VII.1. First Reading: Ordinance Amending Section 1200 of the Hopkins City Code: Sale, Consumption and Display of Alcoholic Beverages; Domeier (CR2016-006)r�
::e
e;'
January 19, 2016
Council Report 2016-006
First Reading: Ordinance Amending Section 1200 of the Hopkins City Code:
Sale, Consumption and Display of Alcoholic Beverages
Proposed Action
Staff recommends adoption of the following motion: Move to ado�t for first readin� Ordinance 2016-
1104, An Ordinance Amendin� Section 1200 Sale, Consum�tion and Dis�lay of Alcoholic Beverages.
Adoption of this motion will begin the process of amending Section 1200 of the Hopkins City Code to
allow for establishments defined as "theater" to obtain on-sale liquor licenses or on-sale wine with 3.2
percent malt liquor sales.
Overview
At its work session on December 8, 2015 the City Council reviewed a request from Michael Edlavitch
and Teresa Angier, owners of Royal Comedy Theatre, asking the City Council to consider amending
City Code Section 1200.05 to allow for on-sale liquor licenses to be issued to performing arts theatres
located in Hopkins. Currently, the City Code states that all on-sale licenses shall be issued to only
hotels, clubs, restaurants and bowling centers where at least fifty percent of the gross receipts from the
preceding business year are attributable to the sale of food.
Minnesota Statute 340A.404 allows cities to issue on-sale intoxicating licenses to various establishments
including theaters as referenced below:
A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or an on-sale
malt liquor license to a theater within the city, notwithstanding any law, local ordinance, or
charter provision. A license issued under this paragraph authorizes the sales on all days of the
week to persons attending events at the theater.
The City Council supported moving forward with the request to amend the City Code to allow for
special theater sales. The City Council requested the ordinance include language with limitations on the
hours and days of sales. The draft ordinance has been reviewed by the City Attorney.
Primarv Issues to Consider
• Definition of "theater" for the purpose of receiving a liquor license
• Limitation on the days and hours of sales for the Theater licenses
• Fees for obtaining the license
Supportin� Documents
• Proposed Ordinance 2016-1104
• Draft Resolution 2016-002 Setting Fees
• Request from Michael Edlavitch and Teresa Angier, owners of Royal Comedy Theatre
`� w �� r' � � �
8 ,�� �� ������ � ,r��., ' �
Amy Domeier, City Clerk
Primarv Issues to Consider
Deiinition of "theater" for the purpose of receiving a liquor license
For purposes of Section 1200 of the City Code, "theater" shall be limited to those establishments as
defined in Minnesota Statutes, Section 340A.101, Subdivision 27a:
"Theater" means a building containing an auditorium in which live dramatic, musical, dance, or
literary performances are regularly presented to holders of tickets for those performances.
Except that no alcohol may be served any establishment that is open to the general public and which
allows admittance for persons who are less than 21 years of age. Alcohol may only be sold to those
patrons who have purchased a ticket to attend a live performance at a theater on the day of the sale.
Limitation on the days and hours of sales for the Theater licenses
A theater that holds an On-Sale Intoxicating, Wine or 3.2 Percent Malt Liquor License may only sell
alcohol between the hours of 6:30 p.m. and 11:30 p.m. on all days of the week.
Fees for obtaining the license
The fees for the Theater liquor licenses are set by City Council Resolution. Staff is proposing the
following fees:
l. On-Sale, Theater
2. On-Sale Wine, Theater
3. On-Sale 3.2 Percent Malt Liquor, Theater
$5,000 per year
$800 per year
$600 per year
All other On-Sale liquor licenses are charged $7,500 per year plus an additional $200 for Sunday Sales.
Staff is proposed a reduced rate for the Theater liquor licenses based on the limited days and hours of
sales. The fee for On-Sale Wine and On-Sale 3.2 Percent Malt Liquor is consistent with the fees
charged to current licensed businesses. City Code allows an establishment with an On-Sale Wine and
3.2 Percent Malt Liquor License to serve strong beer.
Recommended Action
Staff recommends approving Ordinance 2016-1104 for first reading. The second reading is tentatively
scheduled for February 2.
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE 2016-1104
ORDINANCE AMENDING SECTION 1200 OF THE HOPKINS CITY CODE
PERTAINING TO THE SALE, CONSUMPTION AND DISPLAY OF ALCOHOLIC
BEVERAGES
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS
FOLLOWS:
Section l. That the Hopkins City Code Section 1200.05 be amended to add the double-
underlined material and strike the s�ie�c� material as follows:
1200.05. Subdivision l. On-sale licenses. On-sale licenses shall be issued only to hotels, clubs,
restaurants, Bowling Centers. theaters. and to exclusive liquor stores, which exclusive liquor
stores were in existence on July l, 1999, and shall permit on-sale of liquor only. Ten on-sale
licenses may be granted in a year.
Subd. 2. After July l, 1999, no on-sale liquor license shall be issued to an establishment
unless the applicant makes a bona fide estimation that at least fifty percent of the gross receipts
of the establishment during its first year of business will be attributable to the sale of food.
Subd. 3. Each establishment granted an on-sale liquor license under this section shall have
the continuing obligation to have at least fifty percent of gross receipts from the establishment
during the preceding business year attributable to the sale of food.
Subd. 4. For the purpose of this requirement, "establishment" shall include the food and
beverage portion of a multi-service establishment. Financial records for the food and beverage
portion must be maintained separately from the records of the remainder of the establishment.
Subd. 5. For the purpose of this section, "sale of food" shall include gross receipts
attributable to the sale of food items, soft-drinks and nonalcoholic beverages. It shall not include
any portion of gross receipts attributable to the nonalcoholic components of a plain or mixed
alcoholic beverage, such as ice, soft-drink mixes or other mixes.
Subd. 6. For the �ur�oses of this section. "theater" shall be limited to those establishments
as defined in Minnesota Statutes. Section 340A.101. subdivision 27a. exce�t that no alcohol mav
be served in any establishment that is o�en to the en�eral �ublic and which allows admittance for
persons who are less than 21 years of a�e. Alcohol ma �� only be sold to those �atrons who have
nurchased a ticket to attend a live �erformance at the theater on the day of the sale.
Subd. 6 7. The Council may require the production of such documents or information,
including, but not limited to, books, records, audited financial statements, or pro forma financial
statements as it deems necessary or convenient to enforce these provisions. The Council may
also obtain its own audit or review of such documents or information, and all licensees shall
cooperate with such a review, including prompt production of requested records.
1
Subd. � 8. In addition to other remedies that it may have available, the Council may place
the license of any on-sale liquor licensee on probationary status for up to one year, when the sale
of food is reported, or found to be, less than fifty percent of gross receipts for any business year.
During the probationary period, the licensee shall prepare any plans and reports, participate in
any required meetings, and take other action that the Council may require to increase the sale of
food.
Subd. � 9. The above provisions shall not apply to any business having an on-sale liquor
license prior to July l, 1999 and will not affect the future renewals of the on-sale licenses for
such businesses. These provisions shall not apply to new licenses issued for existing
establishments, due to sale or transfer of ownership of these establishments, unless the
establishment has been closed and without a liquor license for at least 90 days. These provisions
shall also not apply to any new on-sale liquor license for a hotel� e� bowling alley, or theater.
Sec. 2. That the Hopkins City Code Section 1200.07 be amended to add the double-underlined
material as follows:
1200.07. On-Sale wine licenses. Subdivision l. On-sale wine licenses shall be issued only to
restaurants meeting the qualifications of Minnesota Statutes Section 340A.404, Subdivision 5;
and theaters as authorized bv Minnesota Statutes Section 340A.404. subdivision 1(bl and shall
permit only the sale of wine not exceeding 24 percent alcohol by volume, for consumption on the
licensed premises only.
Subd. 2. The holder of an on-sale wine license who is also licensed to sell 3.2 percent
malt liquors at on-sale may sell intoxicating malt liquors at on-sale without an additional license.
Sec. 3. That the Hopkins City Code Section 1200.15 be amended to add the double-underlined
material as follows:
1200.15. Snecial license for Sunday sales. A special license authorizing sales on Sunday in
conjunction with the serving of food may be issued to any hotel, restaurant, Bowling Center or
club which has facilities for serving at least 30 guests at one time, and which has an on-sale
license. A special license authorizing sales on Sunday may be issued to a license holder of an
On-Sale Brewer Taproom license for the operation of a taproom on Sundays. An on-sale
intoxicatin�uor. wine or 3.2 �ercent malt lic�uor license issued to a theater authorizes sales on
all days of the week to �ersons attendin� events at the theater. without the need to obtain a
Sundav sales license.
Sec. 4. That the Hopkins City Code Section 1200.17 be amended to add the double-underlined
material as follows:
1200.17. 3.2 �ercent malt lic�uor. on-sale. An on-sale 3.2 percent malt liquor license may only
be issued to drugstores, restaurants, hotels, clubs, bowling centers where food is prepared and
served for consumption on the premises. theaters. and in bona fide clubs, and shall permit the
sale of beer for consumption on the premises only.
Sec. 5. That the Hopkins City Code Section 1200.46 be amended to add the following new
subdivision 3:
1200.46. Hours of o�eration.
Subd. 3. Theater sales. A theater that holds an on-sale intoxicatin��uor. wine or 3.2
nercent malt lic�uor license ma �� only sell alcohol between the hours of 6:30 �.m. and 11:30 �.m.
on all davs of the week
Sec. 6. The effective date of this ordinance shall be the date of publication.
First Reading: January 19, 2016
Second Reading: February 2, 2016
Date of Publication: February 1 l, 2016
Date Ordinance Takes Effect: February 1l, 2016
:
ATTEST:
Amy Domeier, City Clerk
Molly Cummings, Mayor
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2016-002
RESOLUTION SETTING FEES FOR THEATER LIQUOR LICENSES
WHEREAS, the Hopkins City Code authorizes the City Council to set fees by
Resolution; and
THEREFORE BE IT NOW RESOLVED that the following fees should be established
for issuance of liquor licenses to Theaters as defined in Ordinance 2016-1104 Subd. 6:
l. On-Sale, Theater
2. On-Sale Wine, Theater
On-Sale 3.2 Percent Malt Liquor, Theater
$5,000 per year
$800 per year
$600 per year
Adopted by the City Council of the City of Hopkins this 2nd day of February, 2016.
Molly Cummings, Mayor
ATTEST:
Amy Domeier, City Clerk
�,� � ;� , � , ,
� � � � � �� � -�
I�I��liin ��ir�xi�xi�, Il �a.�l�lkliin �
�� � �� � �� �..����.�.�
ir a.� y�� II �° a.� irrn �xi � y irrn in ��.� � irrn �� li II .�° a.� irrn
II����+�^ii�ll:u�^u� .�.d, '"��.d,��
Dear City of Hopkins,
�Ie are writing to request the amendment of Hopkins City Code Section 1200v05
to allow for on-sale licenses to be issued to theatres located in Hopkins, MNe
Our intention is to open Royal Comedy Theatre presenting stand-up comedy on
Mainstreet, Hopkinse �Ie hope to sell concessions in the lobby before, during,
and after each showe Concessions to include alcoholic beverages in similar
fashion to many of the other theatres in Minneapolis and greater Minnesotae
Minnesota Statute 340Ae404 Subdivision le7eb states "A city may issue an
on-sate intoxicating tiquor ticense, an on-sate wine ticense, or an on-sate
matt tiquor ticense to a theater within the city..."
Our intention is to be open Tuesday - Saturday from 8pm to 11:30pm with
performances starting at 9pm.
Because our performances begin after dinner time, it is our expectation that
the majority of our attendees witt have atready eaten at one of the
restaurants atready estabtished on Mainstreet, Hopkins.
White some stand-up comedy venues open as restaurants with the abitity to
serve dinner before the show, we woutd prefer to focus on bringing great
stand-up comedy to Mainstreet, especiatty since Hopkins atready has many
wonderfut dining options. Additionatty, to be a success we woutd need to serve
atcohot as it woutd be an amenity expected by our patrons.
�
�