6.1. SR 04-22-2002-- Item # 6,1,
MEMORANDUM
TO:
FROM:
Mayor and City Council
Michele I'qcPherso~rector of Planning
DATE:
April 22, 2002
SUBJECT:
CU 02-08
Request by Phoenix Enterprises for Conditional Use Permit for
Building Addition and Billiard Hall
Request
The City Council is asked to consider a joint request by Phoenix Enterprises and Bruce
Smith to allow construction of an addition to a building and to allow a billiard hall.
Location
19463 Evans Street NW; Lot 2, Block 1, Northbound Crossing
Zoning & Land Use
PUD - Planning Unit Development/HB - Highway Business
Attachments
· Location Map
B & B Billiards Business Plan Outline
· March 4, 2002 Memo from Chief of Police
· March 19, 1999 Staff Memo
· Site Plan
· Building Elevations
Overview
Building Addition
The applicant is proposing to construct a 17,547 square foot addition to an existing building
of 26,415 square feet. Located in the current building is Goodwill and Sherwin Williams.
Memo to Mayor and City Council/CU 02-08
April 22, 2002
Page 2
The proposed addition will be subdivided into three bays; two at 5,013 square feet and one
at 7,520 square feet.
This request is an amendment to the PUD approved in 1999 for the original building. The
original request showed the expansion area; the original construction provided the required
parking which exceeds the ordinance requirement.
The proposed addition will be constructed of two colors of rock face block, as well as EIFS
to match the existing building. The proposed addition complies with the Northbound
Crossing Planned Unit Development requirements.
Billiard Hall
Bruce Smith will be operating the billiard hall. The billiard hall is proposed to include 28 -
30 billiard tables and will also include the serving of light food and beverages. The hours of
operation will be 11:00 a.m. - 1:00 a.m. - Monday through Thursday; 11:00 a.m. to 3:00
a.m. Fridays and Saturdays; and 12 noon to 12 midnight on Sunday. The operation will not
serve liquor and will also be a limited smoking facility. The billiard hall will need to enforce
the City's curfew requirement for those juveniles that it applies to. The Police Chief has also
requested that the employees be required to police the parking lot and to notify the police
immediately if there are problems around their building.
Planning Commission Recommendation
At the Planning Commission meeting of March 26, 2002, no one spoke for or against the
proposed addition or billiard hall. The Commission acted upon each half of the request
separately and unanimously recommended approval of both with the following conditions:
Building Addition
1. THE BUILDING ADDITION SHALL COMPLY WITH ALL
APPLICABLE BUILDING AND FIRE CODES.
e
SECURITY LIGHTING SHALL BE INSTALLED IN THE REAR OF
THE BUILDING.
Billiard Facility
1. THE EMPLOYEES SHALL POST IN PLAIN SIGHT AND ENFORCE
THE CITY OF ELK RIVER'S CURFEW REQUIREMENTS.
e
THE EMPLOYEES SHALL POLICE THE GROUNDS AND NOTIFY
THE POLICE DEPARTMENT IF THERE ARE PROBLEMS INSIDE
OR OUTSIDE OF THE BUILDING.
Be
WINDOWS SHALL REMAIN UNCOVERED AND
UNOBSTRUCTED.
4. THERE SHALL BE NO SALE OF CIGARETTES.
S:\PLANNING\Case Files\CU 02-08 Phoenix\4-22CCmemo.doc
Memo to Mayor and City Council/CU 02-08
April 22, 2002
Page 3
5. THERE SHALL BE NO USE OF CIGARETTES BY MINORS.
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THE OPERATOR SHALL APPLY FOR, RECEIVE AND COMPLY
WITH A BILLIARD HALL LICENSE ISSUED BY THE CITY OF ELK
RIVER.
Recommendation
Staff and the Planning Commission recommend that the City Council approve the request to
allow a building addition and a billiard hall as proposed by the applicants with the conditions
recommended by the Planning Commission.
S:\PLANNING\Case Files\CU 02-08 Phoenix\4-22CCmemo.doc
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Case Number:
Location Map
CU 02-08 PHOENIX ENTERPRISES
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B 8,: B Billiards
Business Plan Outline
Febmary 28, 2002
Ownership
Bruce A. Smith is a CPA with a Bachelors degree from the University of Minnesota
Duluth, 1988. He has 14 years financial management experience and currently is the
Chief Financial Officer of Charles Cudd, Co. in Minneapolis. Bruce Smith and Family
moved to Big Lake in 1995 and then to Elk River in 1998. Currently reside at 19360
Dodge Street in Elk River.
Corporation: MG & MT Services, Inc. Federal ID# 41-1761115, State ID# 2504375,
Entity is an S-Corporation formed for business management services in 1993 and is
100% owned by Brace and Becky Smith. Current business mailing address is P.O. Box
561, Elk River, MN 55330.
Business:
B & B Billiards is a developing concept for a medium size billiard hall serving
light food and beverages. Plans are to open with 28-30 billiard tables largely nine-foot
Brunswick Gold Crown and Brunswick Medalist tables that rent on a per hour basis with
some smaller seven foot coin operated tables. There will be seating for 80 to 90 persons.
In addition an area will be designated for the installation of a small number of video
machines. Counter service will be provided for the purchase of soft drinks and food.
Food will primarily consist of frozen pizza, chips, cheese sticks, chicken fingers, fries,
onion rings, and an assortment of soda and juices. B & B Billiards will not serve alcohol
and will be a non-smoking facility. We will promote ourselves as a sports facility and as
such smoking in designated areas only. We are also a hockey family and will display a
hockey theme much of the time, for example several art works already acquired include
original signatures of Wayne Gretzky, Steve Yzerman, and Maurice Richard.
Market:
Currently the nearest establishments of this size and kind are CR Billiards in
Coon Rapids 22 miles, Eddies Billiards in Maple Grove 18 miles, Checkers Billiards in
St. Cloud 42 miles. So currently the minimum drive from Elk River or the surrounding
area is 18 miles to the nearest billiard facility.
However there are several bar & grill facilities in Elk River and the surrounding
communities with various number of coin operated pool tables. In Princeton Northern
Attitudes bar and grill 2 coin-operated tables, 18 miles. Becks Bar & Grill in Becker has
2 coin-operated tables, 20 miles. Mr. Pete's bowling alley in Big Lake has 2 coin-
operated tables, 10 miles. Elk River Bowl in Elk River has 1 coin-operated table. The
Main Tap Bar & Grill in Elk River has 2 coin-operated tables. These facilities primarily
offer alcohol beverages and dining facilities with some coin-operated games.
According to the 2000 census Elk River is in the center of the fastest growing
population in Minnesota. Sherbume County has over 64000 residents with over 30%
under the age of 18. This is a growing community with a consumer market that includes
several surrounding towns from Anoka to Big Lake and Princeton to Rogers. There are
differing opinions however we maintain that the best billiard facilities in the country cater
to a wide age of family members, do not serve alcohol, and control or eliminate smoking.
Location:
We are currently discussing leasing options with Darrel Thompson of Riverside
Development in Elk River for the construction of a building adjacent to Sherwin
Williams between Coborns and Goodwill just north of 193rd Avenue in Elk River. We
are proposing 7500 square feet of occupancy with the building having 60 feet frontage
and a depth of 125 feet.
Employees:
Currently our plans call for 2 to 3 full time employees and 6 to 7 part time with upwards
of 200 weekly payroll hours.
Hours of Operation:
Proposed hours are 11:00AM to 1:00AM Monday through Thursday, 11:00AM to
3:00AM Friday and Saturday, and 12:00 noon to 12:00 midnight on Sunday.
Marketing & Promotions
B & B Billiards will provide various events through out the week including but not
limited to local nine ball and eight ball tournaments, junior events (primarily 17 and
under), promote in house and travel league play, and the ever popular ladies night. We
hope to promote an in house 14-1 league. We will be handicap accessible and offer
senior discounts. Lessons will become available from certified instructors. Our
advertising budget will include monthly adds in Chalk Talk, Elk River Star News and
other local commtmity papers, along with fliers posted in Elk River and the surrounding
communities. Since we are both non-smoking and no alcohol we hope to attract a wide
range of age groups while promoting the sport of playing pool.
Insurance:
MG & MT Services Inc. will carry 1 Million in liability coverage, 300K in property and
contents coverage, and workers compensation for all wages.
Financing:
Currently seeking $150,000 Small Business Loan with Wells Fargo Bank. Wells Fargo
has verbally agreed to the loan requesting 30% equity in the company for a start up. We
fully expect to combine sufficient equity with this small business loan to meet our
purchasing and operational needs.
Vendors:
Ace Billiards of Minnesota and Brunswick Billiards have provided the detail quotes of all
tables, balls, racks, cues, cue rack, ball trays, table brushes, and table light fixtures.
SYSCO Minnesota is working on providing the food and supplies along with quotes for
all chairs, tables, and cooking equipment.
Micro Logic Software has provided the detail for our computer system, software,
installation and training needed to run the lighting system linked to time tracking and
cash drawer receipt system. In addition this software will allow for all food and beverage
sales by table and individual per table.
Viking Cues - It is our intentions to become a Viking Cue local retailer however options
for cue and accessory sales will not be finalized until after the BCA Billiard show in New
Orleans, LA July 24th - 26th 2002.
For vending services that will cover our video game area, coin operated tables and music
systems we have contacted Twin States of Hudson WI. Discussions are also being had
with Superior Vending of Saint Paul and CDL Company of Maple Grove. All are
capable of supplying video games and the sound system we desire.
Opening:
Proposed opening date September 1, 2002.
RAver
Police Depadment
MEMORANDUM
TO:
FROM:
DATE:
Michelle McPherson, Planning Director
Thomas D. Zerwas, Chief of Police .-'~ff~~
March 4, 2002
SUBJECT: B & B Billiards
I have received a copy of B & B Billiards' business plan outline that describes their
intentions for the proposed billiards hall. After reviewing this plan, I don't have any big
concerns about this operation.
I feel the location is good and ask that, if approved, it be with a conditional use permit
(CLIP). If there should be any problems that develop, they could then be handled effectively
at a later date. My only other issues are that adequate lighting is included on the outside of
the building and in the parking lot.
Lastly, I want it to be addressed that employees of the billiards hall will "police" the parking
lot when time permits and also that they will notify the police immediately if they have
problems inside or outside of their building.
If you have any questions, give me a call.
TDZ/kma
Item # 6. I.
MI=MORANDUM
TO:
FROM:
Mayor and City Council
Michele McPherso~n~rector of Planning
DATE:
April 22, 2002
SUBJECT: Case No. CU 02-08
Supplemental Memo Regarding Hours of Operation
The City Council will be reviewing the Conditional Use Permit for a billiards hall, as well as a
license request for a billiards license to operate the billiards hall. The applicant has requested
hours of operation to 3:00 a.m. on Fridays and Saturdays. The ordinance in regards to
billiard licensing limits the hours of operation to 1:00 a.m.
The Council has two options regarding this conflict:
1)
issue the Conditional Use Permit with hours to 3:00 a.m. with the
condition that until the ordinance is amended, they cannot operate past
the hour of 1:00 a.m., or
issue the Conditional Use Permit limiting the hours of operation to 1:00
a.m.
If the Council selects Option 1, staff will prepare an ordinance amendment to include
language allowing operation beyond 1:00 a.m. with issuance of a conditional use permit and
requiring that the Conditional Use Permit specifically detail the allowed hours of operation.
S:\PLANNING\Case Files\CU 02-08 Phoenix\4-22SupplMemo.doc