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7.c Rustic Roots liquor licensePage 1 of 2 Staff Report Date of Meeting: August 18, 2020 To: City Council From: Brenda Eklund, City Clerk Re: Application for New On-Sale/Sunday On-Sale Intoxicating Liquor License Background: On July 29, 2020, an application for a new On-Sale/Sunday On-Sale Intoxicating Liquor License was received in the Clerk’s office. Andrea and Gregory Sandager are the business owners for Rustic Roots Winery, 20168 Scandia Trail North, proposed to open to the public on August 29, 2020. In accordance with City of Scandia Code of Ordinances, Chapter 110.25, Hearing and Issuance for new liquor license applications, the Council shall investigate all facts set out in the application and not investigated in the preliminary or comprehensive background and financial investigations. 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 sound discretion, grant or deny the application. No license shall become effective until the proof of financial security has been approved by the Commissioner of Public Safety. Issue: Should the City approve a new On-Sale/Sunday On-Sale Intoxicating Liquor License for Rustic Roots Winery? Proposal: A copy of the application is included with this report. Under state law, the Commissioner of Public Safety approves Farm Winery licenses that do not need local licensing approval, which Rustic Roots has been issued. However, this new business also proposes to sell craft beer in addition to the wine being manufactured on the premises which does require that the business be approved for an on-sale intoxicating liquor license. MN Statute 340A.315, Farm Winery License, Subd. 6 reads: On-sale licenses allowed. Nothing in this section or in any other section of law prevents a farm winery from obtaining a separate on-sale license and operating a business establishment that utilizes that license in conjunction with and within the physical facilities of the winery and its buildings. Page 2 of 2 The Washington County Sheriff’s Office conducted the required criminal and financial background investigation of the business owners and found nothing that would disqualify the applicants from obtaining or holding a new Minnesota liquor license should the City approve one. The required Certificate of Liquor Liability naming the City of Scandia as the certificate holder has been submitted along with proof of Workers Compensation coverage. The application appears to be in conformance with the requirements of the City’s Code of Ordinances Chapter 110: Alcohol. Options: Upon conclusion of the public hearing and Council deliberation, the Council may: 1) Approve a new On-Sale/Sunday On-Sale Intoxicating Liquor License for Rustic Roots Winery. 2) Deny a new On-Sale/Sunday On-Sale Intoxicating Liquor License for Rustic Roots Winery, with findings. 3) Table a decision for more information. Recommendation: Option 1.