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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 M P I-94 RAMP DODD RD RAMP MENDOTA RD RAMP I-494 LOOP CENTRE POIN T E C U R 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- 3 5 E I-494 I-494 DODD RDHW Y 5 5 HWY 13 SIBLEY MEMORIAL HWYSIBLEY MEMORIAL HWYHWY 5 5 I-3 5 E R A M P I- 3 5 E I-494 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 Page 2 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 52 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 Page 3 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 53 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 Page 4 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 54 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) Page 5 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 55 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. Page 6 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 56 (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. Page 7 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 57 (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 Page 8 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 58 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 Page 9 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 59 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 Page 10 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 60 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. Page 11 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 61 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: Page 12 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 62 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. Page 13 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 63 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: Page 14 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 64 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) Page 15 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 65 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. Page 16 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 66 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. Page 17 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 67 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 Page 18 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 68 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) Page 19 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 69 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. Page 20 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 70 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. Page 21 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 71 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. Page 22 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 72 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 Page 23 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 73 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: Page 24 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 74 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) Page 25 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 75 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) Page 26 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 76 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 Page 27 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 77 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: Page 28 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 78 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. Page 29 of 29 4/12/2017http://www.sterlingcodifiers.com/codebook/printnow.php Mendota Heights City Code page 79