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RES 26-56Crty of Eli ..�. River City of Elk River City Council Resolution 26-56 A Resolution of the City Council of the City of Elk River Revoking Tobacco License for Star One LLC WHEREAS, Ms. Faezah Hizam and Star One LLC ("Star One") holds a license from the City of Elk River to sell tobacco products at Star One, 19262 Evan Street NW issued on February 5, 2026; and WHEREAS, pursuant to Minnesota 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; and WHEREAS, on June 16, 2026, Star One failed a compliance check when its employee sold tobacco products to underage buyers; and WHEREAS, Elk River Tobacco LLC was purportedly sold from Mr. Noman Husein to Ms. Faezah Hizam on February 11, 2026; and WHEREAS, Elk River Tobacco LLC was licensed to sell tobacco by the City of Elk River on April 25, 2022, but had their license revoked on December 1, 2025, for repeated compliance check failures; and WHEREAS, due to the nature of the connection of Elk River Tobacco LLC and Star One LLC, Star One was notified of the violation and informed that the City Council would consider revocation of their license at their August 17, 2026 meeting, pursuant to City Code § 26-73(e); and WHEREAS, the City Council has reviewed all materials provided by staff, considered all oral and written testimony offered by all parties; NOW, THEREFORE, the City Council makes the following: FINDINGS 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. 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. Star One LLC was found in violation of City Code § 26-37(a) and Minn. Stat. § 340A.503 for selling tobacco products to persons under the age of 21 on June 16, 2026. 6. Star One LLC was provided notice of this violation and submitted the applicable penalty for the violation. 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. 7. Star One LLC was also notified that due to the connection of Star One LLC and previous licensee Elk River Tobacco, the City Council would hold a revocation hearing. The record indicates that there is no distinction between Star One and Elk River Tobacco LLC. 8. Elk River Tobacco did violate City Code and state law on June 16, 2026, by failing a tobacco compliance check and selling tobacco products to persons under the age of 21. 9. Mr. Noman Mohamed Ali Huesein was the owner of Elk River Tobacco LLC. Mr. Husein himself, however, purported to sell the business to his wife, Faezah Hizam, on Feb. 11, 2026. It was not, however, a transaction between Elk River Tobacco LLC, as the owner of the property, and Star One LLC, the new property owner, as one would expect. 10. Consistent those circumstances, from the incident report, Star One's staff member informed the reporting officer that Mr. Husein was still involved in the business. Pursuant to City Code § 26-69(c)(3), Mr. Husein is not eligible for a license because his license to sell tobacco, under Elk River Tobacco LLC, was revoked within the preceding three years. 11. There does not appear to have been a proper transfer of the business to a new entity that was not subject to a previous license revocation. 12. Combined with Elk River Tobacco's previous violations this was the fifth violation at this location within 48 months. As documented in the Incident Report, another individual, a 19-year-old male, reported to the investigating officer that he can normally purchase tobacco at Star One. As observed by Councilmember Wagner, it is common knowledge in the community that minors can purchase tobacco at Star One. 13. At the hearing, representatives from Star One acknowledged that the sale to underage persons was wrong and indicated present and future difficulty in preventing staff from selling to underage persons. However, Star One is liable for the actions of employees under City Code § 26-33. 14. Furthermore, Star One is a tobacco products shop. The staff member in question, who sold the tobacco, is 19 years old. Under Minnesota state law, City Code § 26-40(a), and Sherburne County Ordinance # 290, Section 300, you must be 21 years old to enter into a tobacco products shop, such as Star On, and 21 years old to sell tobacco. 15. City Code 26-69(e) provides that failure to comply with any ordinances of the City or laws of the State, shall be grounds for revocation. 16. 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. 17. 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 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. 18. 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 comply with 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. 19. City Code § 26-69(b) provides that, "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. Based on upon his continued involvement in the business, a license was mistakenly issued to Mr. Husein. 20. 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...." 21. The Council finds that (1) Star One specifically sold tobacco to a minor on June 16, 2026; (2) Star One, successor in interest, is still selling tobacco to minors in the community; (3) Star One did not purchase the business from Elk River Tobacco; (4) Mr. Husein, former manager and owner of Elk River Tobacco LLC is still involved with Star One despite the revocation of Elk River Tobacco LLC's license; and (5) Star One also violated state law and city and county ordinances by employing an underage person in its tobacco products shop. 22. 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, as follows: Based on the information received and the above Findings, the City Council of Elk River hereby revokes the tobacco license for Star One LLC. Passed and adopted this 8th day of September 2026. �f NN ,1. , . ATTEST: JustinIn rd, City erk