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Home My WebLink About13A Liquor License Workshop To: Honorable Mayor and City Council Members From: Neil Belscamper, Deputy City Clerk Date: April 9, 2020 Subject: Liquor Licensing Workshop BACKGROUND At the March 18, 2020 regular meeting, the Cottage Grove City Council acted on two separate off-sale 3.2 percent malt liquor license applications by Linn Retail Centers, Inc. for convenience store locations in Cottage Grove—Cottage Grove BP located at 8490 E Point Douglas Road, and Holiday #3512 located at 6921 Pine Arbor Drive. During the discussion related to the Cottage Grove BP location, Council Members, staff, and City Attorney Land discussed whether that location would be prohibited from holding a liquor license under our ordinance, which limits the proximity of off-sale intoxicating liquor licenses to a minimum of 1,000 feet between one another. The license for Cottage Grove BP was voted on separately and ultimately passed on a 3 – 2 vote as two council members expressed concerns that the provision for the 1,000 foot proximity restriction applied to this license and it was too close to two other locations. Due to the questions with this item a request was made to hold a workshop to review our current city code and determine whether Council would like to explore any changes. LIQUOR LICENSE PROXIMITY RESTRICTIONS IN COTTAGE GROVE Cottage Grove City Code has two liquor license proximity restrictions in place. No on-sale liquor license (i.e. bars, restaurants with liquor, etc.), except a temporary license, may be issued for a location within 300 feet of a church or school. This restriction doesn’t differentiate between a 3.2 percent malt liquor license and an intoxicating liquor license, and therefore applies to all on-sale licenses except temporary licenses. It provides for a lesser distance when a significant physical barrier exists between locations. The second proximity restriction states that no off-sale intoxicating license may be issued for a location within 1,000 feet of another licensed off-sale intoxicating premises. As there was some discussion whether this provision also applies to off-sale 3.2 percent malt liquor licenses (which can be issued to locations such as gas stations and grocery stores, as opposed to off- sale intoxicating liquor licenses, which can only be issued to exclusive liquor stores), here is some clarification on the current city code and state statute regarding the different license types. Here is the exact language under City Code 3-12-4: D. No off-sale intoxicating license shall be granted for premises located within one thousand feet (1,000') of another licensed off-sale intoxicating premises as measured between the nearest building walls of the establishments. Notwithstanding the argument that 3.2 percent malt liquor can in a literal sense be intoxicating, “3.2 percent malt liquor” and “intoxicating liquor” are defined terms with specific meanings under MN State Statute 340a, which is adopted by reference in our city code. Our city code also lists two distinct and separate classifications of liquor licenses—3.2 percent malt liquor licenses and intoxicating liquor licenses. This is the basis for not applying the off-sale intoxicating license proximity restriction to off-sale 3.2 percent malt liquor licenses. The citations are listed below. MINNESOTA STATE STATUTE AND COTTAGE GROVE CITY CODE CITATIONS MN State Statute 340a defines several different liquor types and specifies how they are regulated. Subd. 2.Alcoholic beverage. "Alcoholic beverage" is any beverage containing more than one- half of one percent alcohol by volume. Subd. 14.Intoxicating liquor. "Intoxicating liquor" is ethyl alcohol, distilled, fermented, spirituous, vinous, and malt beverages containing more than 3.2 percent of alcohol by weight. Subd. 16.Malt liquor. "Malt liquor" is any beer, ale, or other beverage made from malt by fermentation and containing not less than one-half of one percent alcohol by volume. Subd. 19.3.2 percent malt liquor. "3.2 percent 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. Definitions under State Statute 340a One thing to note is that while the definition of intoxicating liquor still exists under state statute and applies to beverages containing more than 3.2 percent alcohol by weight, the term nonintoxicating liquor, which was once commonly used to define 3.2 beer, has since been struck and has been prohibited from use: Subd. 3.Terminology. A political subdivision may not issue a 3.2 percent malt liquor license that includes the term "nonintoxicating liquor." MN Statute 340A.411, Subd. 3. Cottage Grove City Code 3-12-1 adopts the state liquor statutes: 3-12-1: ADOPTION OF STATE LAW BY REFERENCE: The provisions of Minnesota statutes, chapter 340A, with reference to the definition of terms, conditions of operation, restrictions on consumption, provisions related to sales, hours of sale, and all other matters pertaining to the retail sale, distribution, and consumption of alcoholic beverages are hereby adopted by reference and are made a part of this chapter as if set out in full. The council is authorized by state statute to impose, and has imposed in this chapter, additional restrictions on the sale and possession of alcoholic beverages within its limits beyond those contained in Minnesota statutes, chapter 340A. (Ord. 975, 2-15-2017) Cottage Grove City Code 3-12-5 outlines several types of liquor licenses under the classifications of 3.2 Percent Malt Liquor Licenses and Intoxicating Liquor Licenses: 3-12-5: TYPES OF LICENSES AND PERMITS: A. 3.2 Percent Malt Liquor Licenses 1. On-Sale 3.2 Percent Malt Liquor License 2. Off-Sale 3.2 Percent Malt Liquor License 3. Off-Sale Brewpub 3.2 Percent Malt Liquor License 4. Off-Sale Small Brewer 3.2 Percent Malt Liquor License 5. Temporary Licenses B. Intoxicating Liquor Licenses 1. On-Sale a. On-Sale Intoxicating License b. On-Sale Wine License c. On-Sale Brewer Taproom License d. On-Sale Brewpub License e. On-Sale Microdistillery Cocktail Room License f. On-Sale Culinary Class License 2. Off-Sale a. Off-Sale Intoxicating License b. Off-Sale Brewpub Malt Liquor License c. Off-Sale Small Brewer Malt Liquor License d. Off-Sale Microdistillery License 3. Sunday Sales 4. Consumption And Display Permit 5. Temporary Licenses 3.2 PERCENT MALT LIQUOR – GENERAL INFORMATION 3.2 Beer is a holdover from the Prohibition era and originated when President Franklin D. Roosevelt signed the Beer and Wine Revenue Act on March 22, 1933, a few months before Prohibition was repealed by the 21st Amendment to the Constitution. During his 1932 presidential campaign, FDR promised to end Prohibition. The 18th Amendment to the Constitution, ratified in 1921, prohibited the manufacture and sale of intoxicating liquors within the United States. When Roosevelt took office in 1933, a constitutional amendment to repeal Prohibition was already making its way through the state legislatures. Roosevelt acted immediately to ease Prohibition with the Beer-Wine Revenue Act. Passed on March 22, 1933, this act legalized the sale of alcoholic beverages containing no more than 3.2 percent alcohol (this level was declared non-intoxicating). Prohibition was officially repealed by the 21st Amendment in late 1933. Excerpt from FDR Library Website Minnesota is the only remaining state offering 3.2 percent malt liquor licensing. COTTAGE GROVE CITY CODE HISTORY The table below summarizes city code changes to liquor licensing since the late 1990s. It appears that the exclusive liquor store proximity restriction (Ordinance 656) was put in place in 1998 as a result of G-Will Liquors locating near Cottage Grove Liquors (the liquor license for G-Will Liquors was being considered on the same agenda and G-Will Liquors was purchasing Cottage Grove Liquors). The original draft ordinance called for a minimum proximity of 300 feet between locations but it was amended at the meeting to 1,000 feet. When the City reorganized (recodified) the city code in 2000, this restriction was inadvertently removed, and in turn was restored and relocated in the code in 2004 (Ordinance 764) when the error was discovered. The documents associated with these actions are attached. Summary of Liquor Code changes since 1998: Date Ordinance No. Brief Summary 4/15/1998 Ordinance 656 Off-Sale One License per 7,500 Population; Proximity Restriction Established for Exclusive Liquor Stores 8/2/2000 Ordinance 685 On-Sale License Number Increased: Not More Than 18 Licenses, Plus One for Every 2,500 Population over 45,000 (Mirrored Statute); On-Sale Wine Licenses Added 5/21/2003 Ordinance 734 Prohibited Adult Uses at Liquor Establishments 6/18/2003 Ordinance 736 2:00 A.M. Sales Allowed 10/1/2003 Ordinance 744 Consumption and Display Permit Language Added 3/17/2004 Ordinance 758 Ineligible Persons - Outstanding Debt 8/11/2004 Ordinance 764 Reestablished 1,000 Foot Proximity Restriction that was Inadvertently Removed with 2000 City Code Recodification 4/6/2005 Ordinance 771 Added Definition of Intoxicating Malt Liquor; Allowed On-Sale Strong Beer (in conjunction with On-Sale Wine License) 11/7/2007 Ordinance 832 Updated Persons Ineligible; Updated Violation Penalties 2/15/2017 Ordinance 975 Liquor Code Repealed and Replaced; Food Truck Ordinance Established 4/5/2017 Ordinance 980 Sunday Liquor Sales PROXIMITY RESTRICTIONS IN OTHER METRO COMMUNITIES Management Assistant Chris Hetland researched several metro communities for restrictions on the number of licenses allowed and also proximity restrictions. The table with his findings is an attachment to this item. Several communities have proximity restrictions to schools and churches. Three of the twenty-nine communities reviewed have license-to-license proximity restrictions for liquor stores, but none of them restrict the proximity of off-sale 3.2 percent malt liquor licenses to other liquor licenses. Blaine: Minimum distance of one mile between liquor stores. Maplewood: Minimum distance of 2,640 feet between liquor stores. Newport: Minimum distance of 1,000 feet between liquor stores. Note: Neither Blaine nor Newport’s proximity restrictions directly reference intoxicating liquor, but in telephone conversations with representatives of both cities, neither city restricts the proximity of off-sale 3.2 percent malt liquor licenses to other liquor licenses. Maplewood’s restriction is located within the specific chapter of their city code relating to intoxicating liquor. RESTRICTIONS ON TOTAL NUMBER OF ON-SALE INTOXICATING LIQUOR LICENSES State Statute 340A.413 specifies the following limit on the number of on-sale intoxicating liquor licenses for a second class city (population between 20,001 and 100,000): (2) in cities of the second class, not more than 18 licenses plus one for every 2,500 population over 45,000; Cottage Grove city code no longer directly specifies restrictions on the number of liquor licenses and adopts state statute by reference. Here are the license types affected by the statute. License Type Business Count Club On-Sale Intoxicating 201-500 Members/Sunday 1 VFW Post 8752 On-Sale Intoxicating/Sunday 8 Applebee's Neighborhood Grill & Bar Carbone's Kitchen & Pub Cedarhurst Junction 70 Grill Las Margaritas Mexican Restaurant Muddy Cow Hy-Vee Market Grill River Oaks Golf Course - Eagles Bar & Grill COTTAGE GROVE LIQUOR LICENSES Here are the counts for all 2020 liquor licenses in Cottage Grove (excluding temporary licenses). License Type Business Count Club On-Sale Intoxicating 201-500 Members/Sunday 1 VFW Post 8752 Consumption & Display 1 Hope Glen Farm Off-Sale 3.2% 4 Cottage Grove BP Cub Foods Holiday #3512 Speedway #4183 Off-Sale Intoxicating 5 Dennis Brothers Liquor G-Will Liquors Hy-Vee Top Ten Liquors Walmart #2448 On-Sale 3.2% 1 Hope Glen Farm On-Sale Intoxicating/Sunday 8 Applebee's Neighborhood Grill & Bar Carbone's Kitchen & Pub Cedarhurst Junction 70 Grill Las Margaritas Mexican Restaurant Muddy Cow Hy-Vee Market Grill River Oaks Golf Course - Eagles Bar & Grill Total of All Liquor Licenses (Excluding Temporary) 20 Economic Development Coordinator Matt Wolf researched the proximity of all Cottage Grove liquor license locations to one another and the map he compiled is attached. STAFF RECOMMENDATION Receive information on liquor code and provide direction to staff with any desired changes to our city code. / % � !+ � � ��^ 1. Holiday#3512 (Off-Sale) 333'from �`� ��*7 � �� i E 1. Cedarhurst(On-Sale)708'from �` � ��`' 2. Junction 70 Grill (On-Sale) 2. Dennis Brothers Liquors (Off-Sale) 0"from /� � 3. Carbone's Kitchen &Club(On-Sale) % �'',,. � MuddyCow� Distance between Liquor Licenses %` ;' ' ' ;�� -� i � �� i � ; ' � � � � i �� 80th Street / � - � �AO �I _ _' _ � W` � �, I / / 0 . G-Will Las Sp�edway � � � � Li uors Margaritas `� � � � � �,�.�., a Hy-Vee , � ! / �___,_,�s---- \ � � ¢ � . - � 2153"__§3q- � cU � , , s�� U / i , '� � `' 1 � � %/ � _ ��1', '�''_ ,�•�, _ � �o % � �, �� ,,�� ' ,�'�11•� , `� %� ,1� i •� �� .� ------- Distance (feet) � �� `•� i � ��.\ �, _ � � i/ _ Category (On or Off Sale) �6� •�, � i � ; i Off-Sale `` � � / � .�\ � j^ � � '� � �� On-Sale ss,�.� i �, i �� i � Both �' ��•� _ �i .�i�. ��' I � i � .\ � On-Sale Club � �'� �, � � .\ � � �•� i % All Cottage G�ove Liquor Licenses (A-Z� � - � � �' � � % Business License Type �'�, � ! j Applebee's Neighborhood Grill & Bar Liquor- Intoxicating �'�, Cottage �� j 90th Street � Grove BP- `� � I Carbone's Kitchen& Pub Liquor- Intoxicating Applebee's�,�_`�350'----�,496-.. iCub Foods / Cedarhurst Liquor- Intoxicating �--� ` s\ � / Cottage Grove BP Liquor- 3.2 Percent Malt Liquor � �8T3 �-�-,�' \;�`� � � Cub Foods Liquor- 3.2 Percent Malt Liquor Top Ten`�.� j Liquors '� j Dennis Brothers Liquor Liquor- Intoxicating �� G-Will Liquors Liquor- Intoxicating �•� j Holiday #3512 Liquor- 3.2 Percent Malt Liquor � �\ � Hope Glen Farm Liquor- 3.2 Percent Malt Liquor � �ti, � � Hope Glen Farm Liquor- Consumption & Display `�98�.� � � Hy-Vee Liquor- Intoxicating �� •� % Junction 70 Grill Liquor- Intoxicating �� , _ �\\ �./,_ w Las Margaritas Mexican Restaurant Liquor- Intoxicating ,, ��•� � � J Walmart Muddy Cow liquor- Intoxicating ��-- �� , , ,, ■ VFW Post ��,� River Oaks Golf Course(Liquor) Liquor- Intoxicating �- 1. Hope Glen Farm (On-Sale) 5472'from Speedway#4183 Liquor- 3.2 Percent Malt Liquor ' � ��. 2. River Oaks Golf Course (On-Sale) Top Ten Liquors Liquor- Intoxicating �� S�r�.� VFW Post 8752 Liquor- Intoxicating � �•� Walmart#2448 Liquor- Intoxicating �� .�