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The city shall maintain a registry of each full-service on-sale restaurant license that is being offered for sale at the price established in this chapter, and the city shall furnish a copy of the registry to anyone who requests a new full-service restaurant on-sale license. The existing full-service restaurant on-sale licensee is responsible for registering with the city that the full-service restaurant on-sale license is for sale.
(1992 Code, § 5-2.10) (Ord. 153-08, passed 12-15-2008; Ord. 53-18, passed 6-19-2018; Ord. 126-19, passed 12-10-2019)
The city may only issue a new full-service restaurant on-sale 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 §§ 111.002 and 111.009, and on terms satisfactory to both the potential buyer and seller. Any on-sale license registered as "for sale" with the city shall be sold at the price set by the city pursuant to an ordinance adopted in accordance with §§ 111.002 and 111.009.
(1992 Code, § 5-2.11) (Ord. 153-08, passed 12-15-2008; Ord. 53-18, passed 6-19-2018; Ord. 126-19, passed 12-10-2019)
The following procedure will apply any time one or more off-sale dealer liquor licenses become available to be issued per SDCL 35-4-10.
(a) The city shall cause to be published a notice of public sale at least twice in a legal newspaper with general circulation in the area, with the first publication not less than ten calendar days prior to the date of the sale. The notice shall state the number of off-sale dealer liquor licenses to be sold by sealed bid, the time, date, and place for the opening of bids, and that bids shall be made on a form available from the city. The notice shall also state that the city reserves the right to reject any or all bids and that a bidder must conform to the requirements of state law and city ordinance to qualify as an alcoholic beverage licensee.
(b) Sealed bids shall be made using a form provided by the city, which will require specifying the location where the off-sale dealer liquor license will be used and the amount of the bid. Only one sealed bid will be accepted per location. The sealed bids must be filed with the city prior to the time and date specified in the notice. Each bid shall contain the bid form, along with a nonrefundable application fee in the amount of $100.
(c) On the date and place for the opening of bids, all sealed bids will be opened, and bidders will be listed in sequential order from highest to lowest bid. The order for tie bids will be determined by the earliest date and time the bid was received by the city.
(d) No bid may be less than the minimum established for off-sale dealer liquor licenses in § 111.002.
(e) The bidder(s) providing the highest bids, based on the number of available off-sale dealer liquor licenses as prescribed in § 111.013, shall be notified in writing of their conditional award. The issuance of the license shall be conditioned upon the eligibility of the bidder to hold the license, suitability of the proposed premises upon which alcoholic beverages will be sold, active use of the license within 90 calendar days of issuance, and compliance with all other state law and city ordinance requirements, including but not limited to applicable zoning, building, and property maintenance codes. The city council reserves the right to stipulate such other and further conditions, based on suitable person and suitable location, for issuance of the license as may be necessary and proper. All conditionally awarded bids, including the name of the bidder and the amount of the bid, shall be published online by the city within five business days of the date of written notice of conditional award to the bidder.
(f) If no conditional use permit is required, conditionally awarded bidders must submit a completed uniform alcoholic beverage license application along with the off-sale dealer liquor license fee, in the amount of the conditionally awarded bid, to the city within ten business days of the date of written notice of conditional award.
(g) If a conditional use permit is required, conditionally awarded bidders must submit a conditional use permit application within 30 calendar days of the date of written notice of conditional award. The conditional use permit process must be concluded within 60 calendar days of the date of written notice of conditional award unless extended by the planning commission or city council. Upon receiving the conditional use permit, the conditionally awarded bidder must submit the uniform alcoholic beverage license application and the off-sale dealer liquor license fee, in the amount of the conditionally awarded bid, to the city within ten business days of receiving the conditional use permit.
(h) If one or more of the highest bidders receiving a conditional award do not meet all conditions as prescribed in the ordinance, the next highest bid or bids may be conditionally accepted in the same manner as the prior higher bid(s). If a bidder voluntarily withdraws a conditionally awarded bid prior to submitting the uniform alcoholic beverage license application, that bidder shall be deemed ineligible to provide a bid for future off-sale dealer liquor licenses from the city for a period of three years. In the case where a bidder has provided multiple bids, lower bids must be voluntarily withdrawn prior to higher bids, whether the bids are conditionally awarded or otherwise.
(i) After all new off-sale dealer liquor licenses have been approved by the city council, the time period for executing these procedures shall be closed. Any remaining off-sale dealer liquor license bids shall be deemed ineligible for further consideration. Any additional off-sale dealer liquor licenses that may become available shall require a new sealed bid process as prescribed in § 111.012.1.
(j) Proceeds from the sale of the off-sale dealer liquor licenses, above the minimum Initial Fee for off-sale dealer liquor licenses established in § 111.002, shall be utilized for the purposes of community betterment initiatives which may include, but not limited to, addressing substance abuse, mental health, safety, homelessness and the housing of at-risk populations.
(Ord. 46-22, passed 4-13-2022; Ord. 52-23, passed 7-5-2023)
The number of off-sale dealers in alcoholic beverages other than wine retailers and malt beverage retailers and dealers licensed by the city shall not exceed the maximum number allowed by SDCL 35-4-10.
(1992 Code, § 5-2.12) (Ord. 136-95, passed 10-16-1995; Ord. 47-01, passed 5-21-2001; Ord.160-06, passed 12-11-2006; Ord. 106-08, passed 8-18-2008; Ord. 153-08, passed 12-15-2008; Ord. 23-14, passed 4-15-2014)
In accordance with SDCL 35-4-14.1, notwithstanding § 111.003 and the procedures set for in § 111.015.1, and as allowed by SDCL 35-4-14.1 the city may by resolution, without an election but subject to referendum, issue an on-sale dealer liquor license pursuant to SDCL 35-4-2(4) for use at any city-owned entertainment venue, event venue, event center, arena, performance hall, theater, outdoor amphitheater, convention center, stadium, athletic venue, recreation facility, municipal auditorium operated pursuant to SDCL 9-52, or public convention hall operated pursuant to SDCL 9-53. An on-sale dealer license issued pursuant to this section must be used to support the primary public purpose of the city-owned facility during the hours the city-owned facility is open for its primary purpose, and such primary purpose for the city-owned facility shall not be to exclusively provide food and beverage services. Licenses issued under this section shall not be subject to the fees established in § 111.002. The city may contract with any person or entity to use the licenses issued under this section for purposes of providing food and beverage services at the city-owned facility. Licenses issued pursuant to this section may not be transferred. No video lottery may be placed at city-owned facilities using a license issued under this section.
(Ord. 46-22, passed 4-13-2022; Ord. 52-23, passed 7-5-2023)
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