The following procedures will apply any time one or more new on-sale dealer liquor license(s) become available to be issued per SDCL 35-4-11.
(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 on-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 on-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 on-sale dealer liquor licenses in § 111.002.
(e) The bidder(s) providing the highest bids, based on the number of available on-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 for a minimum of 60 days within two years of issuance or as otherwise required by SDCL 35-2-5.3, 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 on-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 on-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 for approving their application, 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 on-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 on-sale dealer liquor licenses have been approved by the city council, the time period for executing these procedures shall be closed. Any remaining on-sale dealer liquor license bids shall be deemed ineligible for further consideration. Any additional on-sale dealer liquor licenses that may become available shall require a new sealed bid process as prescribed in § 111.015.1.
(j) Proceeds from the sale of the on-sale dealer liquor licenses, above the minimum Initial Fee for on-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)