V. 3. 2020-08 Experience-Based Entertainment Businesses Text Amendment
July 28, 2020 Planning Application 2020-08
Zoning Code Text Amendment to Related to
Experienced-Based Entertainment Businesses
Proposed Action: Move to adopt Planning & Zoning Resolution 2020-04, recommending the
City Council approve Ordinance 2020-1147 Amending Chapters 4 and 102 and Appendix A of
the Hopkins City Code Regarding On-Sale Intoxicating Liquor Licenses and Experience-Based
Entertainment
Overview
This item was initiated by staff to amend the City Code related to on-sale intoxicating liquor
licenses and experience-based businesses. The City Council is responsible for reviewing the
liquor licenses portion of this application and they approved the first reading of this ordinance
on July 14 (see attached City Council Report 2020-054). Since this item includes changes to the
Zoning Code, it must also be reviewed by the Planning & Zoning Commission. Once the
Planning & Zoning Commission completes its review, this item will be brought back to the City
Council for a second reading and final action. The second reading is currently scheduled for
August 4.
The proposed ordinance will amend the zoning code to establish a new use to be known as
“Experienced-Based Entertainment.” This use will be allowed as a permitted use only in the B-
2, Central Business District. Experience-Based Entertainment businesses would be the only use
eligible for an Exclusive Liquor Store license but Experience-Based Entertainment uses could
operate without such a license. Both City staff and the City Attorney have reviewed this
ordinance and recommend approval.
Primary Issues to Consider
● Background
● Zoning Code Text Amendment
● Potential Non-Conformity Issues
● Alternatives
Supporting Documents
● Planning & Zoning Resolution 2020-04
● Ordinance 2020-1147
● City Council Report 2020-054
_____________________
Jason Lindahl, City Planner
Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________
Related Documents (CIP, ERP, etc.): _________________________________________
Notes:
Planning Application 2020-08
Page 2
Background
The purpose for this amendment to the City Code is to support the sale of liquor by businesses
aimed at providing experience based activities. By adding “exclusive liquor stores” in our City
Code, businesses would have the option to serve liquor without the requirement to be a
restaurant, hotel or bowling alley. Also, businesses would not be required to have 50% of their
sales come from food and non-alcoholic beverages. Information about Exclusive Liquor Stores
can be found here: https://www.revisor.mn.gov/statutes/cite/340A.412#stat.340A.412.14
under Section 14. We currently have one business owner that is ready to pursue this license.
The applicant has reviewed the terms and conditions of the license and is in general agreement
with the proposed ordinance.
City staff believes it is prudent to establish a specific use that would be eligible for an Exclusive
Liquor Store license. To this end, staff recommends establishing the new use “Experienced-
Based Entertainment.” Experience-Based Entertainment businesses would be the only use
eligible for an Exclusive Liquor Store license but Experience-Based Entertainment uses could
operate without such a license. The proposed ordinance would establish Experienced-Based
Entertainment as a permitted use in the B-2, Central Business district as defined below.
Experienced-Based Entertainment: An establishment offering team or group entertainment
activities such as bocce ball, game shows, escape rooms, painting classes, cooking classes, axe
throwing, and arts and crafts workshops. Experienced-Based Entertainment uses shall not
include commercial recreation, bingo or other forms of charitable gambling, live music, karaoke,
massage therapy, arcade games, video games, hookah lounges, oxygen bars, spas, event centers,
art galleries, or adult-oriented businesses.
Zoning Code Text Amendment
Zoning Code amendments are legislative actions in that the City is creating new standards to
regulate the development of certain types of uses and/or structures. Under the law, cities have
wide flexibility to create standards that will ensure the type of development it wants. However,
zoning regulations must be reasonable and supported by a rational basis relating to promoting the
public health, safety and welfare.
Consistency with the Comprehensive Plan. The proposed zoning code text amendment is
consistent with both the 2030 Comprehensive Plan and Draft 2040 Comprehensive Plan.
2030 Comprehensive Plan. The proposed text amendment would establish Experienced-Based
Entertainment as a permitted use in the B-2, Central Business District. The 2030 Future Land
Use Map guides the area covered by the B-2, Central Business District as Commercial.
According to the narrative for this land use classification, the Commercial land use classification
offers a wide variety of goods and services. Hopkins commercial uses are primarily located
along major transportation corridors (Excelsior Boulevard & TH 7), which serve both
regional and community needs. Commercial uses located downtown largely serve local
needs and specialty market niches. Overall, these goods and services range from grocery
stores, salons, dry cleaners, retailers and coffee shops.
Goals and policies in the 2030 Comprehensive Plan that support this text amendment are
detailed below.
Planning Application 2020-08
Page 3
• Maintain a viable downtown commercial core. Downtown Hopkins has a unique
commercial business core. Maintaining the viability of downtown is dependent on the
success of its businesses. Redevelopment in and around downtown Hopkins will occur over
the next 30 years. Additional commercial development is likely to occur along Excelsior
Boulevard, Shady Oak Road and possibly Blake Road. The City will need to carefully guide
additional commercial development in a manner that is supportive of downtown.
• Maintain a strong employment base. Much of Hopkins’ job base is dependent on the
success of industrial uses located in the southern portion of the community. It is important
for the City to maintain industrial uses that will provide job opportunities. The City will
work to ensure these sites are utilized to their full potential as redevelopment occurs and will
encourage private reinvestment.
• Protect and Enhance Downtown Hopkins. Efforts should be made to retain existing
downtown businesses and attract new specialty retail, entertainment and restaurant
businesses to Mainstreet.
Draft 2040 Comprehensive Plan – Cultivate Hopkins. As the City moves toward adoption of the
2040 Land Use Plan, staff believes it is important to consider the goals and policies of this draft
plan when considering land use applications. However, it is important to keep in mind the 2040
Plan has yet to be officially approved by the Metropolitan Council or adopted by the City. Still
this draft plan can offer valuable guidance when considering current land use applications.
The Draft 2040 Future Land Use Map guides the area covered by the B-2, Central Business
District as Downtown Center. Creation of the new use – Experienced-Based Entertainment is
consistent with this land use designation. The characteristics of the Downtown Center land use
category are detailed below.
• Location. The Downtown Center land use category is intended to serve as the central
economic, social and civic district for Hopkins and the region.
• Development Type. It is intended to include moderate to high density mixed use
development designed to complement and enhance the existing development pattern in
these areas and support the public investment in transit.
• Urban Form. This area is expected to absorb significant amount of anticipated future
growth. Maintaining downtown Hopkins’ unique identity and sense of place must be a
central consideration when planning for future growth. Mixed uses (vertical and horizontal)
are encouraged.
• Density and Scale. Medium to larger scale neighborhood and regional uses. Densities in this
area typically range from 20-100 units per acre, with 75-150 units per acre within ¼ mile of
an LRT station platform. Estimated 40% commercial and 60% residential.
The Draft 2040 Plan also contains goals and policies that support approval of this application.
Staff finds the proposed zoning text amendment is consistent with the following goals and
policies.
• Economic Environment – Economic Competiveness
o Goal 2 – Support a healthy, diverse mix of businesses in Hopkins
Planning Application 2020-08
Page 4
Continue to make improvements to city regulatory guidance and procedures to
streamline the redevelopment process in Hopkins.
Promote the development of business start-ups and entrepreneurial activities in
Hopkins, and encourage small businesses in appropriate areas throughout the city.
Work with existing businesses to identify opportunities to retain or expand
operations
• Economic Environment – Downtown
o Goal 2 - Continue to grow Downtown’s population and jobs base.
Attract specialty retail and destination uses including arts, entertainment, recreation,
antiques, hobbies and crafts, gifts, and family-oriented uses.
Encourage the growth of Downtown’s share of housing and employment and
continue its growth as the city’s center for innovation and exchange through
commerce, employment, arts, culture, entertainment, education and government.
Compatibility with Present and Future Land Uses. Based on the analysis above, a zoning
code text amendment establishing Experienced-Based Entertainment uses as a permitted use in
the B-2, Central Business District is compatible with present and future uses under either the 2030
or 2040 Comprehensive Plans. Experienced-Based Entertainment is compatible with the other
uses allowed under the land use classifications in either comprehensive plan. And the future land
use maps in either comprehensive plan reinforce this land use pattern.
Conformance with New Standards. As mentioned above, the proposed Experienced-Based
Entertainment use will be compatible with the other allowed uses. These uses will be required to
comply with all the other development regulations that apply to other commercial uses in the B-
2, Central Business district.
Potential Non-Conformity Issues
When considering how the proposed zoning changes could impact the community as a whole, it
is important to remember that any zoning ordinance text amendment has the potential to create
non-conformities (sites or buildings that do not meet the new proposed standard). However, in
this case, the City is creating a new use that will be subject to the same development standards as
the other commercial uses in the B-2, Central Business District. So since this represents an
expansion of the development options in the B-2, Central Business District no new non-
conformities should be created.
Should some unforeseen non-conformity result from the proposed new use, it would be
considered “Grandfathered” and allowed to continue until it would choose to make changes.
According to Minnesota Statute 462.357, Subdivision 1e., legal nonconformities generally have a
statutory right to continue through repair, replacement, restoration, maintenance, or improvement
but not through expansion. These rights run with the land and are not limited to a particular
landowner. If the benefited property is sold, the new owner will have the same rights as the
previous owner.
Alternatives
1. Recommend approval zoning code text amendment application. By recommending approval
of this application, the City Council will consider a recommendation of approval.
2. Recommend denial of the zoning code text amendment application. By recommending
denial of this application, the City Council will consider a recommendation of denial. Should
Planning Application 2020-08
Page 5
the Planning & Zoning Commission consider this option, it must also identify specific
findings that support this alternative.
3. Continue for further information. If the Planning Commission indicates that further
information is needed, the items should be continued.
CITY OF HOPKINS
Hennepin County, Minnesota
PLANNING AND ZONING COMMISSION RESOLUTION NO. 2020-04
A RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE ORDINANCE 2020-
1147 AMENDING CHAPTERS 4 AND 102 AND APPENDIX A OF THE HOPKINS CITY
CODE REGARDING ON-SALE INTOXICATING LIQUOR LICENSES AND EXPERIENCE-
BASED ENTERTAINMENT
WHEREAS, the City of Hopkins initiated an application to amend the Zoning Ordinance related
to On-Sale Intoxicating Liquor Licenses and Experience-Based Entertainment; and
WHEREAS, the procedural history of the application is as follows:
1. That an application to amend Chapters 4 and 102 and Appendix A of the Hopkins City Code
regarding On-Sale Intoxicating Liquor Licenses and Experience-Based Entertainment.
2. That the Hopkins Planning & Zoning Commission, pursuant to published notice, held a
public hearing to review such application July 28, 2020 and all persons present were given an
opportunity to be heard; and
3. That written comments and analysis of City staff were considered.
NOW, THEREFORE, BE IT RESOLVED that the Planning & Zoning Commission of the
City of Hopkins hereby recommends the City Council of the City of Hopkins approve Ordinance 2020-
1147 Amending Chapters 4 and 102 and Appendix A of the Hopkins City Code Regarding On-Sale
Intoxicating Liquor Licenses and Experience-Based Entertainment based on the findings of fact detailed
in the staff report dated July 28, 2020.
Adopted this 28th day of July 2020.
_________________________
Gerard Balan, Chair
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2020-1147
ORDINANCE AMENDING CHAPTERS 4 AND 102 AND APPENDIX A OF THE
HOPKINS CITY CODE REGARDING ON-SALE INTOXICATING LIQUOR
LICENCES AND EXPERIENCE-BASED ENTERTAINMENT
WHEREAS, pursuant to Minn. Stat. §§ 340A.404, subd. 1(a)(7), 340A.101, subd. 10, and
340A.412, subd. 14, the City is authorized to issue on-sale intoxicating liquor licenses to exclusive
liquor stores that offer live or recorded entertainment; and
WHEREAS, pursuant to Minn. Stat. § 340A.509, the City may adopt regulations
governing the sale and possession of alcoholic beverages within its jurisdiction that might
otherwise be more restrictive than state law; and
WHEREAS, the City desires to attract groups of individuals to its central business district
area by allowing a limited number of businesses that provide experience-based entertainment
activities to sell intoxicating liquor to their customers for on-premise consumption, all within the
confines of the aforementioned statutory authority; and
WHEREAS, the City finds that authorizing the sale of intoxicating liquor to participants
of such activities will provide benefits to the downtown area, and that creating a licensing
mechanism to do so is in the best interests of the City’s residents.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS
HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Hopkins City Code, Part II, Chapter 4, Article II, Section 4-36(a) is hereby amended
by adding the double-underlined language and deleting the stricken language as follows:
Sec. 4-36. - On-sale licenses.
(a) Intoxicating. On-sale intoxicating liquor licenses shall be subject to the following:
(1) On-sale intoxicating liquor licenses may be issued only to hotels, clubs, restaurants,
bowling centers, exclusive liquor stores, and clubs or congressionally chartered
veterans organizations meeting the qualifications contained in M.S.A. § 340A.404,
subd. 1(a)(4). Not more than ten on-sale intoxicating liquor licenses may be granted
by the city.
(2) No on-sale intoxicating liquor license shall be issued to a restaurant unless the
applicant makes a bona fide estimation that at least 50 percent of the gross receipts
of the restaurant during its first year of business will be attributable to the sale of
food.
(3) Each restaurant granted an on-sale intoxicating liquor license under this section
shall attribute at least 50 percent of gross annual receipts from the sale of food. The
calculation for this requirement shall include only the food and beverage portion of
any multi-service establishment. Financial records for the food and beverage
portion must be maintained separately from any other records. Additionally, "sale
of food" shall include gross receipts attributable to the sale of food items, soft drinks
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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.
(4) The city 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 city 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.
(5) In addition to other remedies that it may have available, the city may place the
licensee on probationary status for up to one year when the sale of food is reported,
or found to be, less than 50 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 city may require to increase
the sale of food.
(6) The provisions of this section related to food sales shall not apply to any restaurant
having a city on-sale intoxicating liquor license prior to July 1, 1999 and will not
affect future renewals of such licenses. The provisions shall also not apply to new
licenses issued for existing restaurants due to sale or transfer of ownership, unless
the restaurant has been closed and without an on-sale intoxicating liquor license for
at least 90 days.
(7) No more than two on-sale intoxicating liquor licenses may be issued to exclusive
liquor stores, and such licenses shall be further subject to the following
requirements:
(i) An on-sale intoxicating liquor license may only be issued to an exclusive
liquor store that offers live entertainment in the form of “experience-based
entertainment,” as that term is defined in section 102-4 of the Hopkins City Code,
during all hours of operation.
(ii) An exclusive liquor store that obtains an on-sale intoxicating liquor license
may only sell intoxicating liquor to paid, ticketed customers while said customers
are participating in the entertainment activity offered by the establishment.
Intoxicating liquor may only be sold to each customer for a successive two-hour
period, although the experience-based entertainment activity may last longer than
that.
(iii) The city may establish a separate fee for on-sale intoxicating liquor licenses
issued to exclusive liquor stores, which shall be subject to any express fee limitation
contained in state law.
(iv) No sale of intoxicating liquor for consumption on the licensed premises of
an exclusive liquor store may be made between 2:00 a.m. and 8:00 a.m. on the days
of Monday through Saturday or after 2:00 a.m. on Sundays.
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SECTION 2. Hopkins City Code, Part II, Chapter 4, Article II, Section 4-55 is hereby amended
by adding the double-underlined language as follows:
Sec. 4-55. – License application.
(a) Every application for a license or permit issued under this chapter shall be on a form
provided by the city. The form shall be verified and filed with the city. No person shall
make a false statement on an application.
(b) Every application shall state the name of the applicant, the applicant's age, representations
as to the applicant's character, with references as the city may require, the type of license
applied for, the business in connection with which the proposed license will operate and its
location, a description of the premises, whether the applicant is owner and operator of the
business, how long the applicant has been in that business at that place, the name and date
of birth of the manager of the business, and any other information as the city may require.
(c) In addition to all other information required by the city, every application shall contain a
description of the premises, including the street address and legal description of the
property, and plans depicting the design of the premises where alcoholic beverages may be
dispensed and consumed. The plans shall show room dimensions and shall indicate the
number of persons intended to be served in each room. An exclusive liquor store seeking
an on-sale intoxicating liquor license pursuant to subsection 4-36(a)(7) must also submit a
business plan that includes a detailed overview of the experience-based entertainment
activities that it provides to its customers.
SECTION 3. Hopkins City Code, Part III, Chapter 102, Article I, Section 102-4 is hereby
amended by adding the double-underlined language as follows:
Experience-Based Entertainment: An establishment offering team or group entertainment
activities such as bocce ball, game shows, escape rooms, painting classes, cooking classes, axe
throwing, and arts and crafts workshops. Experienced-Based Entertainment uses shall not include
commercial recreation, bingo or other forms of charitable gambling, live music, karaoke, massage
therapy, arcade games, video games, hookah lounges, oxygen bars, spas, event centers, art
galleries, or adult-oriented businesses.
SECTION 4. Hopkins City Code, Part III, Chapter 102, Article VII, Section 102-214 is hereby
amended by adding the double-underlined language as follows:
Permitted Uses B-1 B-2 B-3 B-4
Experience-Based Entertainment X
SECTION 5. Hopkins City Code, Appendix A, which contains the City’s fee schedule, is hereby
amended by adding the double-underlined language as follows:
LICENCE FEES
Intoxicating alcohol
On-sale exclusive liquor store $3,000.00 Per year
SECTION 6. The effective date of this ordinance shall be the date of publication.
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First Reading: July 14, 2020
Second Reading: August 4, 2020
Date of Publication: August 13, 2020
Date Ordinance Takes Effect: August 13, 2020
By: ____________________________
Jason Gadd, Mayor
ATTEST:
______________________________
Amy Domeier, City Clerk
July 14, 2020 Council Report 2020-054
ORDINANCE AMENDING CHAPTERS 4 AND 102 AND APPENDIX A OF THE HOPKINS
CITY CODE REGARDING ON-SALE INTOXICATING LIQUOR LICENCES AND
EXPERIENCE-BASED ENTERTAINMENT
Proposed Action
Staff recommends adoption of the following motion: Move to adopt for First Reading Ordinance 2020-
1147 An Ordinance Amending Chapters 4 and 102 and Appendix A of the Hopkins City Code Regarding
On-Sale Intoxicating Liquor Licenses and Experience-Based Entertainment.
Overview
The purpose of amending the City Code is to support the sale of liquor for businesses aimed at providing
experience based activities. By adding “exclusive liquor stores” in our City Code, businesses would have
the option to serve liquor without the requirement to be a restaurant, hotel or bowling alley. Also,
businesses would not be required to have 50% of their sales come from food and non-alcoholic beverages.
Initially, staff referred to this license as a Special Entertainment Liquor License; however, state law only
authorizes the issuances of certain types of licenses. Instead, we are treating this as exactly what it is – an
on-sale license issued to exclusive liquor stores. Information about Exclusive Liquor Stores can be
https://www.revisor.mn.gov/statutes/cite/340A.412#stat.340A.412.14 under Section 14. The City Attorney
has reviewed the attached ordinance.
We currently have one business owner that is ready to pursue this license. The applicant has reviewed the
terms and conditions of the license and is in general agreement with the proposed ordinance. The
proposed schedule for this ordinance and applicant process is as follows:
First Reading: July 14, 2020
Planning Commission Public Hearing: July 28, 2020
Second Reading: August 4, 2020
Date of Publication/Ordinance Takes Effect: August 13, 2020
Applicant’s Liquor License Consideration: August 18, 2020
Primary Issues to Consider
• No more than two on-sale liquor licenses may be issued to exclusive liquor stores, subject to
requirements:
1. The store must be located in the City’s B-2 zoning district. (Because the proposed ordinance
includes a zoning component it requires a zoning ordinance amendment. It is anticipated that the
public hearing will be held on Tuesday, July 28.)
2. The license may only be issued to an exclusive liquor store that offers live entertainment during
all hours of operation.
3. Intoxicating liquor may only be served to paid, ticketed customers while participating in a live
entertainment activity offered by the store.
4. Applicants must submit a business plan that includes a detailed overview of the activities that will
be provided to customers.
5. State law does not authorize exclusive liquor stores to sell intoxicating liquor on Sundays.
6. The proposed license fee for the license is $3,000 per year, July 1 to June 30.
Supporting Documents
• Proposed Ordinance 2020-1147
.
Amy Domeier, City Clerk