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10.1. SR 01-02-2018 EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 10.1 Agenda Section Meeting Date Prepared by Work Session January 2, 2018 Tina Allard, City Clerk Item Description Reviewed by Food Trucks Cal Portner, City Administrator Reviewed by Action Requested Discussion on food tuck ordinance. Background/Discussion Council met on November 20, 2017, to gauge interest in allowing food trucks in the city. At the meeting, Council directed staff to send a survey to downtown restaurants in order to get feedback regarding trucks in the downtown district. Surveys received back are attached. Financial Impact None Attachments ■ Surveys ■ Map: Where trucks allowed Downtown ■ Map: Public/private lots Downtown ■ Draft Ordinance ■ November 20, 2017, Staff Report The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 Have you patronized a food truck? ❑ Yes No If so, how was your experience? Food Truck Survey Daddy O"s�CafeJ 6 ?m-'/ 2. How many food trucks have you patronized? 3. Are you in favor of creating opportunities for food trucks in the City of Elk River? ❑ Yes W No ❑ Unsure What opportunities can you envision? 4. If food trucks are allowed downtown, should there be a limit on the number allowed? Yes ❑ No Explain why you feel this way. S. Do you think food trucks have potential to draw patrons to the area who may return to other restaurants or businesses in the future? How do you feel about this? Qn 6. What concerns do you have with allowing food trucks? F] 9. Downtown restaurants can be busy and difficult to get into during special events, such as the summer concerts, how do you feel about allowing food trucks during special events? A , . . . The new taproom, Aegir, is interested in having food trucks to complement their business. Do yyoouu feel there are opportunities to support them with food trucks? Any other comments you would like to share regarding food trucks? U t 4- r+ -%GiC i'!�_ �Q6ASxyiesl-� 1. Have ou patronized a food truck? Yes ❑ No 2. Food Truck Survey Diamond City Bread How many food trucks have you patronized? 3. Are you in favor of creating opportunities for food trucks in the City of Elk River? ❑ Yes ❑ No Er Unsure What opportunities can you envision? f j� / y ��tvi43' I 7f�e eft✓n`/ov n c ? c Cs 4�0 1004- 4. If food trucks are allowed downtown, should there be a limit on the number allowed? 9 -Yes ❑ No why you feel this way. 5. Do you think food trucks have potential to draw patrons to the area who may return to other restaurants or businesses in the future? How do you feel about this? /I 6. What concerns do you have with allowing food trucks? 1 /4 1iC4,( o-Qz bJoLd T#y �Fr e, Downtown restaurants can be busy and difficult to get into during special events, such as the summer concerts, how do you feel about allowing food trucks during special events? 8. The new taproom, Aegir, is interested in having food trucks to complement their business. Do you feel there are opportunities to support them with food trucks? 9. Any other comments you would like to share regarding food trucks? ver 1. Have you patronized a food truck? ❑ Yes QIL No If so, how was your experience? McCoy's Pub Food Truck Survey DEC 12 lot? 2. How many food trucks have you patronized? 3. B 5. 6. Are you in favor of creating opportunities for food trucks in the City of Elk River? ❑ Yes ❑ No A Unsure What opportunities can you envision? If food trucks are allowed downtown, should there be a limit on the number allowed? ® Yes ❑ No Exp' why you 1 this way. L Do you think food trucks have potential to draw patrons to the area who may return to 7. Downtown restaurants can be busy and difficult to get into during special events, such as the summer concerts, how do you feel about allowing food trucks during special events? 8. The new taproom, Aegir, is interested in having food trucks to complement their business. Do you feel there are opportunities to support them with food trucks? 9. 1. Have you patronized a food truck? Food Truck Survey Olde Main Eatery ❑ Yes No DEC 2 ® 261P If so, how was your experience? 2. How many food trucks have you patronized? 3. Are you in favor of creating opportunities for food trucks in the City of Elk River? ❑ Yes N No ❑ Unsure What y11portunities can you envision? No . . 4. If food trucks are allowed downtown, should there be a limit on the number allowed? 0 Yes ❑ No Ex lain w o feel s way. II ah61� j (�� j �i 7 CA- C-6tr 1 I Vo 5. Do you think food trucks have potential to draw patrons to the area who may return to other restaurants or businesses in the future? How do you feel about this? 31 Downtown restaurants can be busy and difficult to get into during special events, such as the syrmner concerts, how do you feel a�yu�-4ing food trucks during special events? 8. The new taproom, Aegir, is interested in having food trucks to complement their business. 9. Any other comments you would like to share regarding food trucks? December 18, 2017 DcC ' 8 Food Truck Survey- Elk River Responses by Frank and Jody Galli, owners of Pompeii Pizzeria 1. Yes, varied experiences in terms of quality and value. 2. Many experiences including a food truck festival at Mystic Lake Casino, Lupulin Tap Room in Big Lake, Indeed Brewing Mpls, Jody used to work in downtown Mpls with food trucks available. 3. We are NOT in favor of food trucks in Elk River. 4. We are NOT in favor of food trucks in DOWNTOWN Elk River. Food Trucks take business from locally owned and operated NON FRANCHISE businesses. These businesses are a huge ASSET to the local community. Efforts should be made to preserve this local asset. When your family and friends visit from out of town, its nice to have a locally owned restaurant to show them. Especially 7 days a week and 359+ days a year. 5. Food trucks are mobile and so are their customers. 6. Elk River has so few NON FRANCHISE restaurants. Food trucks wont help them. It is much harder to attract independent restaurants to Elk River than food trucks. 7. The primary special events in downtown Elk River are the Thursday Night Concert Series and the Thursday Farmers Market. Both events are enhanced by parking for their patrons. The farmers market occupies the public lot with booths and exhibitor parking. The farmers market set up starts by noon and teardown goes until 730 PM. Limited parking has a negative affect on our restaurant during the farmers market. Food Trucks in downtown Elk River during the farmers market would only compound a difficult parking situation. 8. We think Aegir is a great addition to downtown Elk River. Tap rooms are typically located in an industrial area like Lupulin in Big Lake, without restaurants in close proximity. If Aegir's success was dependent on food trucks, why did they locate in downtown Elk River with 5 existing long term restaurants? Does Aegir dislike the current downtown Elk River restaurants? I think it would be SAD to see a food truck parked between the Sunshine Depot and Daddios, or any where in downtown Elk River. Lets patronize the restaurants that got us here, not park food trucks in front of them. The local restaurant serves the community all year long. 9. The Thursday night concert series is a focal point for the community. The concerts showcase Elk River to the world, like no other local event. We believe that local restaurants, not food trucks, should share that focus. Thank You for asking for our opinion, Frank and Jody Galli, Pompeii Pizzeria Cc: Mayor John Dietz over 1. Have y patronized a food truck? Yes ❑ No If so, how was your exp Hence? i_7� s C` 2. How many fo�d truzave you p 9�1 Food Truck Survey Sunshine Depot Are you in favor of creating opportunities for food trucks in the City of Elk River? ❑ Yes No ❑ Unsure OW 4. If food trucks are allowed downtown, should there be a limit on the number allowed? 4 Yes i1 ej ❑ No 5. 6. Explain why you feel i*,a_ 11-e e S J�Oi- Do you think food trucks have potential to draw patrons to the area who may return to other restaurants or businesses in the future? How do you feel about this? concerns do you 7. Downtown restaurants can be busy and difficult to get into during special events, such as the summer concerts, how do you feel about allowing food trucks during special events? 8. The new taproom, Aegir, is interested in having food trucks to complement their business. Do you fethere are opportunities to sup ort them with f trucks? 9. Any other comments you would like to share regarding food trucks? UM _ "c;s 6V\C\- T-0 (:br C Loi - 5 , oo' hS 5 P� , r CZN C(O-n C4-9 C COY- rz -S� LrOCYTGrN r ��" • t — IC At < - - L_ f art, r' ! �s < d \ R d + j 1. ni `� ,• `'meq_ �`,P jyP }Jy��' VISO M? M. CE) T w k n— Zt i � x ti N �+} IJ 3/Ib'!-ISI21�ftic o y S't R tt9 � l(N 4 t O N N R A t h O � p� '4 �f3 4 1 f`- O O N G C 4 10 O xa srr � 4 R � A � O R v n o m A Yo � � q A S � C it — �, � • --- rte'. Y - CL v, �� d d Article VIII. - Peddlers, Solicitors, And Transient Merchants, and Mobile Food Units Division 1. - Generally Sec. 38-381. - Definitions. The following words, terms and phrases,when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Mobile Food Unit means a self-contained food service operation,located in a readily movable motorized wheeled or towed vehicle that is readily movable without disassembling and that is used to store,prepare, display, or serve food intended for individual portion service; or (2) a mobile food unit as defined in Minnesota Statutes Section 157.15, subdivision 9. Nonprofit means an organization that currently has tax-exempt status from either the state or federal government and provides written evidence of that status. Occupant means a person owning,living, staying, or working at a residence,including a guest. Peddler means any person with no fixed place of business dealing in the city who travels around from place to place, or street to street, carrying or transporting goods, or soliciting for all manner of wares, services and merchandise, offering such wares, service or merchandise for sale or making sales and delivering articles to purchasers. Solicitor means any person who goes from place to place and/or house to house soliciting or taking or attempting to take orders for the purchase of any food,wares or merchandise,including magazines,books,periodicals or personal property of any nature whatsoever for delivery in the future, or orders for the performance of a service in or about the home or place of business, such as furnace cleaning, roof repair or blacktopping. Transient merchant means any person,whether as principal, employee or agent,who engages in, does, or transacts any temporary or transient business in the city, either in one locality or traveling from place to place in the city, selling goods,wares,and merchandise, and who, for the purposes of carrying on such business, hires,leases, occupies or uses a building, structure,vehicle, property, or other place for the exhibition and sale of such goods,wares, and merchandise. Sec. 38-382. - Purpose of article. The purpose of this article is to protect citizens by imposing reasonable regulations on peddlers, solicitors,aftd transient merchants, and mobile food units who by the very nature of their operation may intrude upon the rights and privacy of other citizens and have a deleterious effect upon the public health, safety, and welfare. so as to prevent indi-v4duals who may be engaged in unlaw merchants.ffom posing as legitimate peddlers, solicitors, and "ansient The intent of this Chapter is to establish a uniform set of rules and regulations that are fair and equitable, and to develop a system for accommodating those businesses that will enhance the overall appearance and environment along public streets,pedestrian walkway, and other public properties. Sec. 38-383. - Exemptions. All persons engaged in the business activities described in this section shall comply with the provisions of section 38-414(c). The following business activities shall be exempt from the Page 1 requirements of this article. The city clerk shall determine if a business activity falls within these exemptions, subject to appeal to the city council. (1) Doing business by appointment. A bona fide appointment is one that is not merely obtained by going door-to-door in conjunction with the taking of orders, offering for sale or selling. (2) Solicitation of orders for future door-to-door delivery of newspapers. (3) Nonprofit groups that register with the city clerk. No fee is required to so register. This exemption does not include individuals who are paid to engage in peddling, soliciting, or transient merchant business. (4) Selling goods to retail or wholesale stores or to professional or industrial establishments for retail re-sale only. (5) Selling or peddling the products of the farm or garden grown and cultivated by such person,but such activities must comply with applicable health regulations. (6) All vendors involved in the following community events: Fourth of July Celebration, Community Festival, Sherburne County Fair, Business Expo, and any other community event the city council deems exempt. (7) Garage sales,rummage sales, and craft sales. (8) Establishing a regular customer delivery route for the delivery of perishable food and dairy products such as baked goods,milk, and groceries. (9) Selling goods or admissions to events by K12 students where the proceeds of such sales benefit a program or activity in which the student is involved. (10)Mobile Food Units listed as part of a special event permit issued by the city. The terms of the special event permit shall apply. (11)Mobile Food Units contracted by residential property owners for private parties where food is not sold to guests or any other members of the public. This exclusion does not include institutional uses in the residential zoning district where mobile food units are contracted to provide food for a public event. (12) Mobile Food Units as part of a school sanctioned events on school property. Sec. 38-384. - Duties of police. It shall be the duty of any police officer of the city to require any person seen operating a mobile food unit, or soliciting, peddling, or engaging in like activities, and who is not known to such officer to be duly licensed, to produce his city issued license and a driver's license or state identification card. It shall be the duty of any police officer to enforce the provisions of this article or any other law. Sec. 38-385. - Exclusion by placard. (a) Any resident of the city who wishes to exclude peddlers or solicitors from premises occupied by the resident may place upon or near the usual entrance to such premises a printed placard or Page 2 sign bearing the following notice: "Peddlers and Solicitors Prohibited." Such placard shall be at least 3�/2 inches long and 3�/2 inches wide and the printing thereon shall not be smaller than 49- point type. No peddler or solicitor,including those exempt from license requirements as provided in section 38-383 of this Code, shall enter in or upon any premises, or attempt to enter in or upon any premises,where such a placard or sign is placed and maintained. (b) Violation of this section shall result in the revocation of a duly issued license. Division 2. - License Sec. 38-411. - Required. It shall be unlawful for any person to engage in the activity of peddling, soliciting,Of transient, or mobile food selling without first having obtained a license in compliance with the provisions of this division. A separate license shall be secured for each individual person engaged as a peddler, solicitor, or transient merchant. Each mobile food unit requires a separate license. Sec. 38-412. - Application. The application for the license provided for in this division shall be made to the city clerk by filing the annual license fee and by completing an application form as provided by the city clerk. In addition to such information as the city clerk may require, the application shall include: (1) The name of the applicant and all persons associated in business in the city. (2) The permanent home address and full local address of the applicant, and the permanent and local telephone numbers of the applicant. (3) A brief written description of the nature of the business, the goods to be sold, and the applicant's method of operation. (4) Credentials from the person for which the applicant proposes to do business, authorizing the applicant to act as such representative. (5) For peddlers, solicitors and transient merchant activities, i. the-Ddates the applicant intends to do business in the city. ii. The location where the goods or property proposed to be sold, or orders taken for the sale thereof,is manufactured or produced,where such goods or products are located at the time the application is filed, and the proposed method of delivery. iii. Permission for the city to take a photo of applicant in order to create a city issued license. (6) A statement as to whether or not the applicant and the person managing the business has been convicted of any crime,misdemeanor or violation of any city, state, or federal law, involving activities licensed under this article, the nature of the offense and the punishment or penalty assessed therefor. (7) If a vehicle is to be used, a description of the vehicle, together with the license number or other means of identification. Page 3 (8) A copy of all documents to be used by the applicant, such as pamphlets and brochures. (9) For transient merchants, the addresses of all places where the business is to be located, along with written consent of the owners or occupants. (10) The last three cities or other localities where the applicant conducted the proposed activity immediately preceding the date of the application. Sec. 38-413. - Investigation; granting, denial, or revocation. (a) All license applications under this division shall be made to the office of the city clerk and referred to the chief of police and such other municipal departments or offices as the city clerk deems necessary for verification and investigation of the facts set forth in the application. The chief of police and other department heads or officers consulted shall submit their reports and recommendations to the city clerk who shall determine whether to issue the license. (b) The existence of any particular ground for denial or revocation does not mean that the city must deny or revoke the 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. (c) The city shall have the discretion to consider,in granting, denying, or revoking a license, any reasonable facts or circumstances relating to public health, safety, and welfare,including but not limited to the following: (1) The proximity of the proposed activities to churches, schools, playgrounds,parks, or other community facilities which might be adversely affected. (2) The proximity of the proposed activities in relation to traffic congestion and parking which causes a threat to public safety,interference with normal traffic flow, congestion, or inconvenience to the public. (3) Past fraud, misrepresentation, or misstatement in the course of carrying on business. (4) Any conviction of a crime that adversely affects a person's ability to honestly, safely, or lawfully conduct regulated activities, unless the individual can show sufficient evidence of rehabilitation as defined in Minn. Stats. 364.03, Subd. 3. Crimes that are considered directly related to the business of peddling, soliciting, and transient merchants include but are not limited to crimes involving assault, criminal sexual misconduct,burglary,robbery, fraud, theft,harassment, or moral turpitude. (5) Revocation within the preceding 12 months of a past permit issued or past violations of any provisions of this article. (6) Failure to provide any information required on the application, or providing false or misleading information. (7) Denial or revocation of a license for peddling, soliciting,or transient sales, or mobile food service by a city or other governmental entity within the preceding 12 months. (8) Applicant is not a United States citizen and is not legally permitted to be in the United States. (d) Where a reasonable basis is found to impose reasonable restrictions on the license, taking into consideration one or more of the facts or circumstances, a license may have reasonable conditions/restrictions imposed on the manner and circumstances under which the licensed Page 4 activity shall be conducted to preserve the public peace and protect and promote good order and security. (e) Failure of any person to comply with any of the ordinances of the city or the laws of the state, or any conditions/restrictions imposed on a license, shall be grounds for denying or revoking a license under this division. The city shall have the discretion to consider,in granting, denying, or revoking a license, any reasonable facts or circumstances relating to public health, safety, and welfare. (� If a license is denied by the office of the city clerk, the city clerk shall notify the applicant of the determination in writing,including the facts and specific section or sections of this article upon which this determination was made, and of their right to a hearing before the city council. (g) Except as otherwise provided in this chapter 38, article VIII,peddlers, solicitors,aftd transient merchant, and mobile food unit licenses shall be governed by the requirements and procedures set forth in chapter 38, article II of this Code,including the notice and hearing provisions set forth therein. Sec. 38-414. - Restrictions. (a) Transient merchants. (1) Off-streetparking required. No license for a transient merchant shall be issued for sales from any location which does not have sufficient parking for customers or for areas where customer parking would interfere with normal traffic flow. The planning manager must determine that there is adequate off-street parking to serve both the principal use of the property and the transient merchant use of the property. (2) Location near intersection. No transient merchant license shall be issued, and no sales shall take place,if the proposed location for transient merchant sales is within 150 feet of any intersection. (3) Duration of sales. No transient merchant license shall be issued for more than 365 days, during which sales shall be limited to 30 days, unless a longer period of time is approved by city council. At the time of the application for the transient merchant license, the applicant shall state the times within the license period to be used by the applicant. (4) Operation on publicproperty. It shall be unlawful for any transient merchant to sell or offer for sale any goods,wares, or merchandise on any public lands or public right-of-way within the city. (5) Operation on private propery. No transient merchant shall sell or offer for sale any goods, wares, or merchandise within the city from a stationary location on private property at any location where such sales would not be permitted by Chapter 30,Article VI, and without first obtaining the written consent of the property owner or occupant. (6) The merchandise displayed shall not occupy more than 100 square feet unless approved by council. (7) Overnight storage. No overnight storage of transient merchant equipment or merchandise shall be permitted unless approved by council. Page 5 (8) Signs. No signage shall violate the provisions of this Code relating to size and number of business signs. (b) Peddlers and solicitors. (1) Except for those people specified in section 38-383, no peddler or solicitor shall engage in peddling or soliciting without wearing and clearly displaying a city issued license. A peddler or solicitor must also carry a driver's license or state identification card. (2) Hours for unsolicited calls are limited to Monday through Saturday,noon to 6:00 p.m. (3) Only one peddler or solicitor shall approach each residence and no peddler or solicitor from the same company can approach the same residence again unless invited back by the resident. (4) The license is not transferable to another person. (c) For transient merchants,peddlers, solicitors, and nonprofits. (1) Must not conduct business in a manner that creates a health or safety hazard. (2) Must conduct business in a reasonably courteous manner at all times, must not engage in offensive, obscene, or abusive language, must not push open a door not opened by an occupant, must not place any portion of a person's body through an opened doorway without the invitation of an occupant, and must not physically attempt to stop an occupant from closing a door. (3) Must immediately leave private property when requested to do so by an occupant and must leave immediately upon completion of a transaction or an unsuccessful attempt to contact the occupant. (4) When entering onto a residential property go directly to the most visible door of the house, unless there is an adult present outside of the house or in an open garage. (5) A person conducting business shall not make untrue statements to the people contacted regarding the purpose of the contact, orders placed by the neighbors, or the goods or services offered. (6) Must not make statements to the people contacted indicating or implying city endorsement of their activities or products by the city. (7) No shouting,blowing a horn,ringing a bell, or use any sound devices upon any of the streets, alleys,parks, or other public places of the city or upon any private premises in the city. For mobile food units l) State License. Mobile food units shall hold a valid license from the State of Minnesota Department of Health or Department of Agriculture. Any conditions of the State Health Department shall be incorporated into the license issued under this Section,in addition to any other conditions by the City of Elk River. 2) Insurance. A certificate of insurance evidencing the following forms of insurance. I. Commercial general liability insurance,with a limit of not less than one million dollars $1,000,000) each occurrence. If such insurance contains an annual aggregate Page 6 Emit, the annual aggregate limit shall not be less than two million dollars ($2,000,000 ; II. Automobile liability insurance with a limit of not less than two million dollars ($2,000,000) combined single limit. The insurance shall cover liabili arising out of any including owned,hired, and non-owned vehicles; III. Food products liability insurance,with a limit of not less than one million dollars ($1,000,000) each occurrence; IV. Public liability insurance,with a limit of not less than one million dollars ($1,000,000) each occurrence; V. Proper damage insurance,with a limit of not less than one million dollars ($1,000,000) each occurrence; and VI. The city shall be endorsed as an additional insured on the certificate of insurance and the umbrella/excess insurance if the applicant intends to operate its mobile food unit on public property including right-of-wad VII. Certificate of insurance must contain a provision requiring notification be sent to the city should the policy be cancelled before its stated expiration date. 3) Hold has-mess. A mobile food unit operating on cit property,including public right-of-way, must submit a signed statement that the license shall hold harmless the city and its officers and employ, and shall indemnify the city and its officers and employees for any claims for damage to proper or injury to persons which may be occasioned by activity carried on under the terms of the license. 4) Duration of sales. A license shall be valid for one year but the mobile food unit can't operate in, or in front of, the same location for more than 21 days each year within the City of Elk River. 5) Overnight storage. No overnight storage of a mobile food unit shall be permitted unless approved by council. 6) S&ns.No sisignage shall violate the provisions of this Code relating to size and number of business signs. 7) Noise. No shouting,blowing a horn,ringing a bell, or use of any sound devices upon any of the streets, alley, parks, or other public places of the ci or upon any private premises in the city. Ice cream trucks traveling through a residential district may have outdoor music or noise-making devices to announce their presence. 8) Parking. Mobile food units must be located on a paved surface. A mobile food unit may operate in a traffic lane, on a sidewalk, or in any location which causes an obstruction of traffic, such as queuing of patrons or advancement of vehicles. A mobile food unit may operate on eligible public streets and occupy no more than two parking spaces. No parking or sales shall take place within 60 feet of an intersection of two or more streets or within 30 feet of a driveway that enters a public street. 9) Hours. Hours of operation shall be allowed from 8:00 a.m.to midnight, except in a residential district in which sales shall be allowed from 8:00 a.m. to 10:00 p.m. Page 7 10) baste Disposal. Mobile food units shall provide waste disposal and clean up all litter and garbage generated by the mobile food unit before moving from the location. 11) Self-Containment. Mobile food units can't connect to public utilities. Any generators must be self-contained. 12) Inspections. Mobile food units shall comply with all applicable Fire Codes and may be inspected by a City Fire Official prior to operation. 13) Locations. Mobile food units shall be located only in zoning districts where retail sales are allowed as permitted or special uses under the city's zoning code. Except that mobile food units may be located on privately owned property in the Commercial, and Industrial zoning areas of the city with written property owner permission and Residential lots as exempted per Section 383 (11). Mobile food units may not be located in downtown city-owned parking lots. 14) Citarks. Mobile food units are not allowed in citparks unless they get written permission of the parks and recreation director. Except that parks with concession stands also require the written consent of the concession operator for their specific event. 15) Mobile food units shall not provide external seating. 16) Ice cream trucks are allowed to operate within the public right-of-way in residential districts. 17) Mobile Food Units are prohibited from vending activities within 500 feet of an event for which the city has issued a special event permit, unless they are specifically authorized by the event organizer to participate in the event. Sec. 38-415. - Fee; term. The annual license fee for engaging in a licensed activity under this chapter, transient bits f fi--., peddling, or solicitin shall be established by ordinance by the city council and shall be paid at the time of application for a license. A license, unless revoked,is for the calendar year or part thereof for which it has been issued. License fees may not be prorated. Upon denial of any application for a license, the city shall refund the annual fee paid. Sec. 38-416. - Penalties, enforcement. Violation of any provision of this chapter shall be a misdemeanor and subject to all penalties provided for under state law. Page 8 EOty1 ,., Request for Action River To Item Number Mayor and City Council 9.1 Agenda Section Meeting Date Prepared by Work Session November 20, 2017 Tina Allard, City Clerk Item Description Reviewed by Should Food Trucks be Allowed and Regulated Cal Portner, City Administrator Reviewed by Action Requested Council discussion: 1. Would Council like to see food trucks in Elk River? 2. Would Council like to regulate food trucks similar to how other vendors are regulated? Background/Discussion A taproom will soon open downtown and the owners have inquired about the occasional use of food trucks. Taprooms and food trucks typically operate hand in hand. Food truck operators have also expressed an interest in operating in our community. Food trucks are growing in popularity as they serve various public and private events such as farmers markets,park events,graduation parties,business parks, as a complement to established food service businesses, or in high traffic pedestrian areas. In preparation for this discussion, staff posted an informal community conversation question on social media and respondents overwhelmingly supported food truck sales. Like other transient merchants such as ice cream trucks,hot dog stands,greenhouses, fireworks stands, product solicitors,food trucks can get lost in a number of city requirements from zoning to licensing. If the council chooses to permit food truck sales an ordinance specific to food trucks is recommended. In researching the subject, there tends to be four areas of concern: Public Health- Food trucks are required to have certain licenses from the State of Minnesota and cities request documentation showing they meet state law for kitchen preparation, sanitation,inspections, and food handling requirements. Use of Public Space - Cities are divided on whether to allow food trucks to use public spaces. The space most used by trucks is space on public streets,which are likely in areas with more density and foot traffic, such as downtowns. Some cities also allow trucks in parks. Public Safety - Cities typically have regulations for traffic safety and visibility,just as you might see for a standard commercial development. The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 Economic Competition - Established brick and mortar restaurants express concerns with food trucks locating near their business because the vendors don't pay city taxes and may have lower prices. Cities commonly require food trucks to maintain a minimum distance of 50-300 feet from restaurants however, this requirement is currently being challenged in a number of courts across the country. Financial Impact If a licensing ordinance is implemented, fees would be charged to cover the costs for issuing a license. Attachments Food trucks sue over distance ordinances Myths/Realities about food trucks (published by Institute for Justice's National Street Vending Initiative) Are food trucks good or bad for the Twin Cities Social Media Comments N:APublic Bodies\Agenda Packets\11-20-2017\Done\x9.1 sr food trucks.docx From EfficientGov-August 18, 2017 Food Trucks Sue Cities Over Distance Ordinances From Baltimore to Branson,Mo., some food truck vendors say cities' distance ordinances destroy them, and then are fighting back in court. Food trucks argue that local distance ordinances can choke their fledgling industry, and disenfranchise their abilities to make aIjliving. Fights over food truck distance restrictions are beginning to play out in court. A Baltimore judge on Aug. 14, ruled that a lawsuit brought against the cite by two food truck owners should go to trial in late September. The suit against the 1Vlaryland cite, filed last near,is in an attempt to change local restrictions. The complainants, who own the trucks Pizza di Joey and MindGrub Cafe, are contesting the ordinance that forbids food trucks from operating within 300 feet of a brick-and-mortar store that sells a similar foodproproduct, accordingmg to an article m the 7rr, s YY1YY Street Vendor Defenders Representing the Baltimore mobile restaurateurs is The Institute for Justice (IJ), a Virginia-based nonprofit law firm that has championed and represented the food-truck industry for several years. IJ's position is that similar laws restricting food trucks are unconstitutional and protect immobile restaurants. Customers, not city hall, should decide where and from whom then buv things," said Robert Frommer, senior attorney at IJ and executive director of its National Street Vending Initiative. The lawsuit is the latest to fall under the umbrella of IJ's National Street Vending Initiative, "a nationwide effort to vindicate the right of street vendors to earn an honest living by fighting unconstitutional vending restrictions in courts of law and the court of public opinion," ,c ;o) rdi , O, rod Competition is the American way," Frommer said. "It makes us all work harder to provide a better product to our customers, and state and local government should be encouraging it not shutting it down." Punishing ista ce Ordinances Similarly, IJ also represents two food-truck owners from Louisville, Kv., suing the city over its 150- foot proximity restrictions on trucks selling food similar to nearby restaurants without their permission. Mobile vendors face fines and the threat of having trucks shut down or towed if they break this law. The Louisville j'r; was filed June 28th in the U.S. District Court for the Western District of From EfficientGov-August 18, 2017 Kentucky. Smart cities have recognized that food trucks play an important role in developing a lively and vibrant local business climate," according to an IJ description of the case. `But instead of encouraging local entrepreneurs, Louisville officials use the city's 150-foot ban to punish food trucks for choosing a different business model than their brick-and-mortar competitors." Chicago's No-Food 'Track Bubble to Remain An extensive IJ sni(k about Chicago's 200-foot rule, points out that the concentration of more than 600 restaurants, coffee shops, and convenience stores in the city's Loop district, each with their own 200-foot buffer, creates a blanket of overlapping bubbles making it illegal to operate a food truck virtually anywhere downtown. The study stated food truck owners face 51,000 52,000 fines for parking too close to a brick-and- mortar restaurant in Chicago, dwarfing the fines of other parking safety restrictions,like the 5100 fine for parking at a bus stop. The city's scheme therefore perversely incentivizes food trucks to break laws that protect the public's health-and-safety concerns instead of a law that protects only a competitor's bottom line," according to the study. In Dec. 2016, a Cook County judge upheld the city's 200-foot restriction on food trucks, rejecting arguments that the law gives traditional restaurants competitive advantages, according to an article in the G;il(i ,7Eo) `mi.THM `... The Institute for Justice is appealing the case. Branson Dialed. Luck Zoning to Enable Food 'Tracks Branson, Mo., also has a distance ordinance restriction for food trucks: they can't operate less than 100 feet from a restaurant without the owner's permission. That's OK with Peter Berzofsky, the co- owner of Spork Express;he's just happy to sell his food within city limits. Until this spring,Branson zoning code stated that businesses with a temporary structure couldn't operate in the city. This included food trucks,ice-cream trucks and lunch carts, according to Berzofsky, who owns Spork Express with his sister Jane Goss. That stood for years and no one had ever challenged the law," Berzofsky said. Once a large resort became interested in bringing food trucks onsite, the city began to draft an ordinance to change the rule. The process took a year, said Berzofsky, and when it was published for approval by the Branson Board of Aldermen,it was too restrictive, requiring water, sewer and electrical hook ups, and tornado tie downs for each truck, as well as a 1,000-gallon grease interceptor. Berzofsky, his sister and a friend who owns an ice-cream truck attended multiple meetings in an attempt to have the city back off the restrictions. Berzofsky said he convinced the city engineer and board members to visit Spork Express at a neighboring city's farmers market. From EfficientGov-August 18, 2017 After a near of working on the ordinance, then had not seen the truck," he said. Once then saw how self-contained food trucks are, thev backed off the restrictions. Then suddenly they liked us and they liked the food." In April, Spork Express received a permit to operate in Branson, something Berzofskv and his customers— are happy about. The thing that drives me and keeps me focused is that we've had this amazing reaction from the public, Berzofskv said. "Besides the food, the enthusiasm the customers have shown for the overall experience is phenomenal." 1 By Bert Gall and Lancée Kurcab1 Food trucks continue to grow in popularity throughout the country. But as the Institute for Justice detailed in a recent report, some cities have responded by enacting and enforcing laws that do not advance public health and safety, and serve no other purpose than to “protect” restaurants from competition from food trucks.2 Arguing in favor of these laws—such as those that bar food trucks from operating in popular commercial areas or that prohibit food trucks from parking within several hundred feet of any restaurant—their proponents rely upon several myths. Below, we list the seven most prevalent of these myths and, using facts and real-world examples, debunk them. MYTH #1: The presence of food trucks is harmful to a city’s restaurant industry. REALITY: The presence of food trucks does not hurt a city’s restaurant industry, but instead helps it. Claims that food trucks spell doom for local restaurants are not only unsupported,3 but are also contradicted by the experiences of Los Angeles and Austin, which have enthusiastically welcomed mobile-food entrepreneurs. For example, the continued growth of the food-truck industry in Los Angeles—the birthplace of the modern food truck—in no way diminished L.A.’s vibrant restaurant scene. In fact, customers in a recent Zagat survey reported that they think the restaurant scene has continued to improve.4 In Austin, local restaurateurs and economists generally agree that the city’s robust mobile-food scene has boosted the restaurant industry as a whole.5 Citing Los Angeles and Austin as positive examples, a group of restaurateurs in Pittsburgh have joined together to ask their city to get rid of restrictive regulations that have stifled the growth of the food-truck industry there because they have recognized that the “cities with the most vibrant food-truck scenes also have booming restaurant industries.”6 Indeed, food trucks all over the country are helping to bolster the local restaurant industry in (at least) three specific ways: 1. Food trucks’ presence increases the number of customers available to restaurants. Austin’s food trucks and food trailers are a rising tide lifting all boats in the local restaurant industry; one way they have done so is by attracting more people—both new residents and tourists—into the city.7 In Houston, restaurants have experienced increased business generated by food trucks parking nearby and drawing more people to the restaurants’ neighborhoods. It is for this reason that restaurant owners have asked the Houston City Council to ease existing laws that make it difficult for food trucks to operate.8 And in Las Vegas, George Harris, the owner of Mundo, an award-winning upscale restaurant in Las 2 Vegas, has observed that food trucks help his business by bringing new customers to the neighborhood.9 Furthermore, historical evidence suggests that banning food trucks from an area in which they currently operate will harm nearby restaurants by decreasing the number of potential customers. For example, when street vendors were banned from New York’s Lower East Side and Chicago’s Maxwell Street Market, brick-and-mortar businesses complained that they suffered lower revenues as a result.10 Simply put, food trucks draw people out of their offices and homes and into the community, opening their eyes to all of the meal options their neighborhood has to offer. 2. Food trucks provide restaurants with a great way to market and expand their business. All over the country, restaurant owners are launching their own food trucks. For example, the owners of Curried, an Indian restaurant in Chicago, started a food truck with the same name in order to better market the restaurant. Mission accomplished: “We’ve definitely seen an increase in business at the restaurant,” says Scott Gregerson, Curried’s managing partner.11 Jose Hernandez, general manager at POPS Cheesestakes in Las Vegas, says that the business at the restaurant’s physical location has been boosted by the restaurant’s food truck: “The truck has been great advertising.”12 Brian Pekarcik and Rick Stern, co-owners of Spoon and BRGR restaurants in Pittsburgh, just launched a BRGR truck for the same reason. “As brand recognition, it's a great advertising piece,” they explained. “And we expect that it will drive customers to our restaurants.”13 Similarly, Paul Lee, owner of The Winchester restaurant in Grand Rapids, Mich., explained that he opened the What the Truck food truck to serve “as an extension of [T]he Winchester. It allows for us to reach a greater audience and provide something unique to the city.”14 3. Food trucks often serve as incubators for new restaurants. Several restaurants got their start as food trucks: Many chefs with a great concept, but without enough capital to start their own restaurant, launched food trucks to bring their cuisine to customers. Finding success in the food-truck arena, these chefs then accumulated enough capital to launch their own restaurants. For example, the New York Food Truck Association has 42 members , and 40 percent of them—including Mexicue, Souvlaki GR and Schnitzel & Things—now also have brick-and-mortar establishments.15 These entrepreneurs are not an anomaly. Hundreds of other food-truck owners, including those profiled on the next page, have also opened new restaurants. Without the availability of the food-truck business model, these chefs might not have been able to open their restaurants. In sum, food trucks provide a boost to a city’s restaurant industry. 3 Examples of Food-Truck Entrepreneurs Opening Brick-and-Mortar Establishments Austin: In 2006, Michael Rypka opened a small food trailer on South First Street in Austin called Torchy’s Tacos. The trailer became so successful that he was able to expand: Torchy’s Tacos now has eleven brick-and-mortar restaurants, not just in Austin, but also Dallas and Houston. Michael now employs about 450 people.16 Boston: Ayr Muir graduated from MIT, earned his MBA from Harvard and began his career working at McKinsey & Company. But in 2008, he left the corporate world to follow his dream of becoming an entrepreneur and launched Clover Lab Food Truck. His locally sourced vegetarian fare has been such a huge hit with customers that Ayr has now been able to launch a total of six trucks and two restaurants in the Boston area.17 He now employs over 140 people.18 Chicago: In 1963, Dick Portillo opened a six-by-12-foot hot dog trailer on North Avenue in Villa Park. Years later, Portillo’s is a national brand—indeed, a brand that is nearly synonymous with the iconic Chicago hot dog—with 47 locations in Illinois, Indiana and California. Portillo Restaurant Group is now the largest privately owned restaurant company in the Midwest, with over 4,000 employees.19 Cleveland: Chris Hodgson was inspired to bring affordable gourmet food to Cleveland when he visited taco trucks in New York City. His first food truck, Dim and Den Sum, was so successful that he launched a second truck—Hodge Podge—which received nationwide fame when it finished second in the Food Network’s hit show, The Great Food Truck Race. Chris partnered with a restaurateur to open Hodges restaurant in downtown Cleveland, and it now employs about 50 people.20 Seattle: In 2007, Chef Josh Henderson started serving classic American food, but with a gourmet twist, out of an Airstream trailer called Skillet. Skillet quickly became popular, in large part because of the delicious bacon jam in its gourmet burgers. In 2011, Josh opened up the Skillet Diner in the Capitol Hill neighborhood, and his business now includes catering and selling its bacon jam through retailers all over the country. He now employs almost 100 people.21 Washington, D.C.: Mike Lenard brought Korean fusion-style tacos to the nation’s capital in August 2010 when he opened Takorean using a remodeled 1985 Ford step-van. Mike has now opened a permanent location at D.C.’s Union Market, serving up the same menu that made his truck so successful. Takorean was honored to be named one of Washingtonian Magazine’s best food trucks in summer 2012, and the magazine recently billed the new Union Market location as one of 11 new restaurants its readers should visit.22 Mike currently employs nine people, and has imminent plans to hire five more employees if his sales continue their upward trend.23 4 MYTH #2: Trucks have an “unfair” advantage over restaurants because of their mobility. REALITY: It is true that food trucks’ mobility allows them to serve customers in different parts of a city, but any advantage that this provides is offset by the many disadvantages of being a mobile operation. These disadvantages include: Food trucks do not have a fixed location, which is a source of business goodwill and stability for restaurants.24 After all, it is easier to build a customer base when the customer can always be sure where the business is located. But food trucks have no guarantee that they will be able to find a parking location that is both available and convenient for their customers.25 Food trucks—unlike restaurants, which can offer climate-controlled dining rooms to their customers—are completely at the mercy of the weather. If it is raining, snowing or extremely hot, people will be far less inclined to stand in line at a food truck. Instead, they will go to a place where they can eat inside.26 Many trucks even take a hiatus during the winter because of the weather.27 Ice and snow present dangerous conditions, and spending hours each day in freezing temperatures can significantly affect their most valuable asset— their truck.28 Food trucks cannot offer seating and table service for their customers. Food trucks have extremely small kitchens that can hold far less inventory than restaurant kitchens; this means that food trucks can sell less food and must have a smaller menu. Additionally, preparing food in a small, cramped food-truck kitchen is more difficult than preparing food in a larger restaurant kitchen.29 Food trucks cannot serve as many customers during the day as can an average restaurant. For example, once a food truck finds a parking space, it can take 30 minutes for set-up, and a similar amount of time to clean and pack up after the meal service is over.30 This means that a truck that parks in a space with a two-hour parking limit only has around an hour to serve customers. That’s less than half the time that a restaurant can generally allot to lunch service, and less than a quarter of the time that a restaurant can generally allot to dinner service.31 Food trucks, unlike restaurants, can, and often do, break down. Until repairs are made, the truck cannot serve customers, employees miss out on their shifts and the food in the commissary refrigerator may spoil.32 A liquor license is a big moneymaker for restaurants,33 but food trucks are usually unable to obtain that license under local and state laws because they do not meet the requirement of having a fixed location.34 5 In a free-market system, there really are no “unfair” advantages between business models because all are free to be used by anyone. Even if a food truck’s mobility could create an “unfair” advantage over restaurants, the many disadvantages described above swamp that one small advantage. MYTH #3: Trucks have an “unfair” advantage over restaurants because they are not subject to the same set of costs. REALITY: Restaurants generally do have higher costs than food trucks (e.g., buying or leasing restaurant space), but their return for paying all of those costs is getting the benefit of a fixed location and thus avoiding the many disadvantages that food trucks have. Furthermore, food trucks are in fact subject to many of the same costs that restaurants face. For example, food-truck owners must purchase liability insurance and pay license and permit fees.35 Like other small business owners, truck owners must pay sales taxes, income taxes and payroll taxes.36 They must spend money to pay and train new employees, to purchase inventory and to market their business.37 Restaurants must either pay property taxes or rent, and the same is true for food trucks: Most cities require that food trucks associate with a commissary in which they can park and clean their truck, store their inventory and partially prepare their food.38 This means that food-truck owners must (in addition to paying taxes on their vehicle) either pay property taxes or rent on the commissary space. There are other costs that food trucks have to pay that restaurants do not. For example, food-truck owners must spend money to purchase their trucks. A brand-new truck can cost anywhere from 75,000 to $300,000; a used truck can cost between $15,000 and $99,000.39 Owners must spend additional funds to outfit their trucks and maintain them. Truck owners must also pay for the costs of fuel (between $250 and $500 a month),40 propane, parking, rental fees or building costs for a commissary or commercial kitchen,41 as well as fees required to park in food-truck lots and to participate in festivals and other community events.42 Finally, trucks that operate within more than one jurisdiction must pay for permits and fees within each of those jurisdictions.43 In short, food trucks forgo the higher costs of operating a restaurant by forgoing all of the advantages that owning a restaurant provides. Food trucks are nonetheless subject to a whole host of costs, some of which restaurants do not have to pay. MYTH #4: Food trucks have an “unfair” advantage over restaurants because operating a food truck is easy. REALITY: Just like running a restaurant, running a food truck is extremely hard work. Ignoring all of the disadvantages and costs of the food-truck business model, many people still believe that, in the real world, running a food truck—unlike running a restaurant—is an easy way to make a lot of money. Try telling that to Miley Holmes, who runs the Easy Slider food truck in Dallas. 6 She explains that “[t]he biggest misconception about this business is that it’s a way to get rich quick. Margins are tight, space is limited, and the market is unpredictable. So the reality is that you are never going to make a fortune from running a food truck.” Holmes describes workdays that begin at 9 a.m. and stretch to 3 a.m.: “People forget that we’ve been prepping for hours before our doors open,” Holmes said, “and we spend hours cleaning after we’re closed. And we do it all two or three times a day, sometimes 14 or 15 days in a row!” Furthermore, “[t]here is no such thing as time off, just time off the truck. We’re constantly emailing, making phone calls or sourcing product.”44 Holmes’ 18-hour workdays are not atypical. Even for operators who do a single meal service per day, the typical workday can range between 17 to 20 hours.45 And make no mistake, the work is hard. Indeed, many people who experience running both restaurants and food trucks believe that running the latter is at least as difficult—or more difficult—than running the former: Celebrity Chef Ludo Lefevre has been a successful chef at some of Los Angeles’ best restaurants and in 2010 he opened his critically acclaimed LudoTruck, which serves impossibly juicy… fried chicken [that] is pretty close to the godhead,” according to one famous critic.46 Ludo is undoubtedly well-positioned to compare the difficulty of running a restaurant with that of running a food truck. As he points out, much of the work is the same: “People don’t realize [that a food truck] is like a restaurant. You need to rent a commissary kitchen, hire a staff, and prep the staff. It’s the same headache of a restaurant. It’s not easy.” And he notes at least one way in which running a food truck is more difficult: At the restaurant, you have a big walk-in; you can always go and get some more vegetables.” But with a food truck, “Sometimes our commissary kitchen is far away, and sometimes we’re going to run out of food. There’s nothing we can do.”47 Luke Holden started his Luke’s Lobsters restaurant in New York City in 2009, and he opened three more brick-and-mortar locations before launching his food truck, Mobile Nauti, which topped Zagat’s ratings of New York’s food trucks for two consecutive years. For Holden, it’s clear that his food truck is “more difficult to manage” than his restaurants. He says that his truck “has been more of an outreach tool than a cash-flow tool. There are a lot of inherent struggles that come with operating a truck. You can’t determine what the weather will do or parking issues. It’s a difficult business to build stability in, and if you can’t build stability in, it’s harder to staff.”48 David Schillace owns New York’s Mexicue restaurant, with two brick-and-mortar locations and a food truck. Based on his experience, “Hands down, bricks-and-mortar is easier.” He explains, “Running three or four trucks, then working sixteen hours a day, is a nightmare. And it’s still not going to make you rich.” He notes that finances are a lot less predictable and stable with food trucks because people tend to order more food at a restaurant than at a food truck.49 In sum, running a food truck is hardly an easy job. Indeed, given all of the difficulties encountered by food-truck owners, it isn’t surprising that many of them want to transition from the food-truck business model to the more stable restaurant business model, where issues such as the weather and inventory limitations are no longer constant obstacles.50 7 MYTH #5: Food trucks are unsanitary “roach coaches.” REALITY: According to the available evidence, food trucks are generally just as clean and sanitary as restaurants. Just like restaurants, food trucks are subjected to health inspections on a regular basis. It is often the case that food-truck operators are inspected more frequently than their brick-and-mortar counterparts.51 Indeed, for a forthcoming report, the Institute for Justice reviewed health department sanitation grades in Los Angeles from May 2009 through May 2012 and found that, on average, the food trucks in that city are just as clean and sanitary as restaurants. MYTH #6: Food trucks cause harmful sidewalk congestion. REALITY: No evidence supports the assertion that food trucks cause harmful sidewalk congestion. Although critics of food trucks complain that they cause harmful sidewalk congestion, there is no evidence to support that claim. To test it, the Institute for Justice collected original data in Washington, D.C. Researchers measured foot traffic and congestion in locations where food trucks were present on several different days, in different locations, and during the busy hours surrounding lunch. They found that the presence of a food truck did not drastically increase foot traffic on the sidewalk. In fact, the average time it took a pedestrian to travel the block varied by only one second when a food truck was added.52 Furthermore, the researchers documented a phenomenon that is common to anyone who has seen a food truck in action: Customers spontaneously form a single-file line alongside the edge of a sidewalk so that other pedestrians have plenty of room to pass by. Because it is in the interest of the food trucks to maintain positive relationships with neighboring businesses and the community, food-truck owners and operators encourage their customers to keep their lines orderly. The Food Truck Association of Metropolitan Washington has formalized this practice by adopting a code of conduct in which they have pledged to “mak[e] regular announcements reminding customers in line to keep the sidewalk and any building entrances clear so as not to impede public access.”53 And, of course, cities can pass a law, like Los Angeles has done, that instructs food trucks not to operate in a manner “which will interfere with or obstruct the free passage of pedestrians or vehicles along any such street, sidewalk or parkway.”54 MYTH #7: Food trucks create a special trash problem because their customers are especially prone to littering. REALITY: Food-truck customers are not especially prone to littering, and food-truck operators act responsibly to ensure that trash is properly disposed. 8 Food trucks’ customers—just like the customers of fast-food restaurants and people who eat their packed lunch outdoors—have the potential to generate litter after consuming their food, but there is no evidence that food-truck customers are more likely to litter.55 Food trucks are generally required by municipal laws to carry a trash receptacle for their customers’ use or to pick up any litter near the truck.56 Moreover, food-truck operators often go beyond the requirements of the law to ensure that they leave the areas in which they operate cleaner then how they found them.57 Conclusion Food trucks do not have an “unfair” advantage over restaurants. The restaurant business model is more favorable than the food-truck business model in several ways, and food trucks actually help the local restaurant industry. There is no basis for the argument that restaurants need government intervention to “protect” them from food trucks. (And, as several federal courts have recognized, regulation for the sake of mere economic protectionism is constitutionally impermissible.58) Nor is there any basis for the notions that food trucks pose some special threat to public health and safety. Instead of creating public policy based on these myths, elected officials should allow food trucks to operate freely within their cities, subject only to reasonable health and safety regulations. Doing so is good for the local entrepreneurs, the local economy and the local community. For guidance in creating a good legal framework for food trucks, see the Institute for Justice’s most recent legislative report, Food Truck Freedom: How to Build Better Food Truck Laws in Your City. For more on the benefits provided by food trucks and other street vendors, check out the Institute’s 2011 report, Streets of Dreams: How Cities Can Create Economic Opportunity by Knocking Down Protectionist Barriers to Street Vending. Both of these reports are available at www.ij.org/vending. 9 Endnotes 1 Bert Gall is a senior attorney at the Institute for Justice. He directs IJ’s National Street Vending Initiative, a nationwide effort to vindicate the right of street vendors to earn an honest living by fighting unconstitutional vending restrictions in courts of law and court of public opinion. Lancée Kurcab serves as the Institute for Justice's outreach coordinator. Through her outreach efforts and grassroots organizing, she helps entrepreneurs fight for their right to earn an honest living free from protectionist regulation. 2 Norman, E., Frommer, R., Gall., B. & Knepper, L. (2011). Streets of Dreams: How Cities Can Create Economic Opportunity by Knocking Down Protectionist Barriers to Street Vending. Retrieved November 8, 2012 from http://www.ij.org/images/pdf_folder/economic_liberty/atl_vending/streetsofdreams_webfinal.pdf . 3 Common reasons restaurants fail include not having a clear strategy, lack of flexibility, location, lack of capital, lack of knowledge and poor communication with consumers. Parsa, H. G., Self, J., Njite, D. & King, T. (August 2005). Why Restaurants Fail. Cornell Hotel and Restaurant Administration Quarterly, 46(3), 304-322. 4 About Los Angeles Food Trucks. Roaming Hunger, Retrieved October 31, 2012 from http://roaminghunger.com/la; (2011, September 11). Zagat Celebrates 25 Years in Los Angeles; 2,027 Restaurants Surveyed by 11,166 Local Diners, Zagat.com, Retrieved October 26, 2012 from http://www.zagat.com/node/3695295. 5 Gaar, B. (2012, September 15). Food trailers bloom into key piece of Austin’s economy. Austin-American Statesman, Retrieved October 26, 2012 from http://www.statesman.com/news/business/food-trailers-bloom-into- key-piece-of-austins-econ/nSLPx/. 6 Letter from Pittsburgh restaurateurs to Pittsburgh City Council, October 10, 2012. 7 Gaar, 2012. 8 Dietrichson, M. (2012, September 19). Houston food truck ordinance taken to City Council. Houston Tomorrow, Retrieved October 26, 2012 from http://www.houstontomorrow.org/livability/story/houston -food-truck- ordinance-taken-to-city-council/. 9 Harris, G. (2012, October 11). Brick-and-Mortar Restaurants Should “Embrace” Food Trucks. Nevada News and Views, Retrieved October 26, 2012 from http://nevadanewsandviews.com/archives/17195. 10 Kettles, G. (2004). Regulating Vending in the Sidewalk Commons. Temple Law Review, 77(1), 31–32. 11 How My Restaurant Launched a Food Truck. NFIB, Retrieved October 31, 2012 from http://www.nfib.com/business-resources/business-resources-item?cmsid=60625. 12 Harris, 2012. 13 Batz, Jr., B. & Parrish, M. (2012, October 4). New website, talks, law keep Pittsburgh's food truck scene moving forward. Pittsburgh Post-Gazette, Retrieved October 26, 2012 from http://www.post- gazette.com/stories/life/food/new-website-talks-law-keep-pittsburghs-food-truck-scene-moving-forward- 656055/#ixzz2AJrL5R51. 14 Rosalez, S. (2012, September 7). What the Truck supports local youth programs. The Rapidian, Retrieved October 31, 2012 from http://therapidian.org/what-truck-supports-local-youth-programs. 10 15 Clark, E. (2012, July 11). Hell on Wheels: Why Food Truck Owners Are Increasingly Turning to Brick-and-Mortar Shops. New York Magazine, Retrieved October 26, 2012 from http://newyork.grubstreet.com/2012/07/food- trucks-turn-to-stores-for-convenience-reliability.html. 16 Lynch, L. (2012, June 29). Michael Rypka of Torchy’s Tacos talks Expansion and Secret Menu. Texas Monthly Magazine, Retrieved October 2, 2012 from http://www.texasmonthly.com/blogs/eatmywords/?p=7678; Gaar, B. 2012, September 15). Food trailers bloom into key piece of Austin’s economy. Austin-American Statesman, Retrieved October 26, 2012 from http://www.statesman.com/news/business/food-trailers-bloom-into-key-piece- of-austins-econ/nSLPx/. 17 Tilak, V. How to be a New England Vegetarian in the winter. The Boston Globe, Retrieved November 9, 2012 from http://www.bostonglobe.com/magazine/2012/11/03/how-new-england-vegetarian- winter/g5tsi4eafXjrW3vwCaJk4N/story.html. 18 (2012, February 2). How They Work: Clover Food Lab. Wistia, Retrieved October 31, 2012 from http://wistia.com/blog/how-they-work-clover-food-lab/. 19 History: From Modest Beginnings To The Midwest's Largest Privately Owned Restaurant Group. The Portillo Restaurant Group, Retrieved October 29, 2012 from http://www.portillos.com/history/. 20 Goodman, V. (2012, April 20). Hodges Downtown offers some of the food trucks’ playful fare. WKSU News, Retrieved October 15, 2012 from http://www.wksu.org/news/story/31324. 21 Evolved Cuisine. Skillet, Retrieved October 2, 2012 from http://skilletstreetfood.com/company.php. 22 Spiegel, A. (2012, October 10). 22 New (or Newly Improved) Places to Eat and Drink This Fall. Washingtonian Magazine, Retrieved October 29, 2012 from https://www.washingtonian.com/blogs/bestbites/food-restaurant- news/22-new-or-newly-improved-places-to-eat-and-drink-this-fall.php; Washingtonian Staff. (2012, July 5). Best of Washington 2012: Best Meals on Wheels. Washingtonian Magazine, Retrieved October 29, 2012 from http://www.washingtonian.com/articles/best -of/best-of-washington-2012-best-meals-on-wheels/index.php. 23 Interview with Mike Lenard, owner of Torchy’s Tacos, November 5, 2012. 24 Courtis, J. (1983). Business Goodwill: Conceptual Clarification Via Accounting, Legal and Etymological Perspectives. The Accounting Historians Journal, 10(2), 1–38. This article reviews what attributes lead to business goodwill; location is prominent among those attributes. 25 Clark, 2012. 26 Clark, 2012. 27 Myrick. R. (2012, October 9). Prepping Your Food Truck for Winter Storage. Mobile-Cuisine.com. Retrieved November 9, 2012 from http://mobile-cuisine.com/under-the-hood/food-truck-storage-tips/. 28 Myrick, R. (2011, December 15). Winter Food Truck Safety Tips. Mobile-Cuisine.com, Retrieved October 26, 2012 from http://mobile-cuisine.com/under-the-hood/winter-food-truck-safety-tips/; Myrick, R. (2012). Running a Food Truck for Dummies. P. 216. 11 29 Trattner, D. (2011, September 28). Along for the Ride. Cleveland Scene Magazine, Retrieved October 26, 2012 from http://www.clevescene.com/cleveland/along-for-the-ride/Content?oid=2737264. 30 Gall, B. and Frommer, R. (November 2012). Food Truck Freedom: How to Build Better Food Truck Laws in Your City. P. 18, from www.ij.org/vending. 31 Fine, G. (1990). Organizational time: Temporal Demands and the Experience of Work in Restaurant Kitchens. Social Forces, 69(1), 98-99. The author notes that general lunch and dinner hours are between 11 a.m.–2:30 p.m. for lunch, and 5 p.m.–12 a.m. for dinner. 32 Weber, D. (2012). The Food Truck Handbook: Start, Grow, and Succeed in the Mobile Food Business. P. 14; Clark, 2012. 33 O’Toole, M. (2010, September 20). Path to Liquor License Often Bumpy. New York Times, Retrieved October 26, 2012 from http://eastvillage.thelocal.nytimes.com/2010/09/30/path-to-liquor-license-often-bumpy/. 34 Food trucks cannot obtain liquor licenses in most jurisdictions, and the handful of jurisdictions in which trucks can obtain a liquor license have only granted them to trucks or carts that operate in a single location and are able to provide a defined outdoor dining area. See, e.g., Collins, G. (2011, June 9). What’s Always Been Missing in Food Trucks: Alcohol. The New York Times, Retrieved October 31, 2012 from http://dinersjournal.blogs.nytimes.com/2011/06/09/what-youve-always-wanted-in-a-food-truck-booze/; Rayle, S. 2012, April 23). Cartlandia—Portland’s food carts gain a year-round liquor license. Examiner, Retrieved October 31, 2012 from http://www.examiner.com/article/cartlandia -portland-s-food-carts-gain-a-year-round-liquor- license. 35 Gall and Frommer, 2012. 36 A helpful collection of links to state government websites detailing the tax obligations of small businesses can be found on the website of the U.S. Small business administration at http://www.sba.gov/content/learn-about-your- state-and-local-tax-obligations. Information on the federal tax obligations of employers can be found in the IRS Employer’s Tax Guide at http://www.irs.gov/uac/Publication-15-%28Circular-E%29,-Employer%27s-Tax-Guide. 37 Myrick, 2012. 38 Gall and Frommer, 2012, p. 26. 39 Myrick, 2012, p. 32–33. 40 Myrick, 2012, p. 217. 41 Weber, 2012, p. 100. 42 According to Matthew Geller, CEO of the Southern California Mobile Food Vendor’s Association, “Most events charge 10% which drastically eats into [food trucks’] margins. Lots can cost $25 to $200 just for the privilege of serving hungry customers.” Interview with Matthew Geller, November 8, 2012. 43 According to Matthew Geller, CEO of the Southern California Mobile Food Vendor’s Association, “Many food trucks have multiple business licenses and health permits. In cities like Los Angeles, many of the trucks must obtain multiple city permits in order to serve the demand around Los Angeles County. Most trucks in the area have eight business licenses with an average cost of $250. Many trucks also serve multiple counties. Each county 12 requires a county health permit. Many trucks have two or three health permits with an average cost of $750 each.” Interview with Matthew Geller, November 8, 2012. 44 Daniels, L. (2012, June 4). Dreaming of Starting a Food Truck? First Read This, Then Figure Out Your Goal. Dallas Observer, Retrieved November 8, 2012 from http://blogs.dallasobserver.com/cityofate/2012/06/dreaming_of_starting_a_food_tr.php. 45 Clover Food Truck 101. CloverFoodLab.com, Retrieved October 26, 2012 from http://www.cloverfoodlab.com/wp -content/uploads/2011/06/Food-Truck-101.pdf; Myrick, 2012, p. 10–11; Interview with Jon Goree, co-owner of Seoul Food, October 20, 2012. 46 Gold, J. (2010, February 26). 99 Things to Eat in L.A. Before You Die. LA Weekly, Retrieved October 26, 2012 from http://www.laweekly.com/2010-02-26/eat-drink/99-things-to-eat-in-l-a-before-you-die/10/%20mo%20chica/. 47 Oches, S. (2012, October). Pedal to the Medal. QSR Magazine, Retrieved October 26, 2012 from http://www.qsrmagazine.com/executive-interviews/pedal-metal?page=2&microsite=575. 48 Zionts, S. (2012, March 1). Food Trucks’ Rocky Roads to Success. Fox Business, Retrieved October 26, 2012 from http://smallbusiness.foxbusiness.com/entrepreneurs/2012/03/01/food -trucks-rocky-roads-to-success/. 49 Clark, 2012. 50 Moore, G. (2012, August 17). Free lunch in the Financial District? Not at these food trucks. Boston Business Journal, Retrieved October 26, 2012 from http://www.bizjournals.com/boston/blog/bottom_line/2012/08/food- truck-regulations.html?page=all. 51 Norman, Frommer, Gall and Knepper, 2011, p. 32; Armour, S. (2012, May 9). Gourmet Food Trucks Fight Inspectors’ Perceptions. Bloomberg Businessweek, Retrieved October 26, 2012 from http://www.businessweek.com/news/2012-05-09/gourmet-food-trucks-fight-inspectors-perceptions#p1; (2012, July 19). Food Trucks Inspected for Safety,” WBNS-10TV, Retrieved October 26, 2012 from http://www.10tv.com/content/stories/2012/07/19/columbus-food-trucks-inspected-for-safety.html. 52 Norman, Frommer, Gall and Knepper, 2011, p. 32. 53 Food Truck Association of Metropolitan Washington/D.C. Food Truck Association, Food Truck Code of Conduct, Retrieved October 18, 2012 from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CB4QFjAA&url=http%3A% 2F%2Fwww.dcfoodtrucks.org%2Fdl%2FDCFTA_Application.pdf&ei=1FmBUJ7iG6fC0QGOqoCQBA&usg=AFQjCNFLCc fiq82QmZe_kfmpbbZU__U7qQ&sig2=nS0R5aCeFNXFRaRwVMhmVA. 54 See L.A. City Code § 56.08(c). 55 Hermosillo, J. (2012). Loncheras: A look at the stationary food trucks of Los Angeles. Masters Thesis, Los Angeles: University of California. P. 8. Although police and city officials complained that loncheras increased litter, this is contradicted by the reputation many seem to enjoy among their neighbors for maintaining their areas clean.” 56 Gall and Frommer, 2012, p. 21. 57 The Southern California Mobile Food Vendor’s Association takes it upon itself to pay for street cleanup after First Fridays and other community events in which food trucks participate. Interview with Attorney Jeffrey D. Dermer, 13 counsel for the Southern California Mobile Food Vendor’s Association, November 6, 2012. The Food Truck Association of Metropolitan Washington requires members to “keep the area around [their] vehicle clean and remove all trash at the end of [their] service period, leaving the location cleaner than when [they] arrived.” Food Truck Association of Metropolitan Washington/D.C. Food Truck Association, Food Truck Code of Conduct, Retrieved October 18, 2012 from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CB4QFjAA&url=http%3A% 2F%2Fwww.dcfoodtrucks.org%2Fdl%2FDCFTA_Application.pdf&ei=1FmBUJ7iG6fC0QGOqoCQBA&usg=AFQjCNFLCc fiq82QmZe_kfmpbbZU__U7qQ&sig2=nS0R5aCeFNXFRaRwVMhmVA. 58 See, e.g., Merrifield v. Lockyer, 547 F.3d 978, 991 (9th Cir. 2008) (striking down regulatory regime because it was designed to favor economically certain constituents at the expense of others similarly situated, such as Merrifield”); Craigmiles v. Giles, 312 F.3d 220, 229 (6th Cir. 2002) (invalidating a rule permitting only funeral directors to sell caskets because it was a “naked attempt to raise a fortress protecting the monopoly rents that funeral directors extract from consumers”); see also St. Joseph Abbey v. Castille, –F.3d–, No. 11-30756, 2012 U.S. App. LEXIS 22060, at *4 (5th Cir. Oct. 23, 2012) ([N]either precedent nor broader principles suggest that mere economic protectionism of a pet industry is a legitimate government purpose.…”) 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/1/14 Navigation Search... A food truck on the U of MN campus, where good food is rare as a three-toed walrus. Are Food Trucks Good or Bad for the Twin Cities? by Bill Lindeke on July 9, 2012 in Uncategorized The Case Against Food Trucks I was at an urban planning function a while back when someone asked me, “What do you think of food trucks?” I don’t know,” I replied. “They seem pretty good to me.” They’re terrible!” he or she declared. “They suck all the business from legitimate restaurants. They’re ruining cities. Instead of opening up an actual café, people just buy one of these food trucks and park it on a corner. They don’t pay any taxes. Then they make a bunch of money, close up for the winter, and go down to Mexico. It’s ruining business for actual restaurants in actual buildings.” It made me think. Popular as they are, the case against food trucks may be somewhat legitimate. Food trucks can and do park outside of actual brick and mortar joints that pay property taxes and fill our empty street fronts. Lots of these cafés are running on very thin margins, struggling to make a profit in our underwhelmingly people’d cities. Is it really good public policy to encourage and cultivate a bunch of mobile restaurants-on-wheels when so much of our commercial real estate sits empty? Why should a entrepreneur who has invested thousands in fixing up an old building, who pays much-needed property taxes to the city, and who serves as a custodian of the street in a hundred invisible ways be forced to compete with someone driving a CO2 spewing truck around the asphalt, tweeting like the Pied Piper? Is that fair? Is that a good policy decision? 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/2/14 Street vendors in Los Angeles. A food truck parked by the Fulton Brewery, which until recently, was outside the “designated food truck zone.” The Long-Running Battle Between Street Vendors and Shop Owners This kind of debate is nothing new. As this wonderful hitstory of sidewalk debates points out, attempts to restrict street vending go waaaaay back into history. For example, in 1691, New York City (New Amsterdam?) prohibited selling on the streets until two hours after the official markets opened. After street vending blew up following the 19th century explosion of US cities, a whole new series of ordinances and regulations emerged to try and control the practice. The history of LA’s attempts to control push cart and sidewalk fruit vendors reads like a Tolstoy novel, replete with strikes and fees and police crackdowns and backroom deals and precise legal definitions of “fowl.” A more recent example is New York’s policing of book and magazine vendors, which was part of that city’s semi-fascist Giuliani-fueled crackdown on “quality of life” crimes. The basic debate is not just about taxes and the maintaining buildings. There’s also a struggle over how sidewalks and public spaces should be used. Is the sidewalk primarily a space for social interaction, for eating and drinking and selling and buying and stopping and talking and sitting and sleeping and protest? Or is the sidewalk a space to move through, a means of transportation? Throughout most of the 20th century, our society has opted for Door #2. Almost all cities have ordinances on the books that reserve the sidewalk for foot traffic, as means for getting from A to B. For example, Minneapolis Code 427.110 says: 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/3/14 Street vendors in New York. Or code 427.130: You are not allowed to “coast or side carelessly,” “play any game of ball,” “engage in any … amusement” or (as anyone who has tried to have a political protest knows) “congregate … as three (3) or more persons … to obstruct the free passage of pedestrians.” (Don’t get me started about dancing on the street.) In some ways, the debate over food trucks is a remnant of this age-old fight over how our streets and sidewalks should be used. According to the modern 20th century model, commerce should take place inside proper buildings run by proper tax payers with proper signage. Streets and sidewalks and outdoor spaces are for moving cars (and walking people) around as efficiently as possible. On other other hand, with the the 19th century model, all sorts of things are happening on the streets. People are haggling and selling and panhandling and hanging out and playing and cars are stuck in traffic and are all kinds of things are going on. Food trucks exist somewhere in between. Why food trucks? Why now? Food trucks have certainly taken Minneapolis and St Paul by storm over the last few years, their success exceeding almost everyone’s expectations. But what explains this change, happening at this moment in time? As I pointed out, it’s not like the concept of food being served from a mobile vehicle is anything new. It’s not like this is some sort of iPod innovation that revolutionizes the urban food service industry. So what explains the rocket-fueled success of the Twin Cities’ food trucks? I can think of three possible answers. No person shall place or suffer to be placed upon or over any sidewalk, or suspend over any street, any goods, wares or merchandise for sale, show or otherwise beyond the front line of the lot where such goods may be placed, suspended or exposed. (Unless, of course, they have a permit.) No person shall sell or attempt to sell, or offer or cry for sale at public auction in the city any goods, chattels, wares, merchandise or personal property whatever to any person upon the sidewalks or streets; nor shall any person by ringing a bell, gong or triangle, or any loud cries, give notice of any auction or sale of any kind upon the streets or sidewalks of the city. (Unless, again, they have a permit.) 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/4/14 People lining up for tater tots as if they’re the last thing on Earth. First, food trucks redress Minneapolis and St Paul’s long-standing downtown vs. neighborhood imbalance. I always feel bad for anyone attending a conference in Minneapolis and staying in a downtown hotel. Why? Because very few of the Twin Cities places I love can be found there. Compared to all the wonderful little neighborhood corners, both downtowns are giant wastelands where interesting ideas go to die. Quick, name your top 10 bars and restaurants in the Twin Cities? How many of them are downtown?) And apart from bit around Washington Avenue or near Cedar and Riverside, the entire U of MN campus is a chained-up Sahara. Tens of thousands of hungry people are trapped there every day forced to subsist on re-heated Poppa Johns and subjected to the faux-kitcsh wall hangings at Potbelly. They subsist almost entirely on tasteless crap from a SYSCO warehouse. For any Twin Cities visitor, in order to discover anything really amazing, you must escape the the corporate core, flee downtown, and abandon campus. Or, thanks to the magic of petroleum powered food trucks, you can have the neighborhoods come to you! A good example is the Anchor Fish and Chips, which is a delicious chippie on 13 avenue in Northeast Minneapolis. It’s great food that makes people in Northeast Minneapolis happy and fat, but nobody working downtown is going to take the time (or go get their cars, un- and re-park them) to visit Northeast for lunch. So why not have 13 Avenue come to them? It sure beats the Nicollet Mall Panera. The same holds for the Barrio truck or the 128 Café or the Ngon Bistro. In a way, these trucks are bringing the neighborhoods of the Twin Cities into downtown. They’re mobile billboards for the diversity of restaurants that make the Twin Cities great. Food trucks improve our mediocre skyway- laden anti-places by injecting them with old streetcar shopcorners. Second, food trucks are new business incubators. The reason why food trucks are so immensely popular with Twin Cities’ entrepreneurs is that they require vastly less overhead. Instead of taking out huge loans to lease and fix-up a business that will be tied down to one location location location, you can invest less money into a food truck, buy some paint, and come up with a nifty low-cost internet marketing campaign. Voilà! You have a new restaurant concept. Good luck to you. Food trucks are almost like a giant marketplace of embryonic restaurants, little incubators of future shops. Look at the diversity of trucks. Any one of them may become wildly popular and evolve into an actual bricks-and-mortar establishment. For example, the Smack Shack should be opening up their restaurant on Washington Avenue anytime now. Food trucks aren’t just competing with actual café buildings, they’re evolving into them. They’re like mini-restaurants, starter cafés, chrysalis bistros. th th 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/5/14 A soon-to-be-food truck-inspired restaurant. Believers in the free market should embrace them. Third, and most importantly, food trucks are something that takes place outside. Food trucks get people out into all the underused plazas, parks, and sidewalks of the Twin cities. They lure you into the fresh air, out of the cursed skyways and tunnels and into the bright rays of sunshine reality. They beckon you onto the picnic tables, to perch on sittable ledges, to find the shade of the maple trees. This has to be one of their chief attractions. For too long, Minnesotans have been allowed to wallow in their agoraphobic meteorologic bubble, being scared by Sven Sundegaard and Mark Seele into thinking that it’s too cold or hot or windy or sunny or humid to open the door. We huddle in our skyways and our air-conditioning, squinting at the outside world that we are convinced will reject us like Mars in Total Recall. Well screw that! Food trucks are the perfect excuse to liberate the be-bubbled masses. They’re a ‘Get Out of A/C Free’ card. In a way, walking to a food truck to buy an $8 taco is a subliminal excuse to break free of our climate-controlled cubes. And anything that can get people out of their buildings and their cars and into the parks, anything that can get butts perched along the riverbluff, well it’s good in my book. Are there limits to the food truck phenomenon? Should there be a limits to food trucks? Can they go too far? Or is there plenty of room for both trucks and bricks and mortar restaurants in the Twin Cities? I don’t know the answer. After my visit to Portland Oregon last year, I was impressed by the huge variety of food trucks AND interesting local businesses. Maybe this is a case where urban space isn’t simply a zero sum game. Maybe the more we revitalize our public spaces, the more people enjoy spending time and money in the city, the more business there is to go around. I’d like to think that this is the kidn of addititve situation where everybody wins. Maybe it’s a fad or maybe it’s the future. But I hope we don’t have to choose between food trucks and public spaces and having good cafés in actual buildings. Every time someone leaves the skyway system to grab lunch a food truck on the sidewalk, the future of Minneapolis looks a little bit brighter. 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/6/14 A cluster of food trucks permanently parked in a surface parking lot in Southeast Portland. A cluster of food trucks semi-permanently parked in a surface parking lot in downtown Portland. Share this: Email Facebook 2 Twitter Reddit Tumblr Related Can We Have Quieter Food Trucks Please? Food Truck Parks: Two Birds, One Stone Trump Infrastructure Plan Needs A Better Funding Source May 26, 2016 September 10, 2013 July 5, 2017 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/7/14 What the Trader Joe’s proposal says about us Cycling gender gap and local infrastructure decisions Streets.mn is a non-profit and is volunteer run. We rely on your support to keep the servers running. If you value what you read, please consider becoming a member. About Bill Lindeke Bill Lindeke has been blogging about sidewalks and cities since 2005, ever since he read Jane Jacobs. He has a PhD in geography from the University of Minnesota, and has written for Minnpost, the Park Bugle, and Growler Magazine, among others. He was born in Minneapolis, but has spent most of his time in St Paul and serves there on the Saint Paul Planning Commission and Transportation Committee.Twitter @BillLindeke or on Facebook. View all posts by Bill Lindeke In "Public Realm"In "Infrastructure"In "Health" 11 Responses to Are Food Trucks Good or Bad for the Twin Cities? Mike Hicks July 9, 2012 at 6:47 am # Fantastic article, Bill — I have many of the same feelings that you do, that the food trucks are filling in a missing gap. The incubator effect of the food trucks is pretty clear, even after just two or three years of popularity. And I don't think that the food trucks have really been let loose to their fullest extent yet. For the most part, they've been restricted to the downtowns, though there are occasional forays into other commercial districts (Saint Paul actually seems to be a bit more progressive about it than Minneapolis, but maybe that's just my perception). I haven't read much Jane Jacobs, but her observation that cities need cheap, old buildings to help serve that business incubation purpose sticks with me. I think it needs updating, though. — Really, cities need any type of cheap space that they can get in order for entrepreneurs to do their thing. If our zoning wasn't so restrictive, certainly many people would start up restaurants in their homes or a friend's garage or something. Food trucks just serve as the simplest legal outlet for that energy at the moment. And clearly, there are a variety of other businesses that would follow the same or similar escape route if the opportunity was there. Yeah, urbanism definitely isn't a zero-sum situation. Certainly some enterprises won't succeed (and nearly all will fail in the end, eventually), but very often we see positive feedback loops created that encourage more business and more diversity. When one goes down, there are two others to take its place. 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/8/14 Julie K July 9, 2012 at 7:37 am # Food trucks also have a few other uses that I think have only just started to be explored. For instance, the Minnesota Stars FC, the local Division 2 pro soccer team, play out of the NSC in Blaine. They've been getting different food trucks to park in the "beer garden" during each game, which instantly expands the food selection at the game for the better. (Last week's games had Anchor at one, Rusty Taco at another.) It also, honestly, is better for facility owners in that many owners of such sporting facilities are NOT food purveyors. It's why food at that kind of event sucks so bad — they're once a week (at most) kitchens with limited revenue, so renting out management has to be done to mass glop-n-sloppers. It made me think, a little, of the debate a few years back where Minneapolis investigated putting a DQ in the Lake Harriet concessions spot, because the Park Board was unprofitable running an ice cream place there on their own. Which of course! Give the facility to someone who knows what they're doing! Win! There was a lot of opposition and it got shut down. (I remember one objection being that DQ would actually be good, so more would get sold, so more trash = do not approve. Which was kind of epic logic.) Food trucks can provide some flexibility for those kinds of venues, or for streetfairs and neighborhood events — the food quality is better than standard-issue carnival chow, and the trucks have a decent business model to sustain them. Sam Newberg July 9, 2012 at 8:40 am # Bill, I love the piece, but I'd put the conomic argument slightly ahead of using the public space. As fundamentally important as it is for food trucks to occupy public space and lure people out to enjoy it, I do believe the worthiness of food trucks as you put it, as "little incubators of future shops" is spot on. Food trucks give an entrepreneuer a lower-risk opportunity to test their idea. So, rather than sign a lease, open a restaurant and be out of business in six months, reinforcing the idea that no business can survive in that particular retail location, you've vetted your idea, made some money and now are looking for a permanent home. It is like a minor league farm system for restaurants! Daniel Olson July 9, 2012 at 12:22 pm # I suspect downtown Minneapolis food trucks have taken revenue from skyway lunch spots more than street-level restaurants. I'm not sure about the magnitude of the effect, but it would be interesting to see figures about business closures and skyway rents to see if the impact has been material. Ancedotely, the skyway food spots that have gone under have been quickly replaced. At least one skyway space was recently filled by a business that started as a food truck (Turkey To-go). From a consumer prospective food trucks are positive as they increase competition and offer quick food at decent prices. If a few uninspired brick-and-mortar lunch places are replaced by food trucks selling low-cost interesting food, its a win for consumers. 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/9/14 You're of course right about their effects on the streets. It's great to see people venture outside at lunch. Marquette has gone from vacant to lively at lunch time. With active express bus stops in the morning and evening, crowds at lunch could even be a catalyst for new retail along Marquette. Even streets without food trucks have increased pedestrian traffic. If someone starts at the skyway level of their office building and walks to a skyway level lunch, it's unlikely they'll walk outside, even on a nice day. But if you're going to find a new food truck, you'll likely start on the street level. I agree with your economic point also. Food trucks have lower barriers to entry than brick-and-mortar restaurants. (Although, you could easily spend $100K getting one rolling). Loosening restrictions has given motivated and creative entrepreneurs a chance to compete with chain conglomerates that threaten us all with bland monotony. I'm not even sure the main criticism is true. Do food trucks undermine brick and mortar businesses? Sam's point that food trucks could act as a farm system for property tax paying restaurants is right on. Additionally, having a food truck near your restaurant could make your block look like lively and nudge people to venture up your street and discover your restaurant. People want to be where other people are. I agree that food trucks could instigate a critical mass of pedestrian activity that draws as many people for brick-and-mortar businesses as the food trucks themselves. I was at the city council meeting where they voted to start the food truck licensing on a trial basis. Some public speakers were restaurant owners who feared competition. (Notably the Loon Cafe owner who seems to squeal about everything that happens downtown). But some downtown restaurant owners spoke in favor of the change because they wanted an avenue to expand their business. Since the downsides are speculative and the upsides are transformative, I say the more food trucks the better! Bill Lindeke July 10, 2012 at 7:18 am # The sooner the skyways are auctioned off for scrap, the happier I will be. Faith July 9, 2012 at 2:43 pm # Food trucks do take away some business from the skyway lunch places (at least in my case). The food trucks offer better tasting food, usually for a $1 or 2 more, and often with longer waiting times. I don't venture near the food trucks until after 12:45 since the lines are often 20+ people deep at noon. It's great to see Marquette active and full of people. minneapolisite July 9, 2012 at 5:16 pm # As mentioned previously, food trucks fill a niche that doesn't necessarily compete with brick and mortar restaurants. Where I'd most like to see food trucks is on W Broadway: a street that needs 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/10/14 an extra boost. Implementing an indoor space that is shared with a handful of food trucks would be great: it would provide variety, relief from the elements whether sweltering or chilling to the bone, and convenience by being available at a single location. It would also help break down that mental barrier locals have about North Mpls by familiarizing themselves with it. Alex July 10, 2012 at 4:36 am # I like the post, Bill, although I think in a society that has marginalized pedestrian transportation as much as we have, there is a better case for reserving the little remaining sidewalk space for moving. Good places downtown? I would argue that Gluek's and Eli's are two of only a handful of bars in the Twin Cities that actually have personality. The list of good, idiosyncratic, local restaurants Downtown is almost endless – Zen Box, Hell's Kitchen (though their new space is lacking in character their food is still great), Spoon River, The Creperie, even Brothers Deli in the skyway. Sure there is a lot of corporate crap, but there is at least as many good local purveyors of refreshment as any neighborhood. Bill Lindeke July 10, 2012 at 7:18 am # OK. I will have to go to Gluek's again, though I doubt anyone would agree w/ you about TC bars lacking personality. And you're right. There are a bunch of joints w/ good taste. Alex July 10, 2012 at 12:36 pm # Twin Cities bars are at best warehouses for binge drinking and at worse reminiscent of spacious gas chambers. The best ones are from the 60s or earlier, because there was apparently a state law that required wood paneling in bars and breweries at the time were generous with mirrored and/or felted wall hanging merch. But those are almost all still far too large to be interesting. A bar must be approximately living room sized to be interesting. Most TC bars are table-based, and since Minnesotans go there that means no one talks to each other. Long story short, see you at Gluek's tonight. Bill Lindeke July 10, 2012 at 3:25 pm # oops! i'm in St paul! 11/13/2017 Are Food Trucks Good or Bad for the Twin Cities? | streets.mn https://streets.mn/2012/07/09/are-food-trucks-good-or-bad-for-the-twin-cities/11/14 E-mail Note on Comments streets.mn welcomes opinions from many perspectives. Please refrain from attacking or disparaging others in your comments. streets.mn sees debate as a learning opportunity. Please share your perspective in a respectful manner. View our full comment policy to learn more. Thanks for commenting on streets.mn! Welcome to streets.mn! Streets.mn is dedicated to expanding the conversation about land use and transportation issues in the Twin Cities and Greater Minnesota. Learn more about our mission. We are a volunteer, non-profit organization. Become a member to help support streets.mn! Writer and Commenter Login Username Password Remember Me Register Lost Password Subscribe/Connect Subscribe to our e-mail newsletter to receive updates. 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Fair Use Notice Wry Wing Politics Social Media Response Post [details 8,442 People Reached Elk River City Government hlovembe- 13 at,t3.3©am - 0 234 actions,Comments&Shares r 1K136 31 105 0 Like On Post On Shares Would you like to see Elk River 6 0 6 0 Love On Post On Shares 86 21 64 Comments On Post On Shares 7 5 2 Shares On Post On Shares 1,249 Post Clicks What we your thoughiV 336 0 913 Photo'Views Link Clicks Other Clicks ! NEGATIVE FEEDBACK Get More Likes, Comments and Shares l Hide Post 1 Hide All Posts When you boast this post,you'll show 4 to more people-0 Report as Spam 0 Unlike Page AL 8442 people reached Reported stats may be delayed from what appears on posts Comments Included: Yes,it would be nice to see them during the farmers market or music in the park nights.. No,I like the small town feel... I have to work downtown mpls so I might be selfish. No. They are a fire/explosion hazard and aren't well regulated for safety. Great idea as long as they are subject to and meet health codes for food service. Aren't they already allowed all of the places listed except downtown?There are already plenty of options for eating downtown Elk River and they all have takeout options. There is no need to take away business from these restaurants downtown. I'm all for food trucks in places that don't have options for food,but we have a great selection downtown with great restaurant owners who invest in our community. Having them at festivals/grad parties/etc should be up to whoever is planning the event. Food trucks have damaged several restaurants downtown Minneapolis and put them out of business....restaurants that payed taxes and contributed to the community,local fundraising, etc. Keep in mind food trucks don't have to pay property taxes,they won't be contributing at all to the community like the local businesses do. Let them stick to festivals. Yes! At my job,we can't leave our property to go get lunch or dinner for breaks. A brewery plus food trucks!!! I'd never leave downtown. We need more small businesses, and less red tape for them to jump through,including food trucks. Don't love it as we already have traffic congestion problems for such a small city and it takes away from the local economy The only question I would pose is "Where would you have designated for general downtown?" Would they be in the parking lot with the farmers market instead on parking spaces on main street. But I am all for supporting more small businesses in Elk River. It would be nice at athletic events that don't sell concessions and other special event. I love the idea as long as they aren't allowed to come park right in front of another restaurant. Otherwise, bring them on. I've never understood the fear of them and why so many cities have such stringent anti-food truck regulations. Why wouldn't we went to be part of such a great way to bring culinary treats to the city?There isn't enough diversity at the moment so I would welcome the chance to see food trucks! Good idea, but I doubt it will fly. The heads of the Power's that Be in Elk River exploded when that person was selling veggies by the Dairy Queen. Variety is nice but just think about all the empty buildings you will have downtown for stores other than restaurants If anything the placement of where the food trucks can be located could actually bolster the success of shops in their vicinity by drawing traffic to the area that normally is unnoticed underutilized etc. I'm ok with it as long as it's regulated Wow that would be wonderful. I know many employees from our work would go there. Yes would be great.Just don't make the permit for the food truck so high that no one will come. I don't think it's a fear necessarily. I think some of it has to do with respecting the businesses that contribute to the tax base and community as brick-and-mortar businesses. The small restaurants that pay huge SAC &WAC fees,property taxes,provide jobs, fundraisers for local groups, and places for local folks to congregate and socialize. I love the concept of food trucks. I have purchased more than my share of grub through the side of a cube van. I'm not against them,however I do completely understand why people oppose them. What does it say to a Chow Grill that just invested millions that someone can go park in the business park where their lunch crowd comes from without investing a dime in our community?What does it say to a McCoy's Irish Pub that's faithfully ground it out through good times and bad in our Downtown while still being active in the community,that we are willing to let someone pull up in front of Downtown concerts and serve burgers to our citizens before driving back to the Metro? Again, I don't think anyone is afraid, or dislikes the concept,however it truly adds little to our economy,while hurting the business we all expect to be there tomorrow. Not to mention the waitstaff that make their living through those restaurants are our friends and neighbors. I think they should be allowed on private property/lots, or on public property during a permitted special event.I love food trucks. I just love and value my local business owners and their employees more. That is fear. It's fear of competition. It's protectionist. It's the same argument I hear about running an online business, that I'm taking away business from brick and mortar office furniture stores. I'd never advocate allowing a food truck to park outside Daddy O's front door. But not allowing them in the whole business park near the government center?The ability for a local worker to have a choice isn't wrong,it's the American way. I believe the Founding Fathers might be on my side on this one. No,it's not fear,it's economics and preserving a local economy that I know this community needs and values far more than a carolina pulled pork sandwich wrapped in tin-foil. It's not competition if you change the rules while the other team is on the goal line. If you're driving your decision based solely on convenience to the consumer,you're welcome to use your logic. However,if that's what you choose to go with I don't want to see another post authored by you complaining about not having a brick-and- mortar restaurant on your end of town. Again,if you read my earlier statement,I'm fine with food trucks being on private property they shouldn't even need a permit for this, just a displayed department of health cert), or at a permitted event. I'm not ok with them operating on city streets or public parking lots. This guy isn't against competition,he's against unfair competition and over regulation. And he's definitely for the ways communities were vs. The way they're going...thats just a personal thing I get it,we have a minor disagreement. I'm more libertarian when it comes to business competition. If you're able to spend the $50-100k on a food truck,you get to earn it back in my book. Reasonable regulations,good,protectionism,bad. We agree for the most part...and that's quite an accomplishment in this day and age