IV.1. Second Reading of Zoning Ordinance 2014-1070, Liquor Store SizeAugust 27, 2014 Council Report 14-93
ZONING ORDINANCE AMENDMENT — LIQUOR STORE SIZE
Proposed Action
There are three actions for the City Council to consider tonight:
1. Attached is Ordinance 2014-1070 for second reading. This ordinance will limit the size
of liquor stores to 5000 square feet. The Cit Council's action is to a grove the
ordinance for second reading and order it published.
2. After receiving the attached letter from MGM regarding the size of liquor stores. A
solution to that situation would be to grandfather MGM's size. If this is something the
City Council would like to consider, the new language would have to be drafted and
sent back to .Zoning and Planning for a public hearing. Suggested language would be
the following: "Provided that any liquor store existing at the time of the adaption of
this Ordinance may relocate within the zoning districts provided it remains
the same gross square feet." If the City Council indicates this is something they would.
lean toward, the City Council's action is to send the amendment back to the Zoning and
Planning Commission for review and public hearing,
3. The third action is to not put any restrictions on liquor stores and not approve the
second reading of Ordinance 14-1070 and not refer any action to the Zoning and
Planning Commission.
SupportingDocuments
Ordinance 14-1070
Letter from MGM
Nancy r(S)Anderson, AICD
City Planner
Financial Impact: $ N/A Budgeted: Y/N Source:
Delated Documents (CIP, ERP, etc.):
Notes:
CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE NO. 2014-1070
THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS
FOLLOWS:
That the Hopkins Zoning Ordinance No. 535 be, and the same and is hereby
amended by adding the following underlined language, which reads as follows:
535.01 Subd. 3. 67. Liquors
First Reading:
Second Reading:
Date of Publication:
Date Ordinance Takes Effect:
ATTEST:
Amy Domeier, City Clerk
B-2 B-3
Xt4) X(4�
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
July 15, 2014
September 2, 2014
September 11, 2014
September 11, 2014
Eugene J. Maxwell, Mayor
woo,�
4.00ro TOA
CORPORATION
MGM
F.T.L. Corporation
d.b.a. MGM Wine & Spirits
495 17" 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
Jann-Lrsf<uoint.conj
�L _
1580-1 Woodlane Drive Woodbury, MN 55125 (651) 7'30-0377 (651) 7310-0595 FAX