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Home My WebLink About[06] Liquor License FeesCITY OW ST. joss PH MEETING DATE: AGENDA ITEM: SUBMITTED BY: Council Agenda Item May 20, 2010 Public Hearing - Requested Action: Approve Fee Amendments Finance BOARD /COMMISSION /COMMITTEE RECOMMENDATION: N/A PREVIOUS COUNCIL ACTION: Council approved the 2010 fee schedule with exception of the liquor licenses to allow time to inform license holders of the fee changes. BACKGROUND INFORMATION: A notice and public hearing is required under State Statutes to increase fees for liquor licensing. License holders were notified of the proposed license fee changes. License holders requested a tiered increase to reduce the burden on their businesses in one year. Staff is proposing a 3 -year tiered rate increase for the liquor fees as shown in the fee attachment. The highlighted lines are the fees where increases are proposed. Further, staff reviewed the City's liquor fees in comparison to the area cities. The comparison is attached to this request along with sample impacts on various license holders. The City has not conducted a public hearing to increase the liquor license fees since 1999. At that time the Council approved a three year plan to increase the license $ 200 per year for three years. The license years affected by the increase were 2000, 2001, 2002. The license fees have not increased since that time. BUDGET /FISCAL IMPACT: ATTACHMENTS: Varies Request for Council Action 6:1 -2 Hearing Notice 6:3 Proposed Tiered Rate Increase 6:4 Area Comparison 6:5 1999 City Council Minutes 6:6 2009 Statutes 6:7 -8 REQUESTED COUNCIL ACTION: Determine the liquor license fee for the license period 2010 - 2011. 6:1 .J,A� \CITY OF ST. JOSEPH W WW. cltyojstjoseph.com Public Hearing Liquor License Fee Increase The St. Joseph City Council will be conducting a public hearing on the proposed Liquor Administrator License Fee schedule for the License years 2010 — 2012 on May 20, 2010 at 7:00 PM in the St. Judy `Veyrens Joseph City Hall. The increase in fees is needed to help offset the cost of alcohol enforcement. The attached schedule provides the proposed increases. Mayor All persons wishing to be heard will be heard and oral testimony will be limited to 5 minutes. Al Bossier Written testimony can be forwarded to the City Administrator, Judy Weyrens, PO Box 668, St. Joseph MN 56374. Councilors Steve Frank Bob Loso Judy Weyrens Administrator Renee Symanietz Dale Vick 2 College Avenue North . PO Box 668 . Saint Joseph, Minnesota 56374 Phone 32 0 .363.7z0i Fax 3z0.363.0342. City of St. Joseph Proposed Liquor Fees - Tiered Rate Increases Proposed 2010 Liquor Fees Proposed Proposed Proposed 2009 rates 2010 rates 2011 rates 2012 rates Int in oxicat : e .............. .... ::: ..... .;..;::............... ................... ................................. ..........................:..:::::::.. . .................. .0...0 ....,;:;. On-Sale $2,300.00 $2550.00 ......;:::: , $2,800 0 $3000 Off -Sale $310.00;:;:;:;:;::;:', $310.00! > $310.00: : :.... $310.00:::::::: Special Club: 0 -200 members $300.00'..'::'.. $300.00............. $300.00;;::::::;; $300.00< 201 -500 members $450.00':: >? "' $475.00 `''' ", $500.00:: €::: €:[:: $500.00::::::: 501 -1000 members $500.00::::':';;:;:; $550.00:' $600.00:::::::::::: $650.00;:::: 1001 -2000 members $650.00:;::::::: >:::', $700.00:;::: : : :: $750.00:::::::::::: $800.00:::::::: 2001 -4000 members $1,000.00 :::::::::::::: $1,000.00:::[;:;:;:;:; $1,000.00:: ;::::::; $1,000.00;:::' 4001 -6000 members $2,000.00:............. $2,000.00:::':::::::: $2,000.00:::::::::::: $2,000.00::... >6000 members ............ $3,000.00:::::::..::: $3,000.00::;..::. :. :.: $3,000.00::::::::::: $3,000.00::: Sunday $200.00 :::::::::::::: $200.00 $200.00:: ::: $200.00::: May Bowle $100.00:' $100.00:::::: €:', $100.00;:..::: $100.00:::::::: Class A Occupancy Inspection . :> ' : ::'::: $150.00::::: $150.00:::;::: Preliminary Investigation: In State $250.00............. $250.00::::;::: $250.00::':: <:': $250.00:::::.. Out State $2,500.00::;:`::::: $2,500.00:;:;:::::::;' $2,500.00 :: S2.500.00...". X. Non- Intoxicatine 3.2 Malt: On -Sale $150.00 ::::::::::::: $200.00:::::::::::: $200.00:::::€ $200.00;::::::: Off -Sale $150.00 '<?. $150.00':':;;.. $150.00' >::::: $150.00:;':: Club Wine $200.00``'':; $225.00 ::::::::::::: $275.00:::;::;::: X. $300.00::;:::: Outside /Temporary Permit $150.00 :::::::::::::: $150.00::::::::: $150.00:::::'' $150.00!:::: Other Liquor Licenses: 2AM Bar Closin g 0 $0.00:.:::;::: Special Event: -500 People :::::: . ::0 $500.0 $500.001;::;: >500 People $750.00:::::::: >:::: $750.00 `' $750.00 <:...:...: $750.00 j.:: City of St. Joseph City Liquor Fees Comparison tn Area Cities Proposed 2O10 Liquor Fees 2010 Rates, except Waite Park St. Joseph-1 Sartell Waite Park-09 Sauk Rapids St. Cloud Intoxicatinx: On-Sale: 0-3000 ��. 2,55000 3,000.00 2,80l0 3,000.00 3,600.00 2,30l0 3001-500 xqjt 2,550l0 3,000.00 2,800.00 3,000.00 4,100.0 2,300.00 >5000 sq.ft. Z'S�.� �O�.� 2'O�.� I00.� �7�.� 2,3�.00 Off-Sale 310.00 150.00 100.00 100.00 200.00 310.00 Special Club: 0-20 members 300.00 300.00 100.00 300.00 300l0 30000 201-500 members 475.00 500.00 100.00 500.00 500.00 450.00 501-1000 members 550.00 650-00 100.00 650.00 650.00 500.00 1001-2000 members 700.00 800.00 100.00 800.00 800.00 650.00 2001-4000 members 1'000.00 1'000.00 100.00 1'000.00 1'000.00 1'000.00 4001-6000 members Z'UOO.00 2'000.00 100.00 J'OOO.DO Z'DDO.DO 2'000.00 >6000 members 3'000.00 3'000.00 100.00 3'000.00 3'000.00 ]'UOD.00 Sunday 280.00 200.00 200.00 200.00 200.00 200.00 Outside Permit 150.00 100.00 200.00 100.00 150.00 Restaurant 3'000.00 Consumption and Display 300.00 Temporary Permit 150.00 20.00 100.00 200.00 100.00 150.00 Class A Occupancy Inspection 150.00 50.00 50.00 150.00 Investigation: In State 250.00 250-00 500.00 500.00 500.00 250.00 Out State 2'500.00 5'000.00 5,000.00 3,500.00 Non-Intoxicatine 3.2 Malt: On-Sale 200.00 150-00 100.00 225.00 200.00 150.00 Off-Sale 150.00 65.00 50.00 100.00 30.00 150.00 Club 75.00 Wine 225.00 200.00 200.00 1'500.00 350.00 200.00 Outside/TemporaryPermit 150.00 20.00 20.00 75.00 30.00 1SO.OD Other Liquor Licenses: 2AK4 Bar Closing Special Event: 0-500 People 500.00 250.00 500.00 >500 People 750.00 250.00 750.00 Page 3672 December 16,1999 City of St. Joseph City Council Meeting 12116199, 7:00 PM 1. Call to Order. Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met on Thursday, December 16, 1999 at 7:00 p.m. in the St. Joseph City Hall. Members Present: Mayor Kenneth J. Hiemenz, Bob Loso, Cory Ehlert, Ken Twit and Mary Niedenfuer, and Clerk - Administrator Cad Schmidt and Deputy Clerk Judy Weyrens. Others Present: Mark Zimmer, Dave Theisen, -Steve Streng, Carol Tamm, Mark Loso, Kyle Schneider and Marts Lambert. 2 Approve Agenda: Loso made a motion to approve the agenda, seconded by EhW, Hiemenz stated that the Franklin Sign Relocation would be removed and discussed at a future- meeting the mofi passed w animously. 3.. 7.00 - Public Hearing — Liquor License Fees — Weyrens reported that some concern has beery expressed regarding the liquor license fees as we are not raising any other fees. Weyrens stated that the City does look at lather fees periodically and does raise them as needed- The liquor license fees-ham not bew, wised hT' at least 14 years- Weyrens progided a chart to the Council detailing the on sale intoxicating liquor license fees in other Cities in the region. She pointed out that St. Joseph appears to below as compared to the other cities. Staff is proposing an increase of $600, from $1700 to $2300. The Council may also want to increase-the feein phases ssuc ras $300, peryearforttre next two years or $200 per year for the next three years. Ehlert thanked Weyrens for including the information- from other communities. He stated that he understands that other communities change a general business license that St. Joseph doesn't charge. He understands that the City can justify the fee because the need for increased police presence that liquor establishments. He stated that despite that, the other businesses in town benefit from street plowing and sweeping. Many of them are renters and probably don't pay into the property tax system at all. Twit stated that these types of fees are often included in the rent that they pay to the owners of the property, so that they are indirectly paying for property taxes. Mark Zimmer, owner of the La Playette, addressed the Council. He stated that it is his opinion that the proposed fee is out of balance with what other communities are charging. In addition, some of these other- communities don't charge the amusement license fee that we change. This amount may be small, but it does amount to something. Zimmer stated that: there is no other business out there that is as regulated as liquor establishments. There are a great deal of other fees that are also a part of this business. Zimmer asked the Council if they were looking at other fees or if the ort sale intoxicating were the only ones that they were changing. Zimmer also stated that he looked at the City budget increases and the largest increase any one City budget will see is 15%. Twit asked what other Cities have amusement licenses and Zimmer stated Waite Park, Sauk Rapids, Sartell and St. Cloud. Zimmer stated that St. Cloud can charge higher pries for their products and get away with it. He also stated that the percentage sales of liquor have been going down as compared with years past. He is also competing with franchises like TGI Fridays and others. Zimmer stated that he also doesn't agree that the police need to spend any more time in his establishment than other businesses. He also thinks there should be a general business fee charged. i Weyrens stated that after speaking with the City Attorney, he has advise s# us that we can't charge a general license fee. Although- there is one City in the area that does (Clearwater), 340A.408, 2009 Minnesota Statutes 2009 Minnesota Statutes 340A.408 RETAIL LICENSE FEES. Page 1 of 2 Subdivision 1. 3.2 percent malt liquor. (a) The license fee for an on -sale and off -sale 3.2 percent malt liquor license is the fee set by the county or city issuing the license. (b) One -half of the license fee received by a county for a retail license to sell 3.2 percent malt liquor within any town in the county shall be paid to the town board where the business is located. Subd. 2. Intoxicating liquor; on -sale. (a) The license fee for a retail on -sale intoxicating liquor license is the fee set by the city or county issuing the license subject to the limitations imposed under this subdivision. The license fee is intended to cover the costs of issuing and inspecting and other directly related costs of enforcement. (b) The annual license fee for an on -sale intoxicating liquor license issued by a municipality to a club must be no greater than: (1) $300 for a club with under 200 members; (2) $500 for a club with between 201 and 500 members; (3) $650 for a club with between 501 and 1,000 members; (4) $800 for a club with between 1,001 and 2,000 members; (5) $1,000 for a club with between 2,001 and 4,000 members; (6) $2,000 for a club with between 4,001 and 6,000 members; or (7) $3,000 for a club with over 6,000 members. (c) The license fee for the issuance of a wine license may not exceed one -half of the license fee charged for an on -sale intoxicating liquor license, or $2,000, whichever is less. (d) The town board of a town in which an on -sale establishment has been licensed by a county may impose an additional license fee on each such establishment in an amount not to exceed 20 percent of the county license fee. Subd. 3. Intoxicating liquor; off -sale. (a) The annual license fee for an off -sale intoxicating liquor license issued by a city, when combined with any occupation tax imposed by the city, may not exceed the following limits: (1) $1,500 for cities of the first class; (2) $560 for cities over 10,000 population located outside of the seven - county metropolitan area other than cities of the first class; (3) $380 for cities over 10,000 population other than cities of the first class or cities described in clause (2); (4) $310 for cities of between 5,000 and 10,000 population; and (5) $240 for cities with less than 5,000 population. (b) The annual license fee for an off -sale intoxicating liquor license issued by a county or town shall https: / /www.revisor.mn.gov /statutes / ?id= 340A.408 4/28/2010 340A.408, 2009 Minnesota Statutes not exceed $800. Page 2 of 2 (c) The fee set by the jurisdiction issuing the license shall be reduced by $100 if the following conditions are met: (1) the licensee agrees to have a private vendor train all employees within 60 days of hire and annually thereafter in laws pertaining to the sale of alcohol, the rules for identification checks, and the responsibilities of establishments serving intoxicating liquors; (2) the licensee agrees to post a policy requiring identification checks for all persons appearing to be 30 years old or less; and (3) a cash award and incentive program is established by the licensee, to award employees who catch underage drinkers, and a penalty program is established to punish employees in the event of a failed compliance check. (d) Population for purposes of this subdivision shall be as determined by the state demographer. Subd. 3a. Fee increases; notice, hearing. No city, town, or county shall increase the fee for a liquor license governed by subdivision 1, 2, or 3, except after notice and hearing on the proposed increase. Notice of the proposed increase must be mailed to all affected licensees at least 30 days before the date set for the hearing. This subdivision supersedes any inconsistent provision of law or charter. Subd. 4. Lake Superior, St. Croix River, and Mississippi River tour boats; common carriers. (a) The annual license fee for licensing of Lake Superior, St. Croix River, and Mississippi River tour boats under section 340A.404, subdivision 8, shall be $1,500. The commissioner shall transmit one -half of this fee to the governing body of the city that is the home port of the tour boat or to the county in which the home port is located if the home port is outside a city. (b) The annual license fee for common carriers licensed under section 340A.407 is: (1) $50 for 3.2 percent malt liquor, and $20 for a duplicate license; and (2) $250 for intoxicating liquor, and $30 for a duplicate license. Subd. 5. Refunds. A pro rata share of an annual license fee for a retail license to sell intoxicating or 3.2 percent malt liquor, either on -sale or off -sale, may be refunded to the licensee or to the licensee's estate if: (1) the business ceases to operate because of destruction or damage; (2) the licensee dies; (3) the business ceases to be lawful for a reason other than a license revocation; or - (4) the licensee ceases to carry on the licensed business under the license. History: 1985 c 305 art 6 s 8; 1987 c 152 art 1 s 1; 1989 c 104 s 1; 1991 c 249 s 11,31; 1992 c 486 s 8; 1992 c 513 art 3 s 59; 1996 c 418 s 7; 2005 c 136 art 8 s 16; 2007 c 89 s 6 https: / /www.revisor.nm.gov /statutes / ?id= 340A.408 4/28/2010 Judy Weyrens From: The Forsythes [bomosubshop @charter.net] Sent: Thursday, May 20, 2010 4:19 PM To: Judy Weyrens Subject: BoDiddley's comments I'm Maureen Forsythe. I co -own BoDiddley's with my husband, John. We question the necessity of raising the 3.2 beer and wine license fees —which are the two licenses we have —if the fee increase is primarily driven by the need to help offset the cost of alcohol enforcement, as the public hearing letter indicates, and if it is deemed appropriate to have our fee structure be in line with the other 3 St. Cloud suburbs — Sartell, Sauk Rapids and Waite Park. As to the cost of alcohol enforcement, to our knowledge there are no incidents in the police records of resources being spent on alcohol related incidents or enforcement at BoDiddley's in the 29 years that we've been in business. We sell 1 keg of beer every 2 -3 weeks. our usage is as an occasional mug of beer with a sandwich. As minimal as our beer sales are, our wine sales are even less. We sell 5 -6 times as much beer as wine. Our total beer and wine sales are between $7 and $8,000 for the entire year —less than 2% of our total sales. So it's not surprising that with such modest in -house consumption that we require zero resources as to alcohol enforcement other than compliance checks. The licensing fee we currently pay for the 2% of our total sales that are beer and wine here in St. Joe is $350. The food licensing fee we pay for the other 98% of our sales is $380. As far as the rates being comparable with the other towns, if you look at the 2010 fees for the 3 surrounding St. Cloud suburbs for 3.2 beer and wine you will see that St. Joe is currently very much in line with those other suburbs. The average of the other 3 suburbs for 3.2 beer is $158. St. Joe's fee is $150. The average fee for wine at the other suburbs is $200, if you throw out Sauk Rapid's fee of $1500. We spoke with Sauk Rapids regarding their rate. They were surprised to hear their rate was so out of line with the other towns. It had never come to their attention because no one has ever applied for a wine license in Sauk Rapids. Apparently, some years back when they created a separate wine license they set the rate at the highest figure the state would allow without checking what surrounding communities were charging. They are going to address this disparity at a future city council meeting. So if you ignore Sauk Rapid's $1500 wine fee —St. Joe's current rate of $200 for a wine license is the same as the other 2 suburbs ( Sartell and Waite Park) at $200 for each city. Some years back, when St. Cloud raised its wine fee to $350, we dropped our wine license at our 25Ath Ave. BoDiddley's store. We suspect that's what will happen here . It's not worth it for the $1200 of wine that we sell each year. It is the wine fee increase that we object to the most —a 50% increase by 2012. We like having wine on the menu, especially for our female patrons as it, along with beer, adds a little pub -like personality to our place and helps distinguish us from the other sandwich shops in the St. Cloud area — mostly chains such as Subway, Quiznos, etc. One further note related to the 3.2 beer and wine licenses. St. Joe is different from all the other surrounding cities including St. Cloud. In those towns restaurants are allowed to sell strong beer with the combination of a 3.2 license and a wine license if your sales are at least 70% food. This allows restaurants to serve some of the domestic, microbrew and import beers that do not come in 3.2 —as most don't. It is an added bonus in the surrounding cities that for the normal cost of a combined wine and beer license, restaurants are able to serve from a much broader selection of beer. Thank you, Maureen Forsythe 1