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CR 01-031 Refund Of License Fees-Hopkins Bowl, Laura and Gene Wright . '~ . . . cc March 1,2001 Council Report 2001-31 Refund of License Fees- Hopkins Bowl, Laura and Gene Wright Proposed Action Staff recommends adoption of the following motion: Move to approve a refund of license fees in the amount of $6.215 to Laura and Euoene Wriqht for Hopkins Familv Bowl. Overview Laura Wright has requested that a portion of the fees that they paid for 2001 licenses for the Hopkins Bowl be refunded to them. The total amount of fees paid to the City for 2001 licenses is $8,741. Because of a Statute mandated recalculation of fees, $70 is already being returned to the Wrights, bringing the total amount to $8,671. The Wrights recently sold the bowling center and operated it for only 16 days in January. The Tuttles took over the operation on January 1 ih. Because the ordinances do not allow for the refund of some license fees, the request is being brought to the City Council for a decision. Primary Issues to Consider . What does staff have the authority to return . What is the additional request Supportina Information . Copy of the renewal statement for ERW . Copy of the Request for Check for ERW ~~ Jerry Obermaier, City Clerk Financial Impact: $ Budgeted: Y/N Related Documents (CIP, ERP, etc.): Notes: Source: . . . Council Report 2001-31 Page 2 Primary Issues to Consider . What does staff have the authority to return The ordinances allow for a refund of a portion of the liquor license fees. The f~e can be prorated by three-month periods or by quarters. If the licensee is in business for any portion of the quarter, one-fourth hlust be paid. The total amount to be refunded under this provision is $5,775 or 75% of $7700. The following section refers to state statute for authority to do so: Section 1200.30 states that "No refund of any fee shall be made except as authorized bv statute. State Statute, Section 340A.408, Subd. 5. states as follows: Refunds. A pro rata share of an annual license fee for a retail license to sell intoxicating or 3.2 percent malt liquor, either on-sale or off-sale, may be refunded to the licensee or to the licensee's estate if: (4) the licensee ceases to carry on the licensed business under the license. While City Ordinances state that only refunds that are authorized by statute can be made, Statute states that a pro rata share of an annual license fee... ... ..may be refunded to the licensee. There is not a mandate to do so, but this type of refund is authorized. . What is the additional request Ms. Wright is requesting that the total amount of fees be prorated on the basis of days or months used. A specific amount has not been requested. Chapter ten would govern the majority of the licenses that were held by the Wrights. Section 1005.31 states, "Whenever the annual city operating license fee is $300.00 or more and any such licensed business is either commenced or is transferred during the calendar year, the license may be granted or transferred and the fee therefore may be calculated or prorated for the remaining unexpired period of such year.. All such prorations shall be calculated upon a calendar monthly basis." According to the ordinance the only license that could be prorated, other than the liquor license fee, would be the fee for the bowling lanes. The projected refund for this fee would amount to $440. . . . Council Report 2001-31 Page 3 If the city prorated all of the rest of the fees, the refund for these fees would be $450. While this has not been done in the past, the circumstance of only having a license for eleven days is unique. Alternatives 1. Refund $5775 of the liquor license fee and. $440 of the bowling alley license fees 2. Refund $5,775 of the liquor license fee and $880 of other license fees 2. Refund $5775 of the liquor license fee and no refund of other license fees 3. Continue to future meeting to request that Laura and Gene Wright appear Staff recommends alternative one. If the Council chooses alternative two, staff requests that it be directed to amend Section 1005.31 to make refunds apply to the entire license fee a business pays and not just those license fees in excess of $300. . Request for Check . . Eugene R. Wright ERW Industries, Inc. 107 Shady Oak Road Hopkins MN 55343- For over-payment of license fees Lie Type Hopkins Location Refund Account # Mechanical Amuse 107 Shady Oak Road $15.00 101-42700-313 Billiard Table - ea A 107 Shady Oak Road $25.00 101-42700-313 Billiard Table - First 107 Shady Oak Road $30.00 101-42700-313 Total Refund $70.00 Req"estedbY~~ Monday, February 26, 2001 . . . CITY OF HOPKINS 2001 BUSINESS LICENSE RENEWAL Eugene Wright ERW Industries, Inc. 107 Shady Oak Road Hopkins MN 55343- Located at: 107 Shady Oak Road Lic Type: Lic Cost 2001: Amount: Total: Food Establishment L3, T1 $176.00 $176.00 Bowling Alley Lane $20.00 24 $480.00 Mechanical Amusement Device - ea Addit $15.00 10 $150.00 Mechanical Amusement Device - First $30.00 $15.00 Billiard Table - ea Additional Table $20.00 5 $75.00 Billiard Table - First $60.00 $30.00 Tobacco Sales $115.00 $115.00 Liquor - Sunday Sale $200.00 $200.00 Liquor - On Sale $7,500.00 $7,500.00 Total Amount Due $8.741.00 Application and fees are due on or before November 13, 2000. Your check will be cashed when received.