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CR 03-024 Wine and Beer - Munkabeans . . . January 29,2003 Council Report 2003- 024 Wine and Strong Beer License Application Munkabean's, 1206 Mainstreet Proposed Action Staff recommends adoption of the following motion: move to approve the application for on-sale wine and on-sale 3.2 beer licenses which will allow the applicant to sell wine and strong beer on-sale, with the condition that a certificate of insurance showinq liquor liability be submitted to the Clerk's office and with the followinq restrictions: 1) wine must be served at the tables. It cannot be dispensed from the counter. 2) Wine may not be served at the tables that are outdoors in front of the business. 3) Wine may be served in the back patio area if the qated access from the parkinq lot, is locked. Overview Sean and Sherri LaFostecasse, the new owners of Munkabean's Coffee Shop, 1206 Mainstreet, have applied for a license to serve wine and strong beer. This is the first step to obtaining the license. Staff is recommending approval. Primary Issues to Consider · Zoning · Location and type of business · Requirements . Actions by other cities · Police Investigation · Areas of service · Powers of the Council · The process · Recommended requirements Supporting Documents · Memo from Capt. Liddy · Site plan of the business c244ff a-P2/hO Terry Obermaier, City Clerk Financial Impact: $_$1400 Budgeted: Y/N N Source: Related Documents (CIP, ERP. etc.): Notes: J . . . Council Report 2003-024 Page 2 Primary Issues to Consider Zoninq The "coffee shop" is located in a B-3 Zoning District. On-sale wine and beer is allowed in that district. Location and Type of Business The "coffee shop" is located less than one block from St. Joseph's Church and approximately one block from 8t. Joseph's school. The "coffee shop" serves hot sandwiches as well as cookies, muffins, rolls, coffee, soft drinks and juice. They are more than a coffee shop and less than a full restaurant. They would meet all of the statutory requirements for an on-sale wine and strong beer license. According to the memo from Capt. Liddy, a number of youth do patronize the business after the movies. In speaking with the new owner, they have extended the open hours to the evening since they bought the business. They would like market to the after theatre crowd for sandwiches and wine and beer. Requirements The following is taken from State Statute chapter 340: Subd.5. Wine licenses. (a) A municipality may issue an on-sale wine license with the approval of the commissioner to a restaurant having facilities for seating at least 25 guests at one time. A wine license permits the sale of wine of up to 14 percent alcohol by volume for consumption with the sale of food. A wine license authorizes the sale of wine on all days of the week unless the issuing authority restricts the license's authorization to the sale of wine on all days except Sundays. (b) The governing body of a municipality may by ordinance authorize a holder of an on-sale wine license issued pursuant to paragraph (a) who is also licensed to sell 3.2 percent malt liquors at on-sale pursuant to section 340A.411, and whose gross receipts are at least 60 percent attributable to the sale of food, to sell intoxicating malt liquors at on-sale without an additional license. They meet the requirements of Section a. Actions bv other cities The City of Minnetonka has issued a wine and beer license to Coffee Creek in the Village shopping center by Hopkins Crossroads and State Hwy 7. I spoke with the Community Development director from Minnetonka. I asked how they issued a wine and beer license to a coffee shop. The owners of Coffee Creek applied for the license . . . COllncil Rep0l1 2003-024 Page 3 and were told that they held a limited food license and as such did not qualify for a wine license. Coffee Creek was remodeled; a prep area was added; they upgraded to a restaurant. They serve sandwiches and soup. Once the upgrade was made, the business met the qualifications of the State statutes. Munkabeans already serves sandwiches. Right now, the majority of their business is at lunchtime. Police I nvestiqation Both principals, Sean and Sherri, were investigated. The attached memo from Capt. Liddy outlines the results of the investigation and the concerns of the department. The business has been opened nights since the beginning of January. The previous owners were not open in the evening. The department has concerns about the number of youth that might be found in the business in the evening. Areas of service They have 25 chairs at tables in the main area. In the summer they have two tables with chairs outside in front of the business. They also have an enclosed patio in the back. A six-foot fence encloses the patio. There is a gate in the fence. They would like to serve in the outdoor areas. Powers of the Council Where new liquor licenses are concerned, the Council is vested with broad discretionary powers in acting upon the request. There should be good reason for denial. Council may deny the application for reasons such as location and "fit" of the business with the surrounding area. The process If the Council approves the license, the State application will be sent to Liquor Control. Because this is a new license, Liquor Control will inspect before the license is issued. The license is issued by the State. Recommended requirements If the Council approves the license, staff recommends the following conditions: 1. Wine must be served at the tables. It cannot be dispensed from the counter. 2. Wine may not be served at the tables that are outdoors in front of the business. 3. Wine may be served in the back patio area if the gated access from the parking lot, is locked. Council Report 2003-024 Page 4 Alternatives . 1. Approve the license with the listed requirements 2. Approve the license 3. Continue the item to a later date for more information 4. Deny the application Staff recommends alternative one. . .