VII.5. Resolution Approving Refunds for On-Sale Liquor License Fees; BishopAugust 4, 2020 Council Report 2020-056
RESOLUTION APPROVING REFUNDS FOR ON-SALE LIQUOR LICENSE FEES
Proposed Action.
Staff recommends that the Council approve the following motion: Motion to Approve Resolution
2020-039 a Resolution Approving Refunds for On-Sale Liquor License Fees.
Overview:
Due to the COVID-19 pandemic, Minnesota Governor Walz has issued several needed executive
orders that have impacted businesses. In recognition of these impacts, on June 2 the City
Council approved refunding three months of license fees for on-sale liquor license holders.
Because on-sale license holders are still experiencing limited sales resulting in significant
revenue loss, staff is proposing the City Council issue another refund of three months of on-sale
liquor license fees.
In May Governor Walz issued an executive order outlining plans for bars and restaurants to open
on June 1 for outdoors services so long as certain conditions, including social distancing, are
maintained to prevent the spread of COVID-19. Staff waived all fees for outdoor sidewalk cafes
or newly created outdoor seating areas. In June, Governor Walz allowed bars, restaurants, and
other public accommodations to provide indoor service with specific requirements in place
including at 50% capacity. Limited off-sale options for to-go orders are permitted for on-sale
intoxicating and the on-sale wine/3.2% malt liquor license holders.
The City of Hopkins licensing year runs from July 1 to June 30. Hopkins currently has licenses
issued in the following license categories:
Type Fee Permitted to sell
On-sale Only:
On-sale Intoxicating/Sunday $7,700 All types of liquor
On-sale Wine & 3.2% malt liquor $1,400 Wine, malt liquor (strong beer, hard seltzer, cider)
On-sale Club/Sunday $700/850* All types of liquor to members
On-sale 3.2% malt liquor $600 Malt liquor sales only
On & Off Sale:
Taprooms $900 Only the products they produce. Fee covers on & off sale
Off Sale Only:
Off-sale Intoxicating $200 Permitted to intoxicating off-sale
* Fee based on number of members and is set by the State.
Primary Issues to Consider:
Financial Impacts
Supporting Information:
Draft Resolution 2020-039
Amy Domeier, City Clerk
Financial Impacts
The refunds are considered targeted financial assistance to business affected by COVID -19 and
will be reimbursed under the Coronavirus Aid, Relief, and Economic Security Act (CARES)
funds received by the City. Estimated financial impacts for a three month refund to 19 licensees
is as follows:
License Type Number issued Three month refund
per license
Total Cost
On-sale Intoxicating 8 $1,926 $15,408
On-sale Wine/3.2% malt liquor 5 $351 $1,755
Club (based on membership) 3 $174 $522
Club (based on membership) 1 $213 $213
On-Sale 3.2% malt liquor 1 $150 $150
Taproom 1 $126 $126
Grand Total $18,174
City Code Sec 4-16 states in part that no license shall be granted or renewed for operation on any
premises on which taxes, assessments, service charges or other financial claims of the city or of
the state are delinquent. Staff recommends that refunds follow this same language related to
delinquent financial claims of the City. In discussion with the Finance Director regarding this
provision, it was noted that the refund amount could be used to offset a portion of the delinquent
financial claims of the City.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLTUION 2020-039
RESOLUTION APPROVING REFUNDS FOR ON-SALE LIQUOR LICENSE FEES
WHEREAS, Novel Coronavirus Disease 2019, commonly known as “COVID-19,” which is a
respiratory disease that can result in serious injury or death, is spreading globally and has been
identified by the World Health Organization (“WHO”) as a pandemic; and
WHEREAS, on March 13, 2020, President Donald Trump declared that the COVID-19 outbreak
in the United States constitutes a National Emergency; and
WHEREAS, on March 13, 2020, Governor Tim Walz declared a Peacetime State of Emergency
to authorize any and all necessary resources to be used in support of the COVID-19 response;
and
WHEREAS, on March 16, 2020, Governor Tim Walz issued Executive Order 20-04 - Providing
for Temporary Closure of Bars, Restaurants, and Other Places of Public Accommodation; and
WHEREAS, on March 16, 2020, the City of Hopkins declared that the COVID-19 pandemic
constitutes a local emergency within the City of Hopkins, effective March 16, 2020, with all the
powers and responsibilities attending thereto as provided in Minn. Stat. Ch. 12, and as otherwise
provided for in the City of Hopkin’s Charter, City Code and Emergency Operations Plan (EOP);
and
WHEREAS, on March 25, 2020, Governor Tim Walz issued Executive Order 20-20 – Directing
Minnesotans to Stay at Home until April 10 unless they are considered an essential employee;
and
WHEREAS, on April 8, 2020, Governor Tim Walz issued Executive Order 20-33 – Extending
the Stay at Home Order and Temporary Closure of Bars, Restaurants, and Other Places of Public
Accommodation until May 4, 2020; and
WHEREAS, on April 30, 2020, Governor Tim Walz issued Executive Order 20-48 – Extending
and Modifying the Stay at Home Order, Continuing Temporary Closure of Bars, Restaurants,
and Other Places of Public Accommodation, and Allowing Additional Workers in Certain
Critical Sectors to Return to Safe Workplaces, 2020; and
WHEREAS, on May 13, 2020, Governor Tim Walz issued executive Order 20-56 – Safely
Reopening Minnesota’s Economy and Ensuring Safe Non-Work Activities during the
COVID_19 Peacetime Emergency extending the closure of bars, restaurants, and other public
accommodations as set forth in Orders 2020-04, 2020-08 and 2020-18 was extended to May 31,
2020 at 11:59 p.m.; and
WHEREAS, on May 27, 2020, Governor Tim Walz issued executive Order 20-63 – Continuing
to Safely Reopening Minnesota’s Economy and Ensuring Safe Non-Work Activities during the
COVID_19 Peacetime Emergency allowing bars, restaurants, and other public accommodations
to provide outdoor service with specific requirements in place including a limit of 50 people; and
WHEREAS, on May 13, 2020, Governor Tim Walz issued executive Order 20-74 – Safely
Reopening Minnesota’s Economy and Ensuring Safe Non-Work Activities during the
COVID_19 Peacetime Emergency extending the closure of bars, restaurants, and other public
accommodations providing any indoor space must not exceed 50 percent of the normal occupant
capacity and additional requirements; and
WHEREAS, due to these needed actions, many businesses have been greatly impacted by a
significant loss of revenue due to the closure; and
WHEREAS, a request has been made to consider refunds of liquor license fees during the time
of closure of bars and restaurants.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, that:
1. Refunds totaling three months of license fees for On-sale intoxicating, Wine/3.2% Malt
Liquor, Club, On-sale 3.2% Malt Liquor, and the On-sale portion of Taproom fees are
hereby approved.
2. Refunds shall not be issued to licensees with delinquent financial claims to the City. The
refund shall be applied to the delinquent financial claims of the licensee to the City.
Adopted by the City Council of the City of Hopkins on this 4th day of August, 2020.
__________________________________
Jason Gadd, Mayor
ATTEST
_______________________________
Amy Domeier, City Clerk