§ 5.505 INTOXICATING LIQUOR.
   (A)   No person, except wholesalers or manufacturers to the extent authorized by state statute, shall directly or indirectly deal in, sell, or keep for sale any intoxicating liquor without first having received a license to do so as provided in this chapter. On-sale intoxicating liquor licenses may be issued to the following establishments:
      (1)   Hotels, provided the establishment has a dining area providing seating for at least 30 guests at one time and a minimum of ten guest rooms, and of that part of the total business receipts attributable to or derived from the serving of foods and intoxicating liquors, no less that 55% of the business receipts from a license year must be attributable to the sale of food;
      (2)   Restaurants, provided the establishment derives at least 55% of the annual gross receipts from the sale of food;
      (3)   Bowling centers, provided that the establishment is conducted in such a manner that no less than 55% of the business receipts for the license year shall be derived from the serving of food and bowling; and
      (4)   Clubs, or congressionally chartered veterans’ organizations, with the approval of the commissioner, provided that the organization has been in existence for at least three years; liquor sales only to members and bona fide guests.
   (B)   The annual license fee shall be set by resolution of the City Council. In the absence of a resolution, the license fee shall be $5,500.
   (C)   No license shall be granted for any premises which does not have a sprinkler system.
   (D)   Every application for a license to sell intoxicating liquor on-sale shall be made on a form supplied by the city. Applications shall be filed with the Clerk. It shall be unlawful to make any false statement in an application. By submitting an application, the applicant consents to any and all investigations the city deems appropriate and waives any claims the applicant may have. Copies of the application shall be submitted to such other city departments as the City Council shall deem necessary for verification and investigation of the facts set forth in the application.
   (E)   In addition to the information required on the State of Minnesota’s application and issuing authority’s background application, the on-sale intoxicating liquor license application shall contain the following information:
      (1)   Name of business;
      (2)   Doing business as;
      (3)   Whether the applicant is a natural person, corporation, partnership, or other form of organization;
      (4)   If the applicant is a corporation or other organization, the following will be required:
         (a)   If incorporated, the state of incorporation; and
         (b)   A true copy of certificate of incorporation or other documentation of legal status.
      (5)   Applicant’s information:
         (a)   Full legal name of applicant;
         (b)   Whether the applicant has ever used or been known by a name other than their full legal name, and, if so, listing of such name(s) and information concerning dates and places where used;
         (c)   Place of birth;
         (d)   Date of birth;
         (e)   Current address;
         (f)   Length of time at current address;
         (g)   Previous addresses within the past ten years;
         (h)   Whether applicant has ever been engaged as an employee or in operating a bar, saloon, hotel, restaurant, café, tavern, or other business of a similar nature. If so, applicant shall furnish information as to the dates, locations, and lengths of time employed.
         (i)   Type, name, and location of every business or occupation applicant has been engaged in within the past ten years;
         (j)   Names and addresses of applicant's employers and partners, if any, within the past ten years;
         (k)   Whether applicant has ever been convicted of any felony, gross misdemeanor, misdemeanor, or petty misdemeanor other than traffic violations. If so, the applicant shall furnish information regarding the time, place, and offense for which convictions were had.
         (l)   Three character references located within the State of Minnesota;
         (m)   Whether applicant has even been in military service. If so, applicant shall attach DD-214 form; and
         (n)   Any other information deemed necessary by the City Council or issuing authority.
      (6)   Applicant’s spouse’s information:
         (a)   Full legal name of applicant’s spouse;
         (b)   Whether the applicant’s spouse has ever used or been known by a name other than their full legal name, and, if so, listing of such name(s) and information concerning dates and places where used;
         (c)   Place of birth;
         (d)   Date of birth;
         (e)   Current address;
         (f)   Length of time residing at current address;
         (g)   Previous addresses within the past ten years;
         (h)   Whether applicant’s spouse has ever been engaged as an employee or in operating a bar, saloon, hotel, restaurant, café, tavern, or other business of a similar nature. If so, applicant’s spouse shall furnish information as to the dates, locations, and lengths of time employed.
         (i)   Type, name, and location of every business or occupation applicant’s spouse has been engaged in within the past ten years;
         (j)   Names and addresses of applicant’s spouse’s employers and partners, if any, within the past ten years;
         (k)   Whether applicant’s spouse has ever been convicted of any felony, gross misdemeanor, misdemeanor, or petty misdemeanor other than traffic violations. If so, the applicant shall furnish information regarding the time, place, and offense for which convictions were had.
         (l)   Three character references located within the State of Minnesota;
         (m)   Whether applicant’s spouse has ever been in military service. If so, applicant shall attach DD-214 form; and
         (n)   Any other information deemed necessary by the City Council or issuing authority.
      (7)   The nature of any other business to be operated in conjunction with the sale of alcoholic beverages and whether the applicant is the owner or operator of such other business, and, if so, the length of time in such business; and
      (8)   In the case of corporations, partnerships, and other organizations, such information relating to the identity of each officer, director, and partner as required in divisions (E)(5) and (E)(6).
   (F)   (1)   Applications for the renewal of an existing license shall be made a minimum of 60 days prior to the date of the expiration of the license.
      (2)   At the time application is made for a renewal of an on sale license, the applicant shall file with the Clerk a statement prepared by a certified public accountant that shows the total gross sales and the total food sales of the restaurant for the 12-month period immediately preceding the date for filing renewal applications.
   (G)   If the application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, or other organization, by an authorized representative of the same.
   (H)   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. In the absence of a resolution, the license fee shall be $6,500; 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). A new application shall be submitted and a license fee and investigation fee paid when there is a change in ownership or control of a licensed corporation. 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. The license fee for an on-sale license granted after the commencement of the license year shall be pro-rated on a monthly basis. All licenses shall expire on the last day of December of each year.
      (1)   When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be 90 days after approval of the license by City Council or upon the date the building is ready for occupancy, whichever is sooner.
      (2)   No transfer of a license shall be permitted from place to place or person to person without complying with the requirements of an original application.
   (I)   (1)   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.
      (2)   Each license shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application.
   (J)   No license shall be granted to or held by any person:
      (1)   Who is less than 21 years of age.
      (2)   Who is not of good moral character and repute.
      (3)   Who is not a citizen of the United States or a resident alien, or upon whom it is impractical to conduct a background and financial investigation due to the unavailability of information.
      (4)   Who has been convicted of a felony or any violation of law of this state or local ordinance relating to the manufacture, transportation or sale of beer, wine, or of intoxicating liquors.
      (5)   For the sale of intoxicating liquor on any premises also occupied by a previous licensee who was convicted of a violation of this section or where a license has been revoked by the City Council.
      (6)   Who is a manufacturer of intoxicating liquor.
      (7)   Who is not the proprietor of the establishment for which the license is issued.
      (8)   Who is or during the period of this license becomes the holder of a federal retail liquor dealer’s special tax stamp for the sale of intoxicating liquor at such place.
      (9)   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.
   (K)   On sale intoxicating liquor licenses granted pursuant to the provisions of this section shall be subject to the following conditions:
      (1)   Every license shall be granted subject to the conditions and provisions of this section and of any other applicable ordinances of the city or state law.
      (2)   The license shall be posted in a conspicuous place in the licensed establishment at all times.
      (3)   Any peace officer shall have the unqualified right to enter, inspect, and search the premises of the licensee during business hours without a warrant upon information or belief of a violation of federal, state or local laws. Business hours shall be deemed any time when licensee or employees are present on the premises. Refusal to permit such inspection is a violation of this section and grounds for revocation of license.
      (4)   Every licensee shall be responsible for the conduct of their place of business and the conditions of sobriety and order in the place of business and on the premises. The act of any employee on the licensed premises authorized to sell intoxicating liquor there is deemed the act of the licensee as well, and the licensee shall be liable to all penalties provided by ordinance, statute, or regulation equally with the employee.
      (5)   No on-sale licensee shall sell intoxicating liquor off-sale.
      (6)   No license shall be effective beyond the space named in the license for which it was granted.
      (7)   No intoxicating liquor shall be sold or furnished or delivered to any obviously intoxicated person, or to any person to whom sale is prohibited by state law.
      (8)   No licensee shall permit 18, 19, or 20 year old persons to remain on the premises unless to perform work for the establishment including the sale or serving of alcoholic beverages, consume meals, and attend social functions that are held in a portion of the establishment where liquor is not sold.
      (9)   No licensee shall sell, offer for sale, or keep for sale, intoxicating liquors from any original package which has been refilled or partly refilled. No licensee shall directly or through any other person delete or in any manner tamper with the contents of any original package so as to change its composition or alcoholic content while in the original package. Possession on the premises by the licensee of any intoxicating liquor in the original package differing in composition or alcoholic content in the liquor when received from the manufacturer or wholesaler from whom it was purchased, shall be prima facie evidence that the contents or the original package have been diluted, tampered with or changed.
      (10)   In the case of corporations, partnerships, or other forms of organizations, when there is a change in officers, directors, or partners, a new application must be submitted.
      (11)   No gambling allowed, nor any gambling device prohibited by law.
      (12)   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.
   (L)   No sale of intoxicating liquor for consumption on a licensed premises 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.
   (M)   (1)   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.
      (2)   Proof of financial responsibility may be provided by supplying to the Clerk any of the following items:
         (a)   A certificate that there is in effect for the license period an insurance policy or pool 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
         (b)   A bond of a surety company with minimum coverages as provided in division (M)(2)(a); or
         (c)   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.
   (N)   (1)   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.
      (2)   Any liability insurance required by this section must provide that it may not be canceled for:
         (a)   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
         (b)   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.
   (O)   (1)   The City Council may suspend or revoke any intoxicating liquor license for the violation of any provision or condition of this section or of any state law or federal law regulating the sale of intoxicating liquor, and shall revoke such license for any willful violation which, under the laws of the state, is grounds for mandatory revocation, and shall revoke for failure to keep the insurance required by division (N) in full force and effect.
      (2)   License holder is also subject to provisions of 5.511 regarding penalties for license violations.
   (P)   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, § 5.503) (Am. Ord. 1119, passed 2-24-86; Am. Ord. 1135, passed 9-22-86; Am. Ord. 1154, passed 8-24-87; 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)