§ 112.03  LICENSE TYPES.
   (A)   On-sale licenses. No more than 20 licenses will be granted at any time in the city. On-sale licenses issued to clubs (as defined in division (F)(1) below), restaurants, theaters, hotels and bowling centers do not count against the total number of on-sale licenses. Liquor may be consumed on the licensed premises only, which shall be specifically identified in the application. On-sale licenses will be issued only as follows.
      (1)   Category 1. On-sale licenses may be granted to clubs, restaurants, theaters, hotels and bowling centers. For purposes of this section, a RESTAURANT is an establishment where meals are regularly prepared on the premises and served at tables to the general public, as defined in Minn. Stat. § 340A.101, Subd. 25, as it may be amended from time to time. Restaurants must be considered a small, medium or large establishment, as defined by the Minnesota Department of Health.
      (2)   Category 2. No more than two on-sale licenses may be issued to restaurants, as defined in Minn. Stat. § 157.15, Subd. 12, as it may be amended from time to time, that only have a limited food menu selection. LIMITED FOOD MENU SELECTION means that the restaurant provides one or more of the following:
         (a)   Prepackaged food that receives heat treatment and is served in the package;
         (b)   Frozen pizza that is heated and served;
         (c)   A continental breakfast such as rolls, coffee, juice, milk and cold cereal;
         (d)   Soft drinks, coffee or nonalcoholic beverages; or
         (e)   Cleaning for eating, drinking or cooking utensils, when the only food served is prepared off site.
   (B)   Off-sale licenses. Off-sale licenses may be granted to permit the retail sale of alcoholic beverages containing more than 3.2% alcohol by volume in its original container for consumption off the licensed premises only. Such licenses may be issued to drug stores to which an off-sale license had been issued on or prior to May 1, 1994, and exclusive liquor stores.
      (1)   Age verification devices and digital security video. All license holders shall be required to install or possess age verification devices and digital security video at the licensed location, The Police Department shall confirm that the devices have been installed prior to approval of the license. Such devices shall be maintained in good and proper working order at all times.
      (2)   Annual fee. The fees for off-sale licenses are established by City Council resolution; however, the annual fee shall be reduced by $100 if the following conditions are met:
         (a)   The licensee posts a policy requiring identification checks for all persons appearing to be less than 30 years old; and
         (b)   The licensee establishes a cash reward and incentive program to reward employees who identify persons underage attempting to purchase alcohol, as well as a penalty program to punish employees who fail a compliance check.
   (C)   On-sale wine licenses. Except as otherwise provided in this section and by law, on-sale wine licenses are granted and issued subject to the same conditions, procedures and restrictions as other on-sale intoxicating liquor licenses specified by this section and by law.
   (D)   Sunday sales licenses. A special license authorizing the sale of intoxicating liquor on Sunday in conjunction with the sale of food may be issued to any qualified establishment holding an on-sale license. The license fee for a special license for Sunday sales is set by City Council resolution.
   (E)   Outside service licenses.
      (1)   Approval. The City Council may approve an outside service license to any on-sale licensee in order to sell or serve intoxicating liquor on an on-going basis in areas outside the building structure that are immediately adjacent to and contiguous with the structure containing the licensed premises. The license fee is set by City Council resolution. Every person desiring a license for an outside service area must file an application as provided by City Clerk. Authority to operate an outside service area will not be granted until the applicant has obtained a conditional use permit for outdoor seating.
      (2)   Hearing for revocation, suspension, provisional or conditional licenses. The Council may take action on a license for an outside service area when it has reason to believe that the impact of the outside service area on adjoining property will or has produced any of the following:
         (a)   Loud, boisterous or disturbing noise levels;
         (b)   Hazardous traffic conditions;
         (c)   Offensive, obnoxious or disturbing odors;
         (d)   Excessive litter;
         (e)   Excessive artificial lighting;
         (f)   A substantial decrease in adjoining property values; or
         (g)   Any other condition inconsistent with the reasonable use and enjoyment of adjoining property and inconsistent with the health, safety, morals and general welfare of the adjoining neighbors or community.
      (3)   The licensee must, with respect to any outside service area, comply with all applicable provisions of law and regulations in regard to the sale and service of intoxicating liquor, including, all applicable regulations contained in this section.
   (F)   Temporary on-sale licenses.
      (1)   General rule. Notwithstanding any other provision of this section, a club (as defined in Minn. Stat. § 340A.101, Subd. 7, as it may be amended from time to time) or charitable, religious or other nonprofit organization may obtain a temporary on-sale license to sell intoxicating liquor for consumption on the licensed premises only and in connection with a social event within the city sponsored by the licensee. The license may provide that the licensee may contract for intoxicating liquor catering services with the holder of an on-sale intoxicating liquor license issued by the city.
      (2)   Caterer. The license may provide that the licensee must contract with the holder of an intoxicating liquor license issued by the city who also has a state-issued caterer’s permit for dispensing intoxicating liquor. The caterer must provide the city with a valid certificate of insurance for the event.
      (3)   The fee for the license will be set by City Council resolution. A separate license fee shall be due for each application submitted. However, if the applicant applies for more than one event in a single application, only one license fee shall be required.
      (4)   Number of days per event. The license will not authorize any temporary on-sale intoxicating liquor license for more than four consecutive days.
      (5)   Number of events per year. The city will not authorize more than three four-day, four three-day, six two-day or 12 one-day temporary licenses, in any combination not to exceed 12 days per year for the sale of intoxicating liquor to any one organization or for any one location within the city for a 12-month period.
      (6)   Number of events per 30-day period. The city shall not issue more than one license to any organization or political committee, or any one location, within a 30-day period.
      (7)   Application. Application for a temporary license may be made on forms provided by the City Clerk and must include the following information:
         (a)   The name, address and purpose of the organization, together with the names and addresses of its officers, and evidence of nonprofit status or of its status as a club as defined in this section;
         (b)   The purpose for which the temporary license is sought, together with the location, dates and hours during which wine or intoxicating liquor will be sold;
         (c)   Consent of the owner or manager of the premises or person or group with lawful responsibility for the premises;
         (d)   Evidence that the manager or director has received alcohol awareness training as required in § 112.06(G); and
         (e)   A security plan approved by the Police Chief or his or her designee.
      (8)   Reasonable conditions. The City Council may impose reasonable conditions to protect the health, safety and general welfare of the public.
   (G)   Temporary outside service licenses. The City Council may issue a temporary outside service license to the holder of an on-sale intoxicating liquor license, or to a club (as defined in Minn. Stat. § 340A.101, Subd. 7, as it may be amended from time to time) or a charitable, religious or other nonprofit organization, in order to dispense intoxicating liquor off premises or outside of its licensed premises that is an outdoor event. The application for a temporary outside service license shall be made on forms provided by the City Clerk. The applicant must comply with all of the following:
      (1)   Location of event:
         (a)   On-site. The applicant must currently have an on-sale intoxicating liquor license issued by the city if the event will be held on the licensed premises that is owned or leased by the intoxicating liquor license holder or on property immediately adjacent thereto. For property to be “immediately adjacent thereto” it must be contiguous to the applicant’s property, however, it may be intersected by an alley, but it may not be intersected by a street.
         (b)   Off-site. If the event will be off-site, the applicant must contract with the holder of an intoxicating liquor license, who also has a state-issued caterer’s permit for dispensing intoxicating liquor. The caterer must provide the city with a valid certificate of insurance for the event.
      (2)   Specify the dates, times and location that the intoxicating liquor will be dispensed and consumed. The applicant must provide an accurate depiction of the location that specifies a compact and contiguous area for the dispensing and consumption of intoxicating liquor. The location may not encroach onto the public right-of-way, unless approved by the City Council.
      (3)   Provide proper separation for the area where the intoxicating liquor will be dispensed and consumed to control ingress and egress.
      (4)   Provide a separate liquor liability insurance certificate for the event and the location with coverages as required by Minn. Stat. § 340A.409, Subd. 1, as it may be amended from time to time.
      (5)   Provide written consent of the owner or manager of the premises on which the outside service will occur if the location is other than the licensed premises.
      (6)   The applicant must comply with all applicable provisions of state law and the city code in regard to the sale and service of intoxicating liquor.
      (7)   The applicant shall pay all appropriate fees which shall be set by City Council resolution. A separate license fee shall be due for each application submitted. If the applicant applies for more than one event in a single application, only one license fee shall be required.
      (8)   If the city determines that the event is being held such that it is a public nuisance under Chapter 94, the city may take emergency action to abate the public nuisance, including, but not limited to, closing the event, pursuant to § 94.15(E).
      (9)   Number of events per year. The city will not authorize more than three four-day, four three-day, six two-day or 12 one-day temporary licenses, in any combination not to exceed 12 days per year for the sale of intoxicating liquor to any one organization or for any one location within the city for a 12-month period.
      (10)   Before issuance of a temporary license, the city shall notify property owners within 350 feet of the proposed event at least ten days prior to the City Council meeting.
      (11)   The City Council may impose reasonable conditions to protect the health, safety and general welfare of the public.
   (H)   Special provisions - sports facilities, cultural facilities, community festivals and consumption and display permits.
      (1)   Sports facility or cultural facility. A holder of an on-sale intoxicating liquor license issued by the city may obtain a temporary license to dispense intoxicating liquor at a convention, banquet, conference, event, meeting or social affair conducted on the premises of a sports facility or cultural facility owned by the city, subject to the limitations in Minn. Stat. § 340A.404, Subd. 4(a), as it may be amended from time to time.
      (2)   Community festival. A holder of an on-sale intoxicating liquor license issued by the city may obtain a temporary license to dispense intoxicating liquor off premises at a community festival held within the city. The area for the dispensing and consumption of intoxicating liquor must be compact and contiguous, with proper separation to control ingress and egress. The licensee must demonstrate that it has liability insurance as prescribed by Minn. Stat. § 340A.409, as it may be amended from time to time, to cover the event.
      (3)   Consumption and display permits.
         (a)   Permit required. No business establishment or club may allow the consumption and display of alcoholic beverages without first having obtained a consumption and display permit from the Commissioner of the Department of Public Safety and from the city. A consumption and display permit may be approved by the City Council for an organization that complies with the requirements of Minn. Stat. § 340A.414, Subd. 2, as it may be amended from time to time, and that complies with all the provisions of this section. The city’s permit is not effective until a consumption and display permit is approved by the Commissioner of the Department of Public Safety.
         (b)   Posting of permit. The city’s permit must be posted continuously in some conspicuous place upon the premises alongside the permit issued by the Commissioner of the Department of Public Safety.
         (c)   Exceptions. This section does not apply to any premises holding an on-sale intoxicating liquor license under § 112.03(A).
         (d)   Fees. In addition to the annual fee imposed by the Commissioner of the Department of Public Safety, the city shall impose a fee established by City Council resolution. The applicant must also pay the investigation fee required by § 110.03(C)(5)(b) for a background investigation. All city fees must be paid before the permit application will be accepted.
         (e)   Application. The applicant must submit to the City Clerk, the application form for consumption and display permits provided by the Commissioner of the Department Public Safety, any additional forms required by the City Clerk, and the appropriate fees.
         (f)   Hearing. The Council shall hold a hearing on the application. At the hearing, the Council may impose reasonable conditions in order to protect the health, safety and general welfare of the public.
         (g)   Term. Permits issued by the city expire on March 31 of each year, coinciding with the permit issued by the Commissioner of the Department of Public Safety.
         (h)   One license per applicant. Not more than one license shall be directly or indirectly issued within the city to any one person.
         (i)   Location and transfer. A permit shall be issued only for the compact and contiguous premises described in the application. A permit may not be transferred to another person or to another place.
         (j)   Hours. The consumption and display of intoxicating liquor is allowed only within the hours and days fixed by Minn. Stat. § 340A.504, Subd. 5, as it may be amended from time to time, unless further restricted by the City Council.
         (k)   Conditions and restrictions. The applicant must comply with § 110.03(C)(4) regarding the submission of additional requirements and § 110.11 regarding the right of inspection.
         (l)   One-day consumption and display permits.
            1.   Intent and purpose. It is the intent and purpose of this section to effectuate the authorization to issue one-day consumption and display permits given to cities by Minn. Stat. § 340A.414, Subd. 9, as it may be amended from time to time.
            2.   Issuance to non-profits. One-day consumption and display permits may only be issued to a non-profit organization in conjunction with a social activity in the city sponsored by the organization. The permit must be approved by the Council.
            3.   Limit on number of permits. The city shall not approve more than ten one-day consumption and display permits in any one year.
            4.   Fees. The city shall impose a fee established by City Council resolution. The city fee must be paid before the permit application will be accepted.
      (4)   Reasonable conditions. The City Council may impose reasonable conditions on any license provided in this section to protect the health, safety and general welfare of the public.
(2001 Code, § 1200.03)
   (I)   Temporary off-sale wine license. Temporary off-sale wine licenses may be issued for the off-sale of wine at an auction with the approval of the Commissioner of Public Safety. A temporary off-sale wine license authorizes the sale of only vintage bottled wine that is at least five years old and is of a brand and vintage that is not commonly being offered for sale by any wholesaler in Minnesota. The license may authorize the off-sale of wine for not more than three consecutive days provided not more than six hundred cases of wine are sold at any auction. The licenses are subject to the terms, including license fee, imposed by the City. Licenses are subject to all laws and ordinances governing the sale of intoxicating liquor except Minn. Stat. § 340A.409, as it may be amended from time to time, and those laws and ordinances which by their nature are not applicable.
   (J)   Culinary class limited on-sale license. A limited on-sale intoxicating liquor license may be issued to a business establishment: (a) not otherwise eligible for an on-sale intoxicating liquor license; and (b) that, as part of its business, conducts culinary or cooking classes for which payment is made by each participant or advance reservation required. The license authorizes the licensee to furnish to each participant in each class, at no additional cost to the participant, up to a maximum of six ounces of wine or twelve ounces of intoxicating malt liquor, during and as part of the class, for consumption on the licensed premises only.
   (K)   Brewer license.
      (1)   On-sale brew pub license. On-sale brew pub licenses shall be issued only to hotels, clubs, restaurants, bowling centers or exclusive liquor stores and shall permit the sale of malt liquor produced on the licensed premises. A licensee may hold both an on-sale license and an on-sale brew pub license.
      (2)   Off-sale malt liquor brewer license (off-sale brew pub). A brewer with an on-sale brew pub license may be issued an off-sale malt liquor brewer license which shall permit the off-sale of malt liquor at the brewer’s licensed premises subject to the provisions of Minn. Stat. § 340A.24, as it may be amended from time to time, and this section.
         (a)   Hours of operation. The off-sale of malt liquor may only be made during the same days and hours permitted at exclusive liquor stores.
         (b)   A brewer may only hold one brewer off-sale malt liquor license.
         (c)   The only malt liquor sold on the licensed premises shall be malt liquor produced by the brewer at the brewery premises.
         (d)   The packing of the containers and bottles must comply with Minn. Stat. § 340A.285, as it may be amended from time to time.
      A brewer may also be issued an on-sale intoxicating liquor or 3.2% malt liquor license for a restaurant operated in the place of the manufacturer.
   (L)   Cocktail room license. The holder of a microdistillery license under Minn. Stat. § 340A.22, as it may be amended from time to time, may be issued a cocktail room license.
      (1)   Hours of operation. The on-sale of distilled liquor may only be made during the days and hours that the sale of on-sale intoxicating liquor is permitted.
      (2)   A cocktail room license authorizes the on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller.
      (3)   A distiller may only have one cocktail room license, and may not have an ownership interest in a distillery licensed under Minn. Stat. § 340A.301, Subd. 6(a), as it may be amended from time to time.
(Ord. 15-03, passed 6-8-2015; Ord. 15-11, passed 11-9-2015; Ord. 17-10, passed 7-24-2017)