Draft Ordinance for Liquor License Amendments (Memo)CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
From: Kris Luedke, City Clerk
Copy: Mike Morrison, City Manager
Date: July 16, 2013
Subject: Draft Ordinance for Liquor License Amendments
City Clerk
At the May 14 Work Session, Council and staff discussed inquiries that staff had received for a
"brew pub" type liquor license in the City of Hopkins. Council indicated an interest in pursuing this
type of license in the downtown area. Staff was directed to prepare an amendment to the liquor
license ordinance to allow this new license category and to bring the draft ordinance back for
Council's review.
The purpose of this meeting is to present the draft ordinance. This ordinance is in the process of
being reviewed by the City Attorney. Staff is also recommending fees for the new license categories.
Staff has met with the Co -Founders of LTD (Live the Dream) Brewing Company, Mr. Jeremy Hale
and Mr. Blake Verdon who are interested in opening a brewer taproom in the City. Staff has asked
them to attend tonight's meeting. At the previous work session, Council and staff discussed the
percentage of food sales for the new taproom license. At that time there was no specific proposal in
front of the City. In the discussion with LTD, they indicated an initial 10% food sales requirement
would allow them to get the business started. LTD also indicated they would like the opportunity to
be open later on Fridays and Saturdays. Staff is purposing that the hours of operation be the same as
other on -sale liquor license establishments, other cities have approached this in the same way.
The Hopkins Planning Commission will be reviewing the City Zoning Code at the end of July in
regards to the zoning for an on -sale brewer taproom license in the B2 and B3 district.
In recommending the annual fees, staff reviewed other cities and their fee schedules. The following
cities have an on -sale taproom and/or an off -sale brewer liquor license: St. Louis Park, Brooklyn
Center, Stillwater, New Ulm and Bloomington. Annual fees for the taproom licenses ranged from
$400 to $600. Annual off -sale brewer license fees were consistent with the cities being set at $200.
Taking this into consideration, staff is recommending an annual fee of $500 for an on -sale brewer
taproom license and $200 for an off -sale brewer malt liquor license. If the taproom would like to be
open on Sundays; they would be required to apply for a Sunday sales license which is an additional
$200 annually.
Attachments:
Except from the May 14, 2013 Council Work Session Minutes
Draft Ordinance
Draft Resolution
Memo
July 16, 2013
Page 2
Except from May 14, 2013 Council Work Session Minutes
Amendment to the Liquor License Ordinance
Ms. Luedke gave an overview of brewer type licenses and possible definitions for the liquor license
ordinance amendments required to permit a brewpub type license in the City of Hopkins.
City staff has received inquiries regarding the possibility for a Brew pub type license in the City of
Hopkins. Ms. Luedke gave an overview of Tap room licenses. The state statute allows a
municipality to issue, with state approval, a liquor license for a Brewer Taproom license. The
Statute defines Brewer Taprooms as a place that would allow the "on -sales of malt liquor produced
by the brewer for consumption on the premises of or adjacent to one brewer location owned by the
brewer." Brewer Taproom liquor licenses require approval by the State prior to becoming effective.
The State does not have a "BrewPub" license. Staff is proposing in Hopkins the following: a
"BrewPub" to be defined as a Brewer Taproom License with a food to liquor ratio located in the B-2
zoning district and the B-3 zoning district where that district is adjacent to Mainstreet.
There was much Council discussion regarding the definitions of a Brewer Taproom & Brew pub
license, food ratio, State laws, hours of operation, kitchen requirements, food requirements by other
cities, state license fee, annual city fee, state inspections, how to regulate the food requirement ratio,
possibility of food trucks at brew pub locations, survivability of brew pub model without food
service, restriction of hours of operation, the inquiries received by the City of Hopkins and parking
concerns of manufacturing/retail in industrial zones.
Mr. Genellie gave an overview of State Brewer Taproom license, food to beverage ratio requirement
and that the 25/75% food/beverage ratio was a figure that industry said they could meet.
Council directed staff to pursue drafting a Brewer Taproom License that is workable in the B2/B3
zoning districts and includes the following conditions: 25-75% food beverage ratio, hours & days of
week of operation, reasonable fee, signage requirements, background check fee and seating
requirements. Staff will investigate the 25% food requirement and get feedback regarding the
license conditions. Staff will bring a draft of the ordinance back to Council for further review.
Memo
July 16, 2013
Page 3
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2013-1063
ORDINANCE AMENDING SECTION 1200 SALE, CONSUMPTION
AND DISPLAY OF ALCOHOLIC BEVERAGES OF THE HOPKINS
CITY CODE TO ADD ON -SALE BREWER TAPROOM
AND OFF -SALE BREWER MALT LIQUOR LICENSES
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. That Section 1200.03 Subdivision 1 is amended by adding the following:
1200.03 Licenses Required. Subdivision 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 eigkt ten kinds:
• on -sale
• temporary on -sale
• off -sale
• club
• on -sale wine
• 3.2 % malt liquor on -sale
• 3.2 % malt liquor off -sale
• temporary 3.2% malt liquor on -sale
• on -sale brewer taproom "brewpub"
• off -sale brewer malt liquor
Section 2. Hopkins City Code, Section 1200.22 is added to read as follows:
On -Sales Brewer Taproom License. Subdivision 1. `Brewpub" A brewer who has a license from the
Commissioner of Public Safety to brew up to 3,500 barrels of malt liquor pereay r may be issued a
license by the City for on -sale of malt liquor subject to the following conditions:
Subd. 2. The malt liquor sold on sale for consumption must be produced by the brewer on the
licensed premises.
Subd. 3. No other beverages containing alcohol may be sold or consumed on the licensed
premises.
Subd. 4. A brewer may only have one taproom license.
Subd. 5. Hours of operation for on -sale of malt liquor at a brewer taproom should be pursuant to
section 1200.46.
Subd. 6. Each establishment granted a brewer taproom license under this section shall have the
continuing obligation to have at least 10 percent of gross receipts from the establishments during the
preceding business ,year attributable to the sale of food.
Subd. 7. For the purpose of this sections, "sale of food" shall include gross receipts attributable
to the sale of food items. It shall not include any portion of the "growler" sales towards the liquor
percent.
Memo
July 16, 2013
Page 4
Section 2. Hopkins City Code, Section 1200.23 is amended to read as follows:
Off -Sale Brewer Malt License. Subdivision 1. A brewer who has a license from the Commissioner
of Public Safety to brew 3,500 barrels of malt liquor per year may with the approval of the
Commissioner of Public Safety be issued a license by the City for off -sale of malt liquor subject to
the following conditions:
Subd. 2. The malt liquor sold off -sale must be produced and packaged on the licensed premises.
Subd. 3. Off -sale of malt liquor shall be limited to the legal hours for off -sale pursuant to section
1200.46 Subd. 5.
Subd. 4. The malt liquor sold off -sale shall be packaged in 64 -ounce containers commonly
known as "growler" or in 750 milliliter bottles and shall have the following requirements for
packaging:_
1. The containers or bottles shall bear a twist type closure, cork, stopper or plug.
2. At the time of sale a paper or plastic adhesive band, strip or sleeve shall be applied to the
container or bottle and extend over the top of the twist type closure, cork stopper or plug
forming, a seal that must be broken upon opening of the container or bottle.
3. The adhesive band, strip or sleeve shall bear the name and address of the brewer/licensee
selling the malt liquor.
4. The container or bottles shall be identified as malt liquor, contain the name of the malt
liquor, bear the name and address of the brewer/licensee selling the malt liquor, and the
contents in the container packaged as required herein shall be considered intoxicating
liquor unless the alcohol content is labeled as otherwise in accordance with the provisions
of Minnesota Rules, part 7515.1100.
Section 3. Hopkins City Code, Section 1200.23 is amended to read as follows:
1200.2424. 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.
Section 4. The effective date of this ordinance shall be the date of publication.
First Reading:
Second Reading:
Date of Publication:
Date Ordinance Takes Effect:
ATTEST:
Kristine A. Luedke, City Clerk
July 23, 2013
August 5, 2013
August 15, 2013
August 15, 2013
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature
Date
By:
Eugene Maxwell, Mayor
Memo
July 16, 2013
Page 5
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2013-039
RESOLUTION AMENDING FEES IN CHAPTER 10
OF THE HOPKINS CITY CODE BY ADOPTING ANNUAL
FEES FOR LIQUOR LICENSE
BE IT RESOLVED by the City Council of the City of Hopkins as follows:
WHERESA, Hopkins City Code allows fees to be set by resolution and;
WHERESA, the City has adopted an ordinance authorizing On -Sale Brewer Taproom
"Brewpub" and a Off -Sale Brewer Malt Liquor License; and
WHERESA, City staff have reviewed the fees of other local cities and has recommended
changes to the inclusion of the following fees and;
NOW, THEREFORE BE IT RESOLVED, to adopt amendments in Chapter 10 of the
Hopkins City Code as follows:
Section 1010 - License fees
1010.03. Intoxicating Alcohol Proposed Annual fee
1 On -Sale Brewer Taproom "Brewpub" 500.00
2 Off -Sale Brewer Malt Liquor 200.00
Adopted by the City Council of the City of Hopkins, Minnesota, this 23`d day of July, 2013.
LN
ATTEST:
Kristine A. Luedke, City Clerk
Eugene J. Maxwell, Mayor