HomeMy WebLinkAboutOrdinance No. 4404 - Second Reading: Ordinance amendment to liquor licensing
ORDINANCE NO. ____
AN ORDINANCE AMENDING SECTIONS 5-19-1, 5-19-4, 5-19-11, 5-19-14, 5-19-
15, 5-19-16 AND 5-19-26, AND REPEALING SECTIONS 5-19-12 AND 5-19-13, OF THE
ROCHESTER CODE OF ORDINANCES RELATING TO LIQUOR LICENSING.
THE COMMON COUNCIL OF THE CITY OF ROCHESTER ORDAINS:
Section 1. Section 5-19-1 is hereby amended to read as follows:
Sec. 5-19-1. - Definitions.
Except as provided in this section or where the context clearly indicates otherwise,
the words, terms and phrases used in this chapter shall have the meanings attributed to
them in Minn. Stats. § 340A.101.
Applicant means the person signing the alcoholic beverage license application
form and, in the case of a partnership, association, corporation, or other legal entity,
includes the business organization or other entity on behalf of which the application is
made.
Civic center means the structure owned by the city which is located at Second
Avenue S.E. and East Center Street in the city and which is known as the Mayo Civic
Center.
Drug store means any place where drugs are kept, compounded and sold, and
which at all times is in charge of a registered pharmacist or a registered assistant
pharmacist during the temporary absence of the registered pharmacist.
Minnesota Liquor Act or Liquor Act means the provisions contained in Minn. Stats.
ch. 340A, as amended.
Restaurant means:
(1) An establishment, other than a hotel, under the control of a single proprietor
or manager, where meals are regularly prepared on the premises and served at tables to
the general public, and having a minimum seating capacity for serving meals to not less
than 15 guests at one time.
(2) Notwithstanding the provisions of subsection (1) of this definition and with
the specific intent to include hotel establishments within application of this subsection, the
term "restaurant," for purposes of a wine license, means an establishment as otherwise
described above which has seating capacity for serving meals to not less than 1525 guests
at one time.
(3) Notwithstanding the provisions of subsection (1) of this definition, an full
intoxicating liquor/on-sale exclusive liquor storeon-sale may be deemed a restaurant for
purposes of a special Sunday license, even though the principal part of its business is not
the serving of foods, provided that it has appropriate facilities for serving meals to at least
1530 guests at one time and that it also otherwise meets the requirements of subsection
(1) of this definition.
(4) Notwithstanding the provisions of subsection (1) of this definition, the term
"restaurant," for purposes of the intoxicating liquor/civic center and special Sunday license
provisions of this chapter, includes the facilities available to and operated by the
concessionaire at the civic center.
Sale , seller and sold mean all barters and all manners or means of furnishing an
alcoholic beverage, including such furnishing as is in violation or evasion of law.
Section 2. Section 5-19-4 is hereby amended to read as follows:
Sec. 5-19-4. License Classes
(a) Full Iintoxicating on-sale liquor licenses.
(1) An intoxicating liquor/on-sale exclusive liquor storeA full intoxicating
liquor/exclusive on-sale license authorizes an exclusive liquor store to sell
alcoholic beverages at retail to the public for consumption only on the licensed
premises, which license is commonly referred to as a street bar license.
(2) An intoxicating liquor/restaurant and hotelA full intoxicating liquor/hotel license
authorizes a hotel or restaurant to sell alcoholic beverages at retail to the public
for consumption only on the licensed premises.
(3) An intoxicating liquor/off-sale exclusive liquor store license authorizes an
exclusive liquor store to sell alcoholic beverages at retail in original packages to
the public for consumption off the licensed premises only, which license is
commonly referred to as a package liquor store license. In addition, wine samples
or malt liquor samples, as specified in Minn. Stats. § 340A.510, may be provided
to the general public.A full intoxicating liquor/restaurant license authorizes a
restaurant, including a brew pub, to sell alcoholic beverages at retail to the public
for consumption only on the licensed premises.
(4) An full intoxicating liquor/club license authorizes a club which has been in
existence for at least three years to sell alcoholic beverages at retail for
consumption only on the licensed premises to its members and to bona fide guests
in the company of members, except that a club may permit the general public to
participate in a wine tasting conducted at the club under Minn. Stats. § 340A.419.
(5) A wine license authorizes a restaurant having facilities for seating at least 25
guests to sell wine up to 24 percent alcohol content by volume at retail to the public
for consumption only on the licensed premises in conjunction with the sale of food.
A restaurant holding both a wine license and a 3.2 percent malt liquor/on-sale
license pursuant to subsection (b)(1) of this section may also serve intoxicating
malt liquor so long as the licensee has proof of financial responsibility as required
by Minn. Stats. § 340A.409.A full intoxicating liquor/bowling center license
authorizes a facility where the sport of bowling is played to sell alcoholic beverages
at retail to the public for consumption only on the licensed premises
(6) An intoxicating liquor/on-sale temporary license authorizes a club or charitable,
religious, or other nonprofit organization in existence for at least three years, a
political committee registered under Minn. Stats. § 10A.14, or a state university,
for a term not to exceed four consecutive days, to sell or to contract for the off-
premises sale of intoxicating liquor. If the club or organization holds an existing
intoxicating/on-sale liquor license, it may sell intoxicating liquor during the
permitted term at a place other than its licensed premises. If the club or
organization does not hold a permanent liquor license, it may contract with an
existing on-sale intoxicating liquor licensee to sell intoxicating liquor at a place
other than the existing licensee's licensed premises. The sale of intoxicating liquor
under this provision must be in connection with a social event within the city
sponsored by the licensee. A temporary on-sale license issued under this
subsection shall not be considered a separate license under the provisions of
section 5-19-3(f), and shall not be subject to the zoning ordinances under the
provisions of sections 5-19-23 and 5-19-24. The applicant for a temporary on-sale
license shall not be required to pay an investigation fee as otherwise required by
section 5-19-16. Unless otherwise provided for in this subsection, licenses issued
pursuant hereto are subject to all other provisions of this chapter.A full intoxicating
liquor/theater license authorizes a theater, as defined in Minn. Stat. §340A.101
Subd. 27a, to sell alcoholic beverages at retail for consumption only on the
licensed premises to persons attending events at the theater.
(7) An intoxicating liquor/on-sale county fair license authorizes a person licensed
under subsection (a)(2) or (3) of this section to sell intoxicating liquor for on-sale
consumption upon those portions of the county fairgrounds designated by the
county fair board for alcoholic beverage consumption. An application for this
license must be approved by the county fair board and must comply with all
requirements of this chapter. This license is valid only during the time the county
fair is in session.A full intoxicating liquor/convention center license authorizes the
civic center or its designated manager or concessionaire to sell alcoholic
beverages at retail for consumption only on the licensed premises to persons
attending events at the civic center.
(8) A small brewer—off-sale license authorizes a brewer licensed under Minn. Stats.
§ 340A.301, subd. 6(c), (i), or (j), with the approval of the commissioner, to sell
malt liquor at its licensed premises that has been produced and packaged by the
brewer in compliance with state law. A brewer may have on small brewer—off-sale
license and the amount of malt liquor sold at off-sale may not exceed 750 barrels
annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at
exclusive liquor stores, except that malt liquor in growlers only may be sold at off-
sale on Sundays.
(9) A brewer taproom—on-sale license authorizes the holder of a brewer's license
under Minn. Stats. § 340A.301, subd. 6(c), (i) or (j) to sell malt liquor produced by
that brewer for consumption on the premises of or adjacent to one brewery location
owned by the brewer.
(10) A brew pub—on-sale license authorizes a brew pub to sell malt liquor for
consumption at a restaurant operated in the place of manufacture.
(11) A brew pub—off-sale license authorizes a brew pub that holds an on-sale
license, with the approval of the commissioner, to sell malt liquor produced and
packaged on the licensed premises in compliance with state law. Off-sale of malt
liquor shall be limited to the legal hours for off-sale at exclusive liquor stores,
except that malt liquor in growlers only may be sold at off-sale on Sundays.
(b) Limited intoxicating on-sale liquor licenses.
(1) A brewer taproom license authorizes the holder of a brewer's license under the
Minnesota Liquor Act to sell malt liquor produced by that brewer for consumption
on the premises of or adjacent to one brewery location owned by the brewer.
(2) A cocktail room license authorizes the holder of a microdistillery license under
the Minnesota Liquor Act to sell distilled liquor produced by the distiller for
consumption on the premises of or adjacent to one distillery location owned by
the distiller.
(3) A cooking school license authorizes a business establishment that, as part of its
business, conducts culinary or cooking classes for which payment is made by
each participant or advance reservation is required, to furnish to each participant
in each class, at no additional cost to the participant, up to a maximum of six
ounces of wine or 12 ounces of intoxicating malt liquor, during and as part of the
class, for consumption on the licensed premises only.
(c) Wine licenses
(1) A wine license/restaurant authorizes a restaurant having facilities for seating at
least 25 guests to sell wine up to 24 percent alcohol content by volume at retail
to the public for consumption only on the licensed premises in conjunction with
the sale of food. A restaurant holding both a wine license and a 3.2 percent malt
liquor/on-sale license pursuant to subsection (d)(1) of this section may also
serve intoxicating malt liquor so long as the licensee has proof of financial
responsibility as required by Minn. Stats. § 340A.409.
(2) A wine license/theater authorizes a theater, as defined in Minn. Stat. §340A.101
Subd. 27a to sell wine up to 24 percent alcohol content by volume at retail for
consumption only on the licensed premises to persons attending events at the
theater.
(3) A wine and beer license/baseball team authorizes the owner of a baseball team,
or a person holding a concessions or management contract with the owner, for
beverage sales at a ballpark or stadium located within the city for the purposes
of league baseball games on all days of the week to persons attending baseball
games at the ballpark or stadium.
(bd) 3.2 percent malt liquor on-sale licenses.
(1) A 3.2 percent malt liquor/on-sale license authorizes a drugstore, restaurant, hotel,
club, professional sports team, or an establishment used exclusively for the sale of 3.2
percent malt liquor with only incidental sales of tobacco and soft drinks, to sell 3.2 percent
malt liquor at retail to the public for consumption only on the licensed premises, provided
that any club so licensed may only sell 3.2 percent malt liquor to its members and to bona
fide guests in the company of members.
(2) A 3.2 percent malt liquor/off-sale license authorizes a club or other business
establishment, other than an automobile service or filling station, as that term is
defined in the zoning code, to sell 3.2 percent malt liquor in original packages at
retail to the public for consumption only off of the licensed premises.
(3) A 3.2 percent malt liquor/on-sale temporary license authorizes a club or other
charitable, religious, or nonprofit organization, for a term not to exceed ten
consecutive days, to sell 3.2 percent malt liquor at retail to the public for
consumption on the licensed premises.
(ce) Consumption and Display (Bottle club) permits. (1) No business establishment
or club which does not have an on-sale intoxicating liquor license may directly or indirectly
allow the consumption and display of alcoholic beverages or knowingly serve any liquid
for the purpose of mixing with intoxicating liquor without first having obtained a permit from
the commissioner of public safety. This permit shall not be effective until approved by the
city council.
(2) A one-day consumption and display city permit authorizes a nonprofit
organization to allow the consumption and display of intoxicating liquor, and the
serving of liquids for the purpose of mixing with intoxicating liquor, on the licensed
premises in conjunction with a social activity sponsored by it during the one day
for which the permit is issued. This permit must be approved by the commissioner
of public safety before it is effective.
(df) On-sale endorsements
(1) A Special Sunday license endorsement authorizes Hhotels, restaurants, and
clubs, holding an on-sale intoxicating liquor license mayto apply for a special
Sunday license authorizing the establishment to sell intoxicating liquor for
consumption on the licensed premises in conjunction with the sale of food
between the hours of 8:00 a.m. on Sundays and 1:00 a.m. on Mondays. A
licensee holding a brew pub—on-sale or brewer taproom—on-sale license may
apply for a special Sunday license authorizing the sale of malt liquor between
the hours of 8:00 a.m. and 1:00 a.m. on Mondays. A licensee holding a brew
pub—off-sale or small brewer-off-sale license may apply for a special Sunday
license authorizing the off-sale of malt liquor growlers between the hours of 8:00
a.m. and 10:00 p.m.
(2) A 2 am sales endorsement is required in order for a licensee to sell intoxicating
liquor or 3.2 percent malt liquor on-sale between the hours of 1:00 a.m. and
2:00 a.m. The licensee must obtain the consent of the Common Council prior to
obtaining a permit from the commissioner.
(3) A limited entertainment endorsement allows entertainment on the premises of
any on-sale license holder limited to literary readings, storytelling, live solo
comedians, karaoke, amplified or non-amplified music by a disc jockey or any
number of musicians, and group singing by patrons of the establishment, with
no patron dancing.
(4) A general entertainment endorsement allows entertainment on the premises of
any on-sale license holder to permit all forms of legal entertainment and patron
dancing, including volleyball and broomball participated in by patrons or guests
of the establishment, as well as stage shows, theater, and contests.
(e) Dance license. On-sale alcoholic beverage licensees may apply for a dance license
which authorizes the holder to allow dancing on the licensed premises.
(g) Temporary on-sale licenses
(1) An intoxicating liquor/on-sale temporary license authorizes a club or charitable,
religious, or other nonprofit organization in existence for at least three years, a
political committee registered under Minn. Stats. § 10A.14, or a state university,
for a term not to exceed four consecutive days, to sell or to contract for the off-
premises sale of intoxicating liquor. If the club or organization holds an existing
intoxicating/on-sale liquor license, it may sell intoxicating liquor during the
permitted term at a place other than its licensed premises. If the club or
organization does not hold a permanent liquor license, it may contract with an
existing on-sale intoxicating liquor licensee to sell intoxicating liquor at a place
other than the existing licensee's licensed premises. The sale of intoxicating
liquor under this provision must be in connection with a social event within the
city sponsored by the licensee. A temporary on-sale license issued under this
subsection shall not be considered a separate license under the provisions of
section 5-19-3(f), and shall not be subject to the zoning ordinances under the
provisions of sections 5-19-23 and 5-19-24. The applicant for a temporary on-
sale license shall not be required to pay an investigation fee as otherwise
required by section 5-19-16. Unless otherwise provided for in this subsection,
licenses issued pursuant hereto are subject to all other provisions of this chapter.
(2) An intoxicating liquor/on-sale county fair license authorizes a person licensed
under subsection (a)(2) or (3) of this section to sell intoxicating liquor for on-sale
consumption upon those portions of the county fairgrounds designated by the
county fair board for alcoholic beverage consumption. An application for this
license must be approved by the county fair board and must comply with all
requirements of this chapter. This license is valid only during the time the county
fair is in session.
(3) A 3.2 percent malt liquor/on-sale temporary license authorizes a club or other
charitable, religious, or nonprofit organization, for a term not to exceed ten
consecutive days, to sell 3.2 percent malt liquor at retail to the public for
consumption on the licensed premises.
(4) A one-day consumption and display city permit authorizes a nonprofit
organization to allow the consumption and display of intoxicating liquor, and the
serving of liquids for the purpose of mixing with intoxicating liquor, on the licensed
premises in conjunction with a social activity sponsored by it during the one day
for which the permit is issued. This permit must be approved by the
commissioner of public safety before it is effective.
(h) Off sale licenses
(1) An intoxicating liquor/off-sale exclusive liquor store license authorizes an
exclusive liquor store to sell alcoholic beverages at retail in original packages to
the public for consumption off the licensed premises only, which license is
commonly referred to as a package liquor store license. In addition, wine
samples or malt liquor samples, as specified in Minn. Stats. § 340A.510, may
be provided to the general public.
(2) A small brewer—off-sale license authorizes a brewer licensed under Minn.
Stats. § 340A.301, subd. 6(c), (i), or (j), with the approval of the commissioner,
to sell malt liquor at its licensed premises for consumption off site that has been
produced and packaged by the brewer in compliance with state law. The
amount of malt liquor sold at off-sale may not exceed 750 barrels annually. Off-
sale of malt liquor shall be limited to the legal hours for off-sale at exclusive
liquor stores.
(3) A distillery –off-sale license authorizes a microdistiller licensed under the
Minnesota Liquor Act, with the approval of the commissioner, to sell distilled
spirits at its licensed premises for consumption off-site that has been produced
and packaged by the distiller in compliance with state law. The sale of one 375
milliliter bottle per customer per day of product manufactured on site is permit.
Off-sale hours of sale shall be limited to the legal hours for off-sale at exclusive
liquor stores, and no brand may be sold for off-sale consumption at the
microdistillery unless it is also available for distribution by wholesalers.
(fi) License classes limited. Only licenses for the classes indicated and for the limited
purposes specified in this section will be granted or approved by the council.
(g) Collegiate baseball team wine/malt liquor. Notwithstanding any provision of this
chapter to the contrary, a person who is the owner of a summer collegiate league baseball
team, or a person holding a concessions or management contract with the owner, for
beverage sales at a ballpark or stadium located within the city for the purposes of summer
collegiate league baseball games at the ballpark or stadium, may apply for and receive an
on-sale wine license or an on-sale malt liquor license for sales on all days of the week to
persons attending baseball games at the ballpark or stadium.
(hj) Catering permit. Any person intending to serve alcohol under the authority of a state-
issued caterer's permit shall first notify the city clerk and the chief of police of the event at
least seven days in advance. The holder of a caterer's permit may sell intoxicating liquor
as an incidental part of a food service that serves prepared meals at a place other than
the premises for which the holder's on-sale intoxicating liquor license is issued.
Section 3. Section 5-19-11 is hereby amended to read as follows:
Sec. 5-19-11. - Fees—Intoxicating liquor licenses.
The fees for all licenses and endorsements authorized by this chapter shall be as
established in the City’s fee schedule adopted annually.
(a) On-sale licenses. The fees for on-sale licenses shall be as follows:
(1) Clubs. For clubs, the license fee shall depend on the membership of said club at
the time such license is issued or renewed, according to the following schedule:
200 members or less $300.00
201 to 500 $500.00
501 to 1,000 $650.00
1,001 to 2,000 $800.00
2,001 to 4,000 $1,000.00
4,001 to 6,000 $2,000.00
Over 6,000 members $3,000.00
At the time an applicant for issuance or renewal of an on-sale license for a club applies
for such license or renewal, he shall provide the city clerk with the correct membership
of such club as of the date of such application.
(2) Hotels, restaurants, and on-sale exclusive liquor stores. For the sale of on-sale
liquors: $3,200.00 per year plus $1,600.00 for each separate room or lounge area
in excess of one established on the licensed premises. A licensee shall be
considered to have established a separate room or lounge area on the premises
when:
a. More than one permanent bar regularly open to the public exists on the
licensed premises; and
b. The permanent bars are located in areas of the premises separated from
another by permanent walls, or are located on different floors of the licensed
premises.
(3) Civic center license: $3,200.00 per year.
(4) Wine licenses: $400.00 per year.
(5) For purposes of this section, when portions of a single permanent bar are located
in separate areas of the premises divided by a permanent wall, this shall be
considered more than one bar if the rooms have each a separate entrance to the
licensed premises from outside of the licensed premises, provided that additional
license fees need not be paid by any holder of the intoxicating liquor/civic center
license for additional or separate rooms or lounge areas within the civic center
facility.
(6) Small brewer—off-sale or brew pub—off-sale licenses: $36.00 per year.
(7) Brewer tap room or brew pub—on-sale licenses: $300.00 per year.
(b) Off-sale licenses. The fee for an off-sale license shall be $400.00 per year. The fee set
shall be reduced by $100.00 if the following conditions are met:
(1) The licensee agrees to have a private vendor train all employees within 60 days
of hire and annually thereafter in laws pertaining to the sale of alcohol, the rules
for identification checks, and the responsibilities of establishments serving
intoxicating liquors;
(2) The licensee agrees to post a policy requiring identification checks for all persons
appearing to be 30 years old or less; and
(3) A cash award and incentive program is established by the licensee to award
employees who catch underage drinkers, and a penalty program is established to
punish employees in the event of a failed compliance check.
Section 4. Section 5-19-14 is hereby amended to read as follows:
Sec. 5-19-14. - Fees—License transfers.
The fee for the transfer of an intoxicating liquor, wine, intoxicating liquor/wine or a 3.2
percent malt liquor license is $50.00as set in the City’s fee schedule, to be paid at the time
the application is filed. In the event of a transfer of an intoxicating liquor or wine license
for reasons other than solely a change in location, the applicant for the transfer must pay,
in addition to the $50.00transfer fee, an investigation fee provided by state law for an initial
investigation of the same type for the specific class of license.
Section 5. Section 5-19-15 is hereby amended to read as follows:
Section 5: Amending Sec. 5-19-15. - Fees—Payments and adjustments.
(a) Payment of fees. Except for on-sale intoxicating liquor licenses, each application for a
license or for a renewal of a license shall be accompanied by payment in full of all fees
required by this chapter. The annual license fee for on-sale intoxicating liquor licenses
may be paid in semiannual installments, the first one-half thereof when said license is
granted and the last one-half thereof shall be due and payable October 1 following the
date of its issuance.
(b) Late fees. A penalty of 20 percent of the annual license fee, but not to exceed $500.00,
shall be imposed on and collected from each applicant who files an application for
renewal of a license less than 30 days prior to the commencement of the license year.
A penalty of 50 percent of the annual license fee, but not to exceed $300.001,000, shall
be imposed on and collected from each applicant who files an application for renewal
of a license after the commencement of the license year.
(c) Proration of fees. When a license is granted and a period of less than one year remains
before the license expires, 1/12 of the annual license fee shall be charged for each
month or fraction of a month remaining after the license is granted and before the
license expires. A refund shall be provided to any licensee upon the permanent
cessation of business during the course of the license year, if so requested by the
licensee. The license shall be considered terminated at the time of refund. The refund
will be 1/12 of the annual license fee for each full month remaining on the license term.
No refund will be provided if the cessation of business results from the city's action in
suspending, revoking or taking other adverse action against the license or licensee.
(d) Refunds. Upon rejection of any application, the full amount of the any annual license
fee paid shall be refunded.
Section 6. Section 5-19-16 is hereby amended to read as follows:
Sec. 5-19-16. - Investigation fees.
(a) Each applicant for a wine license who does not hold, at the time of such application,
a license, issued under this chapter, shall pay an initial, nonrefundable investigation
fee of $200.00.
(b) Each applicant for an intoxicating liquor license, except a wine license, who does not
hold, at the time of such application, a license, issued under this chapter, shall pay an
initial nonrefundable investigation fee as follows:set forth in the City’s adopted fee
schedule.
(1) Individuals $200.00.
(2) Partnerships $300.00.
(3) Corporations $500.00.
Notwithstanding the above, the fee for an investigation which is required to be
conducted in whole or in part outside of the state shall be the greater of the fee listed
above or the actual cost of the investigation, up to a maximum of $10,000.00.
(cb) If the applicant is not issued a license for the license year for which the initial
application was made, the application may be resubmitted each year for two
successive license years by payment of an additional investigation fee of $50.00as
indicated in the City’s adopted fee schedule for each year that the application is
resubmitted.
Section 7. Section 5-19-26 is hereby amended to read as follows:
Sec. 5-19-26. - Dancing restricted.
Dancing shall be permitted only on licensed premises for which a dancing
licensegeneral entertainment endorsement or a temporary expansion of entertainment
has been granted by the council.
Section 8. Section 5-19-12 is hereby repealed.
Sec. 5-19-12. - Fees—3.2 percent malt liquor licenses.
The fees for 3.2 percent malt liquor licenses shall be as follows:
(1) Off-sale licenses: $36.00 per year.
(2) On-sale licenses: $300.00 per year.
(3) Temporary on-sale license: $30.00 per license.
Section 9. Section 5-19-13 is hereby repealed.
Sec. 5-19-13. - Fees—Other licenses.
The fees for other licenses authorized by this chapter shall be as follows:
(1) Bottle club permit: $150.00.
(2) One-day consumption and display permit: $25.00.
(3) Special Sunday license: $200.00 per year.
(4) Dance licenses: $200.00 per year.
(5) Intoxicating liquor/on-sale temporary license: $50.00.
Section 10. This ordinance shall become effective from and after its publication.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2020.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2020.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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