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4.4 SR 02-22-2022it ci Elk* River Request for Action To Item Number Mayor and Ci Council 4.4 Agenda Section Meeting Date Prepared by Consent February 22, 2022 Tina Allard, City Clerk Item Description Reviewed by Ordinance Amendment: Wine Licensing and Cal Portner, City Administrator Strong Beer Permission Reviewed by Action Requested Adopt, by motion, an ordinance amending liquor regulation regarding wine licensing and strong beer permission. Background This is a housekeeping item and staff is suggesting two changes to the liquor ordinance: 1. Allow the sale of wine up to 24% alcohol by volume (ABV). Current Wine License ordinance states 14% ABV The average glass of wine contains 11-13% alcohol. Consumer demands and alcohol content changes, especially those from warmer climates (Australia and Chile) with longer sugar -producing sunshine time on the vines, have increased ABV. Also, fortified wines can range from 14-24% ABV, such as sherries, ports, marsala, madeira, and muscat. 2. Remove the requirement for a wine licensee who wants to sell strong beer to have to prove 60% of gross sales be attributable to food. Liquor licensing can be challenging to navigate. These changes are more business friendly as licensees wouldn't have to track and provide the data to meet city percentage requirements. Staff time to monitor and account for tracking will decrease. Further, licensees are already required to have a food license. These items used to be requirements in state law but have since been removed. Cities can be more restrictive than state law, but past practice has been to match state law. Financial Impact N/A Mission/Policy/Goal Foster culture of exceptional service. Attachments ■ Ordinance The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. P I I I R I D li AUR Updated. August 2020 Strikethroughs to be removed Underlines to be added Ordinance 22 - ____ City of Elk River An Ordinance Amending Liquor Regulations under Section 6-52(2)b. Regarding Wine Licensing and Strong Beer Permission 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 Sec. 6-52(2)b. Types of licenses be amended as follows: (2) Wine license. a. Generally. Wine licenses may be issued with the approval of the commissioner only to restaurants having facilities for seating at least 25 people at one time for the sale of wine not exceeding 14 24 percent alcohol by volume and for consumption on the licensed premises only in conjunction with the sale of food. A wine license authorizes the sale of wine on all days of the week unless the council restricts the license's authorization to the sale of wine on all days except Sundays. b. Sale of intoxicating malt liquor. The holder of a wine license who is also licensed to sell 3.2 percent malt liquor on-sale pursuant to 340A.411 and whose gross receipts are at least 60 percent attributable to the sale of food may also sell intoxicating malt liquor at on-sale without an additional license. c. Bed and breakfast wine license. The city may issue an on-sale wine license with the approval of the commissioner to a licensed bed and breakfast facility. 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 22nd day of February, 2022. ______________________________ John J. Dietz, Mayor ATTEST: _______________________________ Tina Allard, City Clerk Last Updated January 2019