(A) On-sale licenses for the sale of intoxicating liquor may be issued to bona fide clubs, as defined herein, which have been in existence for three years or more, or to an incorporated congressionally chartered veterans organization which has been in existence for three years or more.
(1) The licenses issued shall be for sale of intoxicating liquors to club members and guests only.
(2) The license fee shall be set by Minnesota State Statute. No license will be issued unless at the time of application the applicant has paid the license fee in full and a non-refundable investigation fee as set by City Council resolution. Where all applicants are in-state, the investigation fee will be $500; where any applicants are out of state, the investigation fee shall be $2,000. If the investigation fee for in-state or out of state applicants exceeds the minimum fee, the additional costs of the investigation will be billed to the applicant(s). Upon rejection of any application for a license, or upon withdrawal of an application before approval of the issuance by the City Council, the license fee shall be refunded to the applicant. In any case, the investigation fee will be non-refundable. All licenses shall expire on the last day of December of each year.
(B) Any club as defined herein, may make application for such license. The application shall be made with the Clerk and shall contain the following information in addition to the information required on the state of Minnesota’s corresponding alcohol-related application:
(1) Name and address of club.
(2) Date of and copy of certificate of incorporation of club or other documentation of legal status.
(3) Certified copy of the by-laws of the club, including therein a definition of the word “member.”
(4) A list of the membership.
(5) A copy of the Charter, if any.
(6) List of corporate officers, board of directors and manager.
(7) Copy of lease agreement or statement of ownership of premises occupied by the applicant.
(8) A statement as to whether or not real estate taxes and local assessments for the premises to be licensed are fully paid, and if not paid, the years and amounts which are unpaid.
(9) Executed signature of an officer of the corporation.
(C) At the time of filing an application for any on-sale intoxicating liquor license, the applicant shall file with the Clerk proof of financial responsibility for liability. The issuer or surety on any liability insurance policy or bond shall be duly licensed to do business in the State of Minnesota, and all documents shall be approved as to content, form and execution. The licensee and the city shall be named as joint insured on the liability insurance policy. The policy shall be effective for the entire license year or term of license. Proof of financial responsibility may be provided by supplying to the Clerk any of the following items:
(1) A certificate that there is in effect for the license period an insurance policy providing at least $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 bodily injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, and $100,000 for loss of means of support of two or more persons in any one occurrence; or
(2) A bond of a surety company with minimum coverages as provided in division (C)(1); or
(3) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities that may be legally purchased by savings banks or trust funds having a market value of $100,000.
(D) The operation of an intoxicating liquor license without having on file at all times with the city the liability insurance policy or other evidence of financial responsibility required herein shall be grounds for immediate revocation of the license. Notice of cancellation of a current liquor liability policy serves as notice to the licensee of the impending revocation and unless evidence of compliance with the financial responsibility requirements of this section are presented to the Clerk before the termination is effective, the license will be revoked instantly upon the lapse in coverage. Any liability insurance required by this section must provide that it may not be canceled for:
(1) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given 30 days’ notice in writing to the issuing authority of intent to cancel the policy; and
(2) Nonpayment of premium unless the canceling party has first given ten days’ notice in writing to the issuing authority of intent to cancel the policy.
(E) All applications shall be referred to the Chief of Police. The Chief of Police or their designee is empowered to conduct any and all investigations to verify the information on the application, including ordering a computerized criminal history inquiry obtained through the Criminal Justice System and/or a driver’s license history inquiry as recorded by the State Department of Public Safety on the applicant. The application shall also be referred to the Chief of the Fire Department, the Building Official and the City Planning and Zoning Department for a report indicating whether said premises are in compliance with applicable ordinances and regulations. A public hearing shall then be held before the City Council, at which time the application for a license shall be considered. Opportunity shall be given to any person to be heard for or against the granting of the license at a public hearing. The City Council may accept or reject the license application in its discretion upon completion of the public hearing. Each license shall be issued to the applicant(s) only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application.
(F) No license shall be issued to any applicant for a location within 300 feet of any school or church, unless such license has been previously approved when no school or church was so situated.
(G) Clubs which are licensed pursuant to the provisions of this section shall be subject to the following regulations:
(1) No sale of intoxicating liquor may be made between 2:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, nor between 2:00 a.m. and 10:00 a.m. on Sunday.
(2) Sales shall be made only to club members and their guests.
(3) Liquor may only be sold at the premises designated in the license.
(4) The Clerk shall be notified of any change in the person managing the liquor operations for the club.
(5) No licensee shall permit in any licensed establishment, or any adjoining property owned or leased by the licensee, any boxing, wrestling, or any other form of entertainment whose primary purpose is physical contact by striking or touching an opponent with hands, head, feet, or body. Team sports, in which physical contact is incidental to the primary purpose of the game such as basketball, volleyball, soccer, football, baseball, hockey, and softball, are not included among activities prohibited by this section.
(H) Any on-sale license issued pursuant to the provisions of this section shall be subject to § 5.504(L).
(I) Any person violating any provision of this section shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished as per state statute.
(`77 Code, § 5.502) (Am. Ord. 1135, passed 9-22-86; Am. Ord. 1154, passed 8-24-87; Am. Ord. 1190, passed 10-23-89; Am. Ord. 1419, passed 9-25-00; Am. Ord. 1482, passed 3-28-05; Am. Ord. 1610, passed 11-26-12; Am. Ord. 1638, passed 2-27-17; Am. Ord. 1640, passed 6-12-17; Am. Ord. 1669, passed 9-13-21)