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RES 25-73City of Elk River City Council Resolution 25-73 A Resolution of the City Council of the City of Elk River Revoking Tobacco License for Elk River Tobacco LLC WHEREAS, Mr. Noman Husein and Elk River Tobacco LLC ("Elk River Tobacco") holds a license from the City of Elk River to sell tobacco products at Elk River Tobacco, 19262 Evan Street NW issued on April 25, 2022, and WHEREAS, pursuant to Minnesota State Law and Elk River City Code, the Elk River Police Department works with Sherburne County Health and Human Services to periodically conduct compliance checks to ensure licensees are not selling tobacco products to persons under the age of 21; WHEREAS, on October 17, 2025, Elk River Tobacco failed a compliance check when its employee sold tobacco products to underage buyers; WHEREAS, the October 17, 2025, violation was the fourth violation within a 36-month period; nrrnnrnnrnnarnrrn WHEREAS, by letter dated October 27, 2025, Elk River Tobacco was put on notice of the violation and that the City Council would consider the penalty for the violation at its meeting on November 17, 2025, pursuant to City Code § 26-73(e); WHEREAS, prior to the hearing, Elk River Tobacco was provided the Request for Action, including all supporting documentation; WHEREAS, the City Council has reviewed all materials provided by staff, and considered any and all oral and written testimony offered by all interested parties. NOW THEREFORE, the City Council makes the following: FINOIN S 1. The above recitals are incorporated as if fully set forth herein. 2. Minn. Stat. § 461.12, subd. 5 and City Code § 26-35 provides that a licensing authority shall conduct unannounced compliance checks at least once a year at licensed locations. 237882v1 3. City Code § 26-37(a) provides that it is a violation for "any person to sell, offer to sell, give, or otherwise furnish any tobacco, tobacco -related device, nicotine, or electronic delivery device to any person under the age of 21 years." 4. City Code § 26-33 provides: All licensees under this article shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco -related devices, nicotine, or electronic delivery devices on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this section shall be construed as prohibiting the city from also subjecting the clerk to whatever penalties are appropriate under this article, state or federal law, or other applicable laws or regulations. 5. Elk River Tobacco was found in violation of City Code - and Minn. Stat. - for selling tobacco products to persons under the age of 21 on the following dates: December 5, 2022; August 8, 2024; and June 18, 2024. 6. Elk River Tobacco was provided notice of those violations, expressly waived its right to an administrative hearing and submitted the applicable penalty for each violation. 7. At the hearing on its 4ch violation, Elk River Tobacco did not contest the fact of the violation itself. There was no defense that the licensee or individual making the sale relief in good faith upon proof of age on a specific government document under Minn. Stat. §§461.12, subd. 6 and 340A.502, subd. 6. 8. Elk River Tobacco did violate City Code and state law on October 17, 2025, by failing a tobacco compliance check and selling tobacco products to persons under the age of 21. This was the Fourth Violation by Elk River Tobacco within 36 months. 9. At the hearing, Representatives from Elk River Tobacco did not sufficiently take responsibility for the actions or explain how they would prevent underage sales from occurring in the future. 10. At the hearing, Officers from the Elk River Police Department explained that Elk River Tobacco is known in the community as a place where individuals under the age of 21 can purchase tobacco. 11. The number of violations within a 36-month window suggest that perception is true. 12. The City Council does not find that the licensee will adequately protect the residents of the City of Elk River by complying with City Code and Minnesota State Law in ensuring its employees do not sell tobacco to persons under the age of 21. 13. Minn. Stat. § 461.12, subd. 2 provides, in relevant part: For a third or any subsequent violation at the same location within 36 months after the initial violation, an administrative penalty of $1,000 must be imposed, and the licensee's authority to sell tobacco, tobacco -related devices, electronic delivery devices, or nicotine or lobelia delivery products at that location must be suspended for not less than seven days and may be revoked. No suspension, revocation, or other penalty may take effect until the licensee has 237882A received notice, served personally or by mail, of the alleged violation and an opportunity for a hearing before a person authorized by the licensing authority to conduct the hearing. A decision that a violation has occurred must be in writing. 14. City Code § 38-35(c) provides: Grounds forsuspension orrevocation. Every license issued under this chapter or any other ordinance of the city is subject to the right, which is hereby expressly reserved, of the council to suspend or revoke the license should the holder or the holder's agents, employees, representatives or lessees, directly or indirectly, fail to complywith the provisions of the particular license, this chapter, or any other law, ordinance or regulation pertaining directly or indirectly to the operation or conduct of the licensed activities. 15. City Code § 38-35(d)(4) provides, in relevant part: "If, after the hearing, the council determines that proper grounds exist to suspend or revoke the license in question, the council shall state those grounds for the record and suspend or revoke such license...." 16. Based on the foregoing, and pursuant to the above City Code provisions, the City has sufficient grounds to revoke the license. DECISION NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA, based upon the information received and the above FINDINGS, that the City Council of the City of Elk River hereby revokes the tobacco license for Elk River Tobacco LLC. Passed and adopted this 1 st day of December, 2025 <)�(w - - n J. ietz, ayor ATTEST: t� Tina Allard, City Clerk 237882v1