2017-05-16 Council Work Session PacketCITY OF MENDOTA HEIGHTS
CITY COUNCIL WORKSHOP AGENDA
May 16, 2017 – 5:00 p.m.
Mendota Heights City Hall
1. Call to Order
2. Discussion Items
a. Mendota Motel/Larson Greenhouse Redevelopment TIF District
b. City Code Liquor Amendments
3. Adjourn
page 2
DATE: May 16, 2017 – Workshop Session
TO: Mayor and City Council
FROM: Tim Benetti, Community Development Director
Mark McNeill, City Administrator
SUBJECT: Information and Presentation of Modifying Municipal Development District No. 1
and Establishment of Tax Increment Financing District No. 2
[Ref. Mendota Motel & Larson Greenhouse Properties - 2180 and 2160 HWY 13]
COMMENT:
Introduction
At a workshop meeting on May 16th, the City Council will be presented with
information regarding the redevelopment of two parcels—the former Larson
Greenhouse, and Mendota Motel properties-- and a Tax Increment Financing Plan
to assist in its implementation.
Background
As the City Council is aware, the City has begun the process of modifying its
current Municipal Development District No. 1 and establishing a new Tax
Increment Financial District No. 2, to help facilitate the redevelopment of the
former Mendota Motel and Larson Greenhouse properties, located at 2180 and
2160 Highway 13, respectively. The attached map of proposed TIF No. 2 is
attached.
The Mendota Motel currently occupies a single parcel approximately 2.41 acres in
size. The motel was built in 1949 and consists of 19 rooms and office. Parking is
located in the central part of the motel structure, with a single access point from
Sibley Memorial Highway/Hwy 13.
The Larson Garden Center site, which is now closed, consists of eight separate,
rectangular shaped parcels that had been combined and collectively owned by the
late Robert C. Larson (now in estate). The developed or usable portions of these
parcels consists of approximately 2.77 total acres.
page 3
Both commercial sites are generally flat along its western border, with slopes
increasing steeply moving east toward Lemay Lake. The site is visually screened
from the lake and from homes north of Lemay Lake Road by thick tree cover.
There is also a 60-foot wide segment of unused (unvacated) road right of way
separating the two commercial sites. This section of right-of-way is also included
to be made part of this new TIF 2 District area, and is intended to be conveyed to
the developer and replatted later under the new multi-family development
proposed for this area.
The new TIF No. 2 area is bounded by Highways 13 and 55 to the west, Acacia
Boulevard to the north, forested shoreland along Lemay Lake to the east, and the
Victory Avenue immediately south.
The subject site is surrounded by predominantly residential land uses. The Augusta
Shores development northeast of the site is guided as Low Density Residential and
comprises 23 duplexes (46 units) zoned R1 One Family Residential. South of the
site is the Mendota Motel, a one-story building, the only structure within the
immediate vicinity of the site, also zoned B-3 and guided Business. South of the
motel the land use is guided Low Density Residential and zoned R1. All other land
uses are separated from the site by a highway or Lemay Lake Road.
West of Highways 55 and 13, land use is primarily guided Industrial, with the
exception being land guided Nature Preserve or Cemetery. An industrial park, the
Acacia Park Cemetery, and the Pilot Knob Preservation Site are the dominant land
uses that operate immediately west of the
In response to an earlier request regarding property taxes paid during the previous
seven to ten years, the City’s share of 2017 taxes payable for both properties
amounted to approximately $3,255. No other information is readily available as to
tax payments for years prior to this year.
Tax Increment Financing District Information
The City is considering a proposal to modify the Development Program for
Municipal Development District No. 1 and to establish Tax Increment Financing
District No. 2 (the "TIF District"). The TIF District will be a redevelopment tax
increment financing district. Tax increments collected from the TIF District will
enable the City to facilitate the construction of approximately 138 apartment units,
split into two separate phases. The proposed location of the TIF District is within
Municipal Development District No. 1 and is indicated on the attached map.
page 4
Pursuant to the Minnesota Tax Increment Financing Act ("Act"), Section 469.175,
Subd. 2a, the City Council has already scheduled a public hearing on this matter
for June 20, 2017. As part of this TIF District establishment, the Act also requires
that prior to the adoption of a tax increment financing plan for this redevelopment
tax increment district, the City must notify the County Board mernber representing
the affected area at least 30 days prior to publishing the notice of public hearing.
That notice was made to Commissioner Thomas Egan on May 5, 2017 by the
Ehlers, the City’s TIF consultants on this project.
Michael Swenson of Michael Development, Inc., the “Developer”, has indicated
his intent to develop 69 market rate units as Phase I on the Mendota Motel site; it
would be followed by a Phase II on the Larson Greenhouse site, consisting of 69
market rate or senior assisted living units.
Mr. Swenson invited all property owners within one-quarter mile of the subject
sites to a public informational meeting held at City Hall last Thursday night, May
11th, to present the proposed multi-family development planned on these two sites;
the City Administrator reviewed the concept of the TIF assistance. Approximately
30 neighbors attended; the meeting was a bit over an hour in duration.
So that the City Council can be fully informed on the TIF District plans, Stacie
Kvilvang and James Lehnhoff of Ehlers and Associates, the City’s financial
advisors, will provide a presentation at the workshop about the basics of TIF
districts; how the financing of TIF works; the reasons and benefits for providing
TIF to developers; and what goes into the project analysis of creating a new TIF.
The TIF presentation is attached for your review. Ehlers and City staff will be
available to answer questions or concerns that Council members may have in
creating this TIF Redevelopment district.
.
page 5
TIF 101 & Swenson Development, LLC TIF Request
City of Mendota Heights
Stacie Kvilvang & James Lehnhoff –Ehlers
1
May 16, 2017
page 6
Agenda
•Tax Increment Financing (TIF) Basics
•Financing a project using TIF
•Project analysis
page 7
What is TIF
The ability to capture and use most of
the increased local property tax
revenues from new development within
a defined geographic area.
page 8
Why Use TIF
•Encourage certain types of development or
redevelopment that would not normally occur
without assistance (“but for” test)
Redevelop blighted areas
Remediate polluted sites
Construct affordable housing
Create or retain jobs
page 9
Building Blocks of TIF
Original Tax Capacity
There is Value in the District when
created (also called “base value”)
Tax revenues
continue go to all
local governments
page 10
Base Valuation and Taxes
6
Building Total Property Current
Land Market Market Original Tax Original
Map #PID Address Market Value Value Value Market Value Class Tax Capacity
1 272840001080 2180 Hwy 13 314,600 30,800 345,400 345,400 C/I Pref.6,158
2 277520005380 48,500 100 48,600 48,600 C/I 972
3 277520005160 63,400 100 63,500 63,500 C/I Pref.953
4 277520005421 33,600 100 33,700 33,700 C/I 674
5 277520005420 53,600 1,000 54,600 54,600 C/I Pref.819
6 277520005110 62,200 112,800 175,000 175,000 C/I Pref.2,750
7 277520005020 33,600 100 33,700 33,700 C/I 674
8 277520005050 50,400 100 50,500 50,500 C/I Pref.758
9 277520005070 33,600 100 33,700 33,700 C/I 674
693,500 145,200 838,700 838,700 14,431
2160 Highway 13
BASE VALUE INFORMATION (Original Tax Capacity)I
TAX BREAKDOWN
Property Tax Local Fiscal Disparities City County School Mk Value State-wide
Value Capacity Taxes Taxes Portion Portion Dist Taxes Taxes
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.0018252 0.45802
$3,550 $3,465 $1,443 $1,078 $172 $858 $630 $2,820
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.0018252 0.45802
$4,770 $4,655 $1,938 $1,448 $231 $1,153 $900 $3,789
CITY TOTAL $3,381 $24,580
Greenhouse $493,300 8,273 $14,114
Misc TOTAL TAXES
Motel $345,400 6,158 $10,466
Development
page 11
Building Blocks of TIF
Development
occurs
TIF District “captures” value
from new development
Abatement can “capture” part or
the entire value from the parcel
Original Tax Capacity
page 12
TIF Example (26 Year Redevelopment District)
8
Captured Tax Capacity
District Ends
Full Taxes to all Entitiespage 13
Taxes Not Captured in TIF
•State Property Taxes
Tax paid by commercial users (cabin owners pay as well)
Not included in local tax capacity rate, therefore it is not applied to captured value for TIF districts or abatement
•Market Value Taxes
School operating referendums and other school taxes
Based upon market value of property rather than tax capacity of property
Not included in local tax capacity rate, therefore it is not applied to captured value for TIF districts or abatement
page 14
Project Area: Where Increment may be Spent
10
page 15
TIF District: Where Increment is Collected
11
page 16
TIF District Approval
•Can be established by City, County, HRA or EDA
•TIF Plan and Project Area Plan
State policy objectives
Provide maximum budget authority for TIF revenues and expenditures
•Must have approval by City Council following public hearing
Simple majority
County and school district approval not needed
12
page 17
Redevelopment
•26 year maximum term
•Qualifications
•Parcels consisting of 70%of area must be improved
“Improved” means -buildings, streets, utilities, paved or gravel parking lots
Improved area equals 15%area of parcel
•More than 50%of buildings must be substandard
•Any future use allowed
•90%of TIF used to correct redevelopment issues
•Reasonable distribution of conditions
page 18
Reasonable Distribution
14
60% Substandard buildings
80% Coverage
page 19
TIF Districts in City
•1 That is
decertified
–District #1
–Established in 1981
–Decertified
December 31, 2007
page 20
•Should have evidence that project
meets statutory requirements for need
Developer “pro forma” or projections
Comparable costs of land
Risk
Future development potential for site
•Look-back provision
Developer detail actual costs after complete
“But For” Test page 21
Project Financing
•Eligible uses
Land acquisition and relocation
Demolition and clearance
Site improvements and parking
Public utilities
Construction of affordable housing
City administrative costs
•Ineligible uses
Recreation (parks, trails, ice arenas, etc.)
City buildings
page 22
Project Financing
•Each project has a development agreement/contract
Sets amount and term of TIF
Timing of development
Etc.
•Who up-fronts TIF costs?
Developer (this is the typical structure)
•Pay-as-you-go
•No risk to City but higher rate
City/County
•G.O. Bond or Interfund loan
page 23
The Project –Swenson Development, LLC
•Total project costs of approximately
$12.6 million
–Tax value of $9.660 million
19
Studio 6
1BR 32
1BR+Den 12
2BR 19
Total 69
Unit Summary
page 24
Base Valuation and Taxes
20
Building Total Property Current
Land Market Market Original Tax Original
Map #PID Address Market Value Value Value Market Value Class Tax Capacity
1 272840001080 2180 Hwy 13 314,600 30,800 345,400 345,400 C/I Pref.6,158
2 277520005380 48,500 100 48,600 48,600 C/I 972
3 277520005160 63,400 100 63,500 63,500 C/I Pref.953
4 277520005421 33,600 100 33,700 33,700 C/I 674
5 277520005420 53,600 1,000 54,600 54,600 C/I Pref.819
6 277520005110 62,200 112,800 175,000 175,000 C/I Pref.2,750
7 277520005020 33,600 100 33,700 33,700 C/I 674
8 277520005050 50,400 100 50,500 50,500 C/I Pref.758
9 277520005070 33,600 100 33,700 33,700 C/I 674
693,500 145,200 838,700 838,700 14,431
2160 Highway 13
BASE VALUE INFORMATION (Original Tax Capacity)I
TAX BREAKDOWN
Property Tax Local Fiscal Disparities City County School Mk Value State-wide
Value Capacity Taxes Taxes Portion Portion Dist Taxes Taxes
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.0018252 0.45802
$3,550 $3,465 $1,443 $1,078 $172 $858 $630 $2,820
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.0018252 0.45802
$4,770 $4,655 $1,938 $1,448 $231 $1,153 $900 $3,789
CITY TOTAL $3,381 $24,580
Greenhouse $493,300 8,273 $14,114
Misc TOTAL TAXES
Motel $345,400 6,158 $10,466
Development
page 25
Future Valuation & City Portion of Taxes
21
Future City taxes from Apartments development
Estimated Taxable Total Taxable Property
Market Value Market Value Total Market Tax Project
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity
1 Apartments 140,000 140,000 69 9,660,000 Rental 120,750
2 Apartments 140,000 140,000 69 9,660,000 Rental 120,750
TOTAL 19,320,000 241,500
PROJECT INFORMATION (Project Tax Capacity)Insert Rows
TAX BREAKDOWN
Property Tax Local Fiscal Disparities City County School Mk Value State-wide
Value Capacity Taxes Taxes Portion Portion Dist Taxes Taxes
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.0018252 0.45802
$111,385 $0 $45,266 $33,815 $5,383 $26,921 $17,631 $0
0.92244 1.50049 0.37487 0.28004 0.04458 0.22295 0.00183 0.45802
$111,385 $0 $45,266 $33,815 $5,383 $26,921 $17,631 $0
CITY TOTAL $90,531 $258,032
Greenhouse Site
- 69 Apts $9,660,000 120,750 $129,016
Development Misc TOTAL TAXES
Motel Site - 69
Apts $9,660,000 120,750 $129,016
page 26
Housing TIF
Developer receives $.75 on the dollar
Total Property Taxes 129,016
less State-wide Taxes 0
less Fiscal Disp. Adj.0
less Market Value Taxes (17,631)
less Base Value Taxes (3,983)
Annual Gross TIF 107,402
Less OSA Fee (387)
Less City Admin (10702)
Net TIF to Developer 96,314
WHAT IS EXCLUDED FROM TIF?
Total Fiscal Local Local Fiscal Market
Tax Disparities Tax Property Disparities Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Sq. Ft./Unit
Apt 120,750 0 120,750 111,385 0 17,631 129,016 1,869.80
TAX CALCULATIONS
Estimated Taxable Total Taxable
Market Value Market Value Total Market Project
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Tax Capacity
1 Apt 140,000 140,000 69 9,660,000 120,750
TOTAL 9,660,000 120,750
PROJECT INFORMATION (Project Tax Capacity)
page 27
TIF Request
•Create new housing TIF district
•Requested:$727,853 PAYGO TIF Note
~11 Year Term
•Recommend: $634,000 PAYGO TIF Note
–9 Year Term
23
page 28
SOURCES
Amount Pct.Per Unit
First Mortgage 9,417,377 74% 136,484
TIF 727,853 6% 10,549
Developer Equity 2,500,000 20% 36,232
TOTAL SOURCES 12,645,230 100% 183,264
USES
Amount Pct.Per Unit
Acquisition Costs 1,500,000 12% 21,739
Construction Costs 10,477,250 83% 151,844
Professional Services 330,000 3% 4,783
Financing Costs 337,980 3% 4,898
TOTAL USES 12,645,230 100% 183,264
TIF Request –Developer Request
24
Developer
Cash
Total
Development
Costs
page 29
SOURCES
Amount Pct.Per Unit
First Mortgage 9,417,377 74% 136,484
TIF 634,000 5% 9,188
Developer Equity 2,593,853 21% 37,592
TOTAL SOURCES 12,645,230 100% 183,264
USES
Amount Pct.Per Unit
Acquisition Costs 1,500,000 12% 21,739
Construction Costs 10,477,250 83% 151,844
Professional Services 330,000 3% 4,783
Financing Costs 337,980 3% 4,898
TOTAL USES 12,645,230 100% 183,264
TIF Request - Ehlers
25
page 30
Residential Income
Rental Unit Income Monthly Units Annual Size Rent/
Unit Type Rent Type Rent Count Revenue Sq. Ft. Sq. Ft.
Studio Market Rate $1,036 6 $74,592 650 $1.59
1BR Market Rate $1,282 32 $492,288 750 $1.71
1BR+Den Market Rate $1,524 12 $219,456 900 $1.69
2BR Market Rate $1,719 12 $247,536 1,200 $1.43
2BR Market Rate $1,819 7 $152,796 1,250 $1.46
Gross Potential Rent 98,889 69 $1,186,668 61,850 $1.60
Annual Per Stall
Other Residential Income Revenue Per Month
Parking $62,250 $66.51
Total Other Income $62,250
Total Residential Income $1,248,918
Annual
Residential Vacancy Percent Loss
5.0%($59,333)
Total Vacancy ($59,333)
$1,189,585
Expenses
Apartment Operating Costs Total Per Unit
Administrative $91,322 $1,324
Marketing $11,415 $165
Utilities $34,245 $496
Insurance $34,245 $496
Maintenance $68,491 $993
Total Operating Costs $239,719 $3,474
Apartment Management and Other Costs Total Per Unit
Management Fees 4.00%of EGI $47,583 $690
Property Taxes $129,016 $1,870
Replacement Reserves $20,700 $300
Total Management and Other Costs $197,299 $2,859
$437,019
Net Operating Income $752,566
TIF Revenue $96,314
Net Operating Income (with Assistance)$848,880
Effective Gross Income (EGI)
Total Expenses
Gross Potential Rent
26
Annual Rent
Revenue
Annual Income
Management
Costs
Net Operating Income
&
TIF Assistance
page 31
NO MORE
Stabilized TIF
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Income Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Rental Income
Gross Potential Rent 1,186,668 1,222,268 1,258,936 1,296,704 1,335,605 1,375,673 1,416,944 1,459,452 1,503,236 1,548,333 1,594,783
Less: 5% Stabilized Vacancy (59,333) (61,113)(62,947)(64,835) (66,780) (68,784) (70,847) (72,973) (75,162) (77,417)(79,739)
Less: Additional Pre-stabilization Vacancy (563,667) (14,655)(3,302)
Total Rental Income 563,667 1,146,499 1,192,687 1,231,869 1,268,825 1,306,890 1,346,096 1,386,479 1,428,074 1,470,916 1,515,043
Other Residential Income
Parking 31,125 64,118 66,041 68,022 70,063 72,165 74,330 76,560 78,856 81,222 83,659
Total Other Residential Income 31,125 64,118 66,041 68,022 70,063 72,165 74,330 76,560 78,856 81,222 83,659
Net Residential Income (NRI)594,792 1,210,617 1,258,728 1,299,891 1,338,888 1,379,055 1,420,426 1,463,039 1,506,930 1,552,138 1,598,702
Effective Gross Income (EGI)594,792 1,210,617 1,258,728 1,299,891 1,338,888 1,379,055 1,420,426 1,463,039 1,506,930 1,552,138 1,598,702
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Rental Unit Expenses
Operating Expenses 185,084 226,353 254,318 261,948 269,806 277,900 286,237 294,824 303,669 312,779 322,162
Management Fee 23,792 48,425 50,349 51,996 53,556 55,162 56,817 58,522 60,277 62,086 63,948
Property Taxes 12,000 80,000 129,016 129,016 129,016 129,016 129,016 129,016 129,016 129,016 129,016
Reserves 0 20,700 20,700 20,700 20,700 20,700 20,700 20,700 20,700 20,700 20,700
Total Rental Unit Expenses 220,876 375,478 454,383 463,659 473,078 482,778 492,770 503,062 513,662 524,581 535,827
Total Expenses 220,876 375,478 454,383 463,659 473,078 482,778 492,770 503,062 513,662 524,581 535,827
NET OPERATING INCOME 373,917 835,139 804,345 836,232 865,810 896,276 927,656 959,977 993,268 1,027,557 1,062,876
TIF Payments (No Inflation)0 46,371 96,314 96,314 96,314 96,314 96,314 96,314 96,314 96,314 0
ADJUSTED NET OPERATING INCOME 373,917 881,510 900,659 932,546 962,124 992,590 1,023,970 1,056,291 1,089,582 1,123,871 1,062,876
Debt Service Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
Debt A: First Mortgage 323,768 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535
Total Debt Service 323,768 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535 647,535
Annual Debt Coverage 115% 136%139%144% 149% 153% 158% 163% 168% 174%164%
Annual Debt Coverage w/o TIF 115% 129%124%129% 134% 138% 143% 148% 153% 159%164%
NET CASH FLOW 50,149 233,975 253,124 285,010 314,589 345,055 376,434 408,756 442,046 476,336 415,340
Returns Analysis
Cash on Cash 1.6% 7.2%7.8%8.8% 9.7% 10.7% 11.7% 12.7% 13.7% 14.8%12.9%
Cash on Cash - average 1.6% 4.4%5.5%6.4% 7.0% 7.7% 8.2% 8.8% 9.3% 9.9%10.1%
Cash on Cash (w/o assistance)1.6% 5.8%4.9%5.8% 6.8% 7.7% 8.7% 9.7% 10.7% 11.8%12.9%
Cash on Cash - average (w/o assistance)1.6% 3.7%4.1%4.5% 5.0% 5.4% 5.9% 6.4% 6.8% 7.3%7.8%
Cash on Cost 3.0% 7.0%7.1%7.4% 7.6% 7.8% 8.1% 8.4% 8.6% 8.9%8.4%
Cash on Cost (w/o assistance)3.0% 6.6%6.4%6.6% 6.8% 7.1% 7.3% 7.6% 7.9% 8.1%8.4%
27
Return on Cost
(NOI/TDC)
Debt
Service
Coverage
Project Returns - Ehlers
Return on $3.2 million
equity
page 32
Review Summary
28
Category Developer Ehlers Difference
First Mortgage 9,417,377$ 9,417,377$ -$
TIF 727,853$ 634,000$ (93,853)$
Equity 2,500,000$ 2,593,853$ 93,853$
TOTAL 12,645,230$ 12,645,230$ -$
TIF Term (years)11 9 -2
Return on Cost (With TIF)7.12%7.12%0.00%
Return on Cost (Without TIF)6.36%6.36%0.00%
Year 11 Return on Equity (With TIF)15.85% 12.87%-2.98%
Year 11 Return on Equity (Without TIF)12.87% 12.87%0.00%
Year 11 AVG Return on Equity (With TIF)10.61% 10.14%-0.47%
Year 11 AVG Return on Equity (Without TIF)8.04%7.84%-0.20%
Debt Service Coverage (Stabilized year)139.1% 139.1%0.00%
page 33
TIF Recommendation
•Create new housing TIF district
•Recommend: $634,000 PAYGO TIF Note
–9 Year Term
29
page 34
Stacie Kvilvang
651-697-8506
skvilvang@ehlers-inc.com
James Lehnhoff
651-697-8552
jlehnhoff@ehlers-inc.com
Ehlers page 35
3/22/2017Base Value Assumptions - Page 1Motel RedevelopmentCity of Mendota Heights69 Market Rate ApartmentsASSUMPTIONS AND RATESDistrictType:RedevelopmentDistrict Name/Number:County District #:Exempt Class Rate (Exempt) 0.00%First Year Construction or Inflation on Value 2017Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years RemainingFirst$150,0001.50%Inflation Rate - Every Year:0.00%Over$150,0002.00%Interest Rate:4.50%Commercial Industrial Class Rate (C/I)2.00%Present Value Date:1-Feb-18Rental Housing Class Rate (Rental)1.25%First Period Ending1-Aug-18Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified:Pay 2017First$115,0000.75%Cashflow Assumes First Tax Increment For Development:2019Over$115,0000.25%Years of Tax Increment26Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment2044First$500,0001.00%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over$500,0001.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio37.5002% Pay 2017 First$500,0001.00%Fiscal Disparities Metro-Wide Tax Rate150.0490% Pay 2017 Over$500,0001.25%Maximum/Frozen Local Tax Rate: 92.244% Pay 2017 Agricultural Non-Homestead1.00%Current Local Tax Rate: (Use lesser of Current or Max.)92.244%Pay 2017 State-wide Tax Rate (Comm./Ind. only used for total taxes) 45.8020% Pay 2017 Market Value Tax Rate (Used for total taxes) 0.18252% Pay 2017 Building Total Percentage Tax Year PropertyCurrentClassAfterLand Market Market Of Value Used Original Original Tax OriginalAfterConversionMap # PIDOwner Address Market ValueValueValue for District Market Value Market Value Class Tax CapacityConversion Orig. Tax Cap.1272840001080Jaykar Bhakta 2180 Hwy 13 314,600 30,800 345,400100% 345,400 Pay 2017 Non-H Res. 1 Unit3,454 Rental4,318 1314,600 30,800 345,400345,4003,4544,318Note:1. Base values are for pay 2017 based upon review of County website on3-15-17. 2. Property is located in SD #196, UTA # 2701Area/ PhaseTax Rates BASE VALUE INFORMATION (Original Tax Capacity)Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\Mendota Heights\Housing - Economic - Redevelopment\Pending Projects\Motel Redevelopment - 2017\TIF Run 3-22-17page 36
3/22/2017Base Value Assumptions - Page 2Motel RedevelopmentCity of Mendota Heights69 Market Rate ApartmentsEstimated TaxableTotal Taxable PropertyPercentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/PhaseNew UsePer Sq. Ft./UnitPer Sq. Ft./UnitSq. Ft./UnitsValueClassTax CapacityCapacity/Unit2017201820192020PayableApt140,000140,000 699,660,000 Rental120,7501,750 100%100%100%100%2019TOTAL9,660,000120,750 Subtotal Residential 69 9,660,000 120,750 Subtotal Commercial/Ind. 0 0 0 Note:1. Market values are based upon estimates from discussions with County Assessor. TotalFiscal LocalLocalFiscal State-wideMarketTax Disparities Tax PropertyDisparities PropertyValueTotal Taxes PerNew UseCapacityTax CapacityCapacityTaxesTaxesTaxesTaxesTaxes Sq. Ft./UnitApt120,7500120,750 111,3850017,631 129,016 1,869.80TOTAL120,7500120,750111,3850017,631129,016Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.Total Property Taxes 129,016less State-wide Taxes 0less Fiscal Disp. Adj. 0less Market Value Taxes (17,631)less Base Value Taxes (3,983)Annual Gross TIF 107,402TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity) WHAT IS EXCLUDED FROM TIF?Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\Mendota Heights\Housing - Economic - Redevelopment\Pending Projects\Motel Redevelopment - 2017\TIF Run 3-22-17page 37
3/22/2017Tax Increment Cashflow - Page 3Motel RedevelopmentCity of Mendota Heights69 Market Rate ApartmentsTAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocalAnnual Semi-Annual StateAdmin. Semi-Annual Semi-Annual PERIOD% ofTaxTax Disparities TaxTax Gross Tax Gross TaxAuditoratNet Tax Present ENDING Tax PaymentOTC CapacityCapacityIncremental CapacityRate Increment Increment 0.36%10% IncrementValue Yrs. Year Date- - - - 08/01/18- - - - 02/01/19100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 45,047 0.5 2019 08/01/19100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 89,103 1 2019 02/01/20100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 132,190 1.5 2020 08/01/20100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 174,328 2 2020 02/01/21100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 215,540 2.5 2021 08/01/21100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 255,844 3 2021 02/01/22100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 295,261 3.5 2022 08/01/22100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 333,811 4 2022 02/01/23100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 371,513 4.5 2023 08/01/23100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 408,385 5 2023 02/01/24100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 444,446 5.5 2024 08/01/24100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 479,714 6 2024 02/01/25100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 514,205 6.5 2025 08/01/25100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 547,937 7 2025 02/01/26100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 580,927 7.5 2026 08/01/26100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 613,191 8 2026 02/01/27100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 644,745 8.5 2027 08/01/27100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 675,605 9 2027 02/01/28100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 705,786 9.5 2028 08/01/28100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 735,302 10 2028 02/01/29100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 764,169 10.5 2029 08/01/29100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 792,401 11 2029 02/01/30100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 820,012 11.5 2030 08/01/30100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 847,015 12 2030 02/01/31100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 873,423 12.5 2031 08/01/31100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 899,251 13 2031 02/01/32100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 924,511 13.5 2032 08/01/32100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 949,214 14 2032 02/01/33100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 973,374 14.5 2033 08/01/33100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 997,002 15 2033 02/01/34100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,020,111 15.5 2034 08/01/34100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,042,711 16 2034 02/01/35100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,064,813 16.5 2035 08/01/35100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,086,429 17 2035 02/01/36100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,107,570 17.5 2036 08/01/36100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,128,245 18 2036 02/01/37100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,148,466 18.5 2037 08/01/37100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,168,241 19 2037 02/01/38100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,187,581 19.5 2038 08/01/38100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,206,496 20 2038 02/01/39100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,224,994 20.5 2039 08/01/39100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,243,086 21 2039 02/01/40100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,260,779 21.5 2040 08/01/40100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,278,083 22 2040 02/01/41100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,295,006 22.5 2041 08/01/41100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,311,557 23 2041 02/01/42100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,327,744 23.5 2042 08/01/42100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,343,574 24 2042 02/01/43100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,359,056 24.5 2043 08/01/43100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,374,198 25 2043 02/01/44100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,389,006 25.5 2044 08/01/44100% 120,750 (4,318) - 116,433 92.244% 107,402 53,701 (193) (5,351) 48,157 1,403,488 26 2044 02/01/45 Total2,792,452 (10,053) (278,240) 2,504,159 Present Value From 02/01/2018 Present Value Rate 4.50%1,565,066 (5,634) (155,943) 1,403,488 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\Mendota Heights\Housing - Economic - Redevelopment\Pending Projects\Motel Redevelopment - 2017\TIF Run 3-22-17page 38
Larson Greenhouse / Mendota Motel Property
Property Information
March 14, 2017
0 110 22055 ft
0 30 6015 m
1:1,200
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.
page 39
I-494
HWY
5
5
I-35EHWY 110
DODD RDHWY 13SIBLEY MEMORIAL HWYSIBLEY MEMORIAL494 RAMPI-494 RAMP
I-35E R
A
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I-94 RAMP
DODD RD RAMP
MENDOTA RD RAMP
I-494 LOOP
CENTRE POIN
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C
U
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NORTHLAND DR
ANNAPOLIS ST W
494 LOOP
DODD RD LOOPCONDON CTI-35E494 LOOPI-35E RAMPHWY 110
I-494 LOOP I-494
HWY 110
I-35E RAMPDODD RDI-
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I-494
I-494 DODD RDHW
Y
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HWY 13 SIBLEY MEMORIAL HWYSIBLEY MEMORIAL HWYHWY
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HWY 110 DODD RD494 RAMP DELAWARE AVELEXINGTON AVEWENTWORTH AVE WWACHTLER AVEPILOT KNOB RDLEXINGTON AVEMay 2, 2017
Legend
Municipal Boundary selection
TIF No. 2 Properties
County Roads
State Highways
272840001080
277520005110277520005160
277520005420
277520005050
277520005070
277520005020277520005421
277520005380
HWY 55HWY 13HWY 55HWY 132180
2164
2160
2160
2160
2160 2160
2160 2146
Dakota County GIS
Larson Properties: 2160 HWY 13PID Nos: 27-75200-05-380 27-75200-05-160 27-75200-05-421 27-75200-05-420 27-75200-05-110 27-75200-05-020 27-75200-05-050 27-75200-05-070
Mendota Hts. Motel: 2180 HWY 13PID No. 27-28400-01-080
0 1 20.5 Miles
Tax Increment Financing District No. 2
City ofMendotaHeights
Municipal Development District No. 1 *City of Mendota HeightsDakota County, Minnesota
* The boundaries of Municipal Development District No. 1 are coterminous with the corporate boundaries of the City of Mendota Heights
page 40
kaas wilson architectsMichael DevelopmentMendota Heights ApartmentsA100Site Plan 1" = 30'-0"1Graphic Site Planpage 41
25,314 ft²Underground Garage644 ft²ELEV.188 ft²STAIR216 ft²STAIR188 ft²STAIR25,314 ft²Underground Garage644 ft²ELEV.216 ft²STAIRColor LegendCommon1,118 ft²Lobby381 ft²ELEV.1,216 ft²Unit D3977 ft²Unit C2782 ft²Unit A1782 ft²Unit A1672 ft²Unit S2782 ft²Unit A1782 ft²Unit A1941 ft²Unit C1782 ft²Unit A1670 ft²Unit S1756 ft²Unit A2782 ft²Unit A1941 ft²Club Room375 ft²Office782 ft²Fitness379 ft²Conf. Rm.1,118 ft²Lobby381 ft²ELEV.941 ft²Club Room375 ft²Office782 ft²Fitness379 ft²Conf. Rm.782 ft²Unit A1941 ft²Unit C1672 ft²Unit S2782 ft²Unit A1756 ft²Unit A2782 ft²Unit A1977 ft²Unit C2782 ft²Unit A11,202 ft²Unit D1782 ft²Unit A11,216 ft²Unit D3670 ft²Unit S1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1941 ft²Unit C11,202 ft²Unit D1782 ft²Unit A1782 ft²Unit A11,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)941 ft²Unit C11,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)280 ft²STAIR266 ft²STAIRColor Legend1BR1BR + Den2BRCommonStudio1,202 ft²Unit D11,216 ft²Unit D31,242 ft²2BR(D2)782 ft²Unit A1782 ft²Unit A1756 ft²Unit A21,202 ft²Unit D1977 ft²Unit C2941 ft²Unit C1782 ft²Unit A1782 ft²Unit A1672 ft²Unit S2782 ft²Unit A1381 ft²ELEV.782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1670 ft²Unit S1782 ft²Unit A1670 ft²Unit S1941 ft²Unit C1381 ft²ELEV.782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1756 ft²Unit A2670 ft²Unit S1670 ft²Unit S1941 ft²Unit C1941 ft²Unit C11,202 ft²Unit D1977 ft²Unit C2672 ft²Unit S21,216 ft²Unit D3941 ft²Unit C11,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)941 ft²Unit C11,202 ft²Unit D1782 ft²Unit A1782 ft²Unit A11,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)Color Legend1BR1BR + Den2BRCommonStudio1,202 ft²Unit D11,216 ft²Unit D3756 ft²Unit A2941 ft²Unit C1782 ft²Unit A1782 ft²Unit A1672 ft²Unit S2977 ft²Unit C2782 ft²Unit A1381 ft²ELEV.782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1670 ft²Unit S1782 ft²Unit A1747 ft²Rooftop Deck864 ft²Club Room381 ft²ELEV.747 ft²Rooftop Deck864 ft²Club Room782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A1782 ft²Unit A11,202 ft²Unit D1941 ft²Unit C1670 ft²Unit S1672 ft²Unit S2977 ft²Unit C2756 ft²Unit A21,216 ft²Unit D3941 ft²Unit C11,202 ft²Unit D1782 ft²Unit A1782 ft²Unit A11,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)1,242 ft²2BR(D2)782 ft²Unit A1782 ft²Unit A11,202 ft²Unit D1941 ft²Unit C11,242 ft²2BR(D2)1,242 ft²2BR(D2)Color Legend1BR1BR + Den2BRCommonStudiokaas wilson architectsMichael DevelopmentMendota Heights ApartmentsA300Floor Plans 1" = 40'-0"1Level -1Parking ScheduleComments CountPhase 1 - Garage 79Phase 1 - Surface 44Phase 2 - Garage 79Phase 2 - Surface 44Grand total: 246 1" = 40'-0"2Level 1Unit Mix (Gross)Count Unit Type32 1BR10 1BR + Den20 2BR7 StudioPHASE 1: 6932 1BR10 1BR + Den20 2BR7 StudioPHASE 2: 69Grand total: 138 1" = 40'-0"3Level 2 1" = 40'-0"4Level 3page 42
kaas wilson architectsMichael DevelopmentMendota Heights ApartmentsA500Perspective 1page 43
kaas wilson architectsMichael DevelopmentMendota Heights ApartmentsA501Perspective 2page 44
kaas wilson architectsMichael DevelopmentMendota Heights ApartmentsA502Aerial Perspectivepage 45
Lyndale Plaza Apartments
Richfield, MN
page 46
District 600 Apartments
Minneapolis, MN
page 47
Northern Lakes Senor Living
Baxter, MN
page 48
DATE: May 16, 2017 TO: Mayor, City Council, and City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Ordinance Amending City Code Regarding Alcoholic Beverages
BACKGROUND
For your consideration, City staff is recommending the City Council review and discuss changes to the
City Code in regards to alcoholic beverages.
City staff and City Attorney Tom Lehmann are in the process of revising the liquor ordinance to bring it
up to date with current state statutes. The following is a list of just a few of the changes that should be
reviewed by the Council to bring the Alcoholic Beverages Code up to date. There may be others.
3-1-3 Definitions:
It is recommended that the definition be replaced with the following language:
All words, terms and phrases used in this chapter, shall have the meanings ascribed to them in
Minn. Stat. § 340A.101 et seq., except where context clearly indicates a different meaning.
3-1-5: Types of Licenses;
A.2. On-Sale Wine
Code currently states this is for establishments with seating for not fewer than 50 guests at one time.
State statutes states 25 guest at one time. Do we want to be consistent?
Code currently states that an on-sale wine licensee must have gross receipts that are at least 60%
attributable to the sale of food. This requirement is not in state statutes.
A.4. On-Sale Club Licenses:
Code currently states that a club must be in existence for 15 years to be granted a license. State statutes
is 3 years.
A7. On-Sale Special Event Licenses:
Recommended to change name to be consistent with State statutes, which calls these licenses
Temporary Liquor Licenses or Temporary 3.2 Percent Malt Liquor Licenses.
Current Code allows one organization to have no more than 2 licenses per calendar year, and for no
more than 3 days. State statutes allows an organization to have a license for four consecutive days, and
no more than 12 days’ worth for a calendar year.
3-1-6; Number of Licenses:
Code is not clear if these limits include 3.2 percent malt liquor licenses. Question if we should take out
the limits for On Sale licenses and Club licenses. Most cities limit their Off Sale Licenses.
page 49
3-1-7: Applications for Licenses:
D4. Current code requires a 40% minimum of total sales be from food/non-alcoholic beverages sales.
This is conflicting with Code 3-1-14 (R) which states 60%.
D5. Current code requires 80% minimum food sales for wine licensees. This is conflicting with Code
3-1-5 (2) which states 60%.
E. Hearing:
Current code requires a public hearing. This is not required by state statutes. Do we want to continue
requiring a public hearing for new licenses and for renewals?
3-1-8. Financial Responsibility
A. We currently require a surety bond, along with liquor liability insurance. Do we want to continue
this?
E. Liability insurance amounts are currently higher than required by state statutes. Do we want to make
consistent with state statutes?
3-1-9: Fees and Deposit:
A. License Fees:
Should we take out of ordinance and approve each year with Fee Schedule?
B. Deposit:
Code sets the background investigation fee at $1,500, and if investigation does not go out of state, then
the City reimburses $1,000 back to the applicant. State statute set limit of $500 for background
investigation unless investigation goes out of state, then can charge more.
3-1-14: Conditions of License:
P. Political Contributions:
Can we delete?
RECOMMENDATION
Staff recommends that the City Council review proposed changes to Title 3, Chapter 1, Alcoholic
Beverages of the City Code.
page 50
Chapter 1
ALCOHOLIC BEVERAGES
3-1-1: 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 prescribes the licensing
procedures and regulations governing the sale and/or consumption of alcoholic beverages. (Ord. 366, 4-16-
2002, eff. 7-15-2002)
3-1-2: CONFLICTING PROVISIONS:
Where a provision of any other ordinance of the city conflicts with the provisions of this chapter, the
provisions of this chapter shall prevail. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-3: DEFINITIONS:
For purposes of this chapter, the following terms have the meanings given them in this section:
ALCOHOLIC BEVERAGE: Any beverage containing more than one-half of one percent (0.5%) alcohol by
volume.
AFFILIATE OR SUBSIDIARY COMPANY: A company in which a manufacturer or its stockholders own a
majority of the stock.
BREWER: A person who manufactures malt liquor for sale.
CHURCH: A building which is principally used as a place where people of the same faith or religion
regularly assemble for worship.
CLUB: 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:
A. Has more than thirty (30) members.
B. 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.
Page 1 of 29
4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php
Mendota Heights City Code
page 51
C. 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.
DISTILLED SPIRITS: Ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and
other distilled spirits, including all dilutions and mixtures thereof, for nonindustrial use.
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 ordinances1, beverages, either liquid or powder, specifically designated for mixing
with intoxicating liquor, soft drinks, liqueur filled candies; food products that contain more than one-half of
one percent (0.5%) 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.
FISCAL YEAR: The twelve (12) month period used for accounting and income tax purposes.
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.
HOTEL AND MOTEL: Any establishment having a resident proprietor or manager where, in consideration
of payment therefor, food and lodging are regularly furnished to transients, which maintains for the use of
its guests not less than one hundred (100) guestrooms 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 as an integral part thereof, a dining room with appropriate facilities for seating not
less than fifty (50) guests at one time, where the general public is, in consideration of payment thereof,
served meals at tables.
HOTEL AND MOTEL, LIMITED SERVICE: A "hotel or motel" as defined in this section which maintains a
dining room with appropriate facilities for seating not more than seventy five (75) guests at one time.
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: a) bona
fide loans; b) bona fide rental agreements; c) 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; d) an interest of five percent (5%) or less in any corporation or
partnership holding a license; or e) an interest in a corporation owning or operating a hotel but having at
least one hundred fifty (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.
INTOXICATING LIQUOR: Ethyl alcohol, distilled, fermented, spirituous, vinous and malt beverages
containing in excess of 3.2 percent alcohol by weight.
LICENSED PREMISES: The premises described in the approved license application; provided, that the
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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.
LIQUEUR FILLED CANDY: Any confectionery containing more than one-half of one percent (0.5%) alcohol
by volume in liquid form that is intended for or capable of beverage use.
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.
MALT LIQUOR: Any beer, ale, or other beverage made from malt by fermentation and containing not less
than one-half of one percent (0.5%) alcohol by volume.
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.
MINOR: Any person who has not attained the age of twenty one (21) years. With respect to purchasing,
possessing, consuming, selling, furnishing, and serving alcoholic beverages, a person is not twenty one
(21) years of age until eight o'clock (8:00) A.M. on the day of that person's twenty first birthday.
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.
ON-SALE: The sale of 3.2 percent malt liquor, intoxicating liquor or wine for consumption on the licensed
premises only.
PACKAGE OR ORIGINAL PACKAGE: The sealed container in which the 3.2 percent malt liquor, wine or
intoxicating liquor is placed by the manufacturer.
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.
RESTAURANT: Any establishment, other than a hotel, under the control of a single proprietor or manager
and having a full service kitchen, and where, in consideration of payment therefor, 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. Such
establishment shall have dining facilities for seating not less than one hundred (100) guests at one time.
RESTRICTED HOURS OF OPERATION: The times when no sales or serving of intoxicating liquor shall be
made in the city of Mendota Heights.
SALE AND SELL: All barters and all manners or means of furnishing intoxicating liquor or liquors as
described in this section, whether or not in violation or evasion of law and also includes the usual meanings
of the terms.
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 postsecondary 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 "daycare facility" as that term is defined by Minnesota statutes.
3.2 PERCENT MALT LIQUOR: Malt liquor containing not less than one-half of one percent (0.5%) alcohol
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by volume nor more than 3.2 percent alcohol by weight.
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.
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.
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 agricultural products other
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 (0.5%) nor more than twenty four percent (24%)
alcohol by volume for nonindustrial use. Wine does not include "distilled spirits" as defined herein. (Ord.
366, 4-16-2002, eff. 7-15-2002; amd. Ord. 412, 5-1-2007; Ord. 417, 2-19-2008)
3-1-4: LICENSE 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 chapter.
(Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-5: TYPES OF LICENSES; EXEMPTIONS:
Licenses under this chapter shall be of the following types: on-sale, off-sale, on-sale club, on-sale wine, on-
sale Sunday and temporary on-sale special event.
A. Intoxicating Liquor Licenses:
1. On-Sale Licenses: On-sale licenses shall be issued only to hotels, motels and restaurants. (Ord. 366,
4-16-2002, eff. 7-15-2002)
2. On-Sale Wine Licenses: On-sale wine licenses shall be issued only to restaurants having facilities for
seating not fewer than fifty (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. A holder of an on-sale wine license issued pursuant to this chapter
who is also licensed to sell 3.2 percent malt liquors at on-sale and whose gross receipts are at least
sixty percent (60%) attributable to the sale of food shall be permitted to sell intoxicating malt liquors at
on-sale without an additional license. (Ord. 412, 5-1-2007)
3. On-Sale Wine Institutional Licenses: 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. On-Sale Club Licenses: On-sale club licenses shall be issued only to bona fide clubs which have
been in existence in the city for fifteen (15) years. Such clubs shall be incorporated in order to be
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eligible to apply for a license, and the license shall be for the sale of intoxicating liquors to members
and bona fide guests only. (Ord. 366, 4-16-2002, eff. 7-15-2002)
5. Off-Sale Licenses: Off-sale licenses shall be issued only to exclusive liquor stores which shall be
located only in B-4 or MU-PUD zoning districts.
a. No license shall be granted to or held by any person 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 chapter.
b. If the applicant is a partnership, no license shall be granted if any general partner or general
manager of the establishment to be licensed 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 chapter.
c. 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 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 chapter. (Ord. 405, 12-20-2005)
6. Special Licenses For Sunday Liquor Sales: Special licenses for Sunday liquor sales 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.
7. On-Sale Special Event Licenses: On-sale special event licenses shall be granted only to clubs and
charitable, religious or nonprofit organizations that have been in existence for three (3) 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 (2) special event licenses in any calendar year. No license shall be
issued for more than three (3) days.
B. 3.2 Percent Malt Liquor Licenses:
1. On Sale Licenses: 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.
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.
3. Club Licenses: 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. On Sale Special Event licenses: 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 (3) 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 (2) special event licenses in any calendar year. No
license shall be issued for more than three (3) days.
C. Exemptions: 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. (Ord. 366, 4-16-2002, eff. 7-15-2002)
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3-1-6: NUMBER OF LICENSES:
Not more than the following numbers of licenses shall be in existence at any one time:
On sale licenses 6
On sale club licenses 2
Off sale licenses 6
(Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-7: APPLICATIONS FOR LICENSES:
A. Contents: 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:
1. For all applications, except applications for on sale special event licenses, which are governed by
subsection A11 of this section:
a. Whether the applicant is a natural person, corporation, partnership, or other form of organization.
b. The type of license the applicant seeks.
c. If the applicant is a natural person, the following information:
(1) The true name, place and date of birth, and street residence address of the applicant.
(2) 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.
(3) 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 Minnesota statutes chapter 33, certified by the secretary of state, shall
be attached to the application.
(4) 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) Whether the applicant and present spouse are registered voters and, if so, where.
(6) Street addresses at which the applicant and present spouse have lived during the preceding ten
(10) years.
(7) The kind type, name, and location of every business or occupation the applicant or present
spouse has been engaged in during the preceding ten (10) years.
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(8) 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.
(9) 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.
(10) 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.
(11) Whether the applicant has ever been in military service. If so, the applicant shall, upon request,
exhibit all discharges.
(12) 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.
d. 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 subsection A1c of this
section. 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 Minnesota statutes chapter 33, a copy of such
certificate, certified by the clerk of the district court, shall be attached to the application. The license
shall be issued in the name of the partnership.
e. If the applicant is a corporation or other organization:
(1) 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.
(2) 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.
(3) 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 subsection A1c of this section.
f. If the applicant is a club:
(1) The name of the club.
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(2) The date that the club was first incorporated. True copies of the articles of incorporation, bylaws,
and other similar governing documents, as well as any amendments to any of the foregoing, shall
be submitted with the application.
(3) The date that the club was first organized and the place of such organization.
(4) 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 subsection A1c of this section.
(5) 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.
(6) The number of members of the club.
(7) The names and street addresses of all officers, executive committee members, directors and
persons in similar capacities.
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.
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.
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. 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.
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 which 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.
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.
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.
9. Such other information as the city council, police chief or city clerk shall require.
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
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such information is current and applicable at the time of such application for a special license for
Sunday liquor sales.
11. If the application is for an on sale special event, the application shall contain the following
information:
a. The name and address of the sponsoring religious, charitable, or nonprofit organization.
b. The dates and times of the special event.
c. The location of the special event.
d. The full name, date of birth, and street residence address of an officer or member of the sponsoring
religious, charitable, or nonprofit organization.
e. 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.
B. Execution Of Application: 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.
C. Verification Of Application: Applications for licenses under this chapter 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.
D. Renewal Applications:
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 chapter are complied with, grant the application.
2. An on sale or off sale intoxicating liquor license will not be renewed if:
a. 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 of 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 chapter.
b. 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
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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 chapter.
c. 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 chapter.
3. 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.
4. 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 percent (40%) of the restaurant's combined sales of food, nonalcoholic beverages and
alcoholic beverages was from the sale of food, including nonalcoholic beverages.
5. 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 eighty percent (80%) of the restaurant's combined sales of food, nonalcoholic
beverages, and alcoholic beverages is derived from the sale of food and nonalcoholic beverages.
6. A corporation or partnership shall submit a current certificate of good standing with the renewal
application.
E. Hearing: 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 than a renewal shall not be approved before
the next regular meeting of the city council following such hearing. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-8: FINANCIAL RESPONSIBILITY:
No license issued under this chapter, except those licenses listed in subsections 3-1-5A7 and B4 of this
chapter 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.
A. General Requirements: At the time of filing for an application for an intoxicating liquor license, the
applicant shall file with the city clerk a bond with corporate surety, or in lieu thereof cash or negotiable
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United States government bonds, and a certificate that there is in effect a liability insurance policy in the
amounts set forth in subsection E of this section, issued by an insurer required to be licensed under
Minnesota statutes. Such bond, cash or negotiable government bonds shall be in the amount of five
thousand dollars ($5,000.00) for an on sale intoxicating liquor license or on sale wine license, shall be in
the amount of two thousand dollars ($2,000.00) for an on sale club license or for a 3.2 percent malt
liquor license and shall be in the amount of three thousand dollars ($3,000.00) for an off sale
intoxicating liquor license. Such insurance policy shall be in the amount specified in subsection E of this
section.
B. Approval Of Bond And Insurance: The surety bonds and insurance policies required by subsection A 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.
C. Procedure For Cash Or Government Bonds: 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.
D. Surety And 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 certificates of liability insurance, when approved by the
proper city or state officers, shall be filed with the city clerk.
E. Amounts And Conditions Of Insurance: The liability insurance policy for intoxicating liquor and on sale
wine licenses shall be in the amount of two hundred fifty thousand dollars ($250,000.00) coverage for
one person, five hundred thousand dollars ($500,000.00) coverage for more than one person, or a five
hundred thousand dollar ($500,000.00) 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 Minnesota statutes
chapter 340A. 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 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.
F. Conditions Of Bonds: All such bonds shall be conditioned as follows:
1. That the licensee will obey the laws relating to such licensed business.
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2. That the licensee will pay to the city when due all taxes, license fees, penalties and other charges
provided by law.
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.
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.
G. 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 F 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.
H. Deposit Of Government 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 chapter. 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.
I. 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 chapter, for the period of the license in connection with which such deposit is made,
and for three (3) years thereafter, at which time such deposit may be returned, with the approval of the
city council, by the city clerk to the licensee.
J. Affidavit For Return Of Government 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 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. (Ord. 366, 4-16-
2002, eff. 7-15-2002)
3-1-9: FEES AND DEPOSIT:
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A. License Fees:
1. Fees Established: The annual license fees shall be as follows:
On-sale license, tier one $10,000.00
On-sale license, tier two 7,500.00
On-sale license, limited service hotel and motel 3,000.00
On-sale wine license 2,000.00
On-sale club license 350.00
On-sale wine license, institutional 250.00
Off-sale license 150.00
Special Sunday liquor license 200.00
On-sale 3.2 percent malt liquor license 250.00
Off-sale 3.2 percent malt liquor license 50.00
Special event license 50.00
(Ord. 417, 2-19-2008)
2. Payment Of Fee; Refund: 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 wilful
misstatement in the license application. 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 statutes section 340.112. A monthly pro rata share of an annual license fee for
a license issued under this chapter may be refunded to the licensee or an authorized representative
of a licensee if:
a. The business ceases to operate because of destruction or damage;
b. The licensee dies, and the business ceases to operate;
c. The business ceases to be lawful for a reason other than a license revocation;
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;
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;
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;
g. The licensee ceases to carry on the licensed business under the license.
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3. Proration Of Fee: The fee for all on sale licenses granted after the commencement of the license year
shall be prorated on a semiannual basis.
4. Premises Not Ready For Occupancy: 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.
5. Transfer Of License: 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 A6 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 C1 of this section.
6. Exemption From Additional License Fee: 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.
B. Deposit: 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
A5 of this section, the applicant shall deposit one thousand five hundred dollars ($1,500.00) with the city
to cover the costs involved in verifying the license application and any investigation needed to ensure
compliance with this chapter.
C. Investigation Fees:
1. If the investigation and verification process is conducted solely within the state of Minnesota, the fee
shall be five hundred dollars ($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 ten thousand dollars
($10,000.00). Any fees due in excess of the five hundred dollar ($500.00) deposit must be paid prior
to the license hearing and before the city council considers the application. No investigation fee shall
be refunded.
2. 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 A5 of this section, the licensee
shall pay an additional investigation fee to be determined as in subsection C1 of this section. If any
person not previously listed as having an interest of five percent (5%) or more of the corporation gains
at least fifty percent (50%) of the ownership of the corporation, partnership, organization or other
entity, the additional investigation fee shall be the same as in subsection C1 of this section. In all
other cases, the additional investigation fee shall be one hundred dollars ($100.00). No investigation
fee shall be refunded. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-10: GRANTING OF LICENSES:
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A. Grantee And Location: 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.
B. Transfer Of License: No license may be transferred to another person or to another place without
complying with the requirements of an original application including the approval by the city council and
the public safety commissioner as required, except as provided by subsections 3-1-9A5 and A6 of this
chapter.
C. Information To Public Safety Department: The city clerk shall, within ten (10) days after the issuance of
any license under this chapter, 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.
D. Effect Of Certain Licenses:
1. On-Sale Wine Licenses: An on-sale wine license approved by the council shall not become effective
until it, along with the security furnished by the applicant, have been approved by the commissioner of
public safety.
2. Off-Sale Intoxicating Liquor Licenses: 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.
3. On-Sale Special Event Licenses: On-sale special event licenses approved by the council shall not
become effective until approved by the commissioner of public safety.
E. Certification Of Occupancy Required: 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. (Ord.
366, 4-16-2002, eff. 7-15-2002)
3-1-11: EXPIRATION OF LICENSES:
All licenses under this chapter shall expire on June 30 of each year. (Ord. 447, 4-2-2013)
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3-1-12: PERSONS INELIGIBLE FOR LICENSE:
No license shall be granted to or held by any person:
A. Who is not twenty one (21) years of age or older on the date the license application is submitted to the
city clerk.
B. Who is not of good moral character and repute.
C. Who has been convicted, within five (5) years prior to the application for such license, of a felony or of
any wilful 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.
D. Who has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five (5) years
of the license application.
E. 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.
F. 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. (Ord. 366, 4-16-2002, eff. 7-15-2002)
G. (Rep. by Ord. 405, 12-20-2005)
H. Who has an interest, either directly or indirectly, in two (2) establishments in the city to which on-sale
licenses have been issued under this chapter. No person shall own an "interest", as defined in section
3-1-3 of this chapter in more than two (2) establishments or businesses for which on-sale licenses have
been granted under this chapter.
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I. Who is the spouse of a person ineligible for a license pursuant to the provisions of subsections A through
H of this section.
J. Who is not the real party in interest or beneficial owner of the business operated, or to be operated,
under the license.
K. 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 subsections B through H of this section.
L. If the applicant is a partnership, no license shall be granted if any general partner or general manager of
the establishment to be licensed:
1. Is not twenty one (21) years of age or older on the date the license application is submitted to the city
clerk.
2. Is not of good moral character and repute.
3. Has been convicted, within five (5) years prior to the application for such license, of a felony or of any
wilful 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.
4. Has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five (5) years of
the license application.
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.
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.
(Ord. 366, 4-16-2002, eff. 7-15-2002)
7. (Rep. by Ord. 405, 12-20-2005)
8. Has an interest, either directly or indirectly, in two (2) establishments in the city to which on-sale
licenses have been issued under this chapter. No person shall own an "interest", as defined in section
3-1-3 of this chapter in more than two (2) establishments or businesses for which on-sale licenses
have been granted under this chapter.
9. Is the spouse of a person ineligible for a license pursuant to the provisions of subsections A through
H of this section.
10. Is not the real party in interest or beneficial owner of the business operated, or to be operated, under
the license.
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M. 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:
1. Is not twenty one (21) years of age or older on the date the license application is submitted to the city
clerk.
2. Is not of good moral character and repute.
3. Has been convicted, within five (5) years prior to the application for such license, of a felony or of any
wilful 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.
4. Has had an intoxicating liquor, 3.2 percent malt liquor or wine license revoked within five (5) years of
the license application.
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.
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.
(Ord. 366, 4-16-2002, eff. 7-15-2002)
7. (Rep. by Ord. 405, 12-20-2005)
8. Has an interest, either directly or indirectly, in two (2) establishments in the city to which on-sale
licenses have been issued under this chapter. No person shall own an "interest", as defined in section
3-1-3 of this chapter, in more than two (2) establishments or businesses for which on-sale licenses
have been granted under this chapter.
9. Is the spouse of a person ineligible for a license pursuant to the provisions of subsections A through
H of this section.
10. Is not the real party in interest or beneficial owner of the business operated, or to be operated, under
the license. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-13: PLACES INELIGIBLE FOR LICENSE:
A. Delinquent Taxes And Assessments: 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 Minnesota statutes chapter 278 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
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granted, however, for taxes, or any portion thereof, which remain unpaid for a period exceeding one
year after becoming due. (Ord. 366, 4-16-2002, eff. 7-15-2002)
B. Location: Except for on-sale special event licenses, no license shall be granted for a location within one
thousand feet (1,000') of a school or seven hundred twenty five feet (725') 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 is 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 is 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. (Ord. 398, 2-15-2005)
C. Property Owner: 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 chapter; 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.
D. Common Entrance Or Exit: 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. (Ord. 366, 4-16-
2002, eff. 7-15-2002)
E. On-Sale Licenses:
1. No on-sale tier one intoxicating liquor license shall be granted for a restaurant or for a hotel that does
not have a dining area, open to the general public, with a total minimum floor area of two thousand
(2,000) square feet and dining facilities for seating a minimum of two hundred (200) guests at one
time. (Ord. 417, 2-19-2008)
2. No on-sale tier two 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 one thousand (1,000)
square feet and dining facilities for seating a minimum of fifty (50) guests at one time. (Ord. 447, 4-2-
2013)
3. No on-sale wine or on-sale 3.2 percent 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 seven hundred fifty
(750) square feet.
4. No on-sale license shall be granted for any place for which an off-sale intoxicating liquor license has
been granted under this chapter.
5. An on-sale 3.2 percent malt liquor license under this chapter may only be issued to restaurants,
hotels, clubs, golf courses and establishments used exclusively for the sale of 3.2 percent malt liquor.
(Ord. 417, 2-19-2008)
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F. Off Sale Licenses:
1. No off sale license shall be granted for any establishment that is licensed as an on sale
establishment.
2. No off sale intoxicating liquor license shall be granted:
a. To any premises located in any zoning district other than a B-4 shopping center district.
b. Unless the premises proposed to be licensed contains the following requirements:
(1) A minimum of two thousand five hundred (2,500) square feet on the ground floor level for sales
and display area; and
(2) A minimum of five hundred (500) square feet of ground floor area, screened from the display
area, or basement level area of the licensed premises for storage purposes. (Ord. 366, 4-16-
2002, eff. 7-15-2002)
3-1-14: CONDITIONS OF LICENSE:
Every license shall be granted subject to the conditions of the following subsections and all other sections
of this chapter, and of any other applicable ordinance of the city or state law:
A. License To Be Posted: The license shall be posted in a conspicuous place in the licensed premises at all
times.
B. Conduct Of Business: 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.
C. Discrimination By Club Licensees: A holder of an on sale club license issued under this chapter shall not
discriminate against members or applicants for membership or guests of members on the basis of race.
D. Sales Of Alcoholic Beverages Restricted:
1. Sales To Parallel Type Of License: 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.
2. Sales Limited To Specific Location: 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.
3. Sunday Sales: No holder of a special license for Sunday liquor sales shall serve liquor on Sunday
except in conjunction with the sale of food.
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4. Resale Prohibitions: No licensee under this chapter 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.
5. Sales In Hotel Rooms: No sale of intoxicating liquor shall be made in guestrooms of hotels unless the
hotel has an on sale license under this chapter. No sales of intoxicating liquor shall be made to or in
guestrooms of hotels, unless the rules of such hotel provide for the service of meals in guestrooms;
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;
and unless the rules of such hotel and the description, location and number of such guestrooms are
fully set out in the application for a license.
6. Club Sales Limited To Members And Guests: A holder of a club license under this chapter 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.
E. Tampering With Contents:
1. No licensee shall sell, offer for sale, or keep for sale intoxicating liquors in any original package which
has been refilled or partly refilled.
2. 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. (Ord. 366, 4-16-2002, eff. 7-15-2002)
F. Consumption On Approved Licensed Premises: Consumption of on-sale alcoholic beverages is allowed
only in the approved licensed premises. A restaurant licensed to sell intoxicating liquor or wine at on-
sale under this section may permit a person purchasing a full bottle of wine in conjunction with the
purchase of a meal to remove the bottle on leaving the licensed premises provided that the bottle has
been opened and the contents partially consumed. A removal of a bottle under the conditions described
in this subsection is not an off-sale of intoxicating liquor and may be permitted without additional license.
(Ord. 412, 5-1-2007)
G. Employees Under Eighteen:
1. No licensee under this chapter shall permit a person under eighteen (18) years of age to serve or sell
3.2 malt liquor, wine or intoxicating liquor.
2. A licensee under this chapter, 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 chapter.
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H. Gambling: No licensee under this chapter 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.
I. 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.
J. Immoral Situations:
1. Prostitution And Illegal Drugs: A licensee under this chapter 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.
2. Nudity On Licensed Premises:
a. Findings: 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 subsection J2 on the
premises of any establishment licensed under this chapter. 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 chapter, as set forth in this subsection J2, reflects the prevailing
community standards of the city.
b. Nudity Prohibited: It is unlawful for any licensee to permit or allow any person on the licensed
premises when the person does not have his or her buttocks, anus, breasts and genitals covered
with a nontransparent 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
nontransparent material.
c. Violation; Penalty: A violation of this subsection J2 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 chapter.
K. Manufacturers, Brewers And Wholesalers:
1. A licensee under this chapter 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 chapter 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 chapter
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.
2. 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.
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L. Display Of Alcoholic Beverages During Prohibited Hours: 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 chapter.
M. Use Of Ethyl Alcohol Prohibited: 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.
N. Report Of Changes In Officers Or Ownership:
1. Changes in the corporate or association officers, directors, corporate charter, articles or incorporation,
bylaws, or partnership agreement, or any agreement governing any other type of organization
described in subsection 3-1-7A1e of this chapter, as the case may be, shall be submitted to the city
clerk within thirty (30) days after such changes are made.
2. Notwithstanding the definition of "interest" as given in section 3-1-3 of this chapter, 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 3-1-7A1e of this chapter, which, together
with that of his spouse, parent, brother, sister or child, exceeds five percent (5%) or causes the sum
of all such interest to increase by five percent (5%) or more and shall give all information about said
person as is required of a person pursuant to the provisions of section subsection 3-1-7A1c of this
chapter; except, that off sale licensees shall report any change of interest.
O. Restaurants And Hotels: 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.
P. Political Contributions: At the time licensee submits application for license renewal, the licensee shall
state the nature or amount of any contribution valued in excess of fifty dollars ($50.00) that the licensee
has made to any candidate for an elected city office.
Q. Off Sale Licenses; Additional Restrictions:
1. Storage And Display Restrictions:
a. Off sale licensees shall operate their premises in such a manner that four foot (4') wide aisles are
maintained in the sales and display areas at all times.
b. Case lot storage and display shall not be permitted in the sales and display areas.
c. Storage shall be adequately screened from public view and shall occur only in areas designated for
storage.
2. Deliveries; Receipt Required: 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 therefor, signed by the person receiving such liquor and bearing the time, date and place of
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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.
3. Business Name: The city shall not allow the same business name to be used by more than one of its
off sale intoxicating liquor licenses.
4. Samples: No off sale licensee under this chapter 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 spirits samples are dispensed at
no charge and consumed on the licensed premises during the permitted hours of off sale in a quantity
less than one hundred milliliters (100 ml) of malt liquor per variety per customer, fifty milliliters (50 ml)
of wine per variety per customer, and twenty five milliliters (25 ml) of liqueur or cordial, and fifteen
milliliters (15 ml) of distilled spirits per variety per customer.
5. Distilled Spirits: An off sale licensee of intoxicating liquor may sell distilled spirits in bottles of fifty
milliliters (50 ml).
6. Coin Operated Amusement Devices: Coin operated amusement devices may not be made available
in establishments holding an off-sale license under this chapter. (Ord. 366, 4-16-2002, eff. 7-15-2002)
R. On-Sale Licenses; Percent Of Gross Sales: 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 sixty percent (60%) of the gross sales of the establishment for which the on-sale license is to
be used is in the serving of food. (Ord. 398, 2-15-2005)
S. Signage: The licensee shall post and maintain in a conspicuous place within the licensed premises
clearly visible to consumers: one sign fourteen and one-half inches wide by eight inches high
(141/2" x 8") 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) the penalties for
serving alcoholic beverages to a person who is obviously intoxicated or under twenty one (21) years of
age; and 3) a warning statement regarding drinking alcohol while pregnant.
T. Investigation Of Records: 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.
U. Inspections; Entry Powers: 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. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-15: TRANSFER OF LICENSE:
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A. The license granted under this chapter 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 noncorporate licensee is incorporating and the incorporation does not affect the ownership,
control, and interest of the existing licensed establishment.
B. A licensee under this chapter shall immediately notify the city clerk of the following:
1. A change in the corporate or organization officers listed in the license application, excluding officers
of clubs holding club licenses.
2. Any changes in the partnership agreement or lease submitted with the license application.
3. A change of the managing partner, manager, proprietor, or other person who is in charge of the
licensed premises.
4. Any change in the ownership of an establishment licensed under this chapter, including any
acquisition of an interest in the partnership, corporation, or other organization by any person not
identified in the license application.
C. When an establishment licensed under this chapter 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 chapter. 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.
D. 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 chapter until the city council has reviewed and approved the
management agreement and any amendments thereto.
E. 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. (Ord.
366, 4-16-2002, eff. 7-15-2002)
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3-1-16: HOURS AND DAYS OF OPERATION:
A. Restricted Hours And Days: Restricted hours of operation shall be as follows:
On-Sale Club, On-Sale Wine,
On-Sale 3.2 Percent Malt
Liquor And On-Sale
Intoxicating Liquor
Establishments
Off-Sale Liquor
Establishments
Monday through
Friday
No sales between 12:45 A.M. and 10:00 A.M. No sales before 8:00
A.M. or after 9:00
P.M.
Saturday No sales between 12:45 A.M. and 10:00 A.M. No sales before 8:00
A.M. or after 10:00
P.M.
Sunday No sales after 12:45 A.M., except a holder of a current
Sunday liquor license under this chapter may sell
intoxicating liquor for consumption on the premises in
conjunction with the sale of food between the hours of
10:00 A.M. on Sunday and 12:45 A.M. on Monday.
No sales of 3.2 percent malt liquor between 12:45 A.M.
and 10:00 A.M.
No sales
July 3, if not a
Sunday
No sales between 12:45 A.M. and 10:00 A.M. No sales before 8:00
A.M. or after 10:00
P.M.
The day
preceding
Thanksgiving
Day
No sales between 12:45 A.M. and 10:00 A.M. No sales before 8:00
A.M. or after 10:00
P.M.
Thanksgiving
Day
No sales between 12:45 A.M. and 10:00 A.M. No sales
Christmas Eve,
December 24
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.
Christmas Day,
December 25
No sales between 12:45 A.M. and 10:00 A.M. No sales
December 31 No sales between 12:45 A.M. and 10:00 A.M. No sales before 8:00
A.M. or after 10:00
P.M.
(Ord. 412, 5-1-2007)
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B. On-Sale Licensees; Hours Of Consumption And Display: No on-sale licensee shall permit the
consumption or display of any beverages containing more than one-half of one percent (0.5%) of
alcohol by volume on his premises during the hours when the sale of such beverage is prohibited by this
chapter 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. (Ord. 366, 4-16-2002, eff. 7-15-2002; amd. 2003 Code)
3-1-17: MINORS:
A. Sales And Furnishing To, Consumption By Prohibited:
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 chapter shall permit any minor to consume
3.2 percent malt liquor, wine or intoxicating liquor on the licensed premises.
2. 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.
B. Purchase By: No minor shall purchase or attempt to purchase 3.2 percent malt liquor, wine, or
intoxicating liquor from any licensee under this chapter.
C. Proof Of Age:
1. No minor shall misrepresent his age for the purpose of obtaining intoxicating liquor, wine or 3.2
percent malt liquor.
2. 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.
3. 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:
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;
b. A valid military identification card issued by the United States department of defense; or
c. In the case of a foreign national, from a nation other than Canada, by a valid passport.
4. 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 subsection
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C3 of this section and permit to be examined his driver's license, current nonqualification certificate, or
Minnesota identification card.
5. In a prosecution for any violation of any provision in this chapter 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.
D. Presence On Premises To Purchase Or Consume: 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.
E. Possession By: 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. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-18: SALES TO, CONSUMPTION BY CERTAIN PERSONS:
A. Intoxicated Persons: No licensee under this chapter shall sell, serve or furnish 3.2 percent malt liquor,
wine or intoxicating liquor to any obviously intoxicated person.
B. Consumption On Unlicensed Premises: No person shall consume or mix or prepare intoxicating liquor for
consumption in any public place not licensed in accordance with the ordinances of the city of Mendota
Heights and the state of Minnesota.
C. Sale Or Consumption On Highways Or In Vehicles: No intoxicating liquor shall be sold or consumed on a
public highway or in any automobile. (Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-19: ALTERATION 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 subsections 3-1-7A2, A3, A5 and A8 of this chapter. (Ord.
366, 4-16-2002, eff. 7-15-2002)
3-1-20: SANCTIONS FOR LICENSE VIOLATIONS:
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A. The city council may revoke a license, suspend a license for up to sixty (60) days, impose a civil penalty
of up to two thousand dollars ($2,000.00) for each violation, or impose any combination of these
sanctions for a violation of any provision of this chapter 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 wilful
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 chapter in full force and effect.
B. 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. There shall be given
at least eight (8) days' notice of the time and place of the hearing, and the notice 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 thirty (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 suspension shall exceed sixty (60) days.
C. 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.
(Ord. 366, 4-16-2002, eff. 7-15-2002)
3-1-21: VIOLATION; PENALTIES:
Any person violating any provisions of this chapter 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. (Ord. 366, 4-16-2002, eff. 7-15-
2002)
Footnote 1: See chapter 2 of this title for tobacco sales regulations.
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