(A) Investigation and issuance.
(1) Each applicant shall be referred to the chief law enforcement officer of the city for investigation. Applications for licenses will be referred to the chief law enforcement officer and to such other city departments as the City Administrator deems necessary, for verification and investigation of the facts set forth in the application. The chief law enforcement officer will make such investigation of the information requested in this chapter as necessary and will make a written recommendation and report to the City Council.
(2) Each person who has or will have any beneficial interest in the license shall also be so investigated.
(3) The law enforcement officer shall make necessary inquiry and list all violations of federal and state law or this Municipal Code.
(4) For license renewals, the investigation shall include verified complaints regarding the premises to which the license applies while the premises were under the applicant's ownership.
(5) The City Administrator may refer the application to the Fire Chief for investigation of the premises to be licensed as the Fire Chief or the Council deems necessary.
(6) The chief law enforcement officer and the Fire Chief shall report their findings and comments to the Council which may then conduct additional investigation as it deems necessary.
(7) Public hearing and issuance.
(a) A public hearing will be held for original applications on annual licenses. Upon completion of the City Clerk's preliminary report, the Council will instruct the City Clerk to publish a notice of the hearing in the official newspaper 10 days in advance of the hearing to be held by the City Council. The notice must set forth the day, time and place where the hearing will be held, the name of the applicant, the premises where the business is to be conducted, and such other information as the Council may direct.
(b) At the hearing, opportunity will be given to any person to be heard for or against the granting of the license. The applicant or applicant's representative may be present at the hearing to provide such additional information as may be required by the Council. Failure to be present at the meeting is grounds for denial of the application.
(c) 1. After the hearing, the Council may in its sound discretion either grant or deny the application for any license or for the transfer or renewal of any license.
2. If the Council grants the license, the Council may withhold its issuance until the applicant is fully-qualified for the license. If the premises to be licensed are not complete at the time that the hearing is conducted, the Council may grant the license but will withhold its issuance until the premises have been completed in accordance with the representations made by the applicant. If a license has been granted but its issuance has been withheld pending completion of the premises to be licensed, and if the licensee does not complete the premises within a reasonable time, the Council may rescind its action granting the license. Before the Council takes such action, however, it must give the licensee at least 8 days mailed notice of the time and place of a hearing on the proposed rescission.
(d) No applicant has a right to a license under this chapter.
(B) Qualifications of licensee.
(1) A license shall not be issued to any of the following:
(a) A person who is ineligible for a license under state law;
(b) A person who is under 21 years of age;
(c) A person who within 5 years of the license application has been convicted of a felony or any willful violation of a federal or state law or local ordinance governing the manufacture, sale, distribution or possession for sale or distribution an alcoholic beverage or whose liquor license has been revoked for any willful violation of any such laws or ordinances;
(d) A person who has had an intoxicating liquor or nonintoxicating liquor license revoked within 5 years of the license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than 5% of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business or firm in which any like person is in any manner interested;
(e) A person not of good moral character and repute;
(f) A person who has a direct or indirect interest in a manufacturer, brewer or wholesaler;
(g) A person who is directly or indirectly interested in any other establishment in the city to which a license has been issued under this chapter; the term INTERESTED as used in this division means and includes any pecuniary interest in the ownership, operation, management or profits of such an establishment;
(h) A person who is the spouse of a person ineligible for a license under this section; or
(i) A person who, in the judgment of the City Council, is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license.
(2) No license shall be granted to any person who has a delinquent financial obligation to the city.
(C) Building requirements. No sales shall be permitted except in that part of the premises described in the license. The structure within which liquor is to be sold shall be in compliance with applicable building and safety codes at all times.
(D) Places ineligible for license.
(1) No license shall be issued for any place or any business ineligible for a license under M.S. § 340A.412, as it may be amended from time to time.
(2) No license shall be issued for any premises owned by a person to whom a license may not be granted under this Code.
(3) No license shall be issued for premises located within the areas restricted against commercial use by the city zoning ordinances or other proceedings or legal processes regularly had for that purpose, except licenses may be issued to restaurants in areas which were restricted against commercial uses after the establishment of the restaurant. No license shall be issued contrary to the provisions of the City Charter or ordinances or any special or general state laws restricting areas within which intoxicating liquor may be sold.
(4) No license shall be issued for any premises upon which taxes or assessments or other financial claims of the city or of the state are due, delinquent and unpaid. The City Council may, upon request by the applicant or licensee, waive strict compliance with this provision if the applicant or licensee has contested their tax liabilities or other financial claims through a process permitted by federal or state regulations or by city ordinance; or is working out debt problems under the supervision of a bankruptcy court or pursuant to some other formal agreement. No waiver may be granted, however, if taxes or any portion thereof, remain unpaid for a period exceeding 1 year after becoming due.
(5) Corporations and other business entities. A corporation or other business entity is ineligible for a license or a license renewal if any of its officers or managers are ineligible for a license under this division.
(6) Veterans organization or club. A veterans organization or club that does not limit access to the organization's facilities to members and their bona fide guests is not eligible for a license.
(E) Conditions for license. Every license is subject to the conditions in this chapter and all other provisions of this Code and any other applicable ordinance, state law or regulation.
(F) Transfer of license.
(1) Each license shall be issued only to the applicant and for the premises described in the application. No license may be transferred to another person or place without prior Council approval. Any of the following will be deemed a transfer of ownership for purposes of this chapter:
(a) Transfer of any or all of the stock of a corporate licensee;
(b) Change of business premises' physical location; or
(c) Addition of a beneficial owner in any way, including but not limited to the creation of a partnership or corporation when the license is issued to a sole proprietor, or the addition of new partners in the case of an existing partnership licensee.
(2) Any transfer without the prior approval of the Council shall be grounds for license revocation.
(3) Each corporate licensee shall report to the City Administrator any proposed change of legal ownership or beneficial ownership. The report shall be in writing and shall list all stockholders, their residential addresses, the number of shares held by each and whether the shares are held individually or for the benefit of others. The report shall include all powers of attorney for proxies granted.
(4) The Council or any other officer designated by the Council may at any reasonable hour examine the stock, transfer records, minute books and other business records of a corporate licensee to determine the interest of any and all persons in the corporate licensee, the ownership and voting of shares of stock of the corporation and whether any change of legal ownership or beneficial interest in certain shares of stock has directly or indirectly resulted in multiple ownership or in a change of control of the licensee.
(5) An application to transfer a license shall be treated the same as an application for a new license, and all of the provisions of this Code applying to applications for a license shall apply.
(G) Renewal applications. The decision whether or not to renew a license rests within the sound discretion of the Council. No licensee has a right to have the license renewed.
(1) Time of renewal. Applications for the renewal of a license must be filed with the City Administrator at least 60 days prior to the date of the expiration of the license and shall contain such information as required by the state, the City Council, the City Administrator and any additional information the city deems necessary. If in the judgment of the Council good and sufficient cause is shown by any applicant for failure to file for a renewal within the time provided, the Council may, if the other provisions of this section are complied with, waive this requirement and grant the application.
(2) Statement for food sales. At the time a restaurant, brew pub or hotel submits a renewal application for an on-sale license, the applicant must file with the Director a statement made by a certified public accountant that shows the total alcohol sales and the total food sales of the restaurant, brew pub or hotel for the 12-month period immediately preceding the date for filing the renewal application.
(3) Production reports. At the time a micro-brewery or microdistillery submits a renewal application for an on-sale or off-sale license, the applicant must file with the City Administrator production report showing the total volume of alcoholic beverages produced for the 12-month period immediately preceding the date for filing the renewal application.
(1987 Code, § 406.04) (Am. Ord. 592, passed 5-23-2017)