The City Council of a city that does not have a municipal liquor store is authorized to issue the following licenses and permits, up to the number specified in § 110.20 of this code:
(A) 3.2% malt liquor on-sale licenses, which may be issued only to restaurants, hotels, clubs, bowling centers and establishments used exclusively for the sale of 3.2% malt liquor with the incidental sale of tobacco and soft drinks;
(B) 3.2% malt liquor off-sale license;
(C) Temporary 3.2% malt liquor licenses which may be issued only to a club, charitable, religious or nonprofit organization;
(D) Off-sale intoxicating liquor licenses, which may be issued only to exclusive liquor stores or drug stores that have an off-sale license which was first issued on or before May 1, 1994. The fee for an off-sale intoxicating liquor license established by the City Council under § 110.23 of this code shall not exceed $100 or a greater amount which may be permitted by M.S. § 340A.408, subdivision 3, as it may be amended from time to time;
(E) (1) On-sale intoxicating liquor licenses, which may be issued to the following establishments as defined by M.S. § 340A.101, as it may be amended from time to time, and this chapter: hotels; restaurants; bowling centers; clubs; congressionally chartered veterans organizations and exclusive liquor stores.
(2) Club licenses may be issued only with the approval of the Commissioner of Public Safety. The fee for club licenses established by the City Council under § 110.23 of this code shall not exceed the amounts provided for in M.S. § 340A.408, subdivision 2(b), as it may be amended from time to time. The City Council may, in its sound discretion, authorize a retail on-sale licensee to dispense intoxicating liquor off the licensed premises at a community festival held within the city under the provisions of M.S. § 340A.404, subdivision 4(b), as it may be amended from time to time.
(3) The City Council may, in its sound discretion, authorize a retail on-sale licensee to dispense intoxicating liquor off the licensed premises at any convention, banquet, conference, meeting or social affair conducted on the premises of a sports, convention or cultural facility owned by the city, under the provisions of M.S. § 340A.404, subdivision 4a, as it may be amended from time to time; however, the licensee is prohibited from dispensing intoxicating liquor to any person attending or participating in an amateur athletic event being held on the premises.
(1) No on-sale intoxicating liquor license shall be issued to an establishment unless at least 50% of the gross food and beverage receipts of the establishment are annually attributable to the sale of food.
(2) This requirement shall be regulated as follows.
(a) Each on-sale intoxicating licensee shall have the continuing obligation to have at least 50% of gross food and beverage receipts from the establishment during the preceding business year attributable to the sale of food.
(b) In the case of a new establishment, the applicant must make a bonafide estimation that at least 50% of the gross receipts from the sale of food and beverages of the establishment during its first year of business will be attributable to the sale of food.
(c) Financial records for the food and beverage portion must be maintained separately from the records of the remainder of the establishment.
(d) For the purpose of this section, SALE OF FOOD shall include gross receipts attributable to the sale of food items, soft-drinks and nonalcoholic beverages. It shall not include any portion of gross receipts attributable to the nonalcoholic components of plain or mixed alcoholic beverages, such as ice, soft-drink mixes or other mixes.
(e) The city may require the production of these documents or information, including but not limited to books, records, audited financial statements or pro forma financial statements, sales reports and analysis as it deems necessary or convenient to enforce these provisions. The city may also obtain its own audit or review of these documents or information, and all licensees shall cooperate with a review, including prompt production of requested records.
(f) Establishments found to fall below the 50% standard of annual food sales from the preceding business year shall be required to meet with the City Clerk, prior to license renewal, and reassess business operations and prepare and implement a plan of operations reasonably directed to achieve the 50% food sales requirement in the subsequent year. The plan will be subject to the approval of the City Administrator. Public safety compliance confirmation will be reviewed by the City Clerk and the Director of Public Safety.
(g) Establishments found to have less than 40% of annual gross food receipts may be placed on probation status. The probationary status review will be conducted by the City Council and the Council may require the establishment be placed on probationary status for one year and require the licensee to prepare any plans and reports, participate in any required meetings and take other action that the city may require to increase the sale of food. The licensee shall submit the plans and periodic reports to the City Clerk.
(h) If, after the initial probationary period, food sales are still less than 40% and the establishment is not in compliance with applicable statute, regulation or ordinance relating to alcoholic beverage, the City Council may:
1. Extend the probation period up to 12 additional months;
2. Limit alcohol service hours by revoking an establishment’s 2:00 a.m. liquor license (if applicable);
3. Reduce the hours of service by one hour for the period of one year; or
4. Deem the establishment ineligible to sell intoxicating beverages.
(i) Denial of an intoxicating liquor license shall not prohibit the license holder from applying to obtain a license to sell 3.2% malt beverages.
(j) Food must be available to guests up until two hours before discontinuing alcohol service.
(F) Sunday on-sale intoxicating liquor licenses, only after authorization to do so by voter approval at a general or special election as provided by M.S. § 340A.504, subdivision 3, as it may be amended from time to time. Sunday on-sale intoxicating liquor licenses may be issued only to a restaurant, as defined in § 110.03 of this code, club, bowling center or hotel which has a seating capacity of at least 30 persons, which holds an on-sale intoxicating liquor license, and which serves liquor only in conjunction with the service of food. The maximum fee for this license which shall be established by the City Council under the provisions of § 110.23 of this code, shall not exceed $200, or the maximum amount provided by M.S. § 340A.504, subdivision 3(b), as it may be amended from time to time;
(G) Combination on-sale and off-sale intoxicating liquor licenses if the city has a population less than 10,000;
(H) Temporary on-sale intoxicating liquor licenses, with the approval of the Commissioner of Public Safety, which may be issued only in connection with a social event sponsored by a club, charitable, religious or other nonprofit corporation that has existed for at least three years. No license shall be for longer than four consecutive days, and the city shall issue no more than 12 days worth of temporary licenses to any one organization in one calendar year;
(I) On-sale wine licenses, with the approval of the Commissioner of Public Safety, to restaurants that have facilities for seating at least 25 guests at one time and meet the criteria of M.S. § 340A.404, subdivision 5, as it may be amended from time to time, and which meet the definition of restaurant in § 110.03 of this code and to licensed bed and breakfast facilities which meet the criteria in M.S. § 340A.401, subdivision 1, as it may be amended from time to time. The fee for an on-sale wine license established by the City Council under the provisions of § 110.23 of this code shall not exceed one-half of the license fee charged for an on-sale intoxicating liquor license. The holder of an on-sale wine license who also holds an on-sale 3.2% malt liquor license is authorized to sell malt liquor with a content over 3.2% (strong beer) without an additional license;
(J) One-day consumption and display permits with the approval of the Commissioner of Public Safety to a nonprofit organization in conjunction with a social activity in the city sponsored by the organization; and
(K) Approval of the issuance of a consumption and display by the Commissioner of Public Safety. The maximum amount of the additional fee which may be imposed by the City Council on a person who has been issued a consumption and display permit under the provisions of § 110.23 of this code shall not exceed $300, or the maximum amount permitted by M.S. § 340A.414, subdivision 6, as it may be amended from time to time. Consumption and display permits shall expire on March 31 of each year.
(Prior Code, § 4-38) (Ord. 02-2016, passed 2-16-2016) Penalty, see § 110.99