CR 2003-095 Ordinance 2003-906 Amending Section 1200 Sale Consumption and sisplay of alcohol wine and beer
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June 12, 2003
Council Report 2003-95
Ordinance 2003-906, Amending Section 1200;
Sale, Consumption, and Display of Alcohol, Wine, and Beer
Proposed Action
Staff recommends adoption of the following motion: Adopt Ordinance 2003-906 for first
reading.
Overview
The State of Minnesota has recently approved a statute that would allow the on-sale of
alcoholic beverages until 2:00 a.m. Ordinance 2003-906 will allow the later closing time
on certain days.
At the time of this report, the City Attorney has not reviewed the ordinance nor the fee
issues. That review will be completed by the meeting time on Tuesday night.
. Primary Issues to Consider
. Can the City set a different closing time than State Statute
. Cost to the City
. What Days will the City Allow
. Increase of Fees
Supportina Documents
. Copy of Ordinance 2003-906
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Terry Obermaier, City Clerk
Financial Impact: $ Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
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City Council Report 2003-
Page 2
. Can the City set a different closing time than State Statute
State Statute states that a municipality may further limit the hours of sale of alcoholic
beverages, provided that further restricted hours must apply equally to sales of 3.2
percent malt liquor and intoxicating liquor.
The City is allowed to enforce earlier closing times than those set by statute.
. Cost to the City
Chief Reid has explained that the 2:00 closing time would increase police overtime.
The estimated cost of that overtime would be about $15, 000 for the year if open until
2:00 a.m. seven nights per week or about $4500 for allowing the later closing time on
two nights per week and $6500 for three nights.
. What Days will the City Allow
The City Cc;ln allow all seven nights or one night or anywhere in between. The
suggestion has been made that the extended hours be allowed on Friday and Saturday
nights for one year and then reviewed. The ordinance has been written for Friday and
Saturday nights for one year. The hours would. be re-addressed in February before the
. next licensing cycle. Renewals will go out in March.
. . Increase of Fees
Because of the added expense, fees should be increased. Some of the bar and/or
restaurant owners have indicated that they do not wish to be open the later hours. The
question that arises then is a question of fairness. Should all licensees be required to
pay additional fees to cover the cost of those who want to stay open? Staff is
suggesting that only those who go to the extended hours, pay the fee.
Some of the fees cannot be increased. Club licenses cannot be increased. Wine
licenses are capped at $2,000. The fee for Wine is currently set at $800. Liquor and
3.2 percent malt liquor and wine can be increased.
Staff is recommending that the fee for extended on-sale liquor be set at $900 if open
until 2:00 a.m. on Friday and Saturday nights and $1300 if open until 2:00 a.m. on
Thursday, Friday, and Saturday nights. The fee for wine would be set at $900 for
extended hours on Friday and Saturday nights or $1000 for extended hours on
Thursday, Friday, and Saturday nights. The fee for 3.2 percent malt liquor would be set
at $700 for extended hours on Friday and Saturday and at $750 is also open extended
hours on Thursday night. (The current fee for 3.2 percent malt liquor is $600.)
If all licensees were to choose to be open until 2:00 a.m. on Friday and Saturday nights,
the increased revenue would be $ 6,400. If the option includes Thursday nights, the
increased revenue would be $9300.
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It is not expected that all would remain open the extended hours. The fees have been
set a bit on the high side with the expectation that the few who would remain open until
2:00 a.m. would have to pay the entire cost increase. If only five of the on-sale liquor
licensees stay open the extended hours on Friday and Saturday, the increased revenue
would be $4,500.
The recommended fees would be in addition to the fees that are already being charged.
The current on-sale fee is $7500; on-sale wine is $800; on-sale 3.2 percent malt liquor
is $600.
A resolution setting the fees will be brought to the City Council with the second reading
of the ordinance.
Alternatives
1. Approve Ordinance 2003-906 for first reading.
2. Approve Ordinance 2003-906 for first reading with changes.
3. Continue for more information
4. Do not adopt Ordinance 2003-906, leaving bar closing times at 1 :00 a.m.
Staff recommends alternative one.
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City Council Report 2003-
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CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE 2003-906
AN ORDINANCE AMENDING SECTION 1200 OF THE HOPKINS CITY CODE
Whereas, the State of Minnesota has adopted 2:00 a.m. closing time for on-sale
liquor, wine, and 3.2 percent malt liquor, and;
Whereas, the City of Hopkins excersises its authority to further limit the hours of
sale in Section 1 200 of the Hopkins City Code;
The City Council of the City of Hopkins does hereby ordain as follows:
Section 1: Section 1200.46 shall be amended as follows:
1200.46. Hours of operation. Subdivision 1. No sale of 3.2 percent malt liquor
may be made between 1 :00 a.m. and 8:00 a.m. on the days of Monday through
Saturday, nor between 1 :00 a.m. and 12:00 noon on Sunday, except as stated in
Section 1200.46, Subd. 4.
)
Subd.2. Intoxicating liquor; on-sale. No sale of intoxicating liquor for
consumption on the licensed premises may be made:
(1) between 1 :00 a.m. and 8:00 a.m. on the days of Monday through
Saturday;
(2) after 1 :00 a.m. on Sundays, except as provided by section 1200.46,
Subd. 3.,
except as stated in Section 1200.46, Subd. 4.
Subd. 3. Intoxicating liquor; Sunday sales; on-sale. A licensee that holds a
special Sunday on-sale intoxicating liquor license may sell intoxicating liquor for
consumption on the premises in conjunction with the sale of food between the
hours of 10:00 a.m. on Sundays and 1 :00 a.m. on Mondays, except as stated in
Section 1200.46, Subd. 4.
Subd. 4. When a licensee has made application to the City of Hopkins and the
Commissioner of Alcohol and Gambling for extended hours, and the application has
been approved by the Hopkins City Council and the Commissioner of Alcohol and
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Gambling, and all fees have been paid to the City of Hopkins and the Commissioner
of Alcohol and Gambling, said licensee may sell intoxicating liquor, wine, or 3.2
percent malt liquor between 1 :00 a.m. and 2:00 a.m. on Saturday and Sunday.
a). Fees for extended hours will be set from time to time in Chapter 10 of the
Hopkins City Code by resolution.
b). Section 1200.46, Subd. 4 will be in effect until June 30, 2004, at which
time Hours of sale will be as stated in 1200.46, Subdivisions 1, 2, and 3.
Subd. 4 ~. Intoxicating liquor; off-sale. No sale of intoxicating liquor may be
made by an off-sale licensee:
Section 2:
First Reading
June 1 7, 2003
Second Reading
July 1, 2003
Date of Publication
July! 1 0, 2003
Effective Date
July 10, 2003
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY
City Attorney Signature
Date