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 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.1O1, 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 s�c�� 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). ,.T * *�, * 'o '.,+,,,.;,...+:,,,. ':"„"'' ':"or�o�
5 n
(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 far 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 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 intoxicatin� liauor licenses mav be issued to exclusive
liauor stores and such licenses shall be further cuhre�t r� rhP fnllnwino
reauirements:
(il An on-sale intoxicatinQ liauor license mav onlv be i ued to an exclu ive
liauor store that offers live entertainment in the form of "exnerience-ba ed
entertainment." as that term is defined in section 102-4 of the Hobkins Citv Code
durin�all hours of oneration.
1ii) An exclusive liauor tore that obtains an on-sale intoxicatin� liauor license
mav onlv sell intoxicatin� liauor to naid. ticketec� cnctnmerc while cairl rnctnmPre
re narticinatin� in the entertainment activitv offered bv the establishment
Intoxicatin� liauor mav onlv be sold to each cu�t�mer fc,r a c�,��P��;.,P twn hnnr
beriod. althou�h the exnerience-ba ed entertainment activitv mav la t lon�er than
that.
(iiil The citv mav establish a senarate fee for on-sale intoxicatin� liauor
licenses issued to exclusive liauor store , which �hall be subiect to anv exnress fee
limitation contained in state law
(ivl No sale of intoxicatin� liauor for consumntion on the licensed nremises of
an exclusive liauor store mav be made between 2•00 a m and 8•00 a m on the
davs of Mondav throu�h Saturdav or after 2:00 a.m. on Sundavs.
SECT�ON 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 seekin�
an on-sale intoxicatin� liauor license nursuant to subsection 4-36(al(71 must also submit
a business nlan that includes a detailed overview of the exnerience-based entertainment
activities that it nrovides 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:
Exnerience-Based Entertainment: An establishment offerin� team or groun entertainment
activities such as bocce ball. �ame shows. escane rooms. naintin� classes. cookin� classes. axe
throwin�, and arts and crafts workshons. Exnerienced-Based Entertainment uses shall not
include commercial recreation, bin�o or other forms of charitable �amblin�. live music. karaoke.
massa�e theranv. arcade �ames, video �ames. hookah loun�es. oxv�en bars, snas. event centers,
art salleries, 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 U.ses B-1 B-2 B-3 B-4
Ex erience-Base Entertaimm �t 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
Intoxicatin alcohol
On-sale exclusive li uor store $3,000.00 Per ear
SECTION 6. In accordance with Section 3.03 of the City Charter and Minn. Stat. § 412.191,
subd. 4, due to the significant length of this Ordinance, City staff shall have the following
summary printed in the official City newspaper in lieu of the complete ordinance:
On August 4, 2020, the Hopkins City Council adopted 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.
The purpose of amending the City Code is to allow for experienced-based entertainment
businesses the opportunity receive an On-Sale Exclusive Liquor License.
A printed copy of the ordinance is available for inspection during regular business hours
at Hopkins City Hall and is available online at the City's web site located at
www.hopkinsmn.com.
SECTION 7. The effective date of this ordinance shall be the date of publication.
First Reading: July l4, 2020
Second Reading: August 4, 2020
Date of Publication: August 13, 2020
Date Ordinance Takes Effect: August 13, 2020
By: ^
son Gadd, ayor --
ATTEST:
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Amy Domeier, City Clerk