§ 112.041 CONDITIONS OF LICENSE.
   All licenses granted hereunder are granted subject to the following conditions, all other conditions of this chapter, and subject to all other ordinances of the city applicable thereto and to all regulations promulgated by the State Department of Public Safety and all statutes of the State of Minnesota applicable thereto:
   (A)   Every licensee must be responsible for the conduct of the licensee’s place of business and the conditions of sobriety and order therein. No “on-sale” dealer nor “Sunday sale” dealer shall sell liquor by the bottle or container for removal from the premises. No dealer license for “off-sale” shall permit the consumption of any liquor on such licensed premises except that off sale licensed stores may provide samples of malt liquor, wine, liqueurs, and cordials which the licensee currently has in stock and is offering for sale to the general public without obtaining an additional license, provided the malt liquor, wine, liqueur, and cordial samples are dispensed at no charge and consumed on the licensed premises during the permitted hours of off-sale in a quantity less than 100 milliliters of malt liquor per variety per customer, 50 milliliters of wine per variety per customer and 25 milliliters of liqueur or cordial per variety per customer.
   (B)   It is unlawful to sell intoxicating liquor to any minor. A license must not be granted to a minor and a person under 18 years of age must not be employed in any room constituting the place in which intoxicating liquors are sold at retail “on-sale” or “Sunday sale,” except that persons under 18 years of age may be employed as musicians or to perform the duties of busboy or dishwashing services in places defined as a restaurant, hotel or motel. Persons under 18 years of age may be employed as waiters or waitresses at a restaurant, hotel or motel where only wine is sold, provided that the person under the age of 18 may not serve or sell any wine. The licensee must not permit any person under 18 years of age to loiter or remain in the room where intoxicating liquor is being sold or served unless accompanied by the minor’s parent or legal guardian. A person 18, 19 or 20 years old may enter an establishment licensed under this chapter to:
      (1)   Perform work for the establishment, including the serving of alcoholic beverages, unless otherwise prohibited by M.S. § 340A.412, Subdivision 10;
      (2)   Consume meals; and
      (3)   Attend social functions that are held in a portion of the establishment where liquor is not sold.
   (C)   An “on-sale” or “Sunday sale” licensee must not keep, possess or operate, or permit the keeping, possession or operation of, on the premises or in any room adjoining the licensed premises controlled by the licensee, any slot machine, dice, or other gambling device or apparatus, nor permit any gambling therein, except as authorized by the city pursuant to M.S. Chapter 349, or as amended, nor permit the licensed premises or any room in the same or in any adjoining building directly or indirectly under the licensee's control, to be used as a resort for prostitutes or other disorderly persons.
   (D)   A license must not be issued to any person not a citizen of the United States, nor to any person not of good moral character and repute, nor to any person who has been convicted of any willful violation of any law of the United States or the State of Minnesota within the past five years, or of any of the local ordinances with regard to the manufacture, sale, distribution or possession for sale or distribution of intoxicating liquor within the past five years, nor to any person whose license under this chapter is revoked for any willful violation of such laws or ordinances.
   (E)   Except as otherwise permitted in state law, a license must not be granted to any manufacturer or distiller of intoxicating liquor, nor to anyone interested in the ownership or operation of any such place, nor to a person operating a licensed place owned by a manufacturer, distiller, or exclusive wholesale distributing agent unless such interest was acquired at least six months prior to January 1, 1934; and equipment or fixtures in any licensed place must not be owned in whole or in part by any manufacturer or distiller.
   (F)   (1)   No more than one off-sale license may be directly or indirectly issued or granted to one person or to one management within the city. It is unlawful for a person, partnership or corporation to knowingly have or possess a direct or indirect interest in more than one “off-sale” license in the city. “On-sale” licenses may be issued for the sale of intoxicating liquor in hotels, clubs, restaurants and establishments for “on-sale” of liquor exclusively. “Sunday sale” licenses may be issued to hotels or restaurants as defined in M.S. § 340A.101 and which have facilities for serving not less than 30 guests at one time and to which “on-sale” licenses have been issued or may be issued hereafter for the sale of intoxicating liquor. “Off-sale” licenses are issued only to proprietors or exclusive liquor stores. No “off-sale” licenses may be issued to any applicant unless the applicant shows that the proposed location of the exclusive liquor store has a minimum of 1,000 square feet of floor space in a building which meets all building codes and building ordinances. Off-sale liquor stores in operation as of the date of this chapter change may continue to operate in their existing facilities as a non-conforming use until such time as they are transferred to a different location and subject to the same standards as set forth in this code. The existing facilities which do not meet the standards of this chapter must be treated as a non-conforming use and are subject to the provisions of this code.
      (2)   The term INTEREST includes any pecuniary interest in the ownership, operation, management, or profits of a retail liquor establishment, but does not include: bona fide loans; bona fide rental agreements; bona fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business of selling or leasing merchandise, fixtures or supplies to such establishment, an interest in a corporation owning or operating a hotel but having at least 150 or more rental units holding a liquor license in conjunction therewith; or ten percent or less interest in any other corporation holding a license. A person who receives monies from time to time directly or indirectly from a licensee, in the absence of a bona fide consideration therefor and excluding bona fide gifts or donations, is deemed to have a pecuniary interest in such retail license. In determining “bona fides” the reasonable value of the goods or things received as consideration for any payment by the licensee and all other facts reasonably tending to prove or disprove the existence of any purposeful scheme or arrangement to evade the prohibitions of this chapter must be considered.
   (G)   All premises where any license hereunder is granted must be open to inspection by any police or health officer or other properly designated officer or employee of the city at any time during which the place so licensed is open to the public for business.
   (H)   A license must not be granted within 300 feet of any school, early childhood development center, licensed nursery or daycare facility, or religious institution. A license may be granted within 300 feet of any of the above listed uses if the licensed premises and the listed uses are located within the same zoning district. The measurement must be made from building to building and not from the property lines.
   (I)   (1)   Every room, place or premises wherein such liquor is permitted to be or is sold, including any café, restaurant, or dining room operated in connection therewith, or as part thereof, pursuant to an “on-sale” license, must be closed and kept closed to the public on every day between the hours of 2:00 a.m. and 8:00 a.m. During those hours, it is unlawful for a person or persons to be or remain upon or within, such room, place on premises for any purpose whatsoever, except that the owner or licensee, or the owner or licensee’s agents or servants or employees may be and remain therein and thereon for the purpose only of cleaning, preparation of meals, necessary repairs, or other work in connection therewith, or as watchperson. An exception to the foregoing statement applies to hotels, restaurants, and clubs where portable bars are temporarily set up in dining rooms, club rooms, or other areas which are open to the public and which are used only on a temporary basis. Portable or temporary bars located on the licensed premises must have all liquor removed and/or places under lock and key within the above designated hours or all intoxicating liquor must be returned to a central location where the liquor is stored and which is closed to the public during the hours stated above.
      (2)   Nothing herein prohibits a hotel dining room, a restaurant, a bowling center, or a club from serving or selling food during hours that the sale of liquor is prohibited if the liquor is removed from display and placed in a locked enclosure or room that is inaccessible to the public during the hours stated above.
   (J)   (1)   It is unlawful for intoxicating liquor to be drunk or consumed from the licensed premises during the times when the sale of intoxicating liquors is prohibited by state law or as such state law is modified by ordinance. During those hours and at those times no intoxicating liquor in any quantity whatsoever shall be served, kept, displayed or permitted to be on or in any table, booth, bar or other place in such licensed premises, except the stock of liquors stored therein during such times on the premises in such portions thereof as are accessible only to the licensee and his or her employees. Temporary or portable bars located as outlined in division (J) of this section hereof must have all liquor removed from sight and placed under lock and key or returned to a central storage area during the hours when the sale of liquor is prohibited.
      (2)   Nothing herein prohibits a hotel dining room, a restaurant, or a club from serving or selling food during hours that the sale of liquor is prohibited if the liquor is removed from display, covered or stored and is not visible to the public.
   (K)   As a condition to the granting of an “on-sale” or “Sunday sale” license where sale of food and such other articles is permitted by the Council, the Council may by resolution restrict, the sale and consumption of liquor at any place so licensed to tables where food is served to patrons purchasing and consuming said liquor, and may prohibit or limit the sale or consumption of liquor at a bar, and may prohibit the maintenance of a bar on the premises where liquor is displayed or dispensed.
   (L)    An “on-sale,” “Sunday sale,” or “off-sale” license is not effective beyond the compact and contiguous space named in the license granted, except that the Council may permit sales of liquor with meals in additional dining rooms open to the public and specified in the license where meals are regularly served to guests therein.
   (M)   It must be a condition of every license heretofore or hereafter issued hereunder to a corporation that the Clerk or designee be furnished by the licensee with a correct list of all stockholders of the corporation to whom the license is issued and the number of shares held by each, either individually or beneficially for others; and it is the continuing duty of each corporate licensee to promptly notify the Clerk or designee of any change in ownership or beneficial interest of such shares. Any change of ownership or beneficial interest of shares of stock entitled to be voted at any meeting of the stockholders of such corporation which results in change in voting control of the corporation by the persons owning shares of stock therein is deemed equivalent to a transfer of the license issued to such corporation, and any such licenses must be revoked and terminated 30 days after any such change in ownership or beneficial interest of shares, unless the Council is notified of such change in writing and has approved thereof. The Council or any officer of the city designated by it may at any reasonable time examine the stock transfer records and minute books of any corporate licensee in order to verify the names of stockholders and persons voting at meetings of such corporation, and the Council may cancel and terminate any license issued hereunder to a corporation upon determination by the Council that any change of ownership of stock in such corporate licensee has actually resulted in change of control of such corporation so as to materially affect the integrity and character of its management and its operation of an “on sale,” “Sunday sale,” or “off-sale” liquor business, provided that no such action must be taken until after a hearing by the Council on ten days notice to the licensee.
   (N)   The City Council finds that the sale and/or presence of alcoholic beverages by the drink and adult entertainment occurring on the same premises can increase disorderly conduct and can result in incidents of prostitution, public masturbation, indecent exposure, and/or sexual assault. In order to protect the health, safety, and welfare of city residents, and pursuant to the City Council's authority to regulate alcoholic beverages under M.S. Chapter 340A and the Twenty-First Amendment to the United States Constitution, it is unlawful for an on-sale licensee under this code to permit the following kinds of conduct on the licensed premises or in areas adjoining the licensed premises where the following kinds of conduct can be seen by patrons of the licensed premises:
      (1)   The performance of acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral copulation or flagellation; or
      (2)   The actual or simulated touching, caressing, or fondling on the breast, buttocks, anus, or genitals; or
      (3)   The actual or simulated displaying of the pubic hair, anus, vulva, or genitals; or
      (4)   The displaying of films, videos, still pictures, electronic reproduction, or any other visual reproduction of image depicting the acts described in (1) through (3) above; or
      (5)   The presentation of any female in such manner or attire as to expose to view any portion of the breast below the top of the areola, or any simulation thereof.
      (6)   It is unlawful for the licensee or their agent to allow or permit to remain in or about the licensed premises any person who performs acts as set forth in (1) through (5) above.
      (7)   The violation of any of the provisions of this chapter by the licensee or their employees agents constitutes grounds for the suspension or revocation of any and all intoxicating liquor, 3.2 percent malt liquor, or wine licenses issued to the premises or to the licensee.
('72 Code, § 805:65) (Am. Ord. 1992-700, passed 8-24-92; Am. Ord. 1993-715, passed 2-22-93; Am. Ord. 1997-841, passed 3-24-97; Am. Ord. 2004-1013, passed 5-10-04; Am. Ord. 2005-1045, passed 7-18-05; Am. Ord. 2015-1196, passed 9-14-15; Am. Ord. 2017-1223, passed 10-23-17)