The City may issue additional on-sale licenses for full service restaurants pursuant to South Dakota Codified Laws 35-4-110 et seq.
A. Definitions: The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
BAR: Any permanently installed counter within the restaurant area from which alcoholic beverages are regularly served to customers by a person who is tending bar or drawing or mixing alcoholic beverages.
FULL SERVICE RESTAURANT: Any restaurant at which a waiter or waitress delivers food and drink offered from a printed food menu to patrons at tables, booths, or the bar. Any restaurant that only serves fry orders or foodstuffs such as sandwiches, hamburgers, or salads is not a full service restaurant.
RESTAURANT: Any area in a building maintained, advertised, and held out to the public as a place where individually priced meals are prepared and served primarily for consumption in such area and where not more than forty percent (40%) of the gross revenue of the restaurant is derived from the sale of alcohol or alcoholic beverages. The restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of employees necessary for the preparing, cooking, and serving of meals.
B. License Application Requirements; Documentation: An applicant for a full service restaurant on-sale license shall provide sufficient documentation to the City with an application form provided by the Municipality to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not from the sale of alcoholic beverages. The renewal of a full service restaurant on-sale license is conditioned upon the applicant satisfying all State requirements for renewal. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.
C. Advertising Restriction: A restaurant that has a full service restaurant on-sale license may only be advertised or held out to the public as primarily a food eating establishment.
D. Annual Reports: The full service restaurant on-sale licensee shall submit an annual report and supporting documentation to the City on forms provided by the City of the annual sales of the full service restaurant, which includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross revenues of the licensee for the following categories:
1. Food and nonalcoholic beverage sales; and
2. Alcoholic beverages sales.
E. License Renewals: When renewing a full service restaurant on- sale license, the City shall condition the license renewal upon receiving documentation that not more than forty percent (40%) of gross sales from the preceding twelve (12) months operation of the full service restaurant is derived from the sale of alcohol or alcoholic beverages.
F. Only Retail, On-Sale Service Permitted: A full service restaurant on-sale licensee may only serve alcoholic beverages for on premises consumption in the bar and dining room area of the restaurant.
G. Smoking Prohibited: No licensee that has a full service restaurant on-sale license may allow smoking on the licensed premises.
H. Full Service Restaurant License Fees:
1. The license fee charged for full service restaurant on-sale licenses shall be established by resolution of the City at or above the current fair market value of the license pursuant to South Dakota Codified Laws 35-4-117.
2. The license fee shall be initially established by resolution within ninety (90) days of the initial adoption of this section. Subsequent changes in the license fee shall not be made for a period of ten (10) years from the effective date of this section unless a population growth that is reported by the Federal decennial census requires an increase in the fee.
I. Registry Of Full Service Restaurant On-Sale Licensees: The City will maintain a registry of each on-sale license that is being offered for sale. The burden of registering with the City a license being offered for sale rests on the licensee. The City will provide a copy of the registry to anyone who requests a new full service restaurant on-sale license. Prior to the issuance of a new license, the applicant shall submit an affidavit showing that there is no on-sale license on the registry or that the applicant is unable to purchase the on-sale license at fair market value and on terms satisfactory to both the potential buyer and seller.
J. Issuance Of New Full Service Restaurant Licenses Restricted: The City may only issue a new license pursuant to this section if no on-sale license is on the registry or a person desiring to purchase an on-sale license listed on the registry provides documentation showing that the person is unable to purchase the on-sale license at the price established in subsection H of this section and on terms satisfactory to both the potential buyer and seller. The price of any on-sale license registered as for sale with the City shall be sold at the current fair market price set by the City pursuant to a resolution adopted in accordance with subsection I of this section.
K. Provision Of Pricing Information: Each licensee who owns an on-sale license as of January 1, 2008, and purchased or had the license transferred to such licensee at any time between January 1, 2003, and January 1, 2008, shall provide to the Finance Officer the information required by State law within thirty (30) days of request by the Finance Officer of the City of Mitchell. (Ord. 2387, 12-19-2011)