IV.4. Second Reading of Ordinance 2020-1147; Domeier
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
From: Amy Domeier, City Clerk
Copy: Mike Mornson, City Manager
Date: August 4, 2020
Subject: Second Reading of Ordinance 2020-1147
_____________________________________________________________________
Staff recommends that the Council approve the following motion: Move to adopt for
First Reading Ordinance 2020-1147 An Ordinance Amending Chapters 4 and 102 and
Appendix A of the Hopkins City Code Regarding On-Sale Intoxicating Liquor Licenses
and Experience-Based Entertainment.
The first reading of Ordinance 2020-1147 was held on July 14. No changes have been
made to the ordinance since the first reading on J uly 14. On July 28 the Planning and
Zoning Commission held a public hearing on the Ordinance. Below is a summary of the
Commission’s action:
The Planning & Zoning Commission held a public hearing to review this item
(Planning Application 2020-08) during their July 28, 2020 regular meeting. During
that meeting, the Commission heard a summary presentation from staff. There
were no public comments received during the public hearing.
The Planning & Zoning Commission had questions about adding an experience-
based entertainment business use to the City’s other business zoning districts and
the connection between the proposed use and recommended changes to the City’s
liquor license regulations. Staff indicated that the comprehensive plan guides these
types of uses to the B-2, Central Business zoning district, and that experience-
based entertainment businesses will be the only use eligible for an Exclusive Liquor
Store license but experience-based entertainment uses could operate without this
type of license. After some general discussion, the Planning & Zoning Commission
voted 5-0 to recommend the City Council approved the proposed zoning text
amendment with Commissioners Miller and Stiele abstaining.
Additional rational for the approval of this license includes the evolution and recent
growth of experience-based businesses and an acknowledgement that the
traditional liquor license does not work for some new business models. Support is
also based on the belief of an overall benefit to the downtown business district by
bringing more visitors to Hopkins that may then choose to patronize other Hopkins
businesses including restaurants and other establishments.
Attachment:
Ordinance 2020-1153
CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2020-1147
ORDINANCE AMENDING CHAPTERS 4 AND 102 AND APPENDIX A OF THE
HOPKINS CITY CODE REGARDING ON-SALE INTOXICATING LIQUOR
LICENCES AND EXPERIENCE-BASED ENTERTAINMENT
WHEREAS, pursuant to Minn. Stat. §§ 340A.404, subd. 1(a)(7), 340A.101, subd. 10,
and 340A.412, subd. 14, the City is authorized to issue on-sale intoxicating liquor licenses to
exclusive liquor stores that offer live or recorded entertainment; and
WHEREAS, pursuant to Minn. Stat. § 340A.509, the City may adopt regulations
governing the sale and possession of alcoholic beverages within its jurisdiction that might
otherwise be more restrictive than state law; and
WHEREAS, the City desires to attract groups of individuals to its central business
district area by allowing a limited number of businesses that provide experience-based
entertainment activities to sell intoxicating liquor to their customers for on-premise consumption,
all within the confines of the aforementioned statutory authority; and
WHEREAS, the City finds that authorizing the sale of intoxicating liquor to participants
of such activities will provide benefits to the downtown area, and that creating a licensing
mechanism to do so is in the best interests of the City’s residents.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS
HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Hopkins City Code, Part II, Chapter 4, Article II, Section 4-36(a) is hereby
amended by adding the double-underlined language and deleting the stricken language as
follows:
Sec. 4-36. - On-sale licenses.
(a) Intoxicating. On-sale intoxicating liquor licenses shall be subject to the following:
(1) On-sale intoxicating liquor licenses may be issued only to hotels, clubs,
restaurants, bowling centers, exclusive liquor stores, and clubs or congressionally
chartered veterans organizations meeting the qualifications contained in M.S.A. §
340A.404, subd. 1(a)(4). Not more than ten on-sale intoxicating liquor licenses
may be granted by the city.
(2) No on-sale intoxicating liquor license shall be issued to a restaurant unless the
applicant makes a bona fide estimation that at least 50 percent of the gross
receipts of the restaurant during its first year of business will be attributable to the
sale of food.
(3) Each restaurant granted an on-sale intoxicating liquor license under this section
shall attribute at least 50 percent of gross annual receipts from the sale of food.
The calculation for this requirement shall include only the food and beverage
portion of any multi-service establishment. Financial records for the food and
beverage portion must be maintained separately from any other records.
Additionally, "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.
(4) The city 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 city 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.
(5) In addition to other remedies that it may have available, the city may place the
licensee on probationary status for up to one year when the sale of food is
reported, or found to be, less than 50 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 city
may require to increase the sale of food.
(6) The provisions of this section related to food sales shall not apply to any
restaurant having a city on-sale intoxicating liquor license prior to July 1, 1999
and will not affect future renewals of such licenses. The provisions shall also not
apply to new licenses issued for existing restaurants due to sale or transfer of
ownership, unless the restaurant has been closed and without an on-sale
intoxicating liquor license for at least 90 days.
(7) No more than two on-sale intoxicating liquor licenses may be issued to exclusive
liquor stores, and such licenses shall be further subject to the following
requirements:
(i) An on-sale intoxicating liquor license may only be issued to an exclusive
liquor store that offers live entertainment in the form of “experience-based
entertainment,” as that term is defined in section 102-4 of the Hopkins City Code,
during all hours of operation.
(ii) An exclusive liquor store that obtains an on-sale intoxicating liquor license
may only sell intoxicating liquor to paid, ticketed customers while said customers
are participating in the entertainment activity offered by the establishment.
Intoxicating liquor may only be sold to each customer for a successive two-hour
period, although the experience-based entertainment activity may last longer than
that.
(iii) The city may establish a separate fee for on-sale intoxicating liquor
licenses issued to exclusive liquor stores, which shall be subject to any express fee
limitation contained in state law.
(iv) No sale of intoxicating liquor for consumption on the licensed premises of
an exclusive liquor store may be made between 2:00 a.m. and 8:00 a.m. on the
days of Monday through Saturday or after 2:00 a.m. on Sundays.
SECTION 2. Hopkins City Code, Part II, Chapter 4, Article II, Section 4-55 is hereby amended
by adding the double-underlined language as follows:
Sec. 4-55. – License application.
(a) Every application for a license or permit issued under this chapter shall be on a form
provided by the city. The form shall be verified and filed with the city. No person shall
make a false statement on an application.
(b) Every application shall state the name of the applicant, the applicant's age, representations
as to the applicant's character, with references as the city may require, the type of license
applied for, the business in connection with which the proposed license will operate and
its location, a description of the premises, whether the applicant is owner and operator of
the business, how long the applicant has been in that business at that place, the name and
date of birth of the manager of the business, and any other information as the city may
require.
(c) In addition to all other information required by the city, every application shall contain a
description of the premises, including the street address and legal description of the
property, and plans depicting the design of the premises where alcoholic beverages may
be dispensed and consumed. The plans shall show room dimensions and shall indicate the
number of persons intended to be served in each room. An exclusive liquor store seeking
an on-sale intoxicating liquor license pursuant to subsection 4-36(a)(7) must also submit
a business plan that includes a detailed overview of the experience-based entertainment
activities that it provides to its customers.
SECTION 3. Hopkins City Code, Part III, Chapter 102, Article I, Section 102-4 is hereby
amended by adding the double-underlined language as follows:
Experience-Based Entertainment: An establishment offering team or group entertainment
activities such as bocce ball, game shows, escape rooms, painting classes, cooking classes, axe
throwing, and arts and crafts workshops. Experienced-Based Entertainment uses shall not
include commercial recreation, bingo or other forms of charitable gambling, live music, karaoke,
massage therapy, arcade games, video games, hookah lounges, oxygen bars, spas, event centers,
art galleries, or adult-oriented businesses.
SECTION 4. Hopkins City Code, Part III, Chapter 102, Article VII, Section 102-214 is hereby
amended by adding the double-underlined language as follows:
Permitted Uses B-1 B-2 B-3 B-4
Experience-Based Entertainment X
SECTION 5. Hopkins City Code, Appendix A, which contains the City’s fee schedule, is
hereby amended by adding the double-underlined language as follows:
LICENCE FEES
Intoxicating alcohol
On-sale exclusive liquor store $3,000.00 Per year
SECTION 6. In accordance with Section 3.03 of the City Charter and Minn. Stat. § 412.191,
subd. 4, due to the significant length of this Ordinance, City staff shall have the following
summary printed in the official City newspaper in lieu of the complete ordinance:
On August 4, 2020, the Hopkins City Council adopted Ordinance 2020-1147 An
Ordinance Amending Chapters 4 and 102 and Appendix A of the Hopkins City Code
Regarding On-Sale Intoxicating Liquor Licenses and Experience-Based Entertainment.
The purpose of amending the City Code is to allow for experienced-based entertainment
businesses the opportunity receive an On-Sale Exclusive Liquor License.
A printed copy of the ordinance is available for inspection during regular business hours
at Hopkins City Hall and is available online at the City’s web site located at
www.hopkinsmn.com.
SECTION 7. The effective date of this ordinance shall be the date of publication.
First Reading: July 14, 2020
Second Reading: August 4, 2020
Date of Publication: August 13, 2020
Date Ordinance Takes Effect: August 13, 2020
By: ____________________________
Jason Gadd, Mayor
ATTEST:
______________________________
Amy Domeier, City Clerk