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ORD 366 Amend Liquor CodeORDINANCE NO. 366 (Codified as Ordinance No. 1403) AN ORDINANCE LICENSING AND REGULATING THE SALE AND CONSUMPTION OF ALCOHOLIC BEVERAGES SECTION I. PURPOSE. Pursuant to the authority granted it by the Minnesota Liquor Act, Minnesota Statutes Chapter 340A, and the Twenty-first Amendment to the United States Constitution, the City Council of the City of Mendota Heights prescribes the following licensing procedures and regulations governing the sale and/or consumption of alcoholic beverages. SECTION 11. DEFINITION OF TERMS For purposes of this Section, the following terms have the meanings given them. 2.1 Alcoholic beverage. "Alcoholic. beverage" is any beverage containing more than one-half of one percent alcohol by volume. 2.2 Affiliate or subsidiary company. "Affiliate or subsidiary company" is a company in which a manufacturer or its stockholders own a majority of the stock. 3 Brewer. "Brewer" is a person who manufactures malt liquor for sale. 2.4 Church - A building which is principally used as a place where people of the same faith or religion regularly assemble for worship. 2.5 Club. "Club" is an incorporated organization organized under the laws of the state for civic, fraternal, social, or business purposes, for intellectual improvement, or for the promotion of sports, or a congressionally chartered veterans' organization, which: (1) has more than 30 members; (2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. 2.6 Distilled spirits. "Distilled spirits" is ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof, for non-industrial use. 2.7 Exclusive Liquor Store - An establishment used exclusively for the sale of intoxicating liquor, except for the incidental sale of 3.2 percent malt liquor, ice, and tobacco products, subject to the provisions of applicable city licensing ordinances, beverages for mixing with intoxicating liquor, soft drinks, liqueur-filled candies; food products that contain more than one-half of one percent alcohol by volume; cork extraction devices; books and videos on the use of alcoholic beverages; magazines and other publications published primarily for information and education on alcoholic beverages; and home brewing equipment. 2.8 . Fiscal Year- The twelve (12) month period used for accounting and income tax purposes. 2.9 Gambling device - a contrivance which for a consideration affords the player an opportunity to obtain something of value, other than free plays, automatically from the machine or otherwise, the award of which is determined principally by chance. It includes any video game of chance, as defined by Minnesota Statutes, that is not in compliance with Minnesota Statutes Chapter 349. 2.10 Hotel and Motel - Any establishment having a resident proprietor or manager where, in consideration of payment therefore, food and lodging are regularly furnished to transients, which maintains for the use of its guests not less than 100 guest rooms with bedding and other usual, suitable and necessary furnishings in each room, which is provided at the main entrance with a suitable lobby, desk and office for the registration of its guests on the ground floor; which employs an adequate staff to provide suitable and usual service; and which maintains under the same management and control as the rest of the establishment and has an integral part thereof, a dining room with appropriate facilities for seating not less than 50 guests at one time, where the general public is, in consideration of payment thereof, served meals at tables. 2.11 Hotel and Motel, Limited Service — A hotel or motel as defined in Section 2.10(1) which maintains a dining room with appropriate facilities for seating not more than 75 guests at one time. 2.12 Interest - Any pecuniary interest in the ownership, operation, management, or profits of an establishment, including a person who receives money from time to time directly or indirectly from a licensee, in the absence of consideration, excluding gifts or donations. Interest does not include: (1) bona fide loans; (2) bona fide rental agreements; (3) bona fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business of selling or leasing merchandise, fixtures, or supplies to the establishment; (4) an interest of five (5) percent or less in any corporation or partnership holding a license; or (5) an interest in a corporation owning or operating a hotel but having at least 150 or more rental units holding a liquor license in conjunction therewith. In determining whether an interest exists, the transaction must have been bona fide and the reasonable value of the goods and things received as consideration for a payment by the licensee and all other facts reasonably tending to prove or disprove the existence of a purposeful scheme or arrangement to evade the restrictions of this Chapter must be considered. 2.13 Intoxicating Liquor - Ethyl alcohol, distilled, fermented, spirituous, vinous and malt beverages containing in excess of 3.2 percent alcohol by weight. 2.14 Licensed premises - The premises described in the approved license application, provided that the space is compact and contiguous. In the case of a restaurant licensed for on-sales of alcoholic beverages and located on a golf course, "licensed premises" means the entire golf course except for areas where motor vehicles are regularly parked or operated. 2.15 Liqueur-filled candy. "Liqueur-filled candy" is any confectionery containing more than one-half of one percent alcohol by volume in liquid form that is intended for or capable of beverage use. 2.16 Lobby - A vestibule or entrance open to the general public that is physically separated and distinct from retail establishments that are accessible from the vestibule or entrance through doors. 2.17 Malt liquor. "Malt liquor" is any beer, ale, or other beverage made from malt by fermentation and containing not less than one-half of one percent alcohol by volume. 2.18 Manufacturer - Every person who by process of manufacture, fermenting, brewing, distilling, refining, rectifying, blending, or by the combination of different materials, prepares or produces intoxicating liquors for sale. 2.19 Minor - Any person who has not attained the age of 21 years. 2.20 Off-Sale -The sale of 3.2 percent malt liquor, intoxicating liquor or wine in the original package in exclusive liquor stores for consumption off or away from the premises where sold. 2.21 On-Sale - The sale of 3.2 percent malt liquor, intoxicating liquor or wine for consumption on the licensed premises only. 2.22 Package or Original Package - The sealed container in which the 3.2 percent malt liquor, wine or intoxicating liquor is placed by the manufacturer. 2.23 Person — One or more natural persons, a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. The singular number includes the plural and the masculine-pronoun includes the feminine and neuter. 2.24 Restaurant - Any establishment, other than a hotel, under the control of a single proprietor or manager, having appropriate facilities to serve meals, for seating not less than 200 guests at one time, and where in consideration of payment therefore, meals are regularly served at tables to the general public, and which employs adequate staff to provide for the usual and suitable services to its guests, and the principal part of the business of which is the serving of foods. 2.25 Sale and Sell - All barters and all manners or means of furnishing intoxicating liquor or liquors as above described whether or not in violation or evasion of law and also include the usual meaning of the terms. -3- 2.26 School - A building that is principally used as a place where twenty-five (25) or more persons receive a full course of educational instruction. Any post-secondary or post-high school educational building, including any college or any vocational-technical college, shall not be deemed a school for purposes of this Chapter. The term "School" shall not include any "Day Care Facility" as that term is defined by Minnesota Statutes. 2.27 3.2 percent malt liquor. "3.2 percent malt liquor' is malt liquor containing not less than one-half of one percent alcohol by volume nor more than 3.2 percent alcohol by weight. 2.28 Wholesale — The sale of 3.2 percent malt liquor, wine or intoxicating liquor to municipal liquor stores, government instrumentalities, or holders of retail licenses under this Chapter or state law. 2.29 Wholesaler -Any person who sells 3.2 percent malt liquor, wine or intoxicating liquor to municipal liquor stores, government instrumentalities, or holders of retail licenses under this Chapter or state law. 2.30 Wine - The product made from the normal alcoholic fermentation of grapes, including still wine, sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry and sake, in each instance containing not less than one-half of one percent nor more than 24 percent alcohol by volume for non-industrial use. Wine does not include distilled spirits as defined herein. Section 3. LICENSES REQUIRED No person, except wholesalers and manufacturers to the extent authorized by law, shall directly or indirectly deal in, sell, or dispose of by gift, sale or otherwise, or keep or offer for sale, any intoxicating liquor, wine or 3.2 percent malt liquor within the City without first having received a license to do so under this Ordinance. Section 4 LICENSE TYPES Licenses under this ordinance shall be of six types: on sale; off sale; on-sale club, on-sale wine, on- sale Sunday and temporary on-sale special event. 4.1 Intoxicating Liquor Licenses 4.1(1) "On-Sale" licenses shall be issued only to Hotels, Motels and Restaurants. 4.1(2) "On-Sale Wine" licenses shall be issued only to Restaurants having facilities for seating not fewer than 50 guests at one time, and shall permit only the sale of wine and shall not permit the sale of any other intoxicating liquor, for consumption on the licensed premises only, in conjunction with the sale of food. 4.1(3) "On-Sale Wine" — Institutional Licenses shall be issued only to vocational institutes certified by the State of Minnesota. Licenses shall only authorize the presentation and sale of wine in connection with the service of meals as part of a culinary curriculum. 4.1(4) "On-Sale" Club licenses shall be issued only to bona fide clubs which have been in existence in the City for 15 years. Such clubs shall be incorporated in order to be eligible to apply.for a license, and the license shall be for the sale of intoxicating liquors to members and bona fide guests only. 4.1(5) "Off-Sale" licenses shall be issued only to exclusive liquor stores which shall be located only in _134 Zoning Districts. 4.1(6) Special License for Sunday Liquor Sale shall be issued only to establishments to which on-sale licenses have been issued or hereafter may be issued for the sale of intoxicating liquors in conjunction with the serving of food. 4.1(7) On-Sale Special Event Licenses shall be granted only to clubs and charitable, religious or nonprofit organizations that have been in existence for three years for the sale of intoxicating liquor on the premises only on the days specified in the license. No organization shall be granted more than two special event licenses in any calendar year. No license shall be issued for more than three days. 4.2 3.2 PERCENT MALT LIQUOR LICENSES 4.2(1) On Sale. These licenses shall be granted only to bona fide clubs, restaurants and hotels where food is prepared and served for consumption only on the premises. On Sale licenses shall permit the sale of 3.2 percent malt liquor for consumption on the premises only. 4.2(2) Off-sale licenses. These licenses shall permit the sale of 3.2 percent malt liquor at retail in the original package for consumption off the licensed premises only. 4.2(3) Club. These licenses allow a club to sell 3.2 percent malt liquor to club members and to guests in the company of club members. 4.2(4) On-sale Special Event. These licenses may be granted for special events held by a religious, charitable, or nonprofit organization that has been in existence for at least three years for the sale of 3.2 percent malt liquor on the premises only on the days specified in the license. No organization shall be granted more than two special event licenses in any calendar year. No license shall be issued for more than three days. SECTION 5. APPLICATION FOR LICENSE In addition to the' information that may be required by the Minnesota Department of Public Safety, an application for a license under this Chapter shall request the following information: 5.1 For all applications, except applications for On-Sale Special Event Licenses, which are governed by Section 5.11 of this ordinance: 5.1(1) Whether the applicant is a natural person, corporation, partnership, or other form of organization. 5.1(2) The type of license the applicant seeks. -5- 5.1(3) If the applicant is a natural person, the following information: 5.1(3)a The true name, place and date of birth, and street residence address of the applicant. 5.1(3)b Whether the applicant has ever used or been known by a name other than the applicant's true name, and if so, what was such name or names and information concerning dates and places where used. 5.1(3)c The full individual name and street address of the business if it is to be conducted under a designation, name, or style other than the name of the applicant. In such case, a copy of the certification as required by Chapter 333, Minnesota Statutes, certified by the Secretary of State, shall be attached to the application. 5.1(3)d Whether the applicant is married or single. If the applicant is married, the true name, place of birth and street residence address of the applicant's present spouse. 5.1(3)e Whether the applicant and present spouse are registered voters, and, if so, where. 5.1(3)f Street addresses at which the applicant and present spouse have lived during the preceding ten years. 5.1(3)g The kind type, name, and location of every business or occupation the applicant or present spouse has been engaged in during the preceding ten years. 5.1(3)h Names and addresses of the applicant's and the applicant's present spouse's employers and partners, if any, for the preceding ten (10) years. 5.1(3)i Whether the applicant or the applicant's spouse or a parent, brother, sister, or child of either of them has ever been convicted of any felony, crime, or violation of any ordinance other than traffic. If so, the applicant shall furnish information as to the time, place, and offense for which convictions were had. 5.1(3)j Whether the applicant or the applicant's spouse, or a parent, brother, sister or child of either of them, has ever owned, been engaged in as an employee or operated a saloon, hotel, restaurant, cafe, tavern or other business of a similar nature which served food, 3.2 percent malt liquor, wine, or intoxicating liquor. If so, applicant shall furnish information as to the time, place and length of time of the involvement in such an establishment. 5.1(3)k Whether the applicant has ever been in military service. If so, the applicant shall, upon request, exhibit all discharges. 5.1(3)1 The name, address and business address of each person who is engaged in Minnesota in the business of selling, manufacturing or distributing intoxicating liquor and who is nearer of kin to the applicant or the applicant's spouse than second cousin, whether of the whole or half blood, computed by the rules of civil law or who is a brother-in-law or sister-in-law of the applicant or the applicant's spouse. 5.1(4) If the applicant is a partnership, the names and addresses of all general and limited partners and all information concerning each partner as is required or a single applicant in Section 5.1(3) of this ordinance. A managing partner or partners shall be designated, and the interest of each partner in the business shall be disclosed. A true copy of the partnership agreement and any amendments thereto shall be submitted with the application, and, if the partnership is required to file a certificate as to a trade name under the provisions of Chapter 333, Minnesota Statutes, a copy of such certificate, certified by the Clerk of District Court, shall be attached to the application. The license shall be issued in the name of the partnership. 5.1(5) If the applicant is a corporation or other organization: 5.1(5)a The name of the organization, and if incorporated, the state of incorporation. If the applicant is another type of organization, the date and state of creation of the organization. 5.1(5)b A true copy of the Certificate of Incorporation, Articles of Incorporation, or Association Agreement and Bylaws, and any amendments to any of the foregoing; and or, if a foreign corporation, a Certificate of Authority as described in Minnesota Statutes, Chapter 303. If the applicant is an organization other than a -corporation, all agreements and other documents which relate to the creation, operation, management or governance of the organization, and the respective rights and obligations of the members of the organization, as well as any amendments to any of the foregoing. 5.1(5)c The name of the general manager, proprietor, or other agent in charge of the premises to be licensed during all hours of operation, the assistant manager(s), the food manager(s) and beverage manager(s), and four (4) principal corporate officers, and all the information about said persons as is required in paragraph 5.1(3) of this Section. 5.1(6) If the applicant is a club: 5.1(6)a The name of the club. 5.1(6)b The date that the club was first incorporated. True copies of the Articles of Incorporation, By-Laws, and other similar governing documents, as well as any amendments to any of the foregoing, shall be submitted with the application. 5.1(6)c The date that the club was first organized and the place of such organization. 5.1(6)d The name of the general manager, proprietor, food/beverage manager, or other person who shall be in charge of the licensed premises during all hours of operation, together with the same information concerning such person as is required in paragraph 5.1(3) of this Section. 5.1(6)e A sworn statement that the club has been in existence for more than fifteen (15) years. The statement shall be made by a person who has personal knowledge of the facts stated therein. In the event that no person can make such a statement, satisfactory documentary proof may be submitted in support of such facts. 5.1(6)f The number of members of the club. 5.1(6)g The names and street addresses of all officers, executive committee members, directors and persons in similar capacities 5.2 The exact legal description of the premises to be licensed together with a plot plan of the area showing dimensions, location of buildings, street access, parking facilities, and the locations of and distances to the nearest church and school. 5.3 The floor number and street number where the sale of 3.2 percent malt liquor, wine or intoxicating liquor is to be conducted and the rooms where liquor is to be sold or consumed. An applicant for an on-sale license shall submit a floor plan of the dining room, or dining rooms that shall be open to the public, that shows dimensions and that indicates the number of persons intended to be served in each of said rooms. 5.4 If a permit from the federal government is required by the laws of the United States, whether or not such permit has been issued, and if so required, in what name issued and the nature of the permit. 5.5 The amount of the investment that the applicant has in the business, building, premises, fixtures, furniture, and stock in trade, and proof of the source of such investment. 5.6 The names and addresses of all persons, other than the applicant, who have any financial interest in the business, buildings, premises, fixtures, furniture, or stock in trade; the nature of such interest; the amount thereof; and terms of payment or other reimbursement. This shall include those with financial interest shall include, but not be limited to, any lessees, lessors, mortgagees, mortgagors, lendors, lien holders, trustees, trustors and persons who have cosigned notes or otherwise loaned, pledged, or extended security for any indebtedness of the applicant. 5.7 Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid. 5.8 Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are on file with the Code Enforcement Officer, no plans need be filed with the City Clerk. 5.9 Such other information as the City Council, Police Chief or City Clerk shall require. 5.10 An application for Special License for Sunday Liquor Sales may refer to, and incorporate therein by reference, the information contained in the licensee's application for on-sale license to the extent that such information is current and applicable at the time of such application for a Special License for Sunday Liquor Sales. 5.11 If the application is for an On-Sale Special Event, the application shall contain the following information: 5.11(1) The name and address of the sponsoring religious, charitable, or nonprofit organization. 5.11(2) The dates and times of the special event. 5.11(3) The location of the special event. 5.11(4) The full name, date of birth, and street residence address of an officer or member of the sponsoring religious, charitable, or nonprofit organization. 5.11(5) The full name, date of birth, and street residence address of the person who will be in control of the 3.2 percent malt liquor, wine or intoxicating liquor at the special event and who will be present during the event to monitor the sales. SECTION 6 APPLICATION EXECUTION 6.1 If the application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, by one of the partners; if by an unincorporated association, by the manager or managing officer thereof. If the applicant is a partnership, the application, license, bond and insurance shall be made and issued in the name of all partners. SECTION 7. APPLICATION VERIFICATION Applications for licenses under this Article shall be submitted to the City Clerk. The City Clerk and Chief of Police are empowered to conduct any and all investigations to verify the information on the application, including ordering a computerized criminal history inquiry and/or a driver's license history inquiry on the applicant. The City Clerk and/or the Chief of Police shall make a written recommendation and report, which shall include a list of all violations of federal, state, or local law, to the City Council. Section 8. RENEWAL APPLICATION. All licenses for 3.2 percent malt liquor under this Article shall expire on June 1 of each year. All other licenses shall expire on December 31 of each year. 8.1 Application for the renewal of an existing license shall be made at least sixty (60) days prior to the date of expiration of the license and shall be made in such abbreviated form as the City Council may approve. If, in the judgment of the City Council, good and sufficient cause is shown by an applicant for his failure to file for a renewal within the time provided, the City Council may, if the other provisions of this Ordinance are complied with, grant the application. 8.2 An on-sale or off-sale intoxicating liquor license will not be renewed if: 8.2(1) In the case of a natural person, the licensee, or, if the licensee does not manage the establishment, the manager of the licensed premises is not a resident Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington county on the date renewal takes effect or if the licensee has management responsibilities at any other establishment in the City to which a license has been granted under this Ordinance. 6.2(2) In the case of a partnership, managing partner or other person who manages the establishment is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington county on the date renewal takes effect or if any such partner or other partner has management responsibilities at any other establishment within the City to which a license has been granted under this Ordinance. 8.2(3) In the case of a corporation, club or other organization, the manager, proprietor, or agent in charge of the management of the establishment to be licensed is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington county at the time renewal takes effect or if such person has such management responsibilities at any other establishment within the City to which a license has been granted under this Ordinance. 8.2(4) The time for establishing residence within Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington county may for good cause be extended by the City Council. 8.3 At the earliest practicable time after application is made for a renewal of an on-sale license, and in any event prior to the time that the application is approved by the City Council, the applicant shall file with the City Clerk a statement made by an independent certified public accountant who attests that, for the twelve (12) month period immediately preceding the date for filing the renewal application, not less than forty (40) percent of the restaurant's combined sales of food, non-alcoholic beverages and alcoholic beverages was from the sale of food, including non-alcoholic beverages. 8.4 At the time an application is made for a renewal of an on-sale Wine license, the applicant shall submit to the issuing authority a statement signed by an independent certified public accountant who attests that not less than 80 percent of the restaurant's combined sales of food, non-alcoholic beverages, and alcoholic beverages is derived from the sale of food and non-alcoholic beverages. 8.5 A corporation or partnership shall submit a current Certificate of Good Standing with the renewal application. Section 9 APPLICATION CONSIDERATION. The City Council shall conduct a hearing on the license application within a reasonable period following receipt of the City Clerk's report and recommendation regarding the application. Applications for on-sale special event liquor licenses shall not be subject to any public hearing prior to issuance. At least ten (10) days in advance of the City Council hearing on an application for a license, the City Clerk shall cause notice of the hearing to be published in the official newspaper of the City, setting forth the day, time, and place of the hearing; the name of the business; business address; and the type of license which is sought. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the City Council may, in its discretion, grant or deny the application. A license other %han a renewal shall not be approved before the next regular meeting of the City Council following such hearing. Section 10 GRANTING OF LICENSES 10.1 Each license shall be issued to the. applicant only. Each license shall be issued only for the premises described in the application. With -the approval of the City Council and of the State Public Safety Commissioner, a licensee may store excess stocks of intoxicating liquor in places other than the licensed premises. The place of storage shall be located within the building in which the licensed premises is located. The location of the storage place, the length of time it is proposed to store liquor in such place, the quantity of liquor stored and removal from the storage place shall be reported in writing to the City Clerk. 10.2 No license may be transferred to another person or to another place without complying with the requirements of an original application including the approval of the City Council and the Public Safety Commissioner as required except as provided by subsection 20.5 and 20.10 of this ordinance. 10.3 The City Clerk shall within ten days after the issuance of any license under this Ordinance submit to the Department of Public Safety the full name and address of each person granted a license, the true or trade name and address of each person who has been issued a license, the effective date of the license, and any other information the Department requires. The City Clerk shall also submit to the Department of Public Safety any change of address, transfer, cancellation or revocation of any license by the Council during the license period. 10.4 An On-Sale Wine license approved by the Council shall not become effective until it, along with the security furnished by the applicant, has been approved by the Commissioner of Public Safety. 10.5 "Off-Sale" intoxicating liquor licenses approved by the Council shall not be effective until approved, together with the security furnished by the applicant, by the Commissioner of Public Safety. 10.6 On-sale special event licenses approved by the Council shall not become effective until approved by the Commissioner of Public Safety. 10.7 Where a license is granted for premises where the building is under construction or otherwise not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued and the building is ready for occupancy. SECTION 11. PERSONS INELIGIBLE FOR LICENSE No license shall be granted to or held by any person: 11.1 Who is not twenty-one (21) years of age or older on the date the license application is submitted to the City Clerk. 11.2 Who is not of good moral character and repute. -11- 11.3 Who has been convicted, within five (5) years prior to the application for such license, of a felony or of any willful violation of a federal, state, or local law governing the manufacture, sale, distribution, or possession for sale or distribution of 3.2 percent malt liquor, intoxicating liquor, or wine. The City may deny issuance of a license if it appears that the applicant has had a conviction of any crime that is directly related to the type of license being sought, as defined by Minnesota Statutes, Section 364.03, subdivision 2, and if the person has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of the licensed occupation, as defined by Minnesota Statutes, Section 364.03, subdivision 3. 11.4 Who has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five years of the license application. 11.5 Who had an interest in a corporation, partnership, association, enterprise, business, or firm which had its wine, intoxicating liquor, or 3.2 percent malt liquor license revoked within five (5) years of the date the license application is submitted to the City Clerk 11.6 Who is a manufacturer, brewer, or wholesaler or has a direct or indirect interest in a manufacturer, brewer, or wholesaler. No manufacturer or wholesaler shall either directly or indirectly own or control or have any financial interest in any retail business selling intoxicating liquor, wine or 3.2 percent malt liquor. 11.7 Who has an interest, either directly or indirectly, in any other establishment in the City to which an off-sale intoxicating liquor license has been issued under this Ordinance. 11.8 Who has an interest, either directly or indirectly, in two establishments in the City to which on-sale licenses have been issued under this Ordinance. No person shall own an interest, as defined in subsection 2.11 of this section in more than two establishments or businesses for which on-sale licenses have been granted under this Ordinance. 11.9 Who is the spouse of a person ineligible for a license pursuant to the provisions of subsections 11.1 through 11.8 of this Ordinance. 11.10 Who is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. 11.11 Who submits an application wherein a person who is determined by the City Clerk to have an interest in the proposed license is ineligible under Sections 11.2 through 11.8 of this ordinance. 11.12 If the applicant is a partnership, no license shall be granted if any general partner or general manager of the establishment to be licensed: 11.12(l) Is not twenty-one (21) years of age or older on the date the license application is submitted to the City Clerk. 11.12(2) Is not of good moral character and repute. 11.12 (3) Has been convicted, within five (5) years prior to the application for such license, of a felony or of any willful violation of a federal, state, or local law governing the manufacture, sale, distribution, or possession for sale or distribution of 3.2 percent malt liquor, intoxicating liquor, or wine. The City may deny issuance of a license if it appears that the applicant has had a conviction of any crime that is directly related to the type of license being sought, as defined by Minnesota Statutes, Section 364.03, subdivision 2, and if the person has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of the licensed occupation, as defined by Minnesota Statutes, Section 364.03, subdivision 3. 11.12(4) Has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five years of the license application. 11.12 (5) Had an interest in a corporation, partnership, association, enterprise, business, or firm which had its wine, intoxicating liquor, or 3.2 percent malt liquor license revoked within five (5) years of the date the license application is submitted to the City Clerk 11.12 (6) Is a manufacturer, brewer, or wholesaler or has a direct or indirect interest in a manufacturer, brewer, or wholesaler. No manufacturer or wholesaler shall either directly or indirectly own or control or have any financial interest in any retail business selling intoxicating liquor, wine or 3.2 percent malt liquor. 11.12 (7) Has an interest, either directly or indirectly, in any other establishment in the City to which an off-sale intoxicating liquor license has been issued under this Ordinance. )11.12 (8) Has an interest, either directly or indirectly, in two establishments in the City to which on-sale licenses have been issued under this Ordinance. No person shall own an interest, as defined in subsection 2.11 of this section in more than two establishments or businesses for which on-sale licenses have been granted under this Ordinance. 11.12(9) Is the spouse of a person ineligible for a license pursuant to the provisions of subsection 11.1 through 11.8 of this Ordinance. 11.12(10) Is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. 11.13 If the applicant is a corporation, or other organization, no license shall be granted if any corporate officer, or if the general manager of the establishment to be licensed: 11.13(l) Is not twenty-one (21) years of age or older on the date the license application is submitted to the City Clerk. 11.13(2) Is not of good moral character and repute. 11.13(3) Has been convicted, within five (5) years prior to the application for such license, of a felony or of any willful violation of a federal, state, or local law governing the manufacture, sale, distribution, or possession for sale or distribution of 3.2 percent malt liquor, intoxicating liquor, or wine. The City may deny issuance of a license if it appears that the applicant has had a conviction of any crime that is directly related to the type of license being sought, as defined by Minnesota Statutes, Section 364.03, subdivision 2, and if the person has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of the licensed occupation, as defined by Minnesota 'Statutes, Section 364.03, subdivision 3. 11.13(4) Has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five years of the license application. 11.13(5) Had an interest in a corporation, partnership, association, enterprise, business, or firm which had its wine, intoxicating liquor, or 3.2 percent malt liquor license revoked within five (5) years of the date the license application is submitted to the City Clerk 11.13(6) Is a manufacturer, brewer, or wholesaler or has a direct or indirect interest in a manufacturer, brewer, or wholesaler. No manufacturer or wholesaler shall either directly or indirectly own or control or have any financial interest in any retail business selling intoxicating liquor, wine or 3.2 percent malt liquor. 11.13 (7) Has an interest, either directly or indirectly, in any other establishment in the City to which an off-sale intoxicating liquor license has been issued under this Ordinance. 11.13 (8) Has an interest, either directly or indirectly, in two establishments in the City to which on-sale licenses have been issued under this Ordinance. No person shall own an interest, as defined in subsection 2.11 of this section in more than two establishments or businesses for which on-sale licenses have been granted under this Ordinance. %11.13 (9) Is the spouse of a person ineligible for a license pursuant to the provisions of subsection 11.1 through 11.8 of this Ordinance. 11.13 (10) Is not the real party in interest or beneficial owner of the business operated, or to be operated, under the license. SECTION 12. PLACES INELIGIBLE FOR LICENSE 12.1 No license shall be granted or renewed for operation on any premises on which taxes, assessments, or other financial claims of the City, State, County or School District are due, delinquent, or unpaid. In the event an action has been commenced pursuant to the provisions of Chapter 278, Minnesota Statutes questioning the amount or validity of taxes, the Council may on application by the licensee waive strict compliance with this provision. No waiver may be granted, however, for taxes or any portion thereof, which remain unpaid for a period exceeding one year after becoming due. 12.2 No off-sale intoxicating liquor license shall be granted to any premises located in any zoning district other than a "134' Shopping Center District. 12.3 No off-sale intoxicating liquor license shall be granted unless the premises proposed to be licensed contains the following requirements: A. A minimum of 2500 square feet on the ground floor level for sales and display area; and B. A minimum of 500 square feet of ground floor area, screened from the display area, or basement level area of the licensed premises for storage purposes. 12.4 Except for on sale special event licenses, no license shall be granted for a location within 1,000 feet of a school or 800 feet of any church. In the case of a school, the distance is to be measured in a straight line from the lot on which the establishment to be located to the nearest point of the lot on which the school is located. In the case of a church, the distance shall be measured from the lot on which the establishment to be located to the nearest point of the church building. The erection of a school or church within the prohibited area after an original application has been granted shall not, in and of itself, render such premises ineligible for renewal of a license. A location for which a license was granted in 1984, or lawfully granted thereafter, and at which a licensee has been in continuous operation, is not ineligible for a license by reason of proximity to a school or church. 12.5 No license shall be granted or renewed if the property on which the business to be conducted is owned by a person to whom a license may not be granted under this Ordinance, except that a property owner who is a minor or who has been convicted of a crime other than a violation of Minnesota Statutes, Chapter 340A shall not make the premises ineligible under this section. 12.6 No on-sale intoxicating liquor license shall be granted for a restaurant that does not have a dining area, open to the general public, with a total minimum floor area of 2,500 square feet or for a hotel that does not have a dining area, open to the general public, with a total minimum floor area of 2000 square feet. No on-sale wine or on-sale 3.2 malt beverage license shall be granted for a restaurant that does not have a dining area, open to the public, with a total minimum floor area of 750 square feet. 12.7 No on-sale license shall be granted for any place for which an off-sale intoxicating liquor license has been granted under this Ordinance. 12.8 No off-sale license shall be granted for any establishment that is licensed as an on-sale establishment. 12.9 An on-sale 3.2 percent malt liquor license under this Article may only be issued to restaurants, hotels, clubs, and establishments used exclusively for the sale of 3.2 percent malt liquor. 12.10 No license shall be granted for any place which has a common entrance or exit between the area in which intoxicating liquor will be sold and any other business or establishment. A public concourse or public lobby shall not be construed as a common entrance or exit. -15- SECTION 13. GENERAL LICENSE RESTRICTIONS 13.1 Every license shall be granted subject to the conditions of the following subsections and all other sections of this Ordinance, and of any other applicable ordinance of the City or State law. 13.2 The license shall be posted in a conspicuous place in the licensed premises at all times. 13.3 Every licensee shall be responsible for the conduct of the business and the conditions of sobriety and order in the place of business and on the premises. 13.4 Illegal Discrimination. A holder of an on-sale club license issued under this ordinance shall not discriminate against members or applicants for membership or guests of members on the basis of race. 13.5 No license shall be effective beyond the compact and contiguous space specified in the approved license application. If the licensed premises is enlarged, altered or extended, the licensee shall inform the City Clerk. 13.6 Manufacturer, Brewer and Wholesaler Prohibitions. A licensee under this Article shall not allow any manufacturer, brewer, or wholesaler to have any ownership, direct or indirect, in whole or in part, in the licensed establishment contrary to Minnesota Statutes Section 340A. In addition, no licensee shall be a party to an exclusive purchase contract that is contrary to law, with any manufacturer, brewer, or wholesaler. A retail licensee under this Article shall also not receive any benefit from a manufacturer, brewer, or wholesaler that is contrary to law, or use or have property rented for the manufacture, brewing or wholesaling of intoxicating liquor. 13.7 No on-sale licensee shall sell 3.2 percent malt liquor, wine or intoxicating liquor off-sale, and no off-sale licensee shall sell 3.2 percent malt liquor, wine or intoxicating liquor on-sale or permit the consumption of any liquor on the licensed premises. 13.8 Employees Under the Age of 18. No licensee under this Article shall permit a person under eighteen (18) years of age to serve or sell 3.2 malt liquor, wine or intoxicating liquor. A licensee under this Article, with the exception of an off-sale licensee, may employ a person under the age of eighteen (18) years, provided that person does not serve, sell, or furnish 3.2 percent malt liquor, wine or intoxicating liquor, and provided that the employment of that person does not violate any state or federal child labor law or regulation. No person under eighteen (18) years of age shall be employed in an off-sale establishment licensed under this section. 13.9 Gambling Equipment. No licensee under this Article shall permit gambling on the licensed premises except that gambling equipment or devices may be kept or operated and raffles may be conducted on the licensed premises and/or adjoining rooms when the use of such gambling equipment or raffles is authorized under Minnesota Statutes, Chapter 349. 13.10 Lottery Tickets. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minnesota Statutes, Chapter 349. 13.11 Prostitution and Illegal Drug Prohibitions. A licensee under this Article shall not allow any person to engage in prostitution or to sell or use illegal drugs on the licensed premises or in any adjoining building or room under the licensee's control. 13.12 No equipment or fixture in any licensed place shall be owned in whole or in part by any manufacturer or distiller of intoxicating liquor except such as shall be expressly permitted by State Law. 13.13 The City Clerk, any police officer, building inspector, or properly designated officer or employee of the City shall have the unqualified right to enter, inspect, and search the licensed premises without a search and seizure warrant during the hours in which the licensed premises is open for the sale of liquor. 13.14 Coin-Operated Amusement Devices. Coin-operated amusement devices may not be made available in establishments holding an off-sale license under this Article. 13.15 Signage. The licensee shall post and maintain in a conspicuous place within the licensed premises clearly visible to consumers: one sign 14-1/2 inches wide by 8 inches high as designed by the commissioners of health and public safety, which incorporates the following information: (1) the penalties of driving while under the influence of alcohol; (2) penalties for serving alcoholic beverages to a person who is obviously intoxicated or under 21 years of age; and (3) a warning statement regarding drinking alcohol while pregnant. 13.16 No licensee shall sell, offer for sale, or keep for sale, intoxicating liquors in any original package which has been refilled or partly refilled. 13.17 No licensee shall directly or indirectly through an agent, employee, or any other person dilute or in any manner tamper with the contents of any original package or bottle so as to change its composition or alcoholic content while the contents are in the original package or bottle. Possession on the premises of alcoholic beverages in the original package or bottle differing in composition or alcoholic content from when it was received from the manufacturer or wholesaler from whom it was purchased, shall be prima facie evidence that the contents of the original package or bottle have been diluted, changed or tampered with in violation of this Section. 13.18 No on-sale liquor licensee shall display intoxicating liquor, wine or 3.2 percent malt liquor to the public during hours when the sale of intoxicating liquor, wine, or 3.2 percent malt liquor is prohibited by this Ordinance. 13.19 No licensee shall keep ethyl alcohol or neutral spirits on any licensed premises or permit their use on the premises as a beverage or for mixing with a beverage. 13.20 The business records of the licensee, including Federal and State tax returns, shall be available for inspection by the City Clerk, or other duly authorized representative of the City or the City Council at all reasonable times. 13.21 Changes in the corporate or association officers, directors, corporate charter, Articles or Incorporation, By-Laws, or partnership agreement, or any agreement governing any other type of organization described in subsection 5.1(5), as the case may be, shall be submitted to the City Clerk within 30 days after such changes are -made. Notwithstanding the definition of interest as given in Section 2.11 of this Ordinance, in the case of a corporation or other organization the licensee shall notify the City Clerk when a person not listed in the application acquires an interest, as described in subsection 5.1(5), which together with that of his spouse, parent, brother, sister or child exceeds five percent or causes the sum of all such interest to increase by 5% or more and shall give all information' about said person as is required of a person pursuant to the provisions of Section 5.1(3) of this Ordinance, except that "off-sale" licensees shall report any change of interest. 13.22 A restaurant shall be conducted in such a manner that the principal part of the business for a license year is the serving of foods. A hotel shall be conducted in such a manner, that, of that part of the total business attributable to or derived from the serving of foods and intoxicating liquors, the principal part of the business for a license year is the serving of foods. 13.23 Off-sale licensees shall operate their premises in such a manner that four foot wide aisles are maintained in the sales and display areas at all times. Case-lot storage and display shall not be permitted in the sales and display areas. Storage shall be adequately screened from public view and shall occur only in areas designated for storage. 13.24 No off-sale licensee, his agent or employee shall deliver any intoxicating liquor, wine or 3.2 percent malt liquor to or at any place or premises without obtaining a receipt therefore, signed by the person receiving such liquor and bearing the time, date and place of delivery. Such receipts shall be kept in the files of the licensee for a period of one year and such files and receipts shall be kept available for inspection by the City Clerk or designated City employee at all hours during which the licensed premises is open for business. 13.25 At the time of application for renewal of any on-sale intoxicating liquor license or on-sale wine license the applicant shall submit proof to the City that not less than 40 percent of the gross sales of the establishment for which the on-sale license is to be used is in the serving of food. 13.26 At the time licensee submits application for license renewal, the licensee shall state the nature or amount of any contribution valued in excess of $50 that the licensee has made to any candidate for an elected City of Mendota Heights office. 13.27 No holder of a Special License for Sunday Liquor Sales shall serve liquor on Sunday except in conjunction with the sale of food. 13.28 Consumption of on-sale alcoholic beverages is allowed only in the approved license premises 13.29 Resale Prohibitions. No licensee under this Article may sell intoxicating liquor, wine, or 3.2 percent malt liquor to any person for the purpose of resale, or to any person whom the licensee has reason to believe intends to resell the intoxicating liquor, wine, or 3.2 percent malt liquor without written approval of the Commissioner of Public Safety. -18- 13.30 The city shall not allow the same business name to be used by more than one of its off- sale intoxicating liquor licenses. 3.31 Samples. No off-sale licensee under this Article shall sell or furnish intoxicating liquor, wine, or 3.2 percent malt liquor on sale, except an off-sale licensee may provide samples of malt liquor, wine, liqueurs, cordials, and distilled spirits which the licensee currently has in stock and is offering for sale to the general public, provided the wine, liqueur, cordial, and distilled spirit samples are dispensed at no charge and consumed on the licensed premises during the permitted hours of off-sale in a quantity less than 100 milliliters of malt liquor per variety per customer, 50 milliliters of wine per variety per customer, and 25 milliliters of liqueur or cordial, and 15 milliliters of distilled spirits per variety per customer. 13.32 Distilled Spirits. An off-sale licensee of intoxicating liquor may sell distilled spirits in bottles of 50 milliliters. 13.33 Sale in Hotel Rooms. No sale of intoxicating liquor shall be made in guest rooms of hotels unless the hotel has an on-sale license under this Article. No sales of intoxicating liquor shall be made to or in guest rooms of hotels, unless the rules of such hotel provide for the service of meals in guest rooms; unless the sale of such intoxicating liquor is made in the manner in which on-sale is required to be made; unless such sale accompanies and is incident to the regular service of meals to guests therein; unless the rules of such hotel and the description, location and number of such guest rooms are fully set out in the application for a license. 13.34 Club Sales Limited to Members and Guests. A holder of a club license under this Article shall sell or furnish intoxicating liquor only to members of the club and guests of club members provided such members and guests are not minors and are not obviously intoxicated. 13.35 Nudity on the Premises of Licensed Establishments Prohiibited. (a) The City Council finds that it is in the best interests of the public health, safety and general welfare of the people of the city that nudity is prohibited as provided in this section on the premises of any establishment licensed under this ordinance. This is to protect and assist the owners, operators and employees of the establishment, as well as patrons and the public in general, from harm stemming from the physical immediacy and combination of alcohol, nudity and sex. The Council especially intends to prevent any subliminal endorsement of sexual harassment or activities likely to lead to the possibility of various criminal conduct, including prostitution, sexual assault and disorderly conduct. The Council also finds that the prohibition of nudity on the premises of any establishment licensed under this ordinance, as set forth in this section, reflects the prevailing community standards of the city. (b) It is unlawful for any licensee to permit or allow any person or persons on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a non-transparent material. It is unlawful for any person to be on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a non-transparent material. (c) A violation of this section is a misdemeanor punishable as provided by law, and is justification for revocation or suspension of any liquor, wine or 3.2 percent malt liquor license or the imposition of a civil penalty under the provisions of this ordinance. -19- SECTION 14 RESTRICTIONS REGARDING LICENSE TRANSFER. The license granted under this Article is for the person and the premises named on the approved license application. No transfer of a license shall be permitted from place to place or from person to person without complying with the requirements of an original application, except in the case in which an existing non-corporate licensee is incorporating and the incorporation does not affect the ownership, control, and interest of the existing licensed establishment. 14.2 A licensee under this Article shall immediately notify the City Clerk of the following' 14.2(1) a change in the corporate or organization officers listed in the license application, excluding officers of clubs holding club licenses. 14.2(2) any changes in the partnership agreement or lease submitted with the license application. 14.2(3) a change of the managing partner, manager, proprietor, or other person who is in charge of the licensed premises. 14.2(4) any change in the ownership of an establishment licensed under this Article, including any acquisition of an interest in the partnership, corporation, or other organization by any person not identified in the license application. 14.2(5) When an establishment licensed under this Article is sold or transferred, the licensee shall immediately notify the City Clerk of the sale or transfer. If the establishment that is sold or transferred is to continue selling or furnishing intoxicating liquor, the new owner must immediately apply for an appropriate license under this Article. In addition, a management agreement, which covers the period between the sale or transfer and the issuance of the new owner's license, shall be executed between the existing licensee and the new owner within twenty (20) days following the sale or transfer. The management agreement shall vest control of all intoxicating liquor sales in the existing licensee or a manager responsible to the existing licensee. The agreement shall be approved by the City Council. 14.2(6) A management agreement shall be required of any licensed establishment whose business is being managed or operated by a person other than the licensee or an employee of the licensee. No person other than the licensee or an employee of the licensee shall be permitted to manage or operate an establishment licensed under this Article until the City Council has reviewed and approved the management agreement and any amendments thereto. 14.2(7) A federally chartered corporation charged with insuring and/or holding assets of banking or savings and loan institutions which obtains ownership of a hotel or restaurant licensed to sell intoxicating liquor, files an application for an on-sale liquor license for said establishment either in its name or the name of a representative thereof, and demonstrates to the City Clerk that it is unable to execute a management agreement with the existing licensee, may sell intoxicating liquor at the hotel or restaurant pending a decision by the City Council on whether to approve the application for the on-sale liquor license. -20- SECTION 15 RESTRICTED HOURS OF OPERATION 15.1 Definition - Restricted hours of operation as used herein shall mean the times when no sales or serving of intoxicating liquor shall be made in the City of Mendota Heights. 15.2 Restricted hours of operation shall be as follows: Restricted Hours for On-Sale Club, Restricted Hours for Off-Sale On-Sale Wine, On-Sale 3.2 Percent Liquor Establishments Malt Liquor and On-Sale Intoxicating Liquor Monday NO Sales NO sales before 8:00 A.M. through between 12:45 a.m. and or after 9:00 P.M. Friday 10:00 a.m. Saturday NO sales between 12:45 A.M. NO sales before 8:00 A.M. and 10:00 A.M. or after 10:00 P.M. Sunday No sales after 1:00 a.m. except NO SALES a holder of a current Sunday Liquor License under this Article may sell intoxicating liquor for consumption on the premises in conjunction with the sale of food between the hours of 11:00 a.m. and 10:00 p.m. provided that the licensee is in conformance with the Minnesota Clean Air Act. NO sales of 3.2 Percent Malt Liquor between 12:45 A.M. and 12:00 Noon. July 3, if NO sales between 12:45 a.m. Not a and 10:00 a.m. Sunday The day NO sales between Preceding 12:45 A.M. and Thanksgiving 10:00 a.m. Thanks- NO sales between 12:45 A.M. giving and 10:00 A.M. NO sales before 8:00 a.m. or after 10:00 p.m. NO sales before 8:00 a.m. or after 10:00 p.m. NO SALES Christmas NO sales before 10:00 A.M Eve, or after 8:00 P.M. Dec. 24 Christmas NO sales between 12:45 A.M. Day, and 10:00 A.M. Decem- ber 25* December 31 NO sales between 12:45 A.M And 10:00 A.M. NO sales before 8:00 A.M. or after 8:00 P.M. If Sunday, NO SALES NO sales NO sales before 8:00 A.M. or after 10:00 P.M. If Sunday, NO SALES 15.3 No "on-sale" licensee shall permit the consumption or display of any beverages containing more than one-half of one percent of alcohol by volume on his premises during the hours when the sale of such beverage is prohibited by this ordinance or state law; provided, however, that the licensee shall be allowed a thirty (30) minute period following the closing hour to clear the premises of customers who were present at the closing hour; and such customers may consume any such beverage purchased by them before the closing hour. All customers and nonworking employees shall be cleared of the premises by thirty (30) minutes past the closing hour. 15.4 A licensee under this Article shall make no sale of or serve any 3.2 percent malt liquor between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday, or between 1:00 a.m. and 12:00 noon on Sunday. A licensee under this Article, however, may sell 3.2 percent malt liquor for consumption on the premises in conjunction with the sale of food between the hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, provided that the licensee is in conformance with the Minnesota Clean Air Act, Minnesota Statutes Section 144.411, et seq. SECTION 16 RESTRICTIONS INVOLVING MINORS 16.1 No licensee, his agent or employee, shall serve or dispense upon the licensed premises any intoxicating liquor, wine or 3.2 percent malt liquor to any minor; nor shall such licensee, his agent or employee, permit any minor to be furnished with or to consume any such liquors on the licensed premises; nor shall such licensee, his agent or employee, permit any minor to be delivered any such liquors. 16.2 No minor shall misrepresent his age for the purpose of obtaining intoxicating liquor, wine or 3.2 percent malt liquor. 16.3 No minor shall enter any premises licensed for the retail sale of intoxicating liquor, wine or 3.2 percent malt liquor for the purpose of purchasing or having served or delivered to him for consumption any such intoxicating liquor, wine or 3.2 percent malt liquor. 16.4 No person shall induce a minor to purchase or procure 3.2 percent malt liquor, wine, or intoxicating liquor, or knowingly permit the use of the person's driver's license, permit, Minnesota identification card, or other form of identification by a minor for the purpose to purchase 3.2 percent malt liquor, wine, or intoxicating liquor from any licensee. -22- 16.5 No minor shall purchase or attempt to purchase 3.2 percent malt liquor, wine, or intoxicating liquor from any licensee under this Article. 16.6 No person shall sell, furnish, or give 3.2 percent malt liquor, wine, or intoxicating liquor to a minor, except that a parent or guardian of a minor may give or furnish 3.2 percent malt liquor, wine, or intoxicating liquor to the minor solely for consumption in the household of the parent or guardian. 16.7 No minor shall possess 3.2 percent malt liquor, wine, or intoxicating liquor with the intent to consume it at a place other than the household of the minor's parent or guardian. Possession at a place other than the household of the parent or guardian is prima facie evidence of intent to consume it at a place other than the household of the parent or guardian. 16.8 No minor shall misrepresent the minor's age for the purpose of obtaining intoxicating liquor, wine, or 3.2 percent malt liquor. 16.9 Proof of age for purchasing or consuming 3.2 percent malt liquor, wine, or intoxicating liquor may be established only by one of the following: 16.9(l) A valid driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; 16.9(2) A valid military identification card issued by the United States Department of Defense; or 16.9(3) in the case of a foreign national, from a nation other than Canada, by a valid passport. 16.10 Any person who may appear to the licensee, his employees or agents, to be a minor shall, upon demand of the licensee, his employee or agent, produce proof of age in accordance with Section 16.9 and permit to be examined his driver's license, current non-qualification certificate, or Minnesota Identification Card. 16.11 In a prosecution for any violation of any provision in this Article regarding minors, it is a defense for the defendant to provide by a preponderance of the evidence that the defendant reasonably and in good faith relied upon one of the above cited types of identification. SECTION 17 RESTRICTIONS ON REGARDING PURCHASE AND CONSUMPTION 17.1 No licensee under this ordinance shall sell, serve or furnish 3.2 percent malt liquor, wine or intoxicating liquor to any obviously intoxicated person. 17.2 Service to Minors Prohibited; Proof of Age Required 17.2(1) No licensee, his agent or employee, shall sell, serve or furnish 3.2 percent malt liquor, wine or intoxicating liquor to any minor, and no licensee under this ordinance shall permit any minor to consume 3.2 percent malt liquor, wine or intoxicating liquor on the licensed - 23 - premises.. Proof of age for purchasing or consuming 3.2 percent malt liquor, wine or intoxicating liquor may be established only by: ) 17.2 (1)a A valid driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; 17.2 (1)b A valid military identification card issued by the United States Department of Defense; or 17.2 (1)c In the case of a foreign national, from a nation other than Canada, by a valid passport. 17.2(2) In a prosecution for any violation of any provision in this Article regarding minors, it is a defense for the defendant to provide by a preponderance of the evidence that the defendant reasonably and in good faith relied upon one of the above cited types of identification. 17.3 Holders of on-sale intoxicating liquor licenses are exempt from the requirement that an on- sale 3.2 percent malt liquor license be obtained, and off-sale intoxicating liquor licensees are exempted from the requirement that an off-sale 3.2 percent malt liquor license be obtained before selling 3.2 percent malt liquor. 17.4 No person shall consume or mix or prepare intoxicating liquor for consumption in any public place not licensed in accordance with the ordinance of the City of Mendota Heights and the State of Minnesota. 17.5 No intoxicating liquor shall be sold or consumed on a public highway or in any automobile. SECTION 18. NUDITY ON THE PREMISES OF LICENSED ESTABLISHMENTS PROHIBITED. 18.1 The City Council finds that it is in the best interests of the public health, safety and general welfare of the people of the city that nudity is prohibited as provided in this section on the premises of any establishment licensed under this ordinance. This is to protect and assist the owners, operators and employees of the establishment, as well as patrons and the public in general, from harm stemming from the physical immediacy and combination of alcohol, nudity and sex. The Council especially intends to prevent any subliminal endorsement of sexual harassment or activities likely to lead to the possibility of various criminal conduct, including prostitution, sexual assault and disorderly conduct. The Council also finds that the prohibition of nudity on the premises of any establishment licensed under this ordinance, as set forth in this section, reflects the prevailing community standards of the city. 18.2 It is unlawful for any licensee to permit or allow any person or persons on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a non- transparent material. It is unlawful for any person to be on the licensed premises when the person does not have his or her buttocks, anus, breasts and genitals covered with a non-transparent material. 18.3 A violation of this section is a misdemeanor punishable as provided by law, and is justification for revocation or suspension of any liquor, wine or 3.2 percent malt liquor license or the imposition of a civil penalty under the provisions of this ordinance. -24- Section 19. SANCTIONS FOR LICENSE VIOLATIONS. i9.1 The City Council may revoke a license, suspend a license for up to sixty (60) days, impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions for a violation of any provision of this ordinance or a state law relating to alcoholic beverages or a state or local law relating to moral character. The City Council shall revoke such license for any willful violation which, under the laws of the state is grounds for mandatory revocation, and shall revoke for failure to keep the bond, insurance or other deposit required by this Ordinance in full force and effect. 19.2 Except in the case of a suspension pending a hearing on revocation, revocation or suspension by the Council shall be preceded by a written notice to the licensee and a public hearing. The notice shall give at least eight days' notice of the time and place of the hearing and shall state the nature of the charges against the licensee. The notice shall be mailed to the licensee at the most recent address listed on the application. The Council may, without any notice, suspend any license pending a hearing on revocation for a period not exceeding 30 days. The notice may be served upon the licensee personally or by leaving the same at the licensed premises with the person in charge thereof. No suspen- sion shall exceed 60 days. 19.3 If the Commissioner of Public Safety has imposed a civil penalty or a suspension against the same licensee for the same act, imposition of an additional penalty or suspension by the City is not precluded provided that the total penalty or suspension does not exceed the maximum specified by state law. ECTION 20 BOND AND INSURANCE REQUIREMENTS 20.1 Minimum Amounts and Bonds. No license issued under this Article, except those licenses listed in subsection 4.1(7) and 4.2(4), may be issued, maintained, or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by Minnesota Statutes Section 340A. The minimum requirement for proof of financial responsibility shall be as follows. 20.2 At the time of filing for an application for intoxicating liquor license, the applicant shall file with the City Clerk a bond with corporate surety, or in lieu thereof cash or negotiable United States government bonds, and a certificate that there is in effect a liability insurance policy in the amounts set forth in section 20.6, issued by an insurer required to be licensed under Minnesota Statutes. Such bond, cash or negotiable government bonds shall be in the amount of $5,000 for an on-sale intoxicating liquor license or on-sale wine license, shall be in the amount of $2,000 for an "on-sale" club license or for a 3.2 percent malt liquor license and shall be in the amount of $3,000 for an "off-sale" intoxicating liquor license. Such insurance policy shall be in the amount specified in subsection 20.6 of this Section. 20.3 Approval of bond and insurance - The surety bonds and insurance policies required by Subsections 20.2 and 20.6 of this Section shall be subject to the approval of the City Council and in the case of applicants for "on-sale" wine or "off-sale" licenses by the State - Commissioner of Public Safety. -25- 20.4, Procedure where cash or government bonds are used - If the applicant uses cash for security, it shall be deposited with the City Clerk. If United States government bonds are permitted and are used as such security, a properly executed assignment agreement in form approved by the City Attorney shall accompany them and they shall be filed with the City Clerk. The licensee shall be permitted to clip and take all coupons thereto attached as they become due. 20.5 Surety or insurance companies - The surety on such bond and insurer on such liability insurance policy shall be a surety company or insurance company, as the case may be, duly licensed to do business in the State of Minnesota. All surety bonds and certificate of liability insurance, when approved by the proper City or State officers, shall be filed with the City Clerk. 20.6 Amount and terms of insurance - The liability insurance policy for intoxicating liquor and on-sale wine licenses shall be in the amount of $250,000 coverage for one person, $500,000 coverage for more than one person, or a $500,000 combined single limit, * and shall specifically provide for the payment by the insurance company on behalf of the insured of all sums which the insured shall become obliged to pay by reason of liability imposed upon him by law for injuries or damages to persons other than employees, including the liability imposed upon the insured by reason of Chapter 340A, Minnesota Statutes. Such liability insurance policy shall further provide that no cancellation for any cause can be made either by the insured or the insurance company without first giving ten (10) days notice to the City in writing of intention to cancel the same addressed to the City Clerk. Further, it shall provide that no payment of any claim by the insurance company shall in any manner decrease the coverage provided for in respect to any other claim or claims brought against the insured or company thereafter. Such policy shall be conditioned that the insurer rer shall pay, to the extent of the principal amount of the policy, any damages for death or injury caused by, or resulting from the violation of any law relating to the business for which such license has been granted. The licensee and the City shall be named as joint insureds on the liability insurance policy. The operation of any licensed establishment without having on file at all times with the City, and in full force and effect, the liability insurance policy herein referred to shall be grounds for immediate revocation of the license. 20.7 Terms of bonds - All such bonds shall be conditioned as follows: 20.7(1) That the licensee will obey the laws relating to such licensed business. 20.7(2) That the licensee will pay to the City when due all taxes, license fees, penalties and other charges provided by law. 20.7(3) That in the event of violation of any law relating to the business for which the license has been granted for the sale of liquor, the bond shall be forfeited to the City. 20.7(4) That the licensee will pay, to the extent of the principal amount of. such bond, any damages for death or injury by, or resulting from the violation of any law relating to the business for which such license has been granted and that such recovery may be had also against the surety on his bond. -26- 20.8 Benefit of bond - Such bonds shall be for the benefit of the City, as obligee, and of all persons suffering damages under the conditions set forth in subsection 20.7 of this Section. The amount specified in any bond is declared to be a penalty, and the amount recoverable shall be measured by the actual damages. The surety shall not be liable in excess of the penal amount of the bond. In case of forfeiture of any bond for violation of the law, the District Court of Dakota County may forfeit the penal sum of such bond to the City. 20.9 Deposit of U.S. Bonds - If negotiable United States government bonds are deposited with the City Clerk instead of a bond with a corporate surety, such bonds shall be accompanied by a properly executed assignment, in form approved by the City Attorney, assigning such government bonds to the City, to be held subject to the conditions, forfeiture and penalties provided by the laws of the State of Minnesota and this Ordinance. Such assignment shall also contain a stipulation and agreement that such bonds shall remain with the City Clerk, subject to the terms and conditions of such assignment and such State laws, during the term of the license in connection with which such government bonds may, with the approval of the City Council, be returned by the City Clerk to the licensee. 20.10 Deposit of Cash - In the event the applicant deposits cash in lieu of surety bond, the deposit of such cash shall be accompanied by a written agreement and assignment upon the part of the licensee, in form approved by the City Attorney, wherein the licensee assigns such deposit to the City, to be held by the City Clerk subject to the conditions, forfeitures, and penalties required by the laws of the State of Minnesota and this Ordinance, for the period of the license in connection with which such deposit is made, and for three years thereafter, at which time such deposit may be returned, with the approval of the City Council, by the City Clerk to the licensee. 20.11 Affidavit required for return of U.S. bonds or cash - Upon application for return of United States government bonds or cash as provided for in this Section, the licensee shall file with the City Clerk an affidavit stating that no action or proceedings has been commenced in any Court for the forfeiture of such bonds or deposit, or for damages to any person or persons under the terms and conditions thereof, and that the licensee has no knowledge of any existing claim or abuse of action under the terms and conditions of the assignment and agreement relating to such government bonds or cash deposit. SECTION 21 LICENSE FEES 21.1 Amount - the annual license fees shall be: 21.1(1)a "On-Sale" license - $10,000.00. 21.1(1)b "On-Sale" license, Limited Service Hotel and Motel -$3,000 21.1(2) "On-Sale" Club license - $350.00. 21.1(3) "On-Sale" Wine license - $2,000.00. `__z 1.1(4) "On-Sale" Wine License — Institutional - $250-00 -27- 21.1(5) "Off-Sale" license - $150.00. ,21.1(6) "Special Sunday Liquor" license - $200.00. 21.1(7) Off-sale 3.2 percent malt liquor - $50.00 21.1(8) On-sale 3.2 percent malt liquor - $250.00 21.1(9) Special event license $50.00. 21.2 The annual license fee shall be paid in full before the application for a license is accepted. All fees shall be paid into the General Fund of the City. Upon rejection of any application for a license or upon withdrawal of application before approval of the issuance by the City Council, the license fee shall be refunded to the applicant except where rejection is for a willful misstatement in the license application. 21.3 The fee for all on-sale licenses granted after the commencement of the license year shall be prorated on a semi-annual basis. 21.4 When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be ninety (90) days after approval of the license by the City Council or upon the date the building is ready for occupancy, whichever is sooner. 21.5 No transfer of a license shall be permitted from place to place or person to person without complying with the requirements of an original application except as provided by subsection 20.10 of this section or as otherwise provided herein. Where a new application is filed for a transfer of license from place to place and is for premises where the building was not ready for occupancy at the time of the original application and the new application is filed within ninety (90) days after approval of the original license by the City Council but before a Certificate of Occupancy for the original location has been issued, no additional license fee is required and the investigating fee shall be as specified in subsection 20.8 of this section. 21.6 No part of the fee paid for any license shall be refunded except in accordance with this section or except as may be authorized by resolution of the City Council pursuant to Minnesota Statute 340.112. 21.7 At the time of each original application for a license, except in the case of an on-sale Club license, a special event license and a Sunday liquor license Sales, and except as provided in subsection 20.5 above, the applicant shall deposit $1,500 with the City to cover the costs involved in verifying the license application and any investigation needed to insure compliance with this ordinance. 21.8 If the investigation and verification process is conducted solely within the State of Minnesota, the fee shall be $500.00 and the remainder of the deposit shall be returned to the applicant. For investigation and verification conducted in whole or in part outside the State of Minnesota, the City may recover the actual investigation costs, not exceeding $10,000.00. Any fees due in excess of the $500.00 deposit must be paid prior to the -28- license hearing and before the City Council considers the application. No investigation fee shall be refunded. 21.9 At any time that an additional investigation is required because of a change in the ownership or control of a corporation, partnership, organization or other entity; because of an enlargement, alteration, or extension of premises previously licensed; or because of a transfer from place to place, which transfer comes within the exception expressed in subsection 20.5 above, the licensee shall pay an additional investigation fee to be determined as in subsection 20.8 above. If any person not previously listed as having an interest of five percent or more of the corporation gains at least 50 percent of the ownership of the corporation, partnership, organization or other entity the additional investigation fee shall be the same as in subsection 20.8. In all other cases, the additional investigation fee shall be $100.00. No investigation fee shall be refunded. 21.10 Where a new application is filed as a result of incorporation by an existing licensee and the ownership, control, and interest in the license are unchanged, no additional license fee will be required. 21.11 A monthly pro-rata share of an annual license fee for a license issued under this ordinance may be refunded to the licensee or an authorized representative of a licensee if: 21.11(a) the business ceases to operate because of destruction or damage; 21.11 (b) the licensee dies and the business ceases to operate; '9 1. 11 (c) the business ceases to be lawful for a reason other than a license revocation; 21.11 (d) the termination of a month-to-month tenancy or tenancy at will through no fault or neglect of the licensee or termination of a longer term lease according to the terms of such lease; 21.11 (e) the physical or adjudicated mental incapacity which renders the licensee incapable of operating the business, provided that the cause of such incapacity occurred or commenced after the issuance of the license; 21.11 (f) the business is sold and a new licensee qualifies to operate the business on the same location during the remainder of the original license period; 21.11(8) the licensee ceases to carry on the licensed business under the license. SECTION 22 ENLARGEMENT, ALTERATIONS OR EXTENSION OF PREMISES Proposed enlargement, alteration or extension of premises previously licensed shall be reported to the City Clerk at or before the time application is made for a building permit for any such change and the licensee shall also give such information as is required by Sections 5.2, 5.3, 5.5 and 5.8 of this Ordinance. SECTION 23 NUMBER OF LICENSES Not more than six (6) "on-sale" licenses shall be in existence at any one time. -29- 23.2 Not more than two (2) "on-sale" Club licenses shall be in existence at any one time. 23.3 Not more than six (6) "off-sale" licenses shall be in existence at any one time. SECTION 24 COORDINATION OF PROVISIONS Where a provision of any other ordinance of the City conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 01 "N Any person violating any provisions of this Ordinance may be guilty of a misdemeanor and upon conviction may be punished by a fine of not more than seven hundred dollars ($700.00) or imprisoned for not more than ninety (90) days or both, plus the cost of prosecution in any case-. SECTION 26. This ordinance shall be in full force and effect on July 15, 2002, and after its publication according to law. Enacted and ordained into an ordinance this 16th day of April, 2002. &��- Kathleen M. Swanson City Clerk -30- CITY COUNCIL CITY OF MENDOTA HEIGHTS Charles E. Mertensotto Mayor