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HomeMy WebLinkAbout4.F.6. Valleyfair Alcohol License Action im 4. F. 6. SH KO PEE TO: Mayor and City Council FROM: Mark McNeill, City Administrator DATE: 09/17/2013 SUBJECT: Valley Fair Alcohol License Action (F) Introduction To accept the acknowledgment of the violation of the City's alcohol licensing provisions by Valley Fair, and impose a penalty. Background On September 3rd, the City Council heard an appeal from representatives of Valley Fair concerning an alcohol license violation. The infraction occurred during an alcohol sales compliance check held October 6, 2012. A previous violation for Magnum Management Corporation (dba Valley Fair) had occurred June 17, 2010. As such, a single license holder would have been guilty of a second violation within a three-year period which, according to City Code, would result in a $1,500 fine and five-day suspension of alcohol sales. Mr. David Frazier, General Manager of Valley Fair, made note of the fact that Valley Fair actually holds five different licenses throughout the park. He also said that in 2013, the Minnesota Legislature approved a law specific to Valley Fair, which would allow a single alcohol license to be issued park-wide at Valley Fair. However, that single license has not yet been considered, or approved by the City Council. Therefore, he questioned whether the October, 2012 incident was actually a second violation. Upon direction from the City Council, staff subsequently looked at this situation with the City Attorney. It was found that the two infractions listed in this memo were at separate locations in the park, and under separate alcohol licenses. As a result, it was the the opinion of the attorney that each of the licenses must be considered separate, and therefore, the infraction which occurred on October 6, 2012 was actually a first infraction. Therefore, when given this information, Valley Fair has signed an acknowledgment stating their violation for a first-time offense. In accordance with City Code, therefore, the violation hereby imposed would be a $1,000 fine, and a one-day suspension of sales. However, the Code also provides that $500 of the fine, and the one-day suspension will be stayed, if Valley Fair has no subsequent violations within a one-year period of time (expiring October 6, 2013). That is acceptable to Valley Fair management. Valley Fair has then acknowledged the violation of City Code, and will accept the penalty. It should be noted that Valley Fair has been advised that their proposed change to make the park fall under a single liquor license will complicate future violations. Assuming this is enacted (again, conditioned on approval by City Council), if a second violation occurs anywhere within the park under the single license, no alcohol could be sold anywhere in the park for a five day period of time. That is something which is being considered by Valley Fair. Recommendation I recommend that City Council receive the acknowledgment of the first-time violation by Valley Fair, and impose the $1,000 fine and one-day suspension of alcohol sales privileges, with $500 of the fine and the one-day suspension to be stayed for a period of one year, assuming there are no other violations which occur before October 6, 2013. Budget Impact None. Relationship to Visioning This supports Goal F, "Housekeeping item". Requested Action If the Council concurs, it should, by motion, accept the admission of Valley Fair for a first-time alcohol sales violation, and impose a $1,000 fine and sign a suspension of one-day of sales of alcohol privileges, with $500 and the one-day suspension being stayed, if no further violations take place before October 6, 2013. Attachments: I WAIVER AND ADMISSION OF VIOLATION I admit that an unauthorized sale of alcoholic products to a person under the age of 21 occurred at my business, Magnum Management Corporation dba Valleyfair, One Valleyfair Drive, on October I 6, 2012 with final cowl resolution on May 23, 2013. I acknowledge that this violation is the first one in three years at this location. I understand that the penalty for a first violation is a$1,000 fine and a one-day license suspension,I waive my right to have the City Council review this matter and 1 waive my rights to have this matter heard before an independent hearing officer. Dated: 7 f , 2013 Magnum Management Corpo tion Signature Received Date 13/13 Signature