CR 08-022 Deny Application for Off-Sale 3.2 beer at BackdoorFebruary 28, 2008
Council Report 2008-022
Deny Application for Off-Sale 3.2 Beer at Backdoor Tobacco,
813 Mainstreet
Proposed Action
Staff recommends adoption of the following motion: Move to adopt Resolution 2008-
020, denying an Off-Sale 3.2 Beer license for Backdoor Tobacco, 813 Mainstreet.
Overview
The new owners of Backdoor Tobacco, Wahid and Rashana Baysudee and Rachel
Kogan, have applied for an off-sale 3.2 Beer license at Backdoor Tobacco. Staff is
recommending denial of the license.
Primary Issues to Consider
• Compliance issues
• Other off-sale establishments in the area
• Other 3.2 beer licenses in the City
Supporting Documents
• Copy of Resolution 2008-020
• Letter from Emily A. Rickaby, Attorney for Backdoor Tobacco
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Terry Obermaier, City Clerk
Financial Impact: $ Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2008-022
Page 2
Primary Issues to Consider
• Compliance Issues
The owners of Backdoor Tobacco are new owners. The Tobacco license for Backdoor
Tobacco was approved by the City Council on December 18, 2007. While there are no
issues of non-compliance with the City tobacco ordinances, Backdoor has only atwo-
month history with the City under the current owners.
However, the owners of the building, Murat and Rachel Kogan, have a history of non-
compliance with building code requirements in conjunction with Serenity Cafe and The
Red Square on-sale liquor licenses. Rachel Kogan is one of the applicants.
• Other off-sale establishments in the area
The applicant originally requested an off-sale license for beer and wine. That would
require a full off-sale liquor license, which could not be granted under section 1200.12
of the Hopkins Code; "No new off-sale licenses will be issued to a building that is within
350 of an existing off-sale liquor store". There are two off-sale liquor stores in the same
block as Backdoor Tobacco; two more within two blocks of Backdoor; a total of four
existing off-sale liquor stores within the four-block area where Backdoor is located. The
City `s needs are well met in that area.
Other 3.2 beer licenses in the City
Only two other off-sale 3.2 beer licenses are issued in the City. They are at Blake
Grocery and Deli and at Meadowbrook Golf Course. Those licenses have been in
existence for over ten years.
It would be difficult for the City to deny the renewal of an existing license. However, the
City enjoys great latitude when denying an application for a new liquor or beer license.
It is the belief of staff that the City does not desire to increase the exposure of those
who are under the age of 21 to more alcohol.
Alternatives
1. Approve the application for an off-sale 3.2 license at Backdoor Tobacco
2. Deny the application for an off-sale 3.2 license at Backdoor Tobacco
3. Continue the item for more information
Staff recommends alternative two.
CI"tY OF HOPKINS
I-IENNEPIN COUN"I'Y, MINNESOTA
I2ESOLU'I'ION 2008-020
A RESOLUTION MAKING FINDINGS OF FACT AND DENYING
AN APPLICATION REQUESTING ISSUANCE OF A 3.2`%~ MAL'T LIQUOR
OFF-SALE LICENSE
WHEREAS, Roshana Baysudee, Whahid Baysudee, and Rachel Kogan submitted an
application fora 3.2% Malt Liquor Off-Sale license for Back Door "tobacco, located at 813
Mainstreet, Hopkins; and
WHEREAS, City staff has performed the investigation required by Hopkins Ordinance
1200.28 and has presented its results t0 the City Council;
NOW, THEREh'ORE, the City Council of the City of I Iopkins, Minnesota, hereby adopts
the following Resolution:
RESOLVED, that the application fora 3.2% Malt Liquor Oft=Sale license for 813
Mainstreet, Ilopkins, for Roshana Baysudec and Whahid Baysudce is hereby denied based on the
following Findings of Fact:
1. The needs of the community are adequately met by the f-our other establishments
offering off-sale liquor within afour-block radius Of the proposed location
2. The issuance of this license would increase the need for alcohol compliance checks,
patrols, and other enforcement activity related to the sale of alcohol, and would
thereby increase the burden to the City's limited law enforcement and public safety
rCSOUI'CeS.
BASED ON TIIE FOREGOING FINDINGS OF FACT, the City Council of the City of
I~Iopkins, Minnesota, hereby determines that the issuance of this license would not be in the
public interest, and is, therefore, denied.
Adopted this Fourth day of March, 2008, by the City Council of the City of Hopkins,
Minnesota.
Eugene Maxwell, Mayor
ATTF,ST:
Terry Obcrmaier, City Clerk
952 82Q 1158
personal service ^ practical solutions
JOHN E. MURPHY, Esq.
EMILY A. RlCKABY, Esq.
7701 France Ave. S.
'7uite 600
Edina, MN 55435
•.'`X
TF.' 952.820.1162
FAX 952.820.1 i 58
murphyrickaby.com
;-
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February 27, 2008
Hopkins City Council
1010 1 S' Street South
Hopkins, MN 55343
Dear Council Member,
I have been retained by Back Door Tobacco to represent them in their
application for an Off-Sale 3.2 beer license. This letter provides you an
opportunity to preview Back Door Tobacco's position on their license application
prior to the City Council meeting on March 4, 2008.
1. Back Door Tobacco meets alf of the requirements under Minnesota Law
and Hopkins City Code for making an application for an off-Sale 3.2 beer
license.
Under Minnesota Statutes chapter 340A and Chapter XII of the Hopkins City
Code, Back Door Tobacco meets the requirements for an applicant fora 3.2%
malt liquor off-sale license. After speaking with the clerk at City
Administration regarding the process and their qualifications for applying for
the license, Back Door Tobacco paid $550.00 for the application and
investigation fees and also purchased liquor liability insurance at a cost of
X525.00. Back Door Tobacco is a member in good standing of the Hopkins
business community and they have no reason to believe any investigation
required under the application process will provide any reason for denial of
their license.
2. Back Door Tobacco's premises and current business are uniquely suited
for the addition of off-sale 3.2. beer license.
As shown on the diagram enclosed with this letter, Back Door Tobacco
already has a separate area within their shop that would be used for the 3.Z
beer sales. The area is currently not in use. This area also has a separate
entrance secured with a locking door. This separate area with locking doors
would easily allow Back Door Tobacco to control both the hours of beer sales
and the customers who have access to the beer sales area.
Back Door Tobacco is currently in the business of selling products requiring
proof of age, the management and employees are already knowledgeable
about and experienced at checking customer ID's for proof of age prior to
sale. Also, Back Door Tobacco is willing to install and use a separate cash
register within the beer sales area to further ensure that sales would not be
made to anyone not of legal age.
The separate sales area secured by a locking door and back Door Tobacco's
experience with proof of age requirements, makes this business better
RECEIVED TIME FEB. 27. 4:22PM PRINT TIME FEB. 27. 4:24PM__
02/27/2008
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1158 Miller & Kellermeier, PA
952 820 1158
X003/004
suited for 3.2 beer sales than any grocery or convenience stores offering
tobacco products and 3.2, beer. In grocery and convenience stores where 3.Z
beer is sold, the product is kept in the same type of refrigerator case as non-
alcoholic beverages and the beer refrigerators are not locked during non-
sales hours. This leaves the register clerk with the sole responsibility for
enforcing laws regarding beer sales hours and proof of age. Even with these
risks, grocery and convenience stores are commonly allowed such liquor
licenses. Clearly, Back Door Tobacco offers a significantly better environment
to ensure that 3.z beer is being sold only to the right people at the right
times.
3. Back Door Tobacco requests economic fairness with other retailers
selling similar products.
While Back Door Tobacco could have applied for a license to sell wine, beer
or even a full off-sale liquor license, it is not looking to expand to become a
full service liquor store. Back Door Tobacco has been thoughtful in its plans
to use existing space for a small 3.2 beer sales area. Many liquor, grocery,
and convenience stores within the city sell tobacco products along with some
form of alcoholic beverages. Back Door Tobacco is simply asking for the
opportunity to improve their business by opening up their product offerings
to be more competitive with businesses that offer both tobacco and off-sale
liquor.
Back Door Tobacco appreciates the city's consideration of their application.
Back Door Tobacco looks forward to briefly presenting its position and
answering any questions or concerns at the City Council meeting on
Tuesday, March 4, 2008.
Best Regards,
Emily A. Rickaby
Attorney at Law
Enclosure
RECEIVED TIME FEB. 27. 4:22PM PRINT TIME FEB,27. 4:24PM
02/27/2008 WED 15:08 FAX 952 820 1158 Miller & Kellermeier, PA
952 824 1158
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PRINT TIME FEB,27. 4:24PM