HomeMy WebLinkAbout15.F.3. Liquor License Fee for Outdoor Seating
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Judith S. Cox, City Clerk
SUBJECT: Liquor License Fee for Outdoor Seating
DATE: February 24, 2004
INTRODUCTION:
Council is asked to consider prorating the liquor license fee for outdoor seating.
BACKGROUND:
Mr. Paul Schwaesdall, Pablo's Mexican Restaurant, Inc., has submitted a letter asking
that the City Council consider prorating the liquor license fee for outdoor seating. In his
letter of February 2,2004, Mr. Schwaesdall states that during the past two years he has
been able to use outdoor seating on the average of90 days each year.
In August of2000, Mr. Schwaesdall was granted permission to serve alcohol in proposed
outdoor patio areas. Subsequent to this permission, Mr. Schwaesdall did some
remodeling and expanding of his seating area within the building and constructed the
outdoor patio areas. His liquor license beginning July 1, 2002 allowed for outdoor
seating in the patio areas. His license fee went up at this time due to both the indoor and
patio expansion.
The city's liquor license fees are based upon customer used floor area - excluding such
areas as the kitchen, office, employee lounge, etc. Mr. Schwaesdall's customer used floor
area went from 2,784 sq. ft. to 4,414 sq. ft. (of which 1,290 sq. ft. was for the outdoor
patio areas). His on-sale liquor license fee went from the 2,000-2,999 customer used
floor area range ($S,080) to the 4,000-4,999 customer used floor area range ($6,445).
The.City Council has approved outdoor seating for four on-sale liquor establishments
thus far. In three cases the square footage addition resulted in a fee increase of one range
and in one case it resulted in a fee increase of two ranges, see Exhibit A attached.
Liquor License Fee for Outdoor Seating
February 24, 2004
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Upon reviewing the Association of Metropolitan Municipalities Municipal License &
Permit Fee Survey 2003, it was noted that two other cities charge fees according to the
customer used floor area. Of those two cities, New Brighton adds $650 to the license fee
for outdoor seating and Fridley does not charge an extra fee for outdoor seating.
AL TERNATIVES:
1. Charge an additional license fee for outdoor seating according to customer used floor
area.
2. Charge an additional license fee for outdoor seating according to customer used
floor area, but prorate the charge for four months (May 15 - September 15).
3. Do not charge an extra license fee for outdoor seating.
RECOMMENDATION:
Staff recommends prorating the license fee for outdoor seating thereby charging one-third
of whatever the fee would be for the additional square footage for the outdoor seating.
RECOMMENDED ACTION:
If Council concurs, direct staff to prepare an amendment to the fee schedule to set the on
sale intoxicating liquor license fee for outdoor seating at one-third of whatever the fee
would be for the additional square footage for the outdoor seating.
I:cIerk\Iiquor\Outside dining fee
Pablo's MeXIcan RestaUrant Inc.
230 South Lewis Street
Shakopee,~ 55379
Phone 952-445.9218
(TV ~y ~
February 02, 2004
City Council Members
129 South Holmes Street
Shakopee,~ 55379
SUBJECT: LIQUOR LICENSE FEE FOR PATIO USAGE
The liquor license fee is based on consumption area usage. This is a fair and equitable formula. However, regarding
the patio areas, I feel there is a problem.
I pay approximately $1400.00 yearly for twelve months of usage. In the passed two years I have averaged
approximately 90 days of usage each year due to the cool weather months of October ~ May. I feel that a prorated
fee should apply to the patios.
After the expansion of Pablo's and patio areas, I was assessed approximately $150,000.00. I had no problem with
the assessment.
~~::i9;~S~;:lO~~~UM
!/ .< . ,
Paul E. SchwaesdalI
DBA Pablo's Mexican Restaurant, Inc.
, ,. . .; ,II,!
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EXHIBIT A
Customer Used Customer Used Additional
Floor Area Floor Area Square Footage Fee for
Including Outside Excluding Outside of Outside Dining/ Outside
DiningIDrinking License Fee Dining/Drinking License Fee Drinking DiningIDrinking
Pablo's 4,414 sq. ft. $6,445.00 3,124 sq. ft. $5,765.00 1,290 $ 680.00
Dangerfield's 7,11 0 sq. ft. $8,510.00 5,817 sq. ft. $7,140.00 1,293 $1,370.00
Saba's 4,046 sq. ft. $6,445.00 3,398 sq. ft. $5,765.00 648 $ 680.00
Harwell's 4,053 sq. ft. $6,445.00 3,702 sq. ft. $5,765.00 351 $ 680.00
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II CITY OF SHAKOPEE FEE SCHEDULE - 2004
II Number tiC
11J Annual fee for On Sale Liquor License: Licenses
Issued
I Customer Used Floor Area
Under 1,000 $3,705.00 -I
1,000 - 1,999 $4,390.00 -/
II 2,000 - 2,999 $5,080.00 -I
3,000 - 3,999 $5,765.00 ...;J/
4,000 - 4,999 $6,445.00 -11/
5,000 - 5,999 $7,140.00 -iJ
I 6,000 - 6,999 $7,820.00
7,000 - 7,999 $8,510.00 -I
._. . .... ....__8.,.0_00...:._8.,.9_9.9___. _......__.. _._.___. .._._.. _..... _..... ...._. . ..._._ .._ .. "__. .__ _.. __ ....___. .___...... ......... _ ... ..... ._ .. _._"._$~J~9.&Q_ ...
II 9,000 - 9,999 $9,875.00
Over 10,000 $10,570.00 -1/
I Peddlers (Authorized by City Code 6.21) . -
1J Weekly License Fee $40.00 .
2J Annual License Fee $160.00
I 3] Six Month License Fee $105.00
Taxicabs and Drivers (Authorized by City Code 6.22)
1] Annual fee for taxicab license $275.00
I 2J . Annual fee for taxicab driver's license $35.00
3J Annual fee for each vehicle $16.00
4J Initial license requires one time investigation fee
I a. Taxicab license $150.00
b. Taxicab driver's license $100.00
I Tobacco (Authorized by City Code 6.23)
1] Annual fee for Tobacco License $175.00
2] Initial license requires one time investigation fee $150.00
I Show, Non-Transient Theme Parks, Amusement Parks, etc.
(Authorized by City Code 6.24)
1] Annual license fee equaling the number of rides $50.00/ride
I x $50.00
2] Show without rides $80.00
3J Non-Transient Theme Parks As per agreement
I Outdoor Performance Center (Authorized by City Code 6.248)
1) Annual license fee $520.00
I Massage Cenler (Authorized by City Code 6.40) 1
1 J Annual License Fee tJ~ (oN5 ~ YZ
I (Includes one massage therapist) $150.00
2] Initialllconse requires one time Investigation leej }..IC 'C'f\fS !IVG-> $150.00
3] Investigation fee for each new employee $100.00
I Massage Therapist License Fee . IVD ~ 0 N ~ F ifZ
(Authorized by City Code 6.41 ) j{~ f/VS/NG
1J Annual registration fee $110.00
I 2J Investigation fee $100.00
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