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HomeMy WebLinkAbout4.F.6. Amend Chapter 5: Liquor, Beer and wine licensing Requirements - Ord. Nos. 891 & 892 Consent Business 4. F. 6. SHAKOPE E TO: Mayor and City Council Mark McNeill, City Administrator FROM: Lori Hensen, Deputy City Clerk DATE: 09/16/2014 SUBJECT: Amend Chapter 5: Liquor, Beer and Wine Licensing Requirements - Ord. Nos. 891 & 892 (F) Action Sought Council is asked to approve the proposed changes to Chapter 5 of the City Code. Background Mr. Broc Krekelberg of Badger Hill Brewery contacted the City Clerk's office requesting specific information as to the licensing requirements for a taproom and small brewery operation. City staff contacted the Department of Public Safety -Alcohol Division for direction in this area as this is the first brewery license request directed to the City of Shakopee. Staff has contacted and worked with the City Attorney in regards to updating the existing City ordinance. The City Code will now include specific language regarding liquor licensing to include Taprooms and Small Brewer sites. Staff has created the applications and the City Attorney has supplied us with an ordinance updating Chapter 5 of the City Code. Recommendation Staff recommends approval of the proposed Ordinance Number 891 and the Summary Ordinance Number 892. Budget Impact None Relationship to Vision Goal F: Housekeeping Requested Action Approve Ordinance No. 891 Amending Shakopee City Code Chapter 5 Regarding Taproom and Small Brewer Regulations and Ordinance No. 892 the Official Summary of Ordinance No. 891 Attachments: Ord. 891 Ord. 892- Summary of Ord.No. 891 ORDINANCE NO. 891 AN ORDINANCE OF THE CITY OF SHAKOPEE AMENDING SHAKOPEE CITY CODE CHAPTER 5,REGARDING TAPROOM AND SMALL BREWER REGULATIONS THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA, ORDAINS: Section 1. Section 5.01 of the Shakopee City Code is amended to read: SEC. 5.01. DEFINITIONS As used in this Chapter, unless otherwise stated in specific sections, the following words and terms shall have the meanings stated: 1. "Alcoholic Beverage" means any beverage containing more than one-half(1/2) of 1% alcohol by volume, including, but not limited to, 3.2 percent malt liquor, wine, and liquor as defined in this Section. 2. "Applicant" means any person making an application for a license under this Chapter. 3. "Application" means a form with blanks or spaces thereon, to be filled in and completed by the applicant as a request for a license, furnished by the City and uniformly required as a prerequisite to the consideration of the issuance of a license for business. 4. "3.2 Percent Malt Liquor" means malt liquor containing not less than one-half(1/2)of 1% alcohol by volume nor more than 3.2% alcohol by weight. (This definition includes so-called "malt coolers" with the alcoholic content limits stated herein. 5. "Brewer" means a person who manufactures 3.2 percent malt liquor for sale. 6. "Brewery" means a manufacturer of malt liquor for sale. 6,7. "Club" means in incorporated organization organized under the laws of the State for civic, fraternal, social, or business purposes, for intellectual improvement, of for the promotion of sports, or a congressionally chartered veterans' organization which: (1) has more than thirty(30) members; (2) has owned or rented a building or space in a building for more than one(1) year that is suitable and adequate for the accommodation of its members; (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. 7.8. "Commissioner" means the Minnesota Commissioner of Public Safety. &9. "Exclusive Liquor Store" means an establishment used exclusively for the sale of liquor except for the incidental sale of ice, tobacco, 3.2 percent malt liquor, beverages for mixing with liquor, and soft drinks may also be sold, and the establishment may offer recorded or live entertainment and make available coin-operated amusement devices. "Exclusive liquor store" also includes an on-sale or combination on-sale and off-sale liquor establishment which sells food for on- premises consumption when authorized by the City. 1 9,10. "Hotel" means an establishment where food and lodging are regularly furnished to transients and which has: (1) a resident proprietor or manager; (2)a dining room serving the general public at tables and having facilities for seating at least thirty(30) guests at one (1)time; and (3) at least twenty-five (25)guest rooms. 411. "License" means a document, issued by the City, to an applicant permitting the applicant to carry on and transact the business stated therein. 44:12. "Licensee" means an applicant who, pursuant to an approved application, holds a valid, current, unexpired license, which has neither been revoked nor is then under suspension, from the City for carrying on the business stated therein. 413. "License Fee" means the money paid to the City pursuant to an application and prior to issuance of a license to transact and carry on the business stated therein. 13.14. "Licensed Premises" means the premises described in the issued licensed. 44:15. "Liquor" means ethyl alcohol and distilled, fermented, spirituous, vinous and malt beverages containing in excess of 3.2%of alcohol by weight. (This definition includes so-called "wine coolers" and "malt coolers"with the alcoholic content limits stated herein.) 416. "Malt Liquor" means any 3.2 percent malt liquor, ale, or other beverage made form malt by fermentation and containing not less than one-half(1/2) of 1% alcohol by volume. 417. "Manufacturer" means every person who, by any process of manufacture, fermenting, brewing, distilling, refining, rectifying, blending, or by the combination of different materials, prepares or produces alcoholic beverages for sale. 418. "Minor" means any natural person who has not attained the age of nineteen (19)years; provided, that after September 1, 1980, the term means any natural person who either(1) has not attained the age of twenty-one (21) years, or(2)was born after September 1, 1967. 4419. "Off-Sale" means the sale of alcoholic beverages in original packages for consumption off the licensed premises only. 420. "On-Sale" means the sale of alcoholic beverages for consumption on the licensed premises only. 221. "Package" and "Original Package" mean any container or receptacle holding alcoholic beverages, which container or receptacle is corked, capped or sealed by a manufacturer or wholesaler. 24,22. "Restaurant" means an establishment other than a hotel under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity of not less than thirty(30) guests at one (1)time. 22,23. "Sale", "Sell" and "Sold" means all barters and all manners or means of furnishing alcoholic beverages to person, including such furnishing in violation or evasion of law. 224. "Taproom" means a licensed premises within or adjacent to a brewery that offers on-sale purchase and consumption of malt liquor from the brewery and retail sales of related merchandise pursuant to the requirements of Minnesota Statutes Section 340A.301, Subdivisions 6b and 6d, and the City Code. 24.25. "Wholesaler" means any person engaged in the business of selling alcoholic beverages to a licensee form a stock maintained in a warehouse. 2 25,26. "Wine" means a beverage made without rectification or fortification by the fermentation of sound ripe grapes, grape juice, other fruits, or honey, and also carbonated wine, wine made from condensed grape must, wine made from other agricultural products, imitation wine, compounds sold as wine, vermouth, cider, perry and sake, containing not less than on-half(1/2) of 1% nor more than 14% alcohol by volume. (This definition includes so-called "wine cooler"with the alcoholic content limits stated herein.) Section 2. Section 5.06 of the Shakopee City Code is amended to read: SEC. 5.06. FIXING LICENSE FEES. All license fees provided for in this Chapter, including but not by way of limitation, license fees for on-sale and off-sale of 3.2 percent malt liquor, temporary on-sale of 3.2 percent malt liquor, on-sale and off-sale of liquor, on-sale of liquor by clubs, on-sale wine, brewer taproom license, small brewer license, and consumption and display of liquor, shall be fixed and determined by the Council, adopted by resolution, and uniformly enforced. Such license fees may, from time to time, be amended by the Council by resolution. A copy of the resolution setting froth currently effective license fees shall be kept on file in the office of the City Administrator, and open to inspection during regular business hours. Section 3. Section 5.09, Subd. 1 of the Shakopee City Code is amended to read: SEC. 5.09. FINANCIAL RESPONSIBILITY OF LICENSEES. Subd. 1. Proof. No 3.2 percent malt liquor, wine,or-liquor, brewer taproom, or small brewer license shall be issued or renewed unless and until the applicant has provided proof of financial responsibility imposed by Minnesota Statues by filing: A. Evidence of financial responsibility as required by State law is furnished by filing a liability insurance policy, a certificate of such insurance or a binder for such coverage in the form and in the amount and conditioned all as required by Minnesota Statutes, Section 340A.409, Subdivision 1 (1) in force and effect at the time of filing the license application. B. A bond of a surety company with minimum coverages as provided in Subparagraph A of this Subdivision; or, C. A certificate of the State Treasurer that the licensee has deposited with the State Treasurer$100,000.00 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of$100,000.00. Section 4. Section 5.32, Subd. 4 of the Shakopee City Code is amended to read: SEC. 5.32 LIQUOR LICENSE RESTRICTIONS, REGULATIONS AND UNLAWFUL ACTS. Subd.4. Persons Disqualified. A. No license under this Chapter may be issued to(1)a person under 21 years of age; (2)a person who within five(5) years of the license application has been convicted of 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; (3) a person who has had an alcoholic beverage 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 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; or, (4) a person not of good moral character and repute. 3 B. No person holding a license from the Commissioner as a manufacturer, brewer, or wholesaler may have any ownership, in whole or in part, in a business holding an alcoholic beverage license from the City except taproom or small brewer licensees authorized by Minnesota Statutes Section 340A.301, Subdivisions 6b and 6d and City Code Sections 5.41 and 5.42. Section 5. The Shakopee City Code, Chapter 5 is amended by adding a section to read: SEC. 5.41 BREWER TAPROOM LICENSE. Subd. 1. License Required. It is unlawful for the owner of any brewery to operate a taproom that offers on-sale consumption of the malt liquor produced by the brewery without a brewer taproom license issued by the City. Subd. 2. Brewer Taproom License Restrictions. A. A brewer may only have one taproom license issued by the City, and may not have an ownership interest in a brewery licensed under Minnesota Statutes Section 340A.301, Subdivision 6, Clause (d). B. A brewer taproom license will not be issued to a brewer if the brewer seeking the license or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 250,000 barrels of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually. C. All provisions of Chapter 340A that apply to a retail liquor license shall apply to a brewer taproom license, unless the provision is inconsistent with Minnesota Statutes Section 340A.301, Subdivision 6b. D. It is unlawful for a brewer taproom licensee, or an employee of a licensee to sell malt liquor on any day, or during any hour, when sales of liquor are not permitted by Minnesota Statutes. Subd. 3. Sunday Sales. A. A taproom licensed under this Section may be open and may conduct on-sale business on Sundays. Section 6. The Shakopee City Code Chapter 5 is amended by adding a section to read: SEC. 5.42 SMALL BREWER LICENSE. Subd. 1. License Required. It is unlawful for a brewer to offer for off-sale purchase, malt liquor that has been produced and packaged by the brewer at the brewery premises without a small brewer license issued by the City. Subd. 2. Small Brewer License Restrictions. A. The amount of malt liquor sold at off-sale for purchase may not exceed 500 barrels annually. B. Off-sale malt liquor sold at off-sale shall be limited to the legal hours for off-sale at exclusive liquor stores in the City, and the malt liquor sold off-sale must be removed from 4 the premises before the applicable off-sale closing time at exclusive liquor stores. C. The malt liquor sold off-sale shall be packed in 64-ounce containers commonly known as "growlers"or in 750 milliliter bottles. The containers shall bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip or sleep shall be applied to the container or bottle and extended over the top of the twist-type enclosure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as male liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100, as amended from time to time. D. A brewer may, but is not required to, refill any growler with malt liquor for off-sale at the request of a customer.A brewer refilling a growler must do so at its licensed premises and the growler must be filled at the tap at the time of sale.A growler refilled under this subparagraph must be sealed and labeled in the manner described in Subparagraph (C) of this Subdivision. E. A brewer may only have one small brewer license issued by the City. F. A small brewer license will not be issued to a brewer if the brewer seeking the license or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 20,000 barrels of its own brand of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually. G. It is unlawful for a small brewer licensee, or an employee of a licensee to sell malt liquor on any day, or during any hour, when sales of liquor are not permitted by Minnesota Statutes. Section 7. Effective Date. This ordinance becomes effective from and after its passage and publication. Passed in regular session of the City Council of the City of Shakopee, Minnesota held this 16th Day of September, 2014. Mayor of the City of Shakopee Attest: City Clerk (New language is indicated by underlining and deleted language is indicated by strikethroughp) Published in the Shakopee Valley News on the 25th day of September, 2014 5 Official Summary of Ordinance No. 891 The following is the official summary of Ordinance No. 891, Approved by the City Council of the City of Shakopee, Minnesota on September 16,2014 ORDINANCE NO. 892, AN ORDINANCE OF THE CITY OF SHAKOPEE,MINNESOTA AMENDING CITY CODE CHAPTER 5,REGARDING TAPROOM AND SMALL BREWER REGULATIONS 1. The Ordinance amends Chapter 5 of the City Code by adding brewer taproom and small brewer licenses, and providing restrictions and requirements related to on-sale purchase and consumption at taprooms, and off-sale purchases of malt liquor from brewery premises. 2. The Ordinance also amends existing provisions in Chapter 5 to include the licenses in license fees, financial responsibility, and general liquor license regulation. A printed copy of the ordinance is available for inspection by any person at the office of the City Clerk and at the Shakopee Library. 1