VII.1. First Reading: Ordinance Amending Section 1200 of the Hopkins City Code; Domeier (CR2017-016)February 7, 2017 Council Report 2017-016
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 adopt for first reading Ordinance 2017-1119, An
Ordinance Amending Section 1200 Sale, Consumption and Display of Alcoholic Beverages.
Adoption of this motion will begin the process of amending Section 1200 of the Hopkins City Code to allow for
establishments with On-Sale liquor licenses issued by the City of Hopkins or adjacent municipality to apply for
an On-Sale License on Public Premise liquor license.
Overview
Staff has been reviewing different options for liquor service at the Hopkins Center for the Arts (HCA). During
that review, staff assessed the needs of the HCA and its customers related to events and rentals where alcohol is
being served. It was determined that the City should add a liquor classification that would allow on-sale liquor
license sales on public premises to the establishments meeting the requirements in state statute.
Minnesota Statute 340A.404, allows cities to issue on-sale intoxicating licenses to holders of retail licensees
within its city limits or adjacent community as referenced below:
Subd. 4.Special provisions; sports, conventions, or cultural facilities; community festivals.
(a) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor
license issued by the municipality or by an adjacent municipality to dispense intoxicating liquor at any
convention, banquet, conference, meeting, or social affair conducted on the premises of a sports,
convention, or cultural facility owned by the municipality or instrumentality thereof having independent
policy-making and appropriating authority and located within the municipality. The licensee must be
engaged to dispense intoxicating liquor at an event held by a person or organization permitted to use the
premises, and may dispense intoxicating liquor only to persons attending the event. The licensee may not
dispense intoxicating liquor to any person attending or participating in a youth amateur athletic event, for
persons 18 years of age or younger, held on the premises.
(b) The governing body of a municipality may authorize a holder of a retail on-sale intoxicating liquor
license issued by the municipality to dispense intoxicating liquor off premises at a community festival held
within the municipality. The authorization shall specify the area in which the intoxicating liquor must be
dispensed and consumed, and shall not be issued unless the licensee demonstrates that it has liability
insurance as prescribed by section 340A.409 to cover the event.
The draft ordinance and resolution has been reviewed by the City Attorney.
Primary Issues to Consider
• Definition of “On-Sale” for the purpose of receiving the liquor license
• On-Sale Public Premise vs. Caterer’s Permit
• Fees for obtaining the license
Supporting Documents
• Proposed Ordinance 2017-1119
• Draft Resolution 2016-002 Setting Fees
Amy Domeier, City Clerk
Primary Issues to Consider
Definition of “On-Sale” for the purpose of receiving the liquor license
For purposes of Section 1200 of the City Code, “On-Sale” shall be limited to those establishments as defined in
City Code Section 1200.05, Subd. 1:
On-sale licenses shall be issued only to hotels, clubs, restaurants, bowling centers and to exclusive liquor
stores, which exclusive liquor stores were in existence on July 1, 1999, and shall permit on-sale of liquor
only.
During the application process, applicants outside of the City limits will be required to submit a copy of their
on-sale liquor license from the licensing municipality. A public hearing is not required; however, all
applications are subject to approval by the City Council.
On-Sale Public Premise vs. Caterer’s Permit
Currently, in order for the HCA or its customers to serve alcohol at events a licensed caterer is required.
Caterer’s Permits may be issued to a restaurant that holds a valid on-sale intoxicating liquor license issued by
any municipality. The holder of the caterer’s permit may sell intoxicating liquor in-conjunction with their food
service at a place other than their licensed premise. The service of alcohol is considered ancillary to the sale of
food.
Should the City Council adopt Ordinance 2017-1119, the holders of the On-Sale on Public Premise liquor
license would not be required to sell food at events. This would allow for the HCA and its customers to have
more flexibility in planning their events and meeting the needs of its users. Under no circumstances are
customers allowed to BYOB for any events.
Fees for obtaining the license
The fee for the On-Sale License on Public Premise liquor license is set by City Council Resolution. Staff is
proposing the following fees:
1. On-Sale, On Public Premise $350 per year
HCA staff will determine if any additional event fees will be incorporated. Subdivision 4, condition a., allows
for staff to set any event fees by resolution.
Recommended Action
Staff recommends approving Ordinance 2017-1119 for first reading. The second reading is tentatively
scheduled for February 21, 2017.
1
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2017-1119
ORDINANCE AMENDING SECTION 1200 SALE, CONSUMPTION AND DISPLAY OF
ALCOHOLIC BEVERAGES OF THE HOPKINS CITY CODE TO ALLOW ON-SALE
LICENSES ON PUBLIC PREMISES
THE COUNICL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. That Section 1200.03 is hereby amended by deleting the stricken material and adding
the double underlined material as follows:
1200.03. Licenses Required. Subdivision 1. General requirement. No person, except a wholesaler
or manufacturer to the extent authorized under state license, shall directly or indirectly deal in,
sell, or keep for sale in the City of Hopkins, any intoxicating liquor without a license to do so as
provided in this section ordinance. Liquor licenses shall be limited to the of eight kinds provided
in this section.:
• on-sale
• temporary on-sale
• off-sale
• club
• on-sale wine
• 3.2% malt liquor on-sale
• 3.2% malt liquor off-sale
• temporary 3.2% malt liquor on-sale
• on-sale brewer taproom
• off-sale brewer malt liquor
Section 2. That Section 1200.06 is hereby created by adding the following double underlined
material:
1200.06. On-sale license on public premises. Subdivision 1. Sports, convention or cultural facility.
The City Council may issue to the holder of an on-sale intoxicating liquor license issued by the city or a
municipality adjacent to the city a license to allow the dispensing of intoxicating liquor at any convention,
banquet, conference, meeting or social affair conducted on the premises of a sports, convention or cultural
facility owned by the city. The licensee must be engaged to dispense intoxicating liquor at an event held
by a person or organization permitted to use the premises and may dispense intoxicating liquor only to
persons attending the event. The licensee may not dispense intoxicating liquor to any person attending or
participating in an amateur athletic event, for persons 18 years of age or younger, held on the premises.
Subd. 2. Community festivals. The City Council may issue to the holder of an on-sale
intoxicating liquor license issued by the city a license to allow the dispensing of intoxicating liquor off the
licensee’s premises at a community festival held within the municipality. The authorization shall specify
the area in which the intoxicating liquor must be dispensed and consumed, and shall not be issued unless
the licensee demonstrates that it has liability insurance that meets the requirements of state law.
Subd. 3. Application process. Applicants for an on-sale license on public premises shall be
subject to the following process:
2
a. Annual application. Applicants for an on-sale license on public premises shall annually
apply to the city for such license. The application shall set forth the applicant's desire
for such license and the nature and duration of its existing on-sale intoxicating liquor
license. The application shall also contain the applicable license fee, as set forth in the
City Code.
b. Hearing not required. No public hearing shall be required for the granting of an on-sale
license on public premises.
c. Application approval. The City Council shall approve the application if it determines
the applicant meets all requirements of this section and if it further determines that the
applicant is in good standing with regard to the applicant's underlying on-sale
intoxicating liquor license.
d. Duration. The license granted under this section shall remain in effect from its issuance
until the following June 30. Licenses issued under this section are subject to annual
renewal.
Subd. 4. Other conditions. In addition to the requirements otherwise set forth in this section,
public premises licensees shall be subject to the following conditions:
a. Event fees. In addition to the annual license fee, a licensee shall pay an event fee, as
established from time to time by resolution of the City Council.
b. Minnesota products. If a licensee under this section is selling beer for consumption on
public premises, the licensee shall make provision for the sale of at least one
Minnesota-produced beer at each station on the premises where beer is being sold.
c. Events; special conditions. Whenever the City Council determines that a specific event
for which the licensee will be providing on-sale intoxicating liquor requires special or
unique conditions, the City Council may impose such conditions and the licensee shall
abide by all such conditions.
Section 3. The effective date of this ordinance shall be the date of publication.
First Reading: February 7, 2017
Second Reading: February 21, 2017
Date of Publication: March 2, 2017
Date Ordinance Takes Effect: March 2, 2017
By: ____________________________
Molly Cummings, Mayor
ATTEST:
______________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2017-005
RESOLUTION SETTING FEES FOR ON-SALE LICENSES ON PUBLIC PREMISE
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 On-Sale Licenses on Public Premise as defined in Ordinance
2017-1119:
1. On-Sale, On Public Premise $350 per year
Adopted by the City Council of the City of Hopkins this 21st day of February, 2017.
______________________________
Molly Cummings, Mayor
ATTEST:
_____________________________
Amy Domeier, City Clerk