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CR 2003-105 Application For License To Sell Tobacco Hopkins Gift Shop ~ - . ~ July 11, 2003 Council Report 2003-105 Application for License to Sell Tobacco Hopkins Gift Shop, Inc., 12 Suburban Square Proposed Action Staff recommends adoption of the following motion: Move to approve an application to sell tobacco at Hopkins Gift Shop Inc., 12 Suburban Square, that was submitted by Ibrahim (Abe) Abdallah AI-Khalel with the condition that Mr. AI-Khalel submits information that satisfies the City Attorney that he has exclusive financial control of the leased space. Overview Tony's Tobacco failed to renew their license to sell tobacco prior to the expiration date on their license. On July 1, they were notified that they did not have a license and were instructed to stop selling tobacco products. An application for renewal was submitted. A second application for a license to sell tobacco was submitted for the same location. The first application was withdrawn by the applicant. This application is a new application for a license. Primary Issues to Consider . Events leading up to this application . Relationship of this applicant to former applicant Supportina Documents . Complete application available in the City Clerk's office ~~ Terry Obermaier, City Clerk Financial Impact: $ Budgeted: Y/N Related Documents (CIP, ERP, etc.): Notes: Source: Council Report 2002-105 Page 2 . Primary Issues to consider . Events leading up to this application On three occasions during the past year, staff has inspected the business. On two of those occasions, staff has had to instruct the clerk to move all tobacco products behind the counter. On re-inspection, staff again had to instruct the clerk to move all tobacco items behind the counter. No citations were issued for these violations. The applicant failed the past tobacco compliance check. . On July 1,2003, staff inspected Tobacco and Gifts at 12 Suburban Square. The license had not been renewed. They were instructed to remove tobacco items from the shelf. The licensee of the business came into the office and filled out an application and paid the fee. At that time, the licensee of the business was told that he did not have a license to sell tobacco and could not sell tobacco products until he did. He was told that the license would require City Council approval and that the next meeting would be on the 15th of July. A Hopkins Police officer went into the business and purchased tobacco. A citation was issued. The clerk was told that he could not sell tobacco until a license had been obtained. Later that afternoon, Mr. AI-Khalel called. He asked what could be done to allow them to 'continue selling tobacco products. The next day, another Hopkins Police officer went into the business and purchased cigarettes. Another citation was issued and the clerk was again told that they could not sell tobacco until a license was obtained. On July yth, Mr. AI-Khalel came into the office and instructed staff to withdraw the first application and refund the fee, and that he was applying for the license at that location. The next day, Mr. AI-Khalel was informed that only the applicant could withdraw the application. The applicant, Tony's Tobacco, came into the office on July 9th and withdrew his application. The application that you are approving is now to be considered as a new application. . Relationship of this applicant to former applicant Because of the relationship that Mr. AI-Khalel has had with the past licensee, the City Attorney has advised that the Mr. AI-Khalel submit documentation to show that he has financial control of the business that he is licensing. Staff has requested that Mr. Khalel submit a certificate of insurance showing that he has the business insured in his name and that he provide staff with a copy of a lease for the property showing him as the tenant. Staff also recommends that Mr. AI-Khalel be required to submit the Articles of Incorporation for Hopkins Gift Shop, Inc. . Mr. AI-Khalel has submitted a certificate of insurance for Hopkins Gift Shop Inc. He has spoken with Rick Johnson, the owner of the building. Mr. Johnson has signed a letter of intent on the lease, but the lease could not be ready for this meeting. The tax 10 number that was given on the application is registered to Hopkins Gift Shop Inc. _r _ ",. ~ . Council Report 2002-105 Page 3 It is believed that the applicant should be able to comply with the request for a copy of the lease and a copy of the Articles of Incorporation within two or three days. Alternatives 1. Approve the application with conditions that additional items be submitted. 2. Continue the application until all items have been submitted. 3. Deny the application with findings for cause of denial. Staff recommends alternative one.