Memo- Hopkins Board Of Review
. I Assessing Division I
Memorandum
TO: Honorable Mayor and Council
"f,v)
FROM: Bob Wilson, City Assessor
DATE: January 7, 1999
SUBJECT: Hopkins Board of Review
In an effort to improve the appeals process for both property owners and board members,
the use of appointed real estate advisors should be considered.
For a number of years, the City of Milmetonka has used an advisory panel comprised of
e local real estate agents to assist the council in its board of review. As a resource for
property owners and the City Council, the advisors provide a second outside opinion of
value that the board can rely on when deciding on appeals.
The council appoints four advisors each year based on recommendations from the
Assessor's Office, the community, and self-nominations. The advisors are all local real
estate agents familiar with property in the area.
The advisors attend both board of review meetings and gather infoffilation regarding each
petition. Following the first meeting they visit the properties in teams of two and
generate their own estimate of the property's market value. The council can then decide
valuation issues based on the advisors' recommendations.
The Hopkins assessing staff responded to over one hundred seventy calls last year
regarding valuations. From these calls, we reviewed thirty-six properties with
adjustments made on about twenty. Those property owners who wish to continue the
appeals process could appeal to the board of advisors.
The only challenge may be to find qualified individuals willing to serve on the board.
Due to the smaller number of appeals that Hopkins typically has, two advisors may be
sufficient. The City of Minnetonka compensates its board members at $25 for each
meeting and $75 for each day spent in the field.
It
. Honorable Mayor and Council
January 7,1999
Page 2
Advantages to creating a board of real estate advisors include:
. The City Council and property owners would have a second opinion regarding the
value of property.
. Property owners would be able to discuss specific issues regarding their properties
with experts in the real estate field.
. Since the board is advisory, the City Council would still act as the Board of Review
and would therefore stay informed about the City's valuation.
. Board of Review meetings would likely be shorter as propelty owners would have
already had an opportunity to discuss their valuations with both the City staff and the
board of advisors.
Other options include continuation of the current format or the Council may delegate all
powers and duties to a specially appointed board of review. Other than appointing
members to the board, the council would not be involved in the board of review process.
.
e
. January 8, 1999
PROPOSED LIQUOR ORDINANCE
Overview
City staff has been working on a revision of the City's liquor ordinance in order to
remove outdated provisions and to bring it into compliance with state law.
The current ordinance on liquor is at least 20 years old. While is has been amended
several times during the last twenty years it should be brought up to date.
Two issues that the City Council has raised concern controlling the type of liquor
establishments and the location of liquor establishments.
Restrictions on the types of liquor establishments
The proposed ordinance contains language that would limit the issuance of new on-sale
liquor licenses to establishments that have 50% of their gross receipts from the sale of
food. This provision would only apply to new establishments that were not hotels or
bowling centers. It would also not apply to renewal of current licenses.
The City Council needs to decide if it is interested in restricting future licenses through
. this or similar language.
Restrictions on the location of liquor establishments
The second issue has to do with restricting the location of liquor establishments. Many
cities have provisions that require liquor establishments to be so many feet away from
"sensitive land uses" such as churches, schools, and parks.
In Hopkins the sale of liquor is a permitted use in areas zoned B-2 and B-3. Due to the
unique configuration of Hopkins, i.e. relatively narrow business areas surrounded by
residential areas, distance restrictions similar to those used by other cities would impact
many business locations.
The City Attorney is investigating the extent of the Council's discretion in granting liquor
licenses. The Council may well be able to deny a new liquor license to an establishment
in a particular location regardless of whether the zoning ordinance permits liquor sales.
No specific ordinance language is proposed at this time. Depending upon the results of
the City Attorney's research, specific language may not be necessary.
e
. Proposed lanQuage restricting type of liquor establishment
After July 1, 1999, no on-sale liquor license shall be issued to an establishment
unless the applicant makes a bona fide estimation that at least fifty percent of the
gross receipts of the establishment during its first year of business will be
attributable to the sale of food.
Each establishment granted an on-sale liquor license under this section shall
have the continuing obligation to have at least fifty percent of gross receipts from
the establishment during the preceding business year attributable to the sale of
food.
For the purpose of this requirement, "establishment" shall include the food and
beverage portion of a multi-service establishment. Financial records for the food
and beverage portion must be maintained separately from the records of the
remainder of the establishment.
For the purpose of this section, "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.
. The Council 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 Council 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.
In addition to other remedies that it may have available, the Council may place
the license of any "on-sale" liquor licensee on probationary status for up to one
year, when the sale of food is reported, or found to be, less than fifty 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 Council may require to increase the sale
of food.
The above provisions shall not apply to any business having an on-sale liquor
license prior to July 1, 1999 and will not affect the future renewals of the on-sale
licenses for such businesses. These provisions shall also not apply to any new
on-sale liquor license for a hotel or bowling alley.
.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
. ORDINANCE NO. 98-819
AN ORDINANCE DELETING SECTION 1200, 1205 AND 1210 OF THE
HOPKINS CITY CODE AND REPLACING IT WITH
A NEW SECTION 1200 - ALCOHOLIC BEVERAGES
In order to maintain consistency with the State Statutes governing the sale and
consumption of alcohol and to further insure the safety and well being of its
residents, the City Council of the City of Hopkins does hereby ordain as follows:
Section 1: Sections 1200, 1205 and 1210 of the Hopkins City Code are deleted in
their entirety.
Section 2: Provisions of the State Law adopted. The provisions of Minnesota State
Statutel Chapter 340A, relating to the definitions of terms, licensing, consumption,
sales, financial responsibility of licensees, hours of sale and all other matters
pertaining to the retail sale, distribution, and consumption of intoxicating liquor are
adopted and made a part of this ordinance as if set out in full.
Section 3: That in addition to adopting State Statute, Chapter 340A, the following
terms and conditions are incorporated:
. Section 4: Licenses Required.
Subd. 1. General requirement. No person, except a wholesaler or
manufacturer to the extent authorized under state license, shall directly or
indirectly deal in, sell, or keep for sale in the City of Hopkins, any
intoxicating liquor without a license to do so as provided in this ordinance.
Liquor licenses shall be of eight kinds: lion-sale", temporary I'on-sale", fJoff-
salell, 11c/ub", "on-sale wine", "3.2 % malt liquor on-sale", 113.2 % malt
liquor off-sale"" and temporary 3.2% malt liquor on-sale.
Subd. 2. On-sale licenses. 110n-sale" licenses shall be issued only to hotels,
clubs, restaurants, Bowling Centers and to exclusive liquor stores,2which
exclusive liquor stores were in existence on JulV 1, 1999, and shall permit
on-sale of liquor only. Ten on-sale licenses may be granted in a year.3
1 Malt liquor (3.2% Beer) licenses have been added as a type of liquor license. In the past, 3.2 beer
has been treated separately and did not need to meet the same conditions of dram insurance as
liquor,
2 This is where the City lists the types of businesses where they will allow a liquor license. In this
case, all have been included. If the Council would like to limit the consumption to places that serve
food only, the exclusive liquor store could be removed from thiS list. The statutes allow the issuing
authority to define restaurant more stringently and could go to a percentage of food requirement.
. 3 State Statute allows Cities of the Third Class to issue 12 on-sale liquor licenses. This does not
include club or wine licenses. At the present time our ordinance allows us to issue ten on-sale
licenses. We have issued nine on-sale liquor licenses. The number allowed can be changed by
ordinance up to the number of twelve licenses. Council may want to provide for the maximum
number at this time.
1
After July 1, 1999, no on-sale liquor license shall be issued to an
. establishment unless the applicant makes a bona fide estimation that at least
fifty percent of the gross receipts of the establishment during its first year of
business will be attributable to the sale of food.
Each establishment granted an on-sale liquor license under this section shall
have the continuing obligation to have at least fifty percent of gross receipts
from the establishment during the preceding business year attributable to the
sale of food.
For the purpose of this requirement, "establishment" shall include the food
and beverage portion of a multi-service establishment. Financial records for
the food and beverage portion must be maintained separately from the
records of the remainder of the establishment.
For the purpose of this section, "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.
The Council 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 Council 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.
In addition to other remedies that it may have available, the Council may
place the license of any "on-sale" liquor licensee on probationary status for
up to one year, when the sale of food is reported, or found to be, less than
fifty 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 Council may require to
increase the sale of food.
The above provisions shall not apply to any business having an on-sale liquor
license prior to July 1, 1999 and will not affect the future renewals of the
on-sale licenses for such businesses. These provisions shall also not apply to
any new on-sale liquor license for a hotel or bowling alley.
.
2
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Subd. 3. On-Sale wine licenses. "On-sale wine licenses shall be issued only
to restaurants meeting the qualifications of Minnesota Statutes Section
. 340A.404. Subdivision 5, and shall permit only the sale of wine not
exceeding 14 percent alcohol by volume, for consumption on the licensed
premises only, in conjunction with the sale of food.
a. The holder of an on-sale wine license who is also licensed to sell
3.2 percent malt liquors at on-sale and whose gross receipts are at
least 60 percent attributable to the sale of food, may sell intoxicating
malt liquors at on-sale without an additional license.
Subd. 4. Temporary on-sale licenses. Subject to the approval of the
commissioner of public safety, temporary on-sale licenses shall be issued
only to clubs or charitable, religious, or other non-profit organizations in
existence for at least three years. A temporary license authorizes the on-sale
of intoxicating liquor in connection with a social event within the city
sponsored by the licensee and subject to restrictions imposed by the state
liquor act.4
Subd.5. Off-sale licenses. Off-sale licenses shall be issued to exclusive
liquor stores and shall permit off sales of liquor only. No off-sale license
shall be issued to an establishment holding an on-sale liquor license except
. those on-sale and off-sale licenses that in 1961 were issued in combination
to one holder and are presently existing in such combination. At any time
hereafter that any such existing combined on-sale and off-sale licenses are
for any reason suspended or canceled, no further re-issuance or renewal of
such suspended or revoked licenses shall thereafter be allowed or issued in
combination.5
Subd 6. Special club licenses. Special club licenses shall be issued only to
incorporated clubs or congressionally chartered veterans' organizations that
have been in existence at least three years.
4 Temporary on-sale licenses have been added as a type of license. Even though we adopt state
statute by reference, we are only allowed to issue the types of licenses that we name in the
ordinances. If we do not include this one, we will not be able to issue this type of license without
changing the ordinance.
5 This portion is the same as the old ordinance in not permitting the combination license. Cities are
allowed by statute to issue combination licenses or both on-sale and off-sale licenses to the same
person and location if the population of the city is 10,000 or less. The statute goes on to say that
. a city can continue to issue licenses under this section when the population exceeds 10,000. At
some point in time, the city said it would not reissue such license if it was revoked or suspended.
In the case of a liquor violation suspension, according to the present ordinance, the off-sale would
not be reissued. This can be changed to allow the off-sale to be reinstated.
3
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Subd 7, Special license for Sunday sales. A special license authorizing sales
on Sunday in conjunction with the serving of food may be issued to any
. hotel, restaurant, Bowling Center or club which has facilities for serving at
least 30 guests at one time, and which has an on-sale license.
Subd. 8. 3.2 percent malt liquor, on-sale, An on-sale 3.2 percent malt
liquor license may only be issued to drugstores, restaurants, hotels, clubs,
bowling centers where food is prepared and served for consumption on the
premises and in bona fide clubs, and shall permit the sale of beer for
consumption on the premises only.
Subd. 9. 3.2 percent malt liquor, off sale. A 3.2 percent off-sale malt liquor
license may be issued to permit the sale of beer in the original packages for
removal from and consumption off the premises only.
Subd.l0. Exemptions.
a. Any person licensed to sell intoxicating liquor at on-sale shall not
be required to obtain a 3.2 percent malt liquor on-sale and may sell
3.2 percent beer at on-sale without further license.
b. Any person licensed to sell intoxicating liquor at off-sale shall not
be required to obtain a 3.2 percent malt liquor off-sale license and
may sell 3.2 beer without further license.
. Subd. 11. Temporary 3.2 percent malt liquor. A club or charitable,
religious, or nonprofit organization may be issued a temporary on-sale license
for the sale and consumption of 3.2 percent malt liquor. The issuance of
such license shall be made in accordance with city policy.
Subd. 12. Application for License. A person desiring any license for either
on-sale or off-sale of liquor, wine, or 3.2 percent malt liquor must file an
application in writing with the clerk in the form prescribed by the
commissioner and with such additional information as the council may
requIre.
Subd 13. Payment. Each application for a license shall be accompanied
by payment in full of the license fee and the investigation fee. Each license
shall be issued for a period of one year except that if the application is made
during the license year, then the license fee shall be one-fourth of the fee for
each three months or part thereof for the remainder of the license year.
Subd. 14. Refunds. No refund of any fee shall be made except as
authorized by statute.
.
4
Subd. 15. Proof of Financial Responsibilitv. No liquor license may be issued,
maintained, or renewed unless the applicant demonstrates proof of financial
. responsibility as defined in Minnesota Statutes Section 340A.409 with
regard to liability under the statutes, Section 340A.801. Such proof shall be
filed with the commissioner of public safety. Applicants for liquor licenses to
whom the requirement for proof of financial responsibility applies include
applicants for wine and 3.2 percent malt liquor licenses with sales of less
than $10,000 per year. Any liability insurance policy filed as proof of
financial responsibility under this subdivision shall conform to Minnesota
Statutes Section 340A.409. Temporary liquor license applicants shall
provide aggregate limits of one million dollars.6
Subd. 16 Payment of Taxes and other Fees. No License shall be granted for
operation on any premises upon which state or city taxes, assessments or
other financial claims of the state or city are delinquent and unpaid. Any
existing license may be suspended or revoked until such time that delinquent
or unpaid tax or assessment, or other financial claim is paid in full. At such
time that all delinquent or unpaid taxes or assessments or other financial
claims are paid in full, a revoked or suspended license shall be re-issued for
the remainder of the license period without additional application or payment
by the licensee.
Notwithstanding the foregoing, if the delinquent_taxes, assessments or other
. financial claims are against a landowner, and the licensee is a tenant of the
landowner and has no financial interest in the landowner, then the City
Council may, but shall not be required to, grant a license to an applicant so
long as the applicant is not delinquent on any taxes, assessments or other
financial claims as set forth herein.
fj The state statutes define what will be accepted as proof of financial responsibility and include as
minimum requirements:
1. a certificate of insurance showing $50,000 bodily injury per person, $100,DOOper occurrence;
$10,000 destruction of property; and $50,000 for loss of support per person, $100,000 loss of
support per occurrence.
2. A bond of a surety company with minimum coverage's as provided in (1)
3. A certificate of the state treasurer that the licensee has deposited with the state treasurer
$100,000 in cash or securities which may legally be purchased by savings bands or for trust funds
having a market value of $100,000.
An aggregate policy limit for dram shop insurance of not [ess than $300,00 per policy year may be
included in the policy provisions,
These are minimum requirements. The city may make the requirements larger. The requirement of
$1,000,000 for temporary liquor licenses has been put in because it was recommended by the
League of Minnesota Cities Insurance agent.
Malt liquor and wine licenses have been included in this section to require them to also carry dram
insurance. This is an option of the city. State statutes do not require 3.2% beer on-sale licensees
. with sales of less than $10,000 per year, 3.2% off-sale licensees with sales of less than $20,000
per year or wine off-sate with sales of less than $10,000 per year to carry any dram insurance, but
allows the city to make that a requirement.
Currently, all wine licensees and several 3.2 beer licensees carry dram insurance.
5
Subd.17. Licenses: Investiqation!Grantinq of License: PostinQ.
a. Investigation! Grantinq of License. The council shall cause
. investigation to be made of all representation set forth in the
application. No license shall be issued, or renewed if the results show
to the satisfaction of the council that issuance would not be in the
public interest. Opportunity shall be given at a regular or special
meeting of the council to any person to be heard for or against the
granting of any license. After such investigation, the council shall
grant or refuse such license in its discretion provided that no off-sale,
wine, or club license shall become effective until it, together with the
security furnished by the applicant has the approval of the
co mm iss ioner. The fee for such investigation shall be set from time
to time by resolution and shall be payable by the applicant whether or
not the license is granted.
b. License Renewal Investiqation. All renewal applications which reflect
a change of status may be investigated for verification of the matters
set forth in the renewal application which are updated since the last
application. If at the time of renewal, a change of the manager of the
premises is identified, the licensee shall pay a supplemental
investigation fee which will be set from time to time by resolution and
shall be payable whether or not the license is granted.7
c. PostinQ. Licensed premises shall have the license posted in a
conspicuous place therein at all times.
. Subd. 18. Renewal of License. Time for Renewal. Applications for
renewal of an existing license shall be made at least sixty days prior to the
date of the expiration of the license. If in the judgement of the City Council,
good and sufficient cause is shown by any applicant for his failure to file a
renewal application within the time prescribed, the Council may never the
less receive such application.8
Subd 19. Transfer of License. No license shall be transferable between
persons or to a different location. Any change in individual ownership or
substitution of partners will require application for a new license. For a
corporation, a transfer or sale of more than 10% of the shares will also
require a new license. A transfer of stock without prior council approval and
an investigation is a ground for revocation of the license 9
New licenses required under this section will require the full investigation fee
to be paid by the applicant. The license fee will be pro-rated according to
Subd.13.
7 The license renewal investigation has been added, allowing an investigation to be made on
renewals where information has changed and allow us to investigate managers, as we would an
. owner and charge a fee for that investigation.
S Sets a time frame. This will give a little push to those who are always slow to get their
application returned.
9 This section defined the term and where it is allowed and not allowed.
6
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Subd 20. Conditions of license. Subdivision 1. General rule. Licenses
granted under this section shall be granted subject to the following
. conditions of this subsection, and subject to all other ordinances of the city
applicable thereto and to all regulations promulgated by the commissioner
applicable thereto.
Subd 21. Conduct. Every licensee shall be responsible for the conduct of
his licensed place of business and for conditions of sobriety and order
therein. No licensee shall keep, possess, or operate, or permit the keeping,
possession, or operation of, on the licensed premises, or in any room
adjoining the licensed premises, any slot machine, dice, or any gambling
device or apparatus, nor permit any gambling therein, except that which is
approved by state statute, nor permit the licensed premises or any room in
the same, or in any adjoining building, directly or indirectly under its control
to be used as a result for prostitutes or other disorderly persons.
Subd. 22. Sales prohibited. No intoxicating wine, liquor or malt beverage
shall be sold or furnished for any purpose whatever to a person under the
age of 21 years, or to a habitual drunkard, or to a person under guardianship,
or to any person obviously intoxicated, or to any of the persons to whom
sale is prohibited by statute.
Subd. 23. Character. A license may not be issued to a person not a citizen
. or resident alien of the United States and a licensee shall be of good moral
character and repute. A license may not be issued to any person who shall
hereafter be convicted of any willful violation of any law of the United States
or the State of Minnesota or of any local ordinance with regard to the
manufacture, sale, distribution or possession for sale or distribution of
intoxicating liquor, nor to any person whose license under this section shall
be revoked for any willful violation of any such laws or ordinances.1o
Subd. 24. Additional conditions of intoxicating liquor licenses and the
operation of licensed premises, The following acts or conduct on licensed
premises deemed and decreed to be contrary to public welfare and morals
and, therefore, no on sale liquor license shall be operated, maintained or
allowed at, in or on any premises where such acts or conduct are permitted
or tolerated. No licensee shall employ, permit or encourage any person or
employee in or on any such licensed premises in or under any of the
following circumstances:
a. while such employee or person is unclothed or in such attire,
costume or clothing as to expose any portion of the female breast
below the top of the areola, or any portion of the pubic hair, anus,
cleft of the buttocks, vulva or genitals; or
.
10 A resident alien of the United States is now under statute eligible for a liquor license.
7
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b. while such employee or person encourages or permits the wear
or use of any device or covering exposed to view which resembles or
. simulates the breast, genitals, anus or other portion of the body above
mentioned; or
c. while such employee or person permits or encourages any
person to perform or simulate the performance of sexual intercourse,
sodomy, oral copulation, flagellation, masturbation/bestiality or other
acts prohibited by law; or
d. while such employee or person encourages or permits any
person to use artificial devices or inanimate objects to depict any of
the prohibited activities herein described; or
e. while such employee or person encourages or permits any
person on the licensed premises to touch, caress or fondle the breasts,
buttocks, anus or genitals of any other person; or
f. while such employee or person encourages or permits any ot
the behavior, conditions or acts hereinabove set forth by any other
person or persons.
Whenever the term "person" is used in this section, it is intended to mean
and shall include but not be limited to, any host, hostess, other employer or
. employee, customer or spectator and all provisions of this section shall apply
equally to both sexes.
Subd. 25. Hours of operation. a. 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.
b. 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
4, subd. 7.
c. Intoxicating liquor; Sunday sales; on-sale. A licensee that holds a
special Sunday on-sale intoxicating liquor license may sell intoxicating
liquor tor 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.
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8
d. Intoxicating liquor; off-sale. No sale of intoxicating liquor may be
made by an off-sale licensee:
. (1) on Sundays;
(2) before 8:00 a.m. on Monday through Saturday;
(3) after 8:00 p.m. on Monday through Thursday and after
10:00 p.m. on Friday and Saturday. An off-sale licensee may
sell intoxicating liquor until 10:00 p.m. on December 31 and
July 3, and on the day preceding Thanksgiving day, unless
otherwise prohibited.
(5) on Thanksgiving Day;
(6) on Christmas Day, December 25; or
(7) after 8:00 p.m. on Christmas Eve, December 24.
Subd. 26. Evacuation of Licensed Premises. No licensed premises named in
an "ON SALE' Intoxicating Liquor License shall remain open for business
more than 15 minutes after the closing time stated in section 4, subd. 25 of
this Ordinance. It is unlawful for a licensee or an employee of a licensee to
permit any person other than a licensee or an employee to remain on said
licensed premises more than 15 minutes after closing time; it is also unlawful
for any person not a licensee or employee of a licensee to remain on said
licensed premises more than 15 minutes after closing time. This subsection
does not apply to any restaurant nor to any premises holding a "Club
License", or "3.2 % malt liquor off-sale license".
. Subd. 27. License Revocation or Suspension. MN Statute 340A.41 5,
License Revocation or Suspension" is adopted by reference.
.
9