ORD 91-08original copy
1,1 V 0 OTr�F
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO. 91-08
AN ORDINANCE LICENSING AND REGULATING
THE SALE AND CONSUMPTION OF INTOXICATING LIQUOR, AND
WINE, AND PROVIDING A PENALTY FOR VIOLATION
The Council of the City of Otsego ordains:
Section 1. Provisions of State Law Adopted. The provisions
of Minn. Stat. 340A and subsequent amendments to, relating to the
definition of terms, licensing, consumption, sales, hours of
sale, and all other matters pertaining to the retail sale,
distribution, and consumption of intoxicating liquor are adopted
and made a part of this ordinance as if set out in full.
Section 2. License Requirement. No person, except a
wholesaler or manufacturer, to the extent authorized under State
license, shall directly or indirectly deal in, sell, or keep for
sale in the City any intoxicating liquor without a license to do
so as provided in this ordinance Liquor licenses shall be of four
kinds: "On -Sale", "Off -Sale", Temporary "On -Sale", and "On -Sale"
Wine License.
Subd. 1 On -Sale Licenses. "On -Sale" licenses shall be
issued only to hotels, clubs, restaurants, and exclusive liquor
stores, and shall permit "On -Sale" of liquor only.
published in the Star News of Elk River this 20th day of Mnrch
1991
Subd. 2 Off -Sale Licenses. "Off -Sale" licenses shall be
issued only to drug stores and exclusive liquor stores and shall
permit "Off -Sale" of liquor only.
Subd. 3 Temporary On -Sale License. The City may issue to
a club or charitable, religious, or other other non-profit
organization that has existed for at least three (3) years a
temporary on -sale license for the sale of intoxicating liquor in
connection with a social event within the City sponsored by the
licensee, and subject to restrictions imposed by the State Liquor
Act. The license may authorize the on -sale of intoxicating
liquor for no more than three (3) consecutive days, and may
authorize on -sale on premises not owned or permanently occupied
by the licensee. No such license is valid unless first approved
by the Commissioner of Public Safety.
Subd. 4. On -Sale Wine Licenses.
1). General. The City may issue an on -sale wine
license to a restaurant having a seating capacity of at least 25
guests, and shall permit only the sale of wine not exceeding
fourteen percent (140) alcohol by, for consumption on the
licensed premises only, in conjunction with the sale of food. No
such license is effective until approved by the liquor control
commissioner.
2). Days of Sale. A On -Sale Wine License shall
authorize the sale of wine on all days of the week.
Section 3. License Application.
Subd. 1 Form. Every application for a license to sell
liquor within the City of Otsego shall state the name of the
applicant, his age, representations as to his character, with
such references as the Council may require, his citizenship, the
- 2 -
type of license applied for, the business and/or corporation in
connection with which the proposed license will operate and its
location, whether the applicant is owner and operator of the
business and/or corporation, how long he has been in that
business at that place, whether or not that person owns or
controls other liquor licenses in other municipalities, whether
or not that person has ever been denied a liquor license or had a
liquor license suspended or revoked in another jurisdiction
including a summary of facts leading to such action(s), and such
other information as the Council may require from time to time.
Every application shall also include a copy of each summons and
complaint received by the applicant under Minn. Stat. 340A.802
during the preceding year. In addition to containing such
information, the application shall be in the form prescribed by
the bureau of criminal apprehension and shall be verified and
filed with the City Clerk. No person shall make a false
statement in an application.
Subd. 2 Insurance. Every applicant for the issuance or
renewal of any "On -Sale" or "Off -Sale" license shall demonstrate
proof of financial responsibility by filing with the City one of
the following:
(a). A certificate showing insurance against general
liability and that imposed by Minn. Stat. 340A.801 in the amount
of $1,000,000.00 coverage for bodily injury to any one person in
any one occurrence, $1,500,000.00 coverage for two or more
persons in any one occurrence, $100,000.00 coverage because of
injury to or destruction of property of others in any one
occurrence $100,000.00 coverage for loss of means of support of
any one person in any one occurrence, and $100,000.00 for loss of
means of support of two or more persons in any one occurrence; or
- 3 -
(b). A Surety Bond with minimum coverages as provided
in clause (a) a certificate of the State Treasurer that the
licensee has deposited with the State Treasurer $1,500,000.00 in
cash or securities which may legally be purchased by savings
banks or for trust funds having a market value of $1,500,000.00.
Every licensee shall further demonstrate proof of financial
responsibility by filing the insurance certificate, surety bond,
or state treasurer's certificate with the Commissioner of Public
Safety in compliance with Minn. Stat. 340.409, Subd. 1, except
that if a license involves sales of wine by a prospective vendor
who is not required by law to file such proof with the
Commissioner of Public Safety, such proof need only be filed with
the City Clerk.
The liability insurance policy required by clause (a) of
this section shall provide that it may not be canceled for any
cause, except for non-payment of premium, by the insured or the
insurer without first giving thirty (30) days written notice to
the City, addressed to the Clerk. The policy shall also provide
that it may not be canceled for non-payment of premium unless the
canceling party first gives ten (10) days written notice to the
City, addressed to the Clerk.
The insurance certificate required by this section shall be
approved as to form by the City Attorney.
Subd. 4. Filing Violation. The operation of an "On -Sale"
or "Off -Sale" liquor business, or "On -Sale" wine business,
without having on file at all times the insurance bond or other
security required by Subdivisions 2 and 3 of this section shall
be grounds for immediate revocation of the license.
- 4 -
Section 4. License Fees.
Subd. 1. Fees. The annual fee for an "On -Sale" liquor
license shall be $4,000.00. The annual fee for an "Off -Sale"
liquor license shall be $150.00 pursuant to Minn. Stat. 340A.408,
Subd. 3. The annual fee for a "On -Sale" Wine License shall be
$150.00. The fee for a Temporary "On -Sale" liquor license shall
be $25.00 per day.
Subd. 2. Payment. Each application for a license shall be
accompanied by a receipt from the City Clerk for payment in full
of the license fee and the investigation fee required under
Section 5, Subd. 2 of this Ordinance. All fees shall be paid
into the general fund. If an application for license is
rejected, the Clerk shall refund the amount paid as the license
fee.
Subd. 3. Term, Pro Rata Fee. Each License shall be issued
for a period of one year except that if the application is made
during the license year, a license may be issued for the
remainder of the year for a pro rata fee, with any unexpired
fraction of a month being counted as one month. Every license
shall expire on the last day of June.
Subd. 4. Refunds. No refund of any fee shall be made
except as authorized by statute.
Section 5. Granting of Licenses.
Subd. 1. Investigation. The Council shall investigate, or
cause to be investigated, preliminarily, all facts set out in any
application for an on -sale license or any application for
transfer of an existing on -sale license. If the Council deems it
- 5 -
in the public interest to have an investigation made on a
particular application for renewal of an on -sale license, it
shall so determine. In any case, if the Council determines that
a comprehensive background and financial investigation of the
applicant is necessary, it may conduct the investigation itself
or contract with another agency. No license shall be issued,
transferred, or renewed if the results show to the satisfaction
of the Council that issuance would not be in the public interest.
Subd. 2. Hearing. The City Council or its designee(s),
shall investigate all facts set out in the application and not
investigated in the preliminary background and financial
investigation conducted pursuant to Subdivision 1. Opportunity
shall be given to any person to be heard for or against the
granting of the license. After the investigation and hearing,
the Council shall in its discretion, grant or refuse the
application. No on -sale wine license or off -sale liquor license
shall become effective until it, together with the security
furnished by the applicant, has been approved by the Commissioner
of Public Safety.
Subd. 3. Investigation Fee. Along with the initial
application fee or application for transfer of an existing
"on -sale" license, the applicant shall be required to remit an
investigation fee of $500.00 if it is determined that the
investigation required by Minn. Stat. 340A.412 can be
accomplished within the State of Minnesota. If it is determined
that said investigation will have to be conducted outside of the
State, the investigation fee shall be the actual cost of such
investigation not to exceed $10,000.00. All investigations shall
be conducted by the City Council, the Wright County Sheriff's
Office, or other agency as designated by the Otsego City Council.
- 6 -
Subd. 4. Person and Premises License; Transfer. Each
license shall be issued only to the applicant and for the
premises described in the application. No license may be
transferred to another person, or place without Council approval.
Any transfer of stock of a corporate licensee is deemed a
transfer of the license, and a transfer of stock without prior
Council approval is grounds for revocation of the license.
Section 6. Persons Ineligible for License. No license shall
be granted to any person ineligible for such license under state
law. No more than one intoxicating liquor license shall be
directly or indirectly issued within the City to any one person.
Section 7. Place Ineligible for License.
Subd. 1. General Prohibition. No license shall be issued
for any place or any business ineligible for such a license under
state law.
Subd. 2. Delinquent Taxes and Charges. No license shall be
granted for operation on any premises on which taxes,
assessments, or other financial claims of the City are delinquent
and unpaid.
Subd. 3. Distance from School or Church. No license shall
be granted within 500 feet of any independent school district
building or within 500 feet of any church.
Section S. Conditions of License.
Subd. 1. In General. Every license is subject to the
conditions in the following subdivisions and all other provisions
- 7 -
of this Section and of any other applicable ordinance, state law
or regulation.
Subd. 2. Insurance. Compliance with financial
responsibility requirements of state law and of this ordinance is
a continuing condition of any license granted pursuant to this
ordinance.
Subd. 3. Licensee's Responsibility. Every licensee is
responsible for the conduct of his place of business and the
conditions of sobriety and order in it. The act of any employees
in the licensed premises authorized to sell intoxicating liquor
there is deemed the act of the licensee as well, and the licensee
shall be liable to all penalties provided by this section and the
law equally with the employee.
Subd. 4. Inspections. Every licensee shall allow any
peace officer, health officer, or properly designated officer or
employee of the City to enter, inspect, and search the premises
for the licensee during business hours without a warrant.
Subd. S. Display During Prohibited Hours. No intoxicating
beverage shall be displayed or exhibited upon the bar or tables
or booths, within the premises of an establishment licensed for
"on -Sale" of intoxicating liquor during hours when the sale of
liquor is prohibited.
Subd. 6. Federal Stamps. No licensee shall possess a
Federal wholesale liquor dealer's special tax stamp or a Federal
gambling stamp.
Subd. 7. Minors. No licensee shall allow any person under
18 years of age to sell or serve liquor. No licensee shall allow
any person under the age of 21 who has consumed intoxicating
liquor or non -intoxicating malt liquor to be in or on the
licensed premises whether such person has consumed such beverages
on the premises or any other place.
Section 9. Closing Hours.
Subd. 1. Customers. No person other than an employee of
the licensed establishment shall remain on the premises of any
licensed liquor establishment later than one-half hour after
sales are closed.
Subd. 2. Employees. Employees shall be off the premises by
one hour after sales are closed. Employees shall not re-enter
the premises until 6:00 o'clock a.m. the following day.
Subd. 3. Identification of Employees. The licensee shall
post or display a legible list of the full names of all current
employees. The list shall be displayed in the same location as
the liquor license.
Section 10. Restrictions on Purchase and Consumption.
Subd. 1. Unlicensed Places. No person shall make or
prepare liquor for consumption in any public place or place of
business unless it has a license to sell liquor "On -Sale" or a
permit from the Public Safety Commissioner under Minn. Stat.
340A.414, and no person shall consume liquor in any such place.
Subd. 2. Public Places. No person shall consume liquor on
a public street, public sidewalk or public parking lot. No
- 9 -
license holder shall allow the consumption of intoxicating liquor
by its patrons within any parking lot owned or operated by any
license holder.
Section 11. Suspension and Revocation.
Subd. 1. General. The Council shall either suspend for up
to sixty (60) days, or revoke the licensee's license or impose a
civil fine not to exceed $2,000.00, for each violation on a
finding that the license or permit holder has failed to comply
with an applicable statute, rule, or ordinance relating to
alcoholic beverages. Except in cases of failure of financial
responsibility, no suspension or revocation shall take effect
until the licensee has been afforded an opportunity for a hearing
pursuant to Minn. Stats. 14.57 to 14.69
The lapse of required dram shop insurance or bond, or
withdrawal of required deposit of cash or securities , shall
effect an immediate suspension of any license issued pursuant to
this ordinance without further action of the city council.
Notice of cancellation, lapse of a current liquor liability
policy, or bond, or withdrawal of deposited cash or securities
shall also constitute notice to the licensee of the impending
suspension of any license issued pursuant to this ordinance
without further action of the City Council. Notice of
cancellation, lapse of a current liquor liability policy, or
bond, or withdrawal of deposited cash or securities shall also
constitute notice to the licensee of the impending suspension of
the license. The holder of a license who has received notice of
lapse of required insurance, or bond, or withdrawal of a required
deposit, or of suspension or revocation of a license may request
- 10 -
a hearing thereon, and if such a request is made in writing to
the City Clerk, a hearing shall be granted within 10 days or such
longer period as may be requested. Any suspension under this
paragraph shall continue until the city council determines that
the financial responsibility of this ordinance has again been
met.
Subd. 2. Notice. Ten (10) days written notice of
suspension or revocation shall be given to the licensee. Said
notice shall contain the date, time and place of the hearing as
well as the nature of the charges against the licensee.
Section 12. Penalties .
Subd. 1. Gross Misdemeanors. The following violations of
this ordinance shall be gross misdemeanors:
(1) selling alcoholic beverages without a license;
(2) having a direct or indirect interest in more than one
off -sale license in the City;
(3) selling, giving, or furnishing alcoholic beverages to
an obviously intoxicated person;
(4) selling, bartering, furnishing, or giving alcoholic
beverages to a person under 21 years of age; or
(5) violating any other provision of Minn. Stat. 340A.702.
and upon conviction shall be punished pursuant to the
penalty provided by State statute for a gross misdemeanor, and as
later amended, plus the costs of prosecution in any case.
Subd. 2. Misdemeanors. Any violation of this ordinance or
Minn. Stat. 340A for which another penalty is not specified shall
be a misdemeanor and shall be punished pursuant to the penalty
provided by State statute for a misdemeanor, and as later
amended, plus the costs of prosecution in any case.
Section 13. Effective Date.
The ordinance becomes effective upon its passage and
publication, according to law.
Passed by the Otsego City Council this lith day of
March 19 91
Norman F. Freske, Mayor
ATTEST:
r'
J-¢rome Perrault, City Clerk
- 12 -
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
AN ORDINANCE LICENSING AND REGULATING THE SALE
CONSUMPTION OF INTOXICATING LIQUOR AND WINE,
AND PROVIDING A PENALTY FOR VIOLATION
The following official summary of this ordinance has been
approved by the Otsego City Council as clearly informing the
public of the intent and effect of the ordinance:
It is the intent and effect of the ordinance to adopt by
reference statues relating to the licensing and sale of
intoxicating liquor and wine within the city; to provide for
"on -sale" and "off -sale" liquor licenses, and "on -sale" wine
licenses, and suspension and revocation of such licenses for
violation of statues and ordinances; to prohibit sales without a
license; and to provide a penalty for violation.
A printed copy of the ordinance is available for inspection
by any person at the office of the City Clerk and at the Otsego
City Hall.
This su ary approved by the Otsego City Council this
day of 1991.
640:2� ef__r� f��r
No man F. Freske, Mayor
h =terry :J ti
J ome Perrctult, Ci y C erk
v .