05-07-03 WSITEM 3 -2 -
CITY COUNCIL WORKSHOP
WEDNESDAY
NIAY 7, 2003
4:30 PNI
CITY HALL
1. Mayor Fournier will call the Workshop to order:
Mayor Fournier called the Workshop to order at 4:39 PM.
Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Virginia
Wendel, Jerry Struthers and Dan Scharber.
Staff: Judy Hudson, City Clerk/Zoning Administrator; Andrew MacArthur, City
Attorney and David Wendorf, Assistant City Attorney.
2. Discussion of a Municipal Liquor Store
Both Mr. MacArthur and Mr. Wendorf explained the law for the City to notice its intent
to start a municipal liquor store. Mr. MacArthur said it is a complicated process to
follow since it hasn't been done in Minnesota for over 20 years. David Wendorf
explained how this would limit the number of on -sale liquor licenses the City could issue.
CM Heidner asked if the City could have a Municipal Liquor Store if the population goes
over 10,000. Mr. Wendorf replied no and also the population used is based on the latest
census.
Mayor Fournier asked what is the City's responsibility to current off -sale liquor licensees,
if the City goes Municipal Liquor as far as any compensation to them. Mr. Wendorf
explained originally the law required the City to buy them out and this was changed by
the Supreme Court and there is no obligation to buy them out. The City could buy their
inventory. CM Heidner asked if there are any rules regarding setbacks from one liquor
store to another. Mr. Wendorf replied he wasn't aware of anything.
Mayor Fournier asked for any public comments.
Bob Fields said that in the last census Otsego's population was approximately 6,000 and
he has estimated Otsego's current population at 12,000 and they could call for a census.
CM Scharber comments were that after seeing what the start up costs would be to start a
Municipal Liquor Store he feels the City wouldn't see a profit for 15 years. He also
commented that if Highway 101 is turned into a freeway, people would have to exit off
the freeway, and doesn't see them doing that for only liquor, unless there was another big
draw. Also, he doesn't see people going across 101 or residents from western Otsego
going to a store located on the east side of 101. If there would be issues of renewing on -
sale licenses, Otsego won't draw the big restaurants. He stated he would not support
Otsego giving notice of intent to start up a Municipal Liquor Store.
CM Heidner stated he agrees with CM Scharber's comments
CM Wendel stated the City is trying to attract commercial businesses in the City and why
would the City want to discourage them. She feels the City has their hands full with all
City Council Workshop of May 7, 2003. Page 2.
the growth with sewer and water.
Mayor Fournier explained there would be no formal action taken at this workshop but this
issue will be on the next City Council Agenda for May 12, 2003.
3. Any other Council Issues.
There were none.
4. Adjourn.
CM Scharber motioned to adjourn. Seconded by CM Wendel. All in favor. Motion
carried.
Workshop djourned a :25 PM.
ayor L ry Fournier
ATTEST: t�bkk
Ju y u o , City Clerk