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4. Staff Report-Liquor License Ordinance AmendmentSCANDIA Staff Repovt Date of Meeting: June 4, 2014 To: City Council From: Kristina Handt, Administrator Re: Liquor License Ordinance Amendment Background: The City adopted its liquor license ordinance in January 2007. Previously, as New Scandia Township liquor licenses were granted by Washington County. Under state statute, statutory cities of 2,500-5,000 population may issue not more than 5 on -sale licenses. Ordinance No. 93 limits the number of liquor licenses to those in place at the time of adoption. At the time there were three on -sale licenses-Meisters, Creamery and Prospects. Currently there are three on -sale licenses approved-Meisters, Creamery and Chikos. Pat Reicherts co-owner of the Big Marine Lake Store would like to apply for an on/off sale license. The only way he would even be able to apply would be for the Council to amend Ordinance No. 93 to allow the additional on -sale license. Issue: Should Ordinance No. 93 be amended to allow another on/off sale liquor license? Proposal Details: Reicherts will be at the meeting to tell you more about his plans to offer on sale alcohol sales at the Big Marine Store. Currently, the Big Marine Lake Liquor Store has only an off -sale license. Reicherts would like to convert their license from an off sale to an on sale /off sale license. They currently have a kitchen that they would serve food and beer/wine to patrons outside. This would consist of using the area behind the store and in front of the liquor store and mostly in the summer time. The liquor store inside would not change, but would maybe in the future be changed to inside seating with full bar and on sale/off sale. They do not have any plans drawn up, but are in the inquiring stage with Council. Reicherts questioned if the ordinance only limited the aggregate number of licenses regardless of type. The City Attorney gave an opinion that the ordinance limits each type of license to what was in place at the time of adoption. State statute limits only on -sale licenses. Off sale licenses are determined by the Council. Because of this distinction in state law, the City Attorney has said we have to treat each type of license individually rather than in the aggregate. Options: 1) Direct staff to prepare an amendment to Ord. No. 93 to allow 4 on -sale licenses (one more than currently allowed) 2) Direct staff to amend Ord. No. 93 so number of on -sale licenses is consistent with state statute. 3) Do not amend Ord. No. 93