Sundays, provided a Sunday license has been obtained for the licensed premises. The city council may after a public hearing by ordinance permit a club, hotel or restaurant to sell intoxicating liquor or nonintoxicating malt liquor for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. and 12:00 midnight on Sundays, provided that the licensee is in conformance with the Minnesota clean air act. Subd. 4. Off -sale. No sale of intoxicating liquor, non - intoxicating malt liquor or wine may be made by an off -sale licensee: (1) on Sundays; (2) before 8: 00 a.m. on Monday through Saturday; (3) after 8:00 p.m. on Monday through Thursday; (4) after 10:00 p.m. on Friday and Saturday, provided that an establishment may sell intoxicating liquor until 10:00 p.m. on December 31 and July 3 and on the day preceding Thanksgiving day, unless otherwise prohibited under clause (1); (5) on New Years Day, January 1; 21 on Independence Day, July 4; on Thanksgiving Day; on Christmas Day; December 25, or after 8:00 p.m. on Christmas Eve, December, 24. Subd. 5. Bottle Clubs. No establishment licensed as a bottle club may permit a person to consume or display intoxicating liquor, and no person may consume or display intoxicating liquor, between 1:00 a.m. and 12:00 noon on Sundays, and between 1:00 a.m. and 8:00 a.m. on Monday through Saturday. Subd. 6. Set-up License. A set-up license may be issued by the Minnesota commissioner of public safety but must be approved by the city council. Subd. 7. Evacuation. Any licensed premise named in any on - sale license, and every part thereof except those portions used exclusively for food service, shall be closed and be kept closed to the public within 30 minutes after the stated time of prohibited sales begins. It shall be unlawful for any person or customer, other than the licensee or his or her employees, to remain on the premises after closing. The licensee and his or her employees may remain after closing for the purposes only of cleaning, repair, maintenance and security, but there shall be no consumption of alcoholic beverages by the licensee or employees during all times of prohibited sale. 625.28. License revocation and suspension. Subd. 1. The city council may suspend for up to 60 days, revoke the license, or 22 impose a civil fine not to exceed $2,000 for each violation on a finding that the license or permit holder has failed to comply with an applicable statute, rule or ordinance relating to the sale of alcoholic beverages. No suspension or revocation may take effect until the license has been afforded an opportunity for a hearing. The city council may suspend any license pending a hearing on revocation or suspension. Subd. 2. The city council may revoke or suspend a license if it determines that either the licensee or the licensed premises is no longer eligible for a license pursuant to this ordinance or state law. Section II: This ordinance shall become effective upon its adoption and publication. Adopted by the City Council of the City of Medina this day of ' �:� , 1989. ATTEST: Donna Roehl, Clerk -Treasurer Published in the Crow River News this 1989. ME230-005 day o 23