Holders of a license issued pursuant to this chapter (herein referred to as the "primary license") may be eligible for supplemental licenses as set forth in this section, pursuant to approval by the Commission and payment of the requisite fee as from time to time established.
(a) Application for any supplemental license shall be made to the City Clerk, on forms provided for such purpose, and may be made at any time. The grant of a supplemental license shall be at the discretion of the Liquor Commission, pursuant to the same procedures as for a primary license. A supplemental license shall renew with, and according to the same process as, the primary license.
(b) The award of any supplemental license shall be indicated by an endorsement on the face of the primary license.
(c) The award of any supplemental license shall not affect the types of alcoholic liquor allowed to be sold at retail by any licensee pursuant to the primary license.
(d) The following supplemental licenses shall be available to holders in good standing of a primary license issued by the City of the following classifications: Class A, Class K, Class R, Class LR, Class M, and Class W.
(1) Supplemental package sales. A supplemental license for the sale of alcoholic liquor for consumption off of the licensed premises may be awarded to a person who is the holder in good standing of a Class A, R, LR, M, or W License. Notwithstanding anything to the contrary set forth in Section 806.04(c), the holder of an LR or W License may be issued a supplemental package sales license for the package sale of any kind of alcoholic liquor, provided:
A. A Class W licensee shall pay an additional one-time fee at the time of initial issuance of the supplemental package sales license equal to the difference between the current issuance fee for a Tier I and a Tier II license, if applicable; and
B. Any 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.
(2) Supplemental video gaming. A supplemental license for the operation of video gaming devices may be granted to a person who is the holder in good standing of a Class R or LR License. In addition to the standard requirements for issuance and maintenance of a license hereunder, any licensee applying for a supplemental video gaming license shall further be required to comply at all times with the following provisions:
A. A restaurant shall be operated on the licensed premises at all hours during which video gaming is available to the public.
B. The licensed premises shall have a minimum seating capacity of twenty persons, with seating available for each person at least up to said capacity, and not including any seating offered in the area reserved for video gaming. The portion of the licensed premises reserved for dining shall be a clearly-defined contiguous space, exclusively reserved for food and beverage services, and shall provide a minimum of ten square feet per seat offered to customers.
C. No more than fifty percent of the gross revenue to any licensee having a supplemental video gaming license shall be derived from gaming revenues. The gross revenues from sales of food, and beverages (including but not limited to alcoholic liquor) by a licensee must be greater than the licensee's revenues derived from video gaming during the same period, as determined by reports from the Illinois Gaming Board for at least three of the last five years on record. If a licensee has been in business less than five years, a showing that the licensee has met the requirements of this section in no less than fifty percent of the years for which data is available shall suffice for purposes hereof. Failure to meet the requirements of this section in the first full year of operation shall be grounds for disqualification for a supplemental video gaming license in succeeding years, unless a good faith showing of an attempt to comply with this section can be made by the licensee. A certification of compliance with this section, signed by the licensee's accountant, shall accompany any renewal application by any licensee holding a supplemental video gaming license. If the certification is provided by a certified public accountant, it shall be deemed valid. In all other events, the Liquor Commission reserves the right to request any such further verification of the accounts provided as it deems necessary, including, but not limited to, an independent evaluation conducted by a certified public accountant, at the licensees sole expense, as a prerequisite for issuance of a supplemental video games license for the following year.
D. Notwithstanding anything to the contrary contained herein, the following establishments are exempt from the requirements set forth in paragraphs (d)(2)A. through C. hereof, and shall need only comply with the general licensing requirements required under this Code, regardless of their license classification:
1. Holders of existing City "A-V" or "W-V" licenses as of the date of adoption hereof; and
2. Licenses which were holders of a liquor license validly issued by Stephenson County as of the date of annexation of their property by Ordinance 2019-29 adopted by the City of Freeport on May 20, 2019.
(3) Supplemental outdoor sales. A supplemental license for outdoor sales and service of alcoholic liquor may be granted to a person who is the holder in good standing of a Class A, K, R, LR, M, or W License. If a supplemental license is awarded by the Liquor Commission under this subsection, the licensed premises of the licensee shall be deemed expanded to include the area in which outdoor sales have been approved while such area is in fact in use. In addition to the standard requirements for issuance and maintenance of a license hereunder, a licensee applying for a supplemental outdoor sales license shall further be required to comply at all times with the following provisions:
A. The area in which outdoor sales or service are to occur must be contiguous to, and accessible from, the building which is the licensed premises for purposes of the primary license. Said building shall be referred to herein as the "primary structure".
B. Access to the area in which outdoor sales or service occur shall either be:
1. Exclusively by means of passing through the primary structure; or
2. Through an access point which is within an unobstructed line of sight from the area in which outdoor sales of alcoholic liquor are occurring; or
3. As otherwise specified in relation to any sidewalk café or parklet permit.
C. The area in which outdoor sales or service are to occur must be delineated by a clear and unambiguous physical barrier in a form approved by the Chief of Police and the Fire Chief. If said barrier is to be of a temporary or semi-permanent nature, the barrier shall be in place and intact at all times when outdoor sales are occurring.
D. No outdoor sales or service of alcoholic liquor shall be allowed after 10:00 p.m. on any Sunday through Thursday, inclusive, or after 11:00 p.m. on any Friday or Saturday.
E. No smoking shall be allowed in the designated area, or within fifteen feet thereof.
F. No outdoor sales of packaged goods shall be allowed.
G. Any holder of a sidewalk cafe permit or parklet permit issued under Chapter 1026 or Chapter 1034 of these Codified Ordinances shall be required to comply with the provisions of those chapters, as well as the specific provisions of any issued permit in relation to the sales of alcoholic liquors.
H. Any area which is included in the expanded licensed premises shall be deemed "floor area" for, and additional seating capacity shall be counted towards, determining off-street parking requirements under Chapter 1262 of these Codified Ordinances. To the extent any parking area is utilized for outdoor sales, it shall not be deemed available for parking spaces.
(e) Any violations of the requirements set forth in this section with respect to a supplemental license shall be deemed a violation of the primary license for all purposes of this chapter.
(f) Nothing contained herein, nor any approval granted by the Liquor Commission pursuant to this section shall be deemed to relieve any person of its obligation to comply with all relevant zoning and building codes applicable to a location or structure.
(Ord. 2018-12. Passed 3-5-18; Ord. 2019-16. Passed 4-1-19; Ord. 2019-48. Passed 9-3-19; Ord. 2023-15. Passed 4-3-23.)