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07.a Hearing on Big Marine Lake Liquor License violationStaff Report Date of Meeting: August 19, 2025 To: City Council From: Brenda Eklund, City Clerk Re: Hearing on Liquor License Violation at Big Marine Lake Liquor Store Background: •On December 28, 2023, Big Marine Lake Liquor Store failed an alcohol compliance check conducted by the Washington County Sheriff’s Office, when an employee completed a sale of alcohol to a person under the age of 21. •On June 24, 2025, the defendant appeared in court and entered a plea of guilty to the charge of providing alcohol to a person under the age of 21. The agreed upon dispositions was a fine of $390 including surcharge and 90 days in jail, with all 90 days suspended for one year on the condition to be law abiding and have no same or similar offenses. •Scandia’s Code of Ordinances, Chapter 110, Liquor Regulations, provides that the City Council hold a hearing on a violation of the ordinance or applicable statutes, to consider the violation and the proposed penalty, and hear any person who may wish to speak. On July 11, 2025, Big Marine Lake Liquor Store owner Patrick Reicherts was notified that the city would hold the hearing on August 19, 2025. •This is the second violation to occur at Big Marine Lake Liquor Store in a 3-year period. On June 18, 2021, the business failed an alcohol compliance check conducted by the Washington County Sheriff’s Office. The City Council held a hearing in November 2021 and imposed a first-time violation and $500 penalty on the business. •§ 110.31 of the Ordinance specifies that for a second violation within any three-year period the minimum suspension is at least three consecutive days in addition to any criminal or civil penalties which may be imposed. A minimum civil penalty of $1,000 must be imposed in addition to any suspension for a second violation unless the license is revoked. Recommendation: The City Council should hold the hearing, allowing representatives of Big Marine Lake Liquor Store and any other persons to speak. At the conclusion of the hearing, the Council should make findings regarding the violation and impose the appropriate penalties. A draft resolution has been prepared for the Council’s use. The minimum penalties have been included in the draft but may be altered by the Council. The Council may determine the dates on which any suspension will be served, or permit Mr. Reicherts to select 3 consecutive days during which the sale of alcohol will not be allowed. Attachments: 1) Notice of Hearing 2) Ordinance 110.31 Suspension and Penalties 3) Resolution No. 08-19-25-01 Imposing Suspension and Penalties on Big Marine Lake Liquor Store § 110.31 SUSPENSION AND REVOCATION. (A) The Council shall either suspend for a period not to exceed 60 days or revoke any liquor license upon finding that the licensee has failed to comply with any applicable statute, regulation, or provision of this chapter relating to liquor. Except in cases of lapse of proof of financial responsibility, no suspension or revocation shall take effect until the licensee has been afforded an opportunity for a hearing pursuant to the Administrative Procedures Act, M.S. §§ 14.57 to 14.7069, as it may be amended from time to time. The Council may act as the hearing body under that Act, or it may contract with the Office of Hearing Examiners for a hearing officer. (B) The following are the minimum periods of suspension or revocation which shall be imposed by the Council for violations of the provisions of this chapter or M.S. Ch. 340A, as it may be amended from time to time, or any rules promulgated under that chapter, as they may be amended from time to time. (1) For commission of a felony related to the licensed activity, sale of alcoholic beverages while the license is under suspension, sale of intoxicating liquor where the only license is for 3.2% malt liquor, or violation of § 110.04, the license shall be revoked. (2) The license shall be suspended by the Council after a finding under division (A) that the licensee has failed to comply with any applicable statute, rule, or provision of this chapter for at least the minimum periods as follows: (a) For the first violation within any three-year period, at least one day suspension in addition to any criminal or civil penalties which may be imposed; (b) For a second violation within any three-year period, at least three consecutive days suspension in addition to any criminal or civil penalties which may be imposed; (c) For the third violation within any three-year period, at least seven consecutive days suspension in addition to any criminal or civil penalties which may be imposed; and (d) For a fourth violation within any three-year period, the license shall be revoked. (3) The Council shall select the day or days during which the license will be suspended. (C) Lapse of required proof of financial responsibility shall effect an immediate suspension of any license issued pursuant to this chapter or state law without further action of the Council. Notice of cancellation or lapse of a current liquor liability policy 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 of suspension or revocation of a license may request a hearing thereon and, if a request is made in writing to the Clerk, a hearing before the Council shall be granted within ten days. Any suspension under this division (C) shall continue until the Council determines that the financial responsibility requirements of state law and this chapter have again been met. (D) The provisions of § 110.99 pertaining to administrative penalty may be imposed in addition to or in lieu of any suspension or revocation under this chapter. (Ord. 93, passed 1-2-2007) Penalty, see § 110.99 § 110.99 PENALTY. (A) Any person violating the provisions of this chapter or M.S. Ch. 340A, as it may be amended from time to time, or any rules promulgated under this chapter, as it may be amended from time to time, is guilty of a misdemeanor and upon conviction shall be punished as provided by law. (B) The Council shall impose a civil penalty of up to $2,000 for each violation of M.S. Ch. 340A, as it may be amended from time to time, and of this chapter. Conviction of a violation in a court of law is not required in order for the Council to impose the civil penalty. A hearing under the Administrative Procedures Act, M.S. §§ 14.57 to 14.69, as it may be amended from time to time, is not required before the penalty is imposed, but the Council shall hold a hearing on the proposed violation and the proposed penalty and hear any person who wishes to speak. Non-payment of the penalty is grounds for suspension or revocation of the license. The following is the minimum schedule of presumptive civil penalties which must be imposed in addition to any suspension unless the licenses is revoked: (1) For the first violation within any three-year period, $500; (2) For the second violation within any three-year period, $1,000; and (3) For the third and subsequent violations within any three-year period, $2,000. (C) The term VIOLATION as used in this section includes any and all violations of the provisions of this chapter, or of M.S. Ch. 340A, as it may be amended from time to time, or any rules promulgated under this chapter, as they may be amended from time to time. The number of violations shall be determined on the basis of the history of violations for the preceding three-year period. Revocation shall occur within 60 days following a violation for which revocation is imposed. (Ord. 93, passed 1-2-2007) RESOLUTION NO. 08-19-25-01 CITY OF SCANDIA, MINNESOTA RESOLUTION IMPOSING LICENSE SUSPENSION AND CIVIL PENALTIES ON BIG MARINE LAKE LIQUOR STORE FOR LIQUOR LICENSE VIOLATION WHEREAS, Big Marine Lake Liquor Store located at 19261 Manning Trail N. has been issued an On-Sale Intoxicating Liquor License by the City of Scandia and the State of Minnesota; and WHEREAS, On December 28, 2023 Big Marine Lake Liquor Store failed an alcohol compliance check conducted by the Washington County Sheriff’s Office, when alcohol was sold to a person under the age of 21; and WHEREAS, on June 24, 2025 the employee who made the sale pleaded guilty to a misdemeanor charge of providing alcohol to a person under the age of 21; and WHEREAS, on August 19, 2025 the City Council held a hearing, pursuant to Scandia’s Code of Ordinances, Chapter 110, Liquor Regulations for the City of Scandia, to consider the violation and proposed penalties and to hear any person who may wish to speak; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it hereby finds that a liquor license violation did occur at Big Marine Lake Liquor Store on December 28, 2023, namely the sale of alcohol to a person under the age of 21 (compliance check failure) in violation of State Statutes and City Ordinance, that being the second violation to occur in a three-year period at said establishment; AND BE IT FURTHER RESOLVED, that the penalties for this violation shall be as follows: 1. The license shall be suspended for a period of three (3) days, The dates must be provided to the City Administrator by August 26, 2025. 2. A civil penalty of $1,000.00 which shall be paid to the City of Scandia within 30 days. Adopted by the Scandia City Council this 19th day of August, 2025. ________________________________ Steve Kronmiller, Mayor ATTEST: ___________________________________ Kyle Morell, City Administrator