(A) Prohibited acts. No person shall directly or indirectly, upon any pretense or by any device, manufacture, import, sell, exchange, barter, charge for possession, keep for sale, or otherwise dispose of alcoholic beverages as part of a commercial transaction at any time or place within the city without first having obtained a license to do so. This provision shall not apply to wholesalers possessing a valid license issued by the Commissioner.
(B) License types:
(1) 3.2% liquor licenses. Licenses for the sale of 3.2% malt liquor may be of 3 kinds: on-sale, off-sale, and temporary on-sale and may be issued to the following:
(a) On-sale licenses may be issued only to drugstores, clubs, restaurants, hotels, and bowling centers, and shall permit the sale of 3.2% malt liquor for consumption on the licensed premises.
(b) Off-sale licenses may be issued only to exclusive liquor stores or drugstores to permit the sale of 3.2% malt liquor in original packages for consumption off the premises.
(c) Temporary on-sale licenses may be issued for a period of time not to exceed 5 days to clubs, or charitable, religious and other nonprofit organizations for the sale of 3.2% malt liquor for consumption on the premises or area specifically described in the license.
(2) Intoxicating liquor licenses. Licenses for the sale of intoxicating liquor may be of 5 kinds: on-sale, on-sale club, Sunday on-sale, on-sale wine and temporary on-sale and may be issued to the following:
(a) On-sale licenses may be issued only to hotels; restaurants; bowling centers; clubs or congressionally chartered veterans organizations provided that the club or organization has been in existence for at least 3 years and liquor sales will only be to members and bona fide guests; or exclusive liquor stores.
(b) On-sale intoxicating liquor, on-sale wine, or on-sale malt liquor licenses may be issued to a theater as provided by M.S. § 340A.404, subd. 1(b).
(c) Temporary on-sale intoxicating liquor licenses may be issued to a club or charitable, religious, or other nonprofit organization in existence for at least 3 years in connection with a social event within the city sponsored by the licensee. The temporary license may authorize the on-sale of intoxicating liquor for not more than 4 consecutive days, and may authorize on-sales on premises other than premises the licensee owns or permanently occupies. The temporary license may provide that the licensee may contract for intoxicating liquor catering services with the holder of a full-year on-sale intoxicating liquor license issued by any municipality. Temporary licenses for the on-sale of intoxicating liquor are subject to the following additional restrictions:
1. The city may issue to a brewer who manufactures fewer than 3,500 barrels of malt liquor in a year or a microdistillery a temporary license for the on-sale of intoxicating liquor in connection with a social event within the city sponsored by the brewer or microdistillery. The terms and conditions specified herein for temporary licenses shall apply to the license issued, except that the requirements of M.S. § 340A.409, subds. 1 to 3(a), shall apply to the license.
2. The city may not issue more than 3 4-day, 4 3-day, 6 2-day, or 12 1-day temporary on-sale intoxicating liquor licenses, in any combination not to exceed 12 days per year, to any 1 organization or registered political committee or for any 1 location within a 12-month period. The city may not issue more than 1 such temporary license to any 1 organization or registered political committee or for any 1 location within any 30-day period unless the licenses are issued in connection with an event officially designated a "community festival" by the city. The limitations contained in this division may be applied separately with regard to temporary wine and temporary intoxicating liquor licenses issued to any 1 organization or registered political committee or for any 1 location.
(3) Brewer taproom (microbrewery) on-sale licenses.
(a) License authorized. Notwithstanding any provision of the City Code to the contrary, the Council may issue a brewer taproom license for the on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to 1 brewery location owned by the brewer subject to the requirements contained in M.S. § 340A.26. The Council may not issue a license under this section to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 250,000 barrels of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.
(b) Applicant. The applicant for a license under this division must be a brewer licensed under M.S. § 340A.301, subd. 6(c), (i), or (j) as amended.
(c) Terms and conditions of license.
1. No license is valid until approved by the Commissioner of Public Safety.
2. The on-sale of malt liquor, permitted by this division, may only be made during the days and hours that on-sale of liquor may be made by holders of on-sale intoxicating liquor licenses issued pursuant to this chapter.
3. A brewer may only hold 1 brewer taproom license under this section.
4. The only alcoholic beverage that may be sold or consumed on the premises of the holder of a brewer taproom license will be the malt liquor produced by the brewer upon the brewery premises.
5. No brewer taproom license shall be issued to a location across a public right-of-way such as a street or alley from the licensed brewery location.
6. All other provisions of this chapter, and all other applicable laws, statutes, ordinances, rules and regulations shall be applicable to licenses issued pursuant to this division and the licensees of such licenses unless inconsistent with the provisions of this division or applicable law.
7. Nothing in this division precludes the holder of a brewer taproom license from also holding a license to operate a restaurant on the premises of the brewery.
(d) Fees. The city shall impose a licensing fee on a brewer holding a brewer taproom license under this division, subject to limitations applicable to license fees under M.S. § 340A.408, subd. 2(a). The annual license fee for a license issued pursuant to this division shall be as established from time to time by the City Council.
(e) No single entity may hold both a cocktail room and brewer taproom license, and a cocktail room and brewer taproom may not be co-located.
(f) M.S. § 340A.409 shall apply to any license issued under this division.
(4) Off-sale small brewer (taproom) malt liquor license.
(a) License authorized. Notwithstanding any provision of the City Code to the contrary, the Council may issue an off-sale small brewer (taproom) malt liquor license to a brewer who holds a brewer license issued under M.S. § 340A.301, subd. 6(c), (i), or (j) subject to the requirements contained in M.S. § 340A.28 for off-sale of malt liquor at the brewer's licensed premises that has been produced and packaged by the brewer. The Council may not issue a license under this section to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.
(b) Applicant. The applicant for the license under this division must be a brewer licensed under M.S. § 340A.301, subd. 6(c), (i), or (j), as amended, in order to be licensed for the off-sale of malt liquor produced and packaged on the licensed premises.
(c) Terms and conditions of license.
1. No license is valid until approved by the Commissioner of Public Safety.
2. The amount of malt liquor sold at off-sale may not exceed 500 barrels annually.
3. The off-sale of malt liquor, permitted by this division, may only be made during the days and hours that off-sale of liquor may be made as stated in this chapter, except that malt liquor in growlers only may be sold at off-sale on Sundays between the hours of 8:00 a.m. and 10:00 p.m.
4. The malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores.
5. The malt liquor for off-sale shall be packaged pursuant to M.S. § 340A.285 in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brew pub or brewer.
6. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brew pub or brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minn. Rules § 7515.1100.
7. A brew pub or brewer may, but is not required to, refill any container or bottle with malt liquor for off-sale at the request of a customer. A brew pub or brewer refilling a container or bottle must do so at its licensed premises and the container or bottle must be filled at the tap at the time of sale. A container or bottle refilled under this division must be sealed and labeled in the same manner as described above.
8. A brewer may only have 1 license under this division.
9. The city shall impose a licensing fee on a brewer holding a small brewer license under this division, subject to limitations applicable to license fees under M.S. § 340A.408, subd. 3(a). The annual license fee for a license issued pursuant to this division shall be as established from time to time by the City Council.
(5) Off-sale brew pub malt liquor licenses.
(a) License authorized. Notwithstanding any provision of the City Code to the contrary and subject to the requirements contained in M.S. § 340A.24, the Council may issue off-sale brew pub malt liquor licenses to a brewer who holds a brewer license issued under M.S. § 340A.301, subd. 6(d) for the operation of a brew pub, and the same shall be operated in and as a part of a restaurant establishment for which an on-sale intoxicating liquor license has been issued by the city. The off-sale brew pub malt liquor license authorizes the off-sale of malt liquor produced and packaged on the premises.
(b) Applicant. The applicant for a license under this division must be a brewer licensed under M.S. § 340A.301, subd. 6(d) in order to be licensed for the off-sale of malt liquor produced and packaged on the licensed premises.
(c) Terms and conditions of license.
1. No license is valid until approved by the Commissioner of Public Safety.
2. Brewers must also hold one or more on-sale intoxicating liquor licenses issued by the city.
3. The off-sale of malt liquor, permitted by this division, may only be made during the days and hours that off-sale of liquor may be made as stated in this chapter, except that malt liquor in growlers only may be sold at off-sale on Sundays between the hours of 8:00 a.m. and 10:00 p.m.
4. The malt liquor sold off-sale must be removed from the licensed premises before the applicable closing time.
5. The malt liquor for off-sale shall be packaged pursuant to M.S. § 340A.285 in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brew pub or brewer.
6. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brew pub or brewer selling the malt liquor and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with applicable Minnesota law and the provisions of Minn. Rules § 7515.1100.
7. A brew pub or brewer may, but is not required to, refill any container or bottle with malt liquor for off-sale at the request of a customer. A brew pub or brewer refilling a container or bottle must do so at its licensed premises and the container or bottle must be filled at the tap at the time of sale. A container or bottle refilled under this division must be sealed and labeled in the manner described in this division.
8. A brew pub's total retail sales at on-sale or off-sale under this division may not exceed 3,500 barrels per year, provided that off-sales under this division may not exceed 500 barrels per year.
9. A brew pub licensed under M.S. § 340A.301, subd. 6(d), may hold or have an interest in other retail on-sale licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by management, direction, or control. Notwithstanding this prohibition, a brew pub licensed under M.S. § 340A.301, subd. 6(d), may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:
a. Manufacture licensed under M.S. § 340A.301, subd. 6(d);
b. Manufacture in another state for consumption exclusively in a restaurant located in the place of manufacture; or
c. Manufacture in another state for consumption primarily in a restaurant located in or immediately adjacent to the place of manufacture if the brewer was licensed under M.S. § 340A.301, subd. 6(d), on January 1, 1995.
10. All other provisions of this chapter, and all other applicable laws, statutes, ordinances, rules and regulations shall be applicable to licenses issued pursuant to this section and the licensees of such licenses unless inconsistent with the provisions of this division.
(d) Fees. The annual license fee for a license to be issued pursuant to this section shall be as established from time to time by the City Council.
(6) Cocktail room licenses. A microdistillery licensed under and subject to the requirements contained in M.S. § 340A.22, may be issued an on-sale liquor license for the "on sale" of distilled liquor produced by the distiller for consumption on the licensed premises of or adjacent to 1 distillery location owned by the distiller, subject to the requirements and rules contained in M.S. Ch. 340A and Minn. Rules § 7515 and the following conditions:
(a) The on-sale of distilled liquor, permitted by this section, may only be made during the days and hours that on-sale of liquor may be made by holders of on-sale intoxicating liquor licenses issued pursuant to this chapter.
(b) All other provisions of this chapter shall be applicable to such licenses and license holders unless inconsistent with the provisions of this section.
(c) A distiller may only have 1 cocktail room license under this division, and may not have an ownership interest in a distillery licensed under M.S. § 340A.301, subd. 6(a).
(d) No cocktail room license shall be issued to a locating across a public right-of-way such as a street or alley from the licensed microdistillery location.
(e) Fees. The city shall impose a licensing fee on a distiller holding a microdistillery cocktail room license under this division, subject to limitations applicable to license fees under M.S. § 340A.408, subd. 2(a). The annual license fee for a license to be issued pursuant to this section shall be as established from time to time by the City Council.
(f) Licensed cocktail rooms may operate a restaurant on the premises without additional licensure.
(g) Soft drinks and water may be provided without an additional license requirement.
(h) M.S. § 340A.409 shall apply to any license issued under this division.
(i) No single entity may hold both a cocktail room and brewer taproom license, and a cocktail room and brewer taproom may not be co-located.
(7) Off-sale microdistillery license. A microdistillery licensed under and subject to the requirements contained in M.S. § 340A.22, may be issued an off-sale microdistillery liquor license for off-sale of distilled spirits produced by the distiller at the licensed premises of or adjacent to 1 distillery location owned by the distiller, subject to the requirements and rules contained in M.S. Ch. 340A and Minn. Rules § 7515 and the following conditions:
(a) The off-sale of distilled liquor, permitted by this division, may only be made during the days and hours that off-sale of liquor may be made as stated in this chapter.
(b) All other provisions of this chapter shall be applicable to such licenses and license holders unless inconsistent with the provisions of this division.
(c) No brand may be sold at the microdistillery unless it is also available for distribution by wholesalers.
(8) Wine licenses.
(a) On-sale wine license. An on-sale wine license may be issued by the city with the approval of the Commissioner of Public Safety to a restaurant having facilities for seating at least 30 guests at one time. A wine license permits the sale of wine of up to 24% alcohol by volume for consumption. A wine license authorizes the sale of wine on all days of the week including Sundays. A holder of an on-sale wine license issued pursuant to this chapter who is also licensed to sell 3.2% malt liquor at on-sale pursuant to M.S. § 340A.411, is also authorized to sell intoxicating malt liquors at on-sale without an additional license. The license fee for an on-sale wine license shall be established by resolution of the City Council from time to time and shall not exceed any statutory maximum.
(b) Bed and breakfast facility. A bed and breakfast facility may be issued a wine license as follows:
1. The city may issue an on-sale wine license with the approval of the Commissioner of Public Safety to a licensed bed and breakfast facility. Such a license authorizes a bed and breakfast facility to furnish wine only to registered guests of the facility and, if the facility contains a licensed commercial kitchen, also to guests attending private events at the facility.
2. No license is required for a registered bed and breakfast facility which meets the definition of M.S. § 340A.4011, subd. 1, to provide at no additional charge to a person renting a room at the facility not more than 2 glasses per day, each containing not more than 4 fluid ounces of wine. Wine so furnished may be consumed only on the premises of the bed and breakfast facility.
(c) Wine tastings. Licenses may be issued for wine tastings as follows:
1. A wine tasting is an event of not more than 4 hours duration at which persons pay a fee or donation to participate, and the persons are allowed to consume wine by the glass without paying a separate charge for each glass. A charitable, religious, or other nonprofit organization may conduct a wine tasting on premises the organization owns or leases or has use donated to it, or on the licensed premises of a holder of an on-sale intoxicating liquor license, subject to compliance with this division. An organization holding a temporary on-sale intoxicating liquor license may be assisted in conducting the wine tasting by another nonprofit organization.
2. An organization that conducts a wine tasting under this division may use the net proceeds from the wine tasting only for the following:
a. The organization's primary nonprofit purpose; or
b. Donation to another nonprofit organization assisting in the wine tasting, if the other nonprofit organization uses the donation only for that organization's primary nonprofit purpose.
c. Wine tastings are subject to all other provisions of M.S. § 340A.418.
(9) Sunday on-sale license.
(a) Required. A restaurant, club, bowling center, or hotel, as defined in this chapter, which holds an on-sale intoxicating liquor license may sell intoxicating liquor between 8:00 a.m. and 12:00 midnight on Sunday for consumption on the premises in conjunction with the sale of food if the establishment has received a special license from the city for such Sunday sales. An establishment serving intoxicating liquor on Sundays must obtain a Sunday license. The license shall be issued for a period of 1 year and shall expire on March 31. The fee for the license shall be established by the City Council from time to time and may not exceed the statutory maximum, provided that the fee applicable to any application made after the commencement of the license year shall not be prorated.
(b) A licensed brew pub or brewer taproom, may sell on-sale intoxicating malt liquor between the hours of 8:00 a.m. and midnight on Sunday for consumption on the premises unless prohibited by law. A brew pub or brewer taproom serving intoxicating malt liquor on Sundays must obtain a Sunday license in accordance with this section and M.S. § 340A.504. No off-sale of intoxicating malt liquor may be made on Sunday. The license shall be issued for a period of 1 year and shall expire on March 31. The fee for the license shall be established by the City Council from time to time and may not exceed the statutory maximum, provided that the fee applicable to any application made after the commencement of the license year shall not be prorated.
(c) Application. Application for a Sunday license shall be made to the city in the same manner and by complying with the same requirements as required for a license to sell intoxicating liquors, except for the investigation fee.
(d) Hours. The holder of a Sunday license may serve intoxicating liquors between the hours of 8:00 a.m. and 12:00 midnight on Sundays, and the premises shall be vacated by 12:30 a.m. on Monday. However, under special conditions, such as holidays and special celebrations, the City Council may by resolution extend the serving and closing times for a particular Sunday to be the same as the maximum allowed by state law.
(10) One day consumption and display permits with the approval of the Commissioner to a nonprofit organization in conjunction with a social activity in the city sponsored by the organization. M.S. § 340A.414 regulating the licensing of establishments for the consumption and display of intoxicating liquor is adopted by reference. Consumption and display permits shall expire on March 31 of each year. Permits issued under this division are subject to all laws and ordinances governing the sale of alcoholic beverages except those laws and ordinances which by their nature are not applicable.
(11) Caterer's permit. Caterer's permits may be issued pursuant to and shall comply with M.S. § 340A.404, subd. 12. A caterer's permit is auxiliary to the primary on-sale license held by the licensee. The restrictions and regulations which apply to the sale of intoxicating liquor on the licensed premises also apply to the sale under the authority of a caterer's permit, and any act that is prohibited on the licensed premises is also prohibited when the licensee is operating other than on the licensed premises under a caterer's permit. Permits issued under this division are subject to all laws and ordinances governing the sale of alcoholic beverages except those laws and ordinances which by their nature are not applicable. The licensee shall provide written notice to the Police Chief a minimum of 14 days in advance of the event containing the following information:
(a) Contact information for licensee and on-site manager for the event;
(b) Location of the event; and
(c) Time of the event.
(1987 Code, § 406.02) (Am. Ord. 592, passed 5-23-17) Penalty, see § 10.99