Second Reading of Ordinance 2014-1071 Liquor EstablishmentCITY OF HOPKINS
MEMORANDUM
To: Hopkins City Council
From: Jim Genellie
Date: August 1, 2014
Subject: Second Reading of Ordinance 2014-1071
Staff recommends that the Council approve the following motion: Move that the Hopkins City
Council aprove Ordinance 2014-1071 for second reading and order published.
There have been no changes in this ordinance since the first reading.
Ordinance 2014-1071 limits the number of off -sale licenses that can be issued in any one year to
eight.
Ordinance 2014-1070 which would limit the size of any new off -sale liquor establishment to 5,000
sq. ft. is not being brought forward for second reading at this time. One of the current liquor
establishments, MGM, has requested that the City consider modifying this ordinance to allow them to
move, if necessary, to a similar size location elsewhere in the City. The City Attorney's office is
looking at this issue but has not provided any alternative language at this time. Staff expects that this
item will be on the August 19 City Council agenda.
Attachments:
• Ordinance 2014-1071
• Letter from F.T.L. Corporation dba MGM Liquors.
CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE 2014-1071
AN ORDINANCE AMENDING SECTION 1200 OF THE HOPKINS CITY CODE
Whereas, the Hopkins City Council has determined that the
interests of the City and its residents can best be served by
establishing a limit on the number off -sale liquor licenses
issued by the City;
Now, therefore, the City Council of the City of Hopkins does
hereby ordain:
Section 1. Hopkins City Code, Section 1200.11 is hereby amended
to read as follows:
1200.11. Off -sale licenses. Off -sale licenses shall be issued
to exclusive liquor stores and shall permit off sales of liquor
only. Eight off -sale licenses may be granted in a year. No off -
sale license shall be issued to an establishment holding an on -
sale liquor license except those on -sale and off -sale licenses
that are presently existing in such combination. The sale of
such an establishment shall not prevent the new owners from
applying for an off -sale liquor license. At any time hereafter
that any such existing combined on -sale and off -sale licenses
are for any reason suspended, canceled, or not applied for, no
further re -issuance or renewal of such licenses shall thereafter
be allowed or issued in combination.
Section 2. The effective date of this ordinance shall be the
date of publication.
First Reading: July 15, 2014
Second Reading: August 4, 2014
Date of Publication: August 14, 2014
Date Ordinance Takes Effect: August 14, 2014
Gene Maxwell, Mayor
ATTEST:
Amy Domeier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
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CORPORATION
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F.T.L. Corporation
d.b.a. MGM Wine & Spirits
49517 1h Ave N
Hopkins, Mn 55343
July 21, 2014
Mayor and City Council
1010 First Street South
Hopkins, MN 55343
Dear Honorable Mayor and City Council,
This letter is in reference to Ordinance 2014-1070 effecting off -sale liquor stores.
The premise of the ordinance is to control the number and size of operations
selling alcoholic beverages in the community of Hopkins. While the ordinance
appears to have "grandfather" clauses that would prevent damage to existing
operators, it seems that a significant factor is not clear.
The effect of this ordinance, particularly upon our operation could be devastating
and in all likelihood destroy any value the business currently enjoys. Due to the
proposed inability to relocate the operation within the City of Hopkins and
maintain its relative size, the only option would be to remain at the current
location. This basically tells any landlord that they have a captive business and
can therefore charge rent to the extent the business is able to pay regardless of
market values.
Being held captive by a property owner not only limits the business but would
ultimately destroy its profitability. Conversely, moving the store due to an
unreasonable landlord, and yet not being allowed to maintain the current
methods of operation, again, will effectively damage the value of the business.
1580-1 Woodlane Drive Woodbury, MN 55125 (651) 730-0377 (651) 730-0595 FAX
While we have enjoyed our current location since 1982 (32 years) and do not
have any intent to relocate, the long term ramifications of this ordinance could
ultimately be devastating. The end result of the devaluing of our business in this
manner is, essentially, taking away our ability to conduct business as usual. I do
not believe this is the intent of the council however this letter is effectively asking
for clarification.
A provision that allows all existing licenses including new ownership to operate at
"or below" the current size of the package store would be something that could
make a difference. I mention new ownership since if a store is ultimately sold the
new owner must enjoy the value that the operation has developed in order to
give it any value at all. It would seem that true grandfathering including the right
to relocate, sell and thereby maintain the value of the business currently in
existence is not an unreasonable request.
Limiting the number of licenses and limiting the size to existing operations would
seem to be an effective method for controlling the sales and availability in our
Hopkins community.
I understand that an initial hearing has occurred and respectfully request
clarification regarding these matters prior to the next reading so that we may be
prepared with any necessary actions or attendance.
Thank you,
Jack Lanners
President
ilannersskyoint.com
1580-1 Woodlane Drive Woodbury, MN 55125 (651) 730-0377 (651) 730-0595 FAX