CR 04-053 Chipotle - Wine and Beer
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March 30, 2004 Council Report 2004- 053
. Wine and Strong Beer License Application
Chipotle
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 following conditions: ' 1) The only outdoor area where
wine may be served is in the back patio area that is fenced. Wine may not be served at
the tables that are outdoors in front of and on the east side of the business. 2) Prior to
opening on May31. 2004. all staff will attend a training session provided by the Hopkins
Police Department.
Overview
Chipotle is a Mexican restaurant based out of Colorado. They have several stores in
the Twin City Metro Area and St. Cloud. They would like to open the Hopkins store
by/on May 31,2004.
Primary Issues to Consider
. Zoning 1
. . Location and type of business
. Requirements
. Police Investigation
. Areas of service
.. Powers of the Council
. The process
. Recommended requirements
Supportina Documents
. Memo from Capt. Liddy
. Site plan of the business
{Jj~~;Ad
Terry Obermaier, City Clerk
Financial Impact: $_$1400 ' Budgeted: Y/N _N_ Source:
. Related DOcuments (CIP, ERP, etc.):
Notes:
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City Council Report 2004-053
Page 2
Primary Issues to Consider
. Zoninq
Chipotle is located in a B.;3 Zoning ,District. On-sale wine and beer is allowed in that
district.
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Location and Tvpe of Business
Chipotle is located in Marketplace Lofts. They serve typical Mexican type foods. They
would meet all of the statutory requirements for an on-sale wine and strong beer
license.
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According to the memo from Capt. Liddy and outlined in a letter from the applicants
attorney, several of the Chipotle stores have been cited for sales to minors. Capt. Liddy
has expressed a,concern that training for employees may not be sufficient, therefore,
staff is recommending that all employees are trained before opening.
In telephone conversations, Kaela Brennan, Attorney for the applicant, has stated that
all of the Minnesota stores are equipped with an automatic 10 reader. The 10 card,is
swiped and the machine verifies the age. This process is completed before serving the
customers. ,
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. 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 commissic>ner toa restaurant having facilities for seating at least 25
guests at one time. A wine Iicense: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
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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 se.ction 340A.411, and whose gross receipts
are at least 60 percent attributable tathe sale of food, to sell intoxicating malt liquors at
on-sale without an additional license:
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Chipotle meets the requirements of Section a.
Police Investiqation
McDonald's Corporation, a publicly Qwned corporation, owns 90.62% of the business.
Other share holders are M. Steven Ells with 4.30016% and Robert and Barbara Ells
. with 2.62346%. The police have investigated the principals and have found no reason
to deny the 'application.' '
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City Council Report 2004-53
Page 3 ,.",
Areas of service
. Chipotle's seating chart shows 77 ~ndoor seats and 48 ,outdoor seats. It appears from
the chart that they are showing 48 :outdoor seats on the south side of the building,within
a fenced in or roped off area. The, chart also shows one table in front of the business
and possibly several more along the side of the building on the 8th Ave S side. Staff is
recommending that wine and beer service for outside be restricted to the fenced or
roped area on the south side of the building.
Powers of the Council
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Wher~ 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, LiqlJorControl will inspect before the license is issued.
The license is issued by the Statel
Recommended reauirements
. If the Council approves the license, staff recommends the following conditions:
1. Wine may not be served at the tables that are outdoors in front of the
business or at those along 8th Ave S. '
3. Prior to opening on May31, 2004, all staff will attend a training session
provided by the Hopkins Police Department.
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.
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BO~Km;..~S POLICE
. DE ARTMENT
Memorandum
To: Terry Obennaier
From: Jim Liddy
.CC;
I)~: 3/30/2004
Re= Beer-Wine License Application: Chipotles
Records checks on the owners did not tum up any infonnation that would disqualify them from
obtaining the requested license,
Records did show, however, that there have been numerous alcohol related violations, primarily sales
to underage people, at Chipotle locations throughout it's franchise area. This may indicate that
insuffiGient training is given to .employees concerning the-sale of alcoholic beverages -or that there are
insufficient internal controls on employees to ensure ccimpliance with any directives that do exist
. regarding the checking of identification.
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