4.5. SR 05-04-2020
Request for Action
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent May 4, 2020 Tina Allard, City Clerk
Item Description Reviewed by
Ordinance Amendment Allowing for Installment Cal Portner, City Administrator
Payment of Certain Liquor Licensing Fees
Reviewed by
Action Requested
Adopt, by motion, an ordinance amendment allowing installment payment of certain liquor license fees
due to state and local emergency declarations related to the COVID 19 health pandemic.
Background/Discussion
At the April 20 meeting, Council reduced certain liquor licensing fees and agreed to allow installment
payments in order to provide some relief to liquor establishments who have had to be closed because of the
State Order. The ordinance has been written to allow for additional months of closure if the State Order is
extended on these businesses.
Financial Impact
Prorating a two-month refund would decrease licensing revenue by $12,483.52. Each additional month
would decrease revenue by $6,241.76.
Attachments
Draft Ordinance
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and
community engagement that encourages and inspires prosperity
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Ordinance 20 - ____
An Ordinance Amending Chapter, 6, Section 56 Regarding Liquor License Fees of
the City of Elk River, Minnesota, City Code
The City Council of the City of Elk River does hereby ordain as follows:
SECTION 1. That § 6-56, Fees of the City of Elk River Code of Ordinances shall be amended to
read as follows:
(a) Applicability; payment. Prior to consideration of any application for a license under this division,
the applicant shall pay the license fee and, if applicable, pay the investigation fee to cover the costs
of the city in processing the application and the investigation thereof. The investigation fee is
nonrefundable. No investigation fee shall be required of an applicant for an on-sale 3.2 percent malt
liquor license, off-sale 3.2 percent malt liquor license, temporary beer license or temporary license
for the on-sale of intoxicating liquor. Failure to pay any portion of a fee when due shall be cause for
revocation.
(b) Establishment. All license and investigation fees provided for in this division, including, but not
by way of limitation, fees for on-sale and off-sale of beer, temporary on-sale of beer, on-sale and
temporary off-sale of liquor, and on-sale of wine, shall be fixed and determined by the council,
adopted by resolution, and uniformly enforced. The council may amend such fees by resolution. A
copy of the resolution shall be kept on file in the office of the city clerk and open to inspection
during regular business hours.
(c) Fee increases. The city shall not increase the fee for a liquor license except after notice and
hearing on the proposed increase. Notice of the proposed increase must be mailed to all affected
licensees at least 30 days before the date set for the hearing.
(d) Proration. For licenses issued and which are to become effective other than on the first day of
the licensed year, the fee to be paid with the application shall be a pro rata share of the annual
license fee.
(e) Refunds. License fees shall be refunded if an application for a license is denied by the city
council, except where rejection is for a willful misstatement in the license application. A pro rata
share of an annual license fee for a retail license to sell intoxicating or 3.2 percent malt liquor, either
on-sale or off-sale, may be refunded to the licensee or to the licensee's estate if:
(1) The business ceases to operate because of destruction or damage.
(2) The licensee dies.
(3) The business ceases to be lawful for a reason other than a license revocation.
Last Updated January 2019
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(4) The licensee ceases to carry on the business licensed under the license.
(f) Quarterly Installments Authorized.
(1) Notwithstanding section 6-56 (a) if during the six months immediately prior to the
term for which the applicant is making application there was a duly declared state or local
emergency that required such licensed establishments to cease activities, an applicant for the
following city-issued licenses may pay the city’s established fee in four equal quarterly
installments.
On-Sale Liquor
Sunday Liquor
Wine
3.2 On-Sale
Club
Brew Taproom
(2) Payment of each installment shall be due before the beginning of the period to
which it relates. The amount due for the first installment shall be reduced by the number of
months the licensed establishment was required to cease operations.
(3) If the licensed establishment is required to cease operation for more than two
months, the amount due for future installments shall be reduced by the number of additional
months operations were ceased.
(A) The licensee bears responsibility for the full year’s license fee upon receiving the
license, whether or not the business continues to operate. The failure to pay a
license fee when it becomes due pursuant to this section shall be grounds for the
denial, suspension, or revocation of the license.
SECTION 2. That this ordinance shall take effect upon adoption and be published as provided by
law.
Passed and adopted by the City Council of the City of Elk River this 4th day of May, 2020.
______________________________
John J. Dietz, Mayor
ATTEST:
_______________________________
Tina Allard, City Clerk
Last Updated January 2019