806.03 CLASSIFICATION OF LICENSES.
   The following classes of liquor licenses are available to qualified persons:
   (a)   Tier I Licenses.
      (1)   Class A - Tavern License (Sale of Alcoholic Liquors for On-Premises Consumption). Class A licenses shall authorize the sale of alcoholic liquor for consumption on the licensed premises only, in the original package or otherwise. Class A Licenses shall only be issued for locations where the sale of alcoholic liquors, for consumption on the premises, is the primary business, and shall in no event be issued to a market or other type of operation where the sale of alcoholic liquor is incidental to the sale of other goods or services.
      (2)   Class R - Restaurant License (Sale of Alcoholic Liquors in Conjunction with Sales of Prepared Food - Category I or Category II Food Service). Class R licenses shall authorize the sale of alcoholic liquor for consumption on the licensed premises only, in conjunction with the operation of a restaurant. Class R licensees shall be required to provide at the time of initial application, and upon each renewal of said license, proof of compliance with all applicable Federal, State and County sanitation and public health rules governing the operation of food service establishments generally, and specifically including proof of licensure by Stephenson County as a Category I or Category II food service establishment. Provided, that if a Class R License is sought by a licensee holding a Category II food service license, proof of on site preparation of raw foods, consisting of more than mere assembly of processed or prepackaged foods, shall be required, and the issuance of classification shall be subject to review at the discretion of the Liquor Commission. Any licensee currently holding a valid Class A-R License at the time of adoption of this ordinance, issued under the prior version of this Chapter 806, shall be deemed qualified to receive a Class R License for the license year following the date of enactment hereof.
      (3)   Class LR - Limited Restaurant License (Sale of Beer and Wine in Conjunction with Sales of Prepared Food — Category I or II Food Service). Class LR Licenses shall authorize the sale of beer and wine only for consumption on the licensed premises only, in conjunction with the operation of a restaurant. Class LR licensees shall be required to provide at the time of initial application, and upon each renewal of said license, proof of compliance with all applicable Federal, State and County sanitation and public health rules governing the operation of food service establishments generally, and specifically including proof of licensure by Stephenson County as a Category I or Category II food service establishment.
      (4)   Class P - Package Sales License (Off-Premises Package Sales). Class P Licenses shall authorize the sale of alcoholic liquor for off-premises consumption only by a licensee who operates a market or package liquor store at the licensed premises. Provided, that with respect to any market comprising less than 5,000 square feet of indoor sales area, all package sales of alcoholic liquor other than wine and beer shall be made from displays which are not accessible to the public and only accessible to employees of the licensee.
      (5)   Class K - Brew Pub or Wine Retailer License. Class K Licenses shall authorize the sale of alcoholic liquor, for consumption on the licensed premises by a brew pub or a wine retailer. A Class K License shall also authorize off-premises package sales of beverages actually produced and placed into containers at the licensed location without the need for a supplemental off premises sales license.
   (b)   Tier II Licenses.
      (1)   Class W - Beer and Wine Only (On-Premises Sales). Class W Licenses shall allow the sale of beer and wine only, for consumption on the licensed premises.
      (2)   Class WP - Beer and Wine (Off-Premises Package Sales). Class WP Licenses shall authorize the sale of beer and wine only for off-premises consumption only by a licensee who operates a market at the licensed premises.
   (c)   Tier III Licenses.
      (1)   Class CR - Caterer Retailer License. Class CR Licenses shall authorize the sale of alcoholic liquor by a caterer retailer for consumption at a licensed premises. For purposes of an event catered by a CR licensee at which liquor is intended to be served, the licensed premises for said event shall be such location as is identified in writing to the City Clerk by the licensee, on forms provided by the City Clerk, no less than ten (10) calendar days prior to the date of the event. The Liquor Commissioner may, at his or her sole discretion, require reasonable restrictions or requirements concerning crowd control, access control, and pedestrian and vehicular traffic control at a particular event. If the Liquor Commissioner elects to do so, said restrictions shall be communicated, in writing, to the licensee no less than five (5) calendar days after receipt of the notice contemplated hereby, or said restrictions shall be deemed waived.
      (2)   Class H - Rental Hall License. Class H Licenses shall authorize the sale of alcoholic liquor by the operator of a rental hall for consumption at the licensed premises. For any event at which liquor is intended to be served by a Class H licensee, the licensee shall be required to notify the City Clerk, in writing on forms provided by the City Clerk, no less than ten (10) calendar days prior to the date of the event.
   (d)   Tier IV Licenses.
      (1)   Class M - Park District License. Class M Licenses shall authorize the sale of alcoholic liquor for consumption on the licensed premises only, in the original package or otherwise, in buildings located within the boundaries of golf course properties owned by park districts under the Illinois Park District Code.
      (2)   Class TH – Theater Retailer License. Class TH Licenses shall authorize the sale of alcoholic liquor, for consumption on the licensed premises by a cinema or movie theater venue, consisting of one or more permanent movie screens or stages where the primary purpose of the business is the presentation of theatrical works on a screen via recorded media or on a permanent stage in the case of live theatrical performances. The following restrictions shall apply to service of alcoholic beverages by a TH Licensee:
         A.   Class TH Licensees may not obtain any Supplemental License otherwise available under Section 806.04.
         B.   Single-serve alcoholic beverages must be sold in the original opened container, if possible, and mixed drinks or spirits shall be sold in containers which are visually different from the containers in which non-alcoholic beverages are served.
         C.   No seating shall be allowed at the serving counter, nor otherwise dedicated to the consumption of food or beverage. Nothing shall prohibit the availability of seating for the comfort of patrons, however.
         D.   Alcoholic beverages may be served only to theater guests holding a paid ticket to a current show.
         E.   Only single beverage sales are allowed. No multiple drink specials may be offered, including "buckets", "fish bowls" or similar multiple serving formats.
      (3)   Class CTH – Community Theater License. Class CTH Licenses shall authorize the sale of alcoholic liquor, for consumption on the licensed premises by a Community Theater, subject to the same restrictions and requirements as a TH License. A Class CTH License shall only be issued to a theater operated by a qualified 501(c) charitable organization funded primarily through donations from private individuals which is operated on a not-for-profit basis, and whose primary purpose is the promotion of the performing arts through live theatrical or musical performances. A Class CTH license shall not be available to a church or other religious organization.
   (e)   Tier V Licenses.
      (1)   Class BYOB. Class BYOB Licenses shall authorize persons to bring alcoholic liquors into an establishment which is not otherwise authorized to sell alcoholic liquor of any kind at retail on the premises, and which is prohibited from allowing carry-in liquor without a license per the provisions of Section 608.17 or other provisions of these Codified Ordinances which specifically require such a license. No BYOB license shall be issued for any premises for which any other license has been issued under this section. Except as otherwise expressly stated below, all other provisions of this chapter apply to BYOB licensees.
            BYOB licensees need not show proof of dram shop insurance, but shall provide all other insurance as required by Section 806.08. Provided, said liability coverage requirement may not be satisfied by any coverage which contains a coverage exception for occurrences related to the sale or consumption of liquor on the licensed premises. The City may, at the City’s sole option, require any licensee to produce a copy of the full insurance policy in order to ensure compliance with this paragraph.
            A BYOB establishment shall be considered a Meeting Hall as defined in Chapter 857 of these Codified Ordinances, and shall maintain at all times a valid Meeting Hall License issued pursuant thereto. No BYOB establishment shall be eligible for any Supplemental License under this Chapter, nor for a Parklet Permit or Sidewalk Cafe Permit under Chapter 1034 of these Codified Ordinances.
            For any event at which alcoholic beverages are to be served, the BYOB licensee shall require, at a minimum:
         A.   Proof that a Basset certified server will be on premises at all times during which liquor is being served and will serve all alcoholic beverages;
         B.   An event liability policy evidencing liability coverage of not less than one million dollars ($1,000,000) per person/occurrence and two million ($2,000,000 in the aggregate) or two million dollars ($2,000,000) combined single limits for bodily injury, personal injury and property damage liability; and
         C.   A written lease or agreement for use of the event space specifying the dates and times of occupation, including the authorized times for service of alcoholic beverages.
            For purposes of this paragraph, each calendar day of a multi-day event shall be deemed a separate "event" for purposes of determining the total number of events held by the licensee. Provided, that a continuous event commencing during business hours on a particular calendar day, and closing no later than the mandated closing time for liquor establishments the morning of the following calendar day, shall be deemed a single event for purposes of this paragraph.
            Records of events and required documentation shall be kept by the licensee for no less than three years, and shall be produced to the City within seven days of any request by the Liquor Commissioner for said records.
            No sales of alcoholic beverages of any kind may be made upon any premises licensed as a BYOB establishment, except where said sales are made pursuant to a valid Temporary Permit issued by the Liquor Commission pursuant to the provisions of Section 806.03A, or where said sales are made by the holder of a validly issued Class CR license. For purposes of this Section, "sales" shall include the provision of alcoholic beverages as part of a package rental arrangement, and providing liquor to persons in exchange for tips or gratuities. Provided, that under no circumstances may a BYOB licensee be allowed to make sales of alcoholic beverages on its own premises at any time, and all such sales must be made by unrelated third-parties.
(Ord. 2018-12. Passed 3-5-18; Ord. 2019-16. Passed 4-1-19; Ord. 2020-55. Passed 11-2-20; Ord. 2022-22. Passed 5-16-22; Ord. 2022-45. Passed 10-3-22; Ord. 2022-67. Passed 12-5-22; Ord. 2023-15. Passed 4-3-23; Ord. 2024-19. Passed 5-6-24; Ord. 2024-04. Passed 9-3-24.)