6.1. SR 02-22-2005
Item # 6. 1 .
MEMORANDUM
TO: Mayor and City Council
FROM: Joan Schmidt, City Clerk
DATE: February 22, 2005
SUBJECT: Tobacco License
Majdi Ahnadien is leasing space at Jackson's Shop at 356 Jackson Avenue and sells tobacco
products. The renewal of Mr. Ahnadien's tobacco license was placed on the council
meeting agenda of December 6, 2004. At that time I made Council aware that a letter had
been sent to Mr. Ahnadien informing him of delinquent taxes and that per Section 26.63 of
the city code, this was grounds for denial of renewal of a tobacco license. However, the
code goes on to say ''the existence rif a1'!Y particular ground for denial does not mean that the ciry must
de1'!Y the license. " .
Mr. Ahnadien was under the impression that the owner of the property was to pay the taxes.
After asking for and seeing a copy of his lease agreement, I made Mr. Ahnadien aware that
the agreement states that "the lessee shall timely pay all real estate taxes. . . . attributable to
the demised premises during the Lease Term."
In December, Mr. Ahnadien requested more time be given so that he could work with the
owner to get these taxes paid. He stated that he did not have this money and could not
afford to close his business. In good faith, I granted a temporary tobacco license with an
expiration date of February 24, 2005, to Mr. Ahnadien.
Mr. Ahnadien talked to me on February 4 stating that Jesse Saddeh, the owner, was out of
the country and due back April 15, 2005. Taxes still have not been paid and Mr. Ahnadien is
requesting a temporary license until April 15, 2005.
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HEALTH AND SANITATION
DMSION 2. LICENSE
Sec. 26-61. Required.
No person shall sell or offer to sell any tobacco,
tobacco products, or tobacco-related devices with-
out first having obtained a license to do so from
the city.
(Code 1982, ~ 708.04)
Sec. 26-62. Application.
An application for a license to sell tobacco,
tobacco products, or tobacco-related devices shall
be made on a form provided by the city. The
application shall contain the full name of the
applicant, the applicant's residential and busi-
ness addresses and telephone numbers, the name
of the business for which the license is sought,
and any additional information the city deems
necessary. Upon receipt of a completed applica-
tion, the city clerk shall forward the application to
the city council for action at its next regularly
scheduled council meeting.
(Code 1982, ~ 708.04(1))
~
Sec. 26-63. Grounds for denial.
The following shall be grounds for denying the
issuance or renewal of a license under this divi-
sion; however, except as may otherwise be pro-
vided by law, the existence of any particular
ground for denial does not mean that the city
must deny tl:ie license. If a license is mistakenly
issued or renewed to a person, it shall be revoked
upon the discovery that the person was ineligible
for the license under this section.
(1) The applicant is under the age of 18 years.
(2) The applicant has been convicted within
the past five years of any violation of a
federal, state or local law, ordinance pro-
vision, or other regulation relating to to-
bacco, tobacco products, or tobacco-re-
lated devices.
(3) The applicant has had a license to sell
tobacco, tobacco products, or tobacco-
related devices revoked within the preced-
ing 12 months of the date of application.
~ 26-67
(4) The applicant fails to provide any infor-
mation required on the application, or
provides false or misleading information.
(5) The applicant is prohibited by federal,
state, or local law, ordinance, or other
regulation, from holding such a license.
Jt(6) Property taxes for the premises for which
the license will be issued are delinquent.
(Code 1982, ~ 708.08)
Sec. 26-64. Action by council; issuance; no-
tice of denial.
The city council may either approve or deny the
license applied for under this division, or it may
delay action for such reasonable period of time as
necessary to complete any investigation of the
application or the applicant it deems necessary. If
the city council shall approve the license, the city
clerk shall issue the license to the applicant. If the
city council denies the license, notice of the denial
shall be given to the applicant along with notice of
the applicant's right to appeal the decision pursu-
ant to the appeal procedures in section 38-35.
(Code 1982, ~ 708.04(2))
Sec. 26-65. Fee.
No license shall be issued under this division
until the appropriate license fee shall be paid in
full. The fee for a license under this division shall
be as established by resolution. For licenses is-
sued and which are to become effective other than
on the first day of the licensing year, the fee to be
paid with the application shall be a pro rata share
of the annual license fee.
(Code 1982, ~ 708.06)
Sec. 26-66. Term.
All licenses issued under this division shall be
valid for one calendar year. All licenses shall
expire on December 31.
(Code 1982, ~ 708.04(3))
Sec. 26-67. Renewal.
The renewal of a license issued under this
division shall be handled in the same manner as
the original application. The issuance of a license
under this division shall be considered a privilege
CD26:7
I
13065 Orono Parkway
Elk River, MN 55330
Decem.ber 27, 2004
Majdi Ahnadien
Jackson's Shop
356 Jackson Avenue
Elk River, Minnesota 55330
Dear Mr. Almadien:
As you are aware, Elk River City Ordinance (Section 26-63) requires your property taxes be
current prior to receiving a license to sell tobacco. The 2004 property taxes for Jackson's
Shop are delinquent in the amount of $3,950.
You recently contacted me regarding this matter and stated there was confusion on who is
responsible for payment of these taxes. You indicated that you are leasing the building and
believed it to be the building owner's responsibility to pay these taxes. Upon reviewing your
lease agreement you realized it is your responsibility to pay the property taxes for tlus parcel. .
Due to your nusunderstandi11.g of tl1.e property tax situation and at your request the city is
willing to grant a temporary tobacco license to expireon February 24, 2005 in order to allow
you time to pay for tl1.e 2004 property taxes.
Your temporary license is included with tlus letter and if you have any furtl1.er questions,
please give me a call at (763) 635-1002.
Sincerely,
Joan Schnudt
City Clerk
Enclosure
cc: Pat Klaers, City Administrator
Jeff Beahe11., Police Cluef
Phone: 763.635.1000
Fax: 763.635.1090
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