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CR 06-091 Approve a Temporary Liquor License for The Lundstrom Center for Performing Arts .. , August 10, 2006 Council Report 2006-091 Approve a Temporary Liquor License for The Lundstrum Center for the Performing Arts Proposed Action Staff recommends adoption of the following motion: Approve a temporary liquor license for the Lundstrum Center for the Performino Arts for October 28. 2006 from 6:00 p.m. to 11 :30 p.m. for the fundraisino event they will hold at the Hopkins Center for the Arts. Overview The Lundstrum Center for the Performing Arts is holding a fund raiser at the Hopkins Center for the Arts on October 28, 2006. The fund raiser will consist of a stage performance in the theater, sit down dinner, silent auction, live auction and appetizers with a cash bar. They would like to sell alcoholic beverages as part of the fund raiser. They will be using the space at the Hopkins Center for the Arts from October 22nd to October 28th for rehearsals. Primary Issues to Consider . Hopkins Center for the Arts Policy Benefits of approval of this temporary license Will this action set a president for other events at the HCA What is the liability to the City What is the process for the license Supportina Documents Full 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 2006-091 Page 2 Primary Issues to Consider . Hopkins Center for the Arts Policy The policy requires that organizations using the Hopkins Center for the Arts contract with an establishment that holds a liquor catering license if they wish to serve alcohol at events. This is a policy, not an ordinance. Policies are used because they do not contain the rigid requirements that would be found in an ordinance. Policies can be bent; ordinances cannot. Benefits of approval of this temporary license This organization is leasing space for a minimum of seven days. The rental fees will be larger than for other events held at the HCA. Will this action set a precedent for other events at the HCA State Statute states that a temporary liquor license can be issued to a non-profit organization that has been in existence for more than three years. For-profit organizations and individuals could not obtain a temporary license. This is the first situation where the length of time on the rental is for a full seven days, with the possibility of more days. Because of the length of time, the resulting event is a unique situation. It is not expected that there would be many events of this duration. A one-night or weekend rental would not have the same financial impact for the HCA that this type of rental does. What is the liability to the City The organization is required to carry dram shop insurance. A Certificate of Liquor Liability in the amount of $2 Million aggregate has been submitted. The City of Hopkins is named as coinsured on the certificate. Hopkins is approving the application, but the State of Minnesota is issuing the license. What is the process for the license The City Council approves the application. The application is then forwarded to the State of Minnesota Alcohol and Tobacco Division. The State of Minnesota issues the license. Aternatives 1. Have the Lundstrum Center for the Performing Arts call one or more of the approved HCA caterers to see if they can get a better deal that what is normally offered. 2. Continue the item for additional information. 3. Approve the Lundstrum Center for the Performing Arts' application for a temporary liquor license. Staff recommends alternative three, approve the Lundstrum Center for the Performing Arts' application for a temporary liquor license.