VII.5. Resolution Approving Refunds for On-Sale Liquor License Fees; DomeierJune 2, 2020 Council Report 2020-038
RESOLUTION APPROVING REFUNDS FOR ON-SALE LIQUOR LICENSE FEES
Proposed Action.
Staff recommends that the Council approve the following motion: Motion to Approve Resolution
2020-029 a Resolution Approving Refunds for On-Sale Liquor License Fees.
Overview:
Due to the COVID-19 pandemic, Minnesota Governor Walz has issued several needed executive
orders that have impacted businesses. In recognition of these impacts, staff has been researching
potential refunds for liquor license fees. Liquor license fees are meant to pay for license
issuance, inspection, monitoring compliance (insurance, training, etc.), enforcement, and
compliance checks of the licensee. The City of Hopkins licensing year runs from July 1 to June
30. Hopkins currently has licenses issued in the following license categories:
Type Fee Permitted to sell
On-sale Only:
On-sale Intoxicating/Sunday $7,700 All types of liquor
On-sale Wine & 3.2% malt liquor $1,400 Wine, malt liquor (strong beer, hard seltzer, cider)
On-sale Club/Sunday $700/850* All types of liquor to members
On-sale 3.2% malt liquor $600 Malt liquor sales only
On & Off Sale:
Taprooms $900 Only the products they produce. Fee covers on & off sale
Off Sale Only:
Off-sale Intoxicating $200 Permitted to intoxicating off-sale
* Fee based on number of members and is set by State Statute.
Staff recommends refunding three months of license fee refunds for on-sale liquor licenses.
Hopkins currently has 20 on-sale liquor license holders. On-Sale liquor license holders have not
been able to use their liquor licenses or have very limited use of their licenses. To be consistent,
staff is also recommending a similar refund for the on-sale portion of the taproom license fees.
The license classes proposed for refund include:
On-sale Intoxicating
Wine/3.2% Malt Liquor
Club
On-sale 3.2% Malt Liquor
On-sale portion of Taproom
Primary Issues to Consider:
Limited Sales
Financial Impacts
Supporting Information:
Draft Resolution 2020-029
Amy Domeier, City Clerk
Limited Sales
As part of a new law effective April 18, limited off-sale options for to-go orders were permitted
for on-sale intoxicating and the on-sale wine/3.2% malt liquor license holders. However, staff
considers this insignificant in relation to the overall license fees. In addition, there is no
reporting required on which licensees are using this limited off-sale provision and all on-sale
intoxicating and on-sale wine/3.2% malt liquor license holders have the opportunity to
participate. Therefore, staff does not recommend any reduction in the refund for those that are
using the limited off-sale provision.
Staff is not recommending refunds related to the portion of the fees that occurred during the
previous licensing period as those fees are considered to have been all used.
On May 20, 2020 Governor Walz issued Executive Order 20-56 outlining plans for bars and
restaurants to open on June 1 for outdoors services so long as certain conditions, including social
distancing, are maintained to prevent the spread of COVID-19.
Staff is waiving all fees for outdoor sidewalk cafes or newly created outdoor seating areas.
Financial Impacts
Estimated financial impacts for a three month refund to 20 licensees is as follows:
License Type Number issued Three month refund
per license
Total Cost
On-sale Intoxicating 8 $1,926 $15,408
On-sale Wine/3.2% malt liquor 6 $351 $2,106
Club (based on membership) 3 $174 $522
Club (based on membership) 1 $213 $213
On-Sale 3.2% malt liquor 1 $150 $150
Taproom 1 $126 $126
Grand Total $18,525
City Code Sec 4-16 states in part that no license shall be granted or renewed for operation on any
premises on which taxes, assessments, service charges or other financial claims of the cit y or of
the state are delinquent. Staff recommends that refunds follow this same language related to
delinquent financial claims of the City. In discussion with the Finance Director regarding this
provision, it was noted that the refund amount could be used to offset a portion of the delinquent
financial claims of the City.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLTUION 2020-029
RESOLUTION APPROVING REFUNDS FOR ON-SALE LIQUOR LICENSE FEES
WHEREAS, Novel Coronavirus Disease 2019, commonly known as “COVID-19,” which is a
respiratory disease that can result in serious injury or death, is spreading globally and has been
identified by the World Health Organization (“WHO”) as a pandemic; and
WHEREAS, on March 13, 2020, President Donald Trump declared that the COVID-19 outbreak
in the United States constitutes a National Emergency; and
WHEREAS, on March 13, 2020, Governor Tim Walz declared a Peacetime State of Emergency
to authorize any and all necessary resources to be used in support of the COVID-19 response;
and
WHEREAS, on March 16, 2020, Governor Tim Walz issued Executive Order 20-04 - Providing
for Temporary Closure of Bars, Restaurants, and Other Places of Public Accommodation; and
WHEREAS, on March 16, 2020, the City of Hopkins declared that the COVID-19 pandemic
constitutes a local emergency within the City of Hopkins, effective March 16, 2020, with all the
powers and responsibilities attending thereto as provided in Minn. Stat. Ch. 12, and as otherwise
provided for in the City of Hopkin’s Charter, City Code and Emergency Operations Plan (EOP);
and
WHEREAS, on March 25, 2020, Governor Tim Walz issued Executive Order 20-20 – Directing
Minnesotans to Stay at Home until April 10 unless they are considered an essential employee;
and
WHEREAS, on April 8, 2020, Governor Tim Walz issued Executive Order 20-33 – Extending
the Stay at Home Order and Temporary Closure of Bars, Restaurants, and Other Places of Public
Accommodation until May 4, 2020; and
WHEREAS, on April 30, 2020, Governor Tim Walz issued Executive Order 20-48 – Extending
and Modifying the Stay at Home Order, Continuing Temporary Closure of Bars, Restaurants,
and Other Places of Public Accommodation, and Allowing Additional Workerse in Certain
Critical Sectors to Return to Safe Workplaces, 2020; and
WHEREAS, due to these needed actions, many businesses have been greatly impacted by a
significant loss of revenue due to the closure; and
WHEREAS, a request has been made to consider refunds of liquor license fees during the time
of closure of bars and restaurants.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, that:
1.Refunds totaling three months of license fees for On-sale intoxicating, Wine/3.2% Malt
Liquor, Club, On-sale 3.2% Malt Liquor, and the On-sale portion of Taproom fees are
hereby approved.
2.Refunds shall not be issued to licensees with delinquent financial claims to the City. The
refund shall be applied to the delinquent financial claims of the licensee to the City.
Adopted by the City Council of the City of Hopkins on this 2nd day of June, 2020.
__________________________________
Jason Gadd, Mayor
ATTEST
_______________________________
Amy Domeier, City Clerk