CR 06-042 Approve On-Sale Liquor License for Charles Venables dba Gusto Cafe & Wine Bar
March 30, 2006
Council Report 2006-042
APPROVE ON-SALE LIQUOR LICENSE FOR CHARLES VENABLES dba GUSTO
CAFE AND WINE BAR
Proposed Action
Staff recommends adoption of the following motion: Move to approve an on-sale Liquor
License for Gusto Cafe and Wine Bar, located at 922 Mainstreet with the condition that
Mr. Venables provide the City Clerk with a Certificate if Insurance showing liquor
liability.
Overview
Charles Venables has purchased Nathan's Bakery and Restaurant and will use the
entire area as a restaurant with a small bar.
The Hopkins Police Department have reviewed the application for on-sale liquor and
have found no reason to deny.
Primary Issues to Consider
. What are the requirements
. How will this license affect the number of on-sale licenses that the City can issue
Supportina Documents
. Memo from Jim Genellie on State Regulations
. Full application available in City Clerk's office
~~~
Terry Obermaier, City Clerk
Financial Impact: $ Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
Council Report 2006-042
Page 2
. What are the requirements
The ordinances require 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. Mr.
Venables estimates that food sales will equal approximately seventy percent of gross
sales.
Mr. Venables will have a small wine bar in the restaurant. Originally, Mr. Venables
applied for a wine license, but when he discovered that he could not sell wine without a
food order at the bar, he decided to change the application to a full on-sale liquor
license application. State Statutes require that wine consumption is in conjunction with
food. In order to serve wine at the bar, a full liquor license is required.
. How will this license affect the number of on-sale licenses that the City can issue
The City currently has six liquor licenses issued. They are Tavern on Main, Decoys,
Tuttle's, Mainstreet Bar and Grill, The Big Ten, and Lindee's.
Section 1200.05 states that ten on-sale licenses may be granted in a year. This license
would be the seventh license issued and would leave three remaining licenses to be
issued.
Memorandum
To:
Hopkins City Council
Jim Genellie
From:
Date:
Subject:
March 1, 2006
On Sale Liquor Licenses
During the discussion of the issuance of an on sale license for a caterer, questions were
raised regarding the number of on sale licenses that are available to the City of Hopkins.
On-sale liquor licenses
How many on sale licenses does the City of Hopkins have?
Currently the City has six on-sale licenses.
On Sale License Hookins Location
Hopkins Tavern on Main 819 Mainstreet
Decovs Grill and Bar 1022 Mainstreet
Tuttle's Hookins Bowl 107 ShadVOak Rd
Mainstreet Bar and Grill 814 Mainstreet
The Bia Ten Bar and Restaurant 1106 Mainstreet
Lindee's 919 Cambridne St
How many on sale licenses is the City of Hopkins allowed to issue?
According to the Hopkins City Code, the City is allowed to have ten on-sale licenses.
This means that the City has four available licenses.
State law limits cites of the fourth class, such as Hopkins, to seven on-sale licenses. (MN
Statute 340AA13) While this seems to be more restrictive, state law defines on-sale
licenses differently. State law exempts the following uses from counting against a city's
limit:
. clubs, or congressionally chartered veterans organizations;
. restaurants;
. establishments that are issued licenses to sell wine under section 340AA04,
subdivision 5;
. theaters that are issued licenses under section 340AA04;
. hotels; and
. bowling centers.
If the City of Hopkins followed state law on defining on-sale licenses, it would have only
one current on-sale license, Tavern on Main. Therefore, under state law, the City would
have six available licenses.
Should the City ever approach its self-imposed limit often licenses, it could either
change the ordinance to match state law or merely establish an exemption for restaurants.
The City passed an ordinance in 1999, limiting new on-sale licenses to restaurants. (See
Hopkins City Code section 1200.05, Subd. 2)
Hopkins City Code
1200.05. Subdivision 1. On-sale licenses. On-sale licenses shall be
issued only to hotels, clubs, restaurants, Bowling Centers and to
exclusive liquor stores, which exclusive liquor stores were in
existence on July 1, 1999, and shall permit on-sale of liquor only.
Ten on-sale licenses may be granted in a year.
Subd. 2. 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.
Minnesota State Statutes
340A.413 Restrictions on the number of intoxicating liquor licenses that may be
issued.
Subdivision I. On-sale licenses. No on-sale intoxicating liquor license may be
issued in any city except as provided in this section in excess of the following limits:
(4) in cities ofthe fourth class, not more than seven licenses;
Subd. 4. Exclusions from license limits. On-sale intoxicating liquor licenses may be
issued to the following entities by a city, in addition to the number authorized by this
section:
(1) clubs, or congressionally chartered veterans organizations;
(2) restaurants;
(3) establishments that are issued licenses to sell wine under section 340AA04,
subdivision 5;
(4) theaters that are issued licenses under section 340AA04;
(5) hotels; and
(6) bowling centers.