Loading...
2016.06.07 Work Session Packet (1st) Posted: June 3, 2016 CRYSTAL CITY COUNCIL FIRST WORK SESSION AGENDA Tuesday, June 7, 2016 6:20 p.m. Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at ______ p.m. on Tuesday, June 7, 2016 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff ____ Libby ____ Norris ____ Parsons ____ Therres ____ Peak ____ Revering ____ Adams ____ Sutter ____ Dahl ____ Ray ____ Deshler ____ Gilchrist ____ Kolb ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Proposed ordinance amending City Code Section 640.13 pertaining to long grass* 2. Liquor License update *No materials are attached. Please see the staff report for Regular Meeting Agenda Item #8.6. III. Adjournment The work session adjourned at ______ p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Memorandum DATE: June 2, 2016 TO: Mayor and City Council FROM: Chrissy Serres, City Clerk Troy Gilchrist, City Attorney SUBJECT: Liquor License Renewal – Financial Responsibility A question has arisen regarding the requested renewal of a liquor license located on property owned by someone other than the liquor store owner. Specially, the question is whether the liquor store satisfies the financial responsibility requirements of the Code for reissuance of the liquor license when the property owner is delinquent on property taxes? The City Clerk has developed a full history of this matter, but the present situation is that the property owner is delinquent on the property taxes in the amount of approximately $30,400. Given the property owner’s delinquency, can the City renew the license for the liquor store owner under the Code? The City Clerk has been in touch with the property owner about the property tax issue starting near the end of 2014. The property owner has assured the City Clerk the property tax issue will be resolved, but to date the County continues to show the property taxes are delinquent. The liquor store owner has applied to renew the liquor license and indicates that he is current on all of his rent payments to the property owner. The same issue existed with respect to the tobacco license for the liquor store, but that license was issued based in part on the property owner’s assurances that the taxes would be paid in full. Section 1005.29 of the Code requires applicants for a liquor license to file satisfactory evidence of financial responsibility with the City Clerk prior to issuance of the license. "’Satisfactory evidence of financial responsibility’ shall be shown by a certification under oath that the property taxes, public utility bills, and all state and federal taxes or other governmental obligations or claims concerning the business entity applying for the license are current, and that no notice of delinquency or default has been issued . . . .” The same requirement applies to tobacco license under Section 1137.03, subd. 5 as well as to other licenses issued by the City. It is clear in this case that certifying the property taxes have been paid is not possible, but from the store owner’s perspective that failure in financial responsibility rests with the property owner and should not affect the store owner’s eligibility to be licensed. However, from the City’s perspective, the financial responsibility requirement is in the Code for a reason and continuing to license businesses located on tax delinquent properties could be seen as being contrary to that purpose. There is also the issue of whether artificial differences in ownership between a liquor store and the property could be created to undermine the purposes of the requirement (e.g., the same person owning the store and the property separately under different corporate names). It should also be pointed out that there is a personal component to the financial responsibility requirement in that it applies directly to the owner of the liquor store. There is nothing to suggest the liquor store owner is directly responsible for paying the property taxes, but the City has experienced issues regarding financial responsibility regarding the liquor store. Specifically, two checks issued to the City have been returned for insufficient funds. These checks were for the present liquor license application fee (which was later paid in cash) as well as the previous tobacco license fee. Staff is seeking guidance from the City Council on its interpretation of the financial responsibility requirement in the Code. Does the City Council consider the “business entity” required to show financial responsibility as including the property on which the liquor store is located, or is the focus instead on the liquor store and its owners? 1005.29. Financial responsibility; applicability. a) Prior to the issuance of a license the applicant must file with the city clerk satisfactory evidence of financial responsibility. "Satisfactory evidence of financial responsibility" shall be shown by a certification under oath that the property taxes, public utility bills, and all state and federal taxes or other governmental obligations or claims concerning the business entity applying for the license are current, and that no notice of delinquency or default has been issued, or if any of the financial obligations stated in this subsection are delinquent or in default, that any such delinquency or default is subject to a payment plan or other agreement approved by the applicable governmental entity. "Satisfactory evidence of financial responsibility" as required by this subsection shall in addition be shown by an individual applicant and all individual owners and/or shareholders of the business entity. Operation of a business licensed under this section without having on-going evidence on file with the city of the financial responsibility required by this subsection is grounds for revocation or suspension of the license.