5.02 - Applications and Licenses Under this Chapter Procedure and Administration§ 5.00
Section 5.02: Applications and Licenses Under
This Chapter - Procedure and Administration
Subdivision 1. Application
A. Form. Every application for a license issued under this ordinance shall be on
a form provided by the City at least 60 days prior to the projected effective
date. 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, and other
information as the City may require from time to time. An application for an
on -sale intoxicating liquor license shall be in the form prescribed by the
Commissioner of Public Safety and shall also contain the information required
in this Section. The form shall be verified and filed with the City.
B. Financial responsibility. Prior to the issuance of any license under this
ordinance, the applicant shall demonstrate proof of financial responsibility as
defined in Minn. Stat. § 340A.409, as it may be amended from time to time,
with regard to liability under Minn. Stat. § 340A.801, as it may be amended
from time to time. This proof shall be filed with the City and the
Commissioner of Public Safety. Any liability insurance policy filed as proof of
financial responsibility under this section shall conform to Minn. Stat. §
340A.409, as it may be amended from time to time. Operation of a business
which is required to be licensed by this ordinance without having on file with
the City at all times effective proof of financial responsibility is a cause for
revocation of the license.
Subdivision 2. Limitations on Licenses
Off -sale licenses shall be issued only to exclusive liquor stores and drug stores. On -
sale licenses shall be issued to hotels, clubs, restaurants or organizations with the
approval of the Commissioner of Public Safety or congressionally chartered
veterans, provided the organization has been in existence for at least three (3)
years and liquor sale will only be to members and bona fide guests. These
limitations shall not apply to pre-existing licenses.
Subdivision 3. False Statements
It is unlawful for any applicant to intentionally make a false statement or omission
upon any application form. Any false statement in such application, or any willful
omission of any information called for on such application form shall work an
automatic refusal of license, or if already issued, shall render any license issued
pursuant thereto void and of no effect to protect the applicant from prosecution for
violation of this Chapter, or any part thereof.
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Subdivision 4. Investigation
In accordance with the requirements of Minn. Stat. § 340A.402, the City shall
conduct a background and financial investigation on all new application, applications
to transfer a license, and requests for approval of a new operating manager under
this Chapter. The City may conduct a background and financial check on an
application for a renewal of a license if it is in the public interest to do so.
Subdivision S. Action
A. Granting. The Council may approve any application for the period of the
remainder of the then current license year or for the entire ensuing license
year. All applications including proposed license periods must be consistent
with this Chapter. Prior to consideration of any application for a license, the
applicant shall pay the license fee, and if applicable, pay the investigation
fee. Upon rejection of any application for a license, or upon withdrawal of an
application before consideration by the Council, the license fee shall be
refunded to the applicant. Failure to pay any portion of a fee when due shall
be cause for revocation.
B. Issuing. If an application is approved, the City Clerk shall issue a license
pursuant thereto in the form prescribed by the City or the Commissioner, as
the case may be. Except as otherwise specifically provided, all licenses shall
be on a fiscal year basis, July 1 through June 30. For on -sale licenses issued
and which are to become effective other than on the first day of the licensed
year, the full fee shall be paid with the application but may be prorated after
issuance. Licenses shall be valid only at one location and on the premises
therein described. There shall be no prorations for off -sale licenses.
C. Transfer. No license issued under this ordinance may be transferred without
the approval of the Council. Any transfer of stock of a corporate licensee is
deemed to be a transfer of the license, and a transfer of stock without prior
Council approval shall be cause for revocation of the license. An application
to transfer a license shall be treated the same as an application for a new
license, and all of the provisions of this code applying to applications for a
license shall apply.
D. Refusal and Termination. No license shall be issued: 1) to a person of
questionable moral character or business reputation; 2) to a person or
establishment not eligible for a license under state law or this Chapter; 3) For
any establishment upon which sale of alcoholic beverages is prohibited; 4) to
a person that is not eligible to receive a license under state law or ordinance
or to who state law or ordinance prohibits issuing a license. Licenses shall
terminate only by expiration, revocation, or ceasing to do business.
E. Council Discretion to Grant or Deny a License. The Council in its sound
discretion may either grant or deny the application for any license or for the
transfer or renewal of any license. No applicant has a right to a license under
this Chapter.
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F. License Denial: If a license application is denied, the earliest an applicant
may reapply is twelve (12) months from the date the license is denied.
G. Public Interest. No license under this Chapter may be issued, transferred, or
renewed if the results of any investigation show, to the satisfaction of the
Council, that such issuance, transfer, or renewal would not be in the public
interest.
H. Revocation or Suspension. In addition to any criminal penalty provided by
State Statute or this Code, the following civil penalties shall apply to
violations of this Chapter or the conditions of any license issued hereunder:
1. Revocation on the first violation for the following types of offenses:
a. Commission of a felony related to the licensed activity;
b. Sale of alcoholic beverages while license is under suspension.
2. The following matrix applies to these violations:
a. Sale to underage person;
b. Sale after/before hours;
c. Consumption after hours;
d. Illegal gambling, prostitution, adult entertainment on premises;
e. Sale to obviously intoxicated person;
f. Sale of liquor that is not permitted by the license;
g. Licensee permits illegal acts upon the licensed premises;
h. Licensee has knowledge of illegal acts upon the licensed premises, but
failed to report same to police;
i. Licensee fails to cooperate fully with Police in investigating illegal acts
upon licensed premises;
j. Activities of licensee creates a serious danger to public health, safety
or welfare.
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§ 5.00
License Type
11T Violation
2ND Violation
3RD Violation
4T" Violation
On -sale Liquor
$500 plus
$1,000 plus
$2,000 plus
Revocation
1 day
3 days
10 days
suspension
suspension
suspension
Off -sale Liquor
$750
$1,500 plus
$2,000 plus
Revocation
1 day
6 days
suspension
suspension
On -sale 3.2
$350 plus
$700 plus
$1,500 plus
Revocation
percent malt
1 day
3 days
10 days
liquor/wine
suspension
suspension
suspension
Off -sale 3.2
$250 plus
$500 plus
$1,000 plus
Revocation
percent malt
1 day
3 days
10 days
liquor
suspension
suspension
suspension
Violations will be counted over a period of three (3) years.
Any of the foregoing civil penalties may be imposed by an administrative
citation under City Code, Section 2.90, or in the alternative by action of the
Council. If one (1) of the foregoing penalties is imposed by an action of the
Council, no fine, suspension or revocation shall take effect until the licensee
has been afforded an opportunity for a hearing before the Council, a
committee of the Council as may be determined by the Council in action
calling the hearing. Such hearing shall be called by the Council upon written
notice to the licensee served in person or by certified mail not less than
fifteen (15) nor more than thirty (30) days prior to the hearing date, stating
the time, place and purpose thereof. The licensee may agree to such fine,
suspension or revocation imposed by an action of the Council without a
hearing by providing the City Manager or his/her designee with a written
notice of hearing waiver and acceptance of penalty.
In lieu of the civil penalties and license suspensions imposed above, whether
imposed by administrative citation or an action of the Council, the licensee
may choose to surrender the license to sell alcohol for a minimum period of
twelve (12) months from the date of license surrender.
I. Business Applicants and Licensees. A business applicant, at the time of
application, shall furnish the City with a list of all persons that have an
interest of five percent (5%) or more in such business and the extent of such
interest. The list shall name all owners and show the interest held by each,
either individually or beneficially for others. It is the duty of each business
licensee to notify the City Clerk in writing of any change in legal ownership,
or beneficial interest in such business or in such shares. Any change in the
ownership or beneficial interest in the shares entitled to be voted at a
meeting of the shareholders of a corporate licensee, which results in the
change of voting control of the corporation by the persons owning the shares
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therein, or any other change in ownership or control of a corporation, shall
be deemed equivalent to a transfer of the license issued to the corporation,
and any such license shall be revoked thirty (30) days after any such change
in ownership or beneficial interest of shares unless the licensee has notified
the Council of the change in ownership by submitting a new license
application for the new owners, and the Council has approved the transfer of
the license by appropriate action. At any time that an additional investigation
is required because of a change in ownership or control of a business, the
licensee shall pay an additional investigation fee to be determined by the
Council. The Council, or any officer of the City designated by it, may at any
reasonable time examine the transfer records and minute books of any
business licensee to verify and identify the owners, and the Council or its
designated officer may examine the business records of any other licensee to
the extent necessary to disclose the interest which persons other than the
licensee have in the licensed business. The Council may revoke any license
issued upon its determination that a change of ownership of business
licensee or any change of ownership of any interest in the business of any
other licensee has actually resulted in the change of control of the licensed
business so as materially to affect the integrity and character of its
management and its operation, but no such action shall be taken until after a
hearing by the Council on notice to the licensee.
Subdivision 6. Duplicate Licenses
Duplicates of all original licenses under this Chapter may be issued by the City Clerk
without action by the Council, upon licensee's affidavit that the original has been
lost, and upon payment of a fee for issuance of the duplicate. All duplicate licenses
shall be clearly marked DUPLICATE.
Subdivision 7. Posting
All licensees shall conspicuously post their licenses in their places of business.
Subdivision S. Manager or Agent
Before a license is issued under this Chapter, the applicant or applicants shall
appoint in writing a natural person as its manager or agent. Such manager or agent
shall be primarily located in the state of Minnesota and, by the terms of his/her
written consent, (1) take full responsibility for the conduct of the licensed premises,
and, (2) serve as agent for service of notices and other process relating to the
license. Such manager or agent must be a person who, by reason of age, character,
reputation, and other attributes, could qualify individually as a licensee. If such
manager or agent ceases to act in such capacity for the licensee without
appointment of a successor acceptable to the City, the license issued pursuant to
such appointment shall be revoked. The licensee shall notify the City of any change
of manager or agent. The licensee shall provide the City with all information on the
new manager as if licensee was submitting a new application for a license. The City
may conduct an investigation into the new manager or agent and the licensee shall
pay an additional investigation fee to be determined by the City. The City shall
revoke the license if the new manager is determined to be unacceptable to the City
and licensee fails to replace the new manager with a manager acceptable to the
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City. At all times when customers are on licensed premises, there shall also be a
person responsible for the conduct thereon, and, upon inquiry by any peace officer
of an employee, such person's identity shall be immediately made known.
Subdivision 9. Persons Ineligible for License
A. State Law. No license shall be granted to or held by any person made
ineligible for such a license under Minn. Stat. § 340A.402 subd. 1.
B. Operating Officer. No License shall be granted to a business that does not
have an operating officer or manager who is eligible pursuant to the
provisions of this Chapter.
C. Real Party Interest. No license shall be granted to a person who is the spouse
of a person ineligible for a license pursuant to the provision of subsections A
and B of this section or who, in the judgement of the Council, is not the real
party in interest or beneficial owner of the business to be operated, under
the license.
D. Interest Defined. The term interest as used in this section includes any
pecuniary interest in the ownership, operation, management or profits of a
retail liquor establishment, but does not included: bona fide loans; bona fide
fixed sum rental agreements; bona fide open accounts or other obligations
held with or without security arising out of the ordinary and regular course of
business of selling or leasing merchandise, fixtures or supplies to such
establishment; or an interest of less than five percent (5%) in any business
holding a liquor license issued by the City. A person who receives monies
from time to time directly or indirectly from a licensee in the absence of a
bona fide consideration therefore and excluding bona fide gifts or donations,
shall be deemed to have a pecuniary interest in such retailing license. In
determining "bona fide", the reasonable value of the goods or things received
as consideration for the payment by the licensee and all other facts
reasonably tending to prove or disprove the existence of any purposeful
scheme or arrangement to evade the prohibitions of this section shall be
considered.
E. Outstanding Debts. No license shall be granted or renewed for operation on
any premises on which real estate taxes, assessments, or other financial
claims of the City or of the state are due, delinquent, or unpaid. If an action
has been commenced pursuant to the provisions of Minn. Stat. Ch. 278,
questioning the amount or validity of taxes, the Council may, on application
by the licensee, waive strict compliance with this provision; no waiver may
be granted, however, for taxes, or any portion thereof, which remain unpaid
for a period exceeding one year after becoming due unless such one year
period is extended through no fault of the licensee.
F. No license under this Chapter may be issued to:
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1. A person who within five (5) years of the license application has been
convicted of a felony or a willful violation of a Federal or State law, or
local ordinance governing the manufacture, sale, distribution, or
possession for sale or distribution, of alcoholic beverages;
2. A person who has had an intoxicating or 3.2 percent liquor license
revoked within five (5) years of the license application, or to any person
who at the time of the violation owns any interest, whether as a holder of
more than five percent (5%) of the capital stock of a corporate licensee,
as a partner or otherwise, in the premises or in the business conducted
thereon, or to a corporation, partnership, association, enterprise,
business, or firm in which any such person is in any manner interested;
3. A person under the age of twenty-one (21) years; or
4. A person not of good moral character and repute.
Source: Ordinance No. 637, 2nd Series
Effective Date: 5-24-18
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