(A) Except as otherwise provided in this section, no tavern license or Class C license shall be approved for any establishment that is not a bona fide restaurant. An establishment shall be deemed to be a bona fide restaurant if its gross receipts from the sale of food and beverages, other than alcoholic beverages, exceed 50% of the total gross receipts of the establishment. The establishment shall cause its independent accountants to provide and certify financial information on an annual basis to the City Clerk to confirm that this standard is not being violated. In addition, the establishment shall maintain accurate records of receipts and disbursements in such a manner that receipts from the sale of food and beverages, other than alcoholic beverages, can be readily distinguished from receipts from the sale of alcoholic beverages. Such records shall be available for inspection by the City Manager or his or her designee during normal business hours. At any time when the standard contained herein is violated, the establishment must immediately reduce the sale of alcoholic beverages so that such sales fall within this limitation.
(B) The city may approve a tavern license for an establishment that is not a bona fide restaurant if all of the following requirements are met.
(1) The sale of alcoholic beverages shall be incidental and subordinate to other permitted uses upon the premises, such as food sales or a recreational activity. At least 50% of the gross receipts for the establishment shall be derived from the other permitted uses upon the premises. The establishment shall provide and certify its financial information, maintain records and reduce the sale of alcoholic beverages if required as set forth in division (A) above.
(2) A counter or bar used primarily for dispensing alcoholic beverages shall not occupy more than 20% of the floor space of the establishment.
(3) The establishment shall have at least one variety of deli-style or snack food available for consumption on the premises during all hours of operation, whether the food be provided free of charge or made available for purchase.
(C) Should the licensee or establishment fail to comply with this section, the city may seek revocation of the tavern license or Class C license and may also seek all other legal and equitable remedies, including limiting the operation of the establishment up to and including the closing of the establishment. A violation of this section shall also be treated as an ordinance violation punishable as provided in § 1.13 of this code. Each day upon which a violation of the provisions of this section occurs shall be deemed a separate violation.
(Ord. effective 5-18-2012)