Legislation Details

File #: MO 20-64    Version: 1 Name: Impact of Prorating Liquor License Renewal Fees
Type: Motion Status: Passed
File created: 5/26/2020 In control: City Council
On agenda: 5/26/2020 Final action: 5/26/2020
Title: PROPOSED PRORATE FOR ON-SALE LIQUOR LICENSE RENEWALS
Sponsors: Catherine Sorensen

NEW BUSINESS - Cathy Sorensen, City Clerk

 

Title

PROPOSED PRORATE FOR ON-SALE LIQUOR LICENSE RENEWALS

 

Background

With the closure of restaurants on March 17 due to COVID-19, staff provided Council with budget impacts should Council direct staff to reduce license fees a prorated amount based on the period for which license holders were not allowed to exercise their license.  At previous workshops Council indicated support for a two-month prorated reduction of license renewal fees. With the Governor’s updated executive order limiting restaurants to outdoor seating only, staff reviewed further budget impacts and is recommending a 20% reduction of on-sale licenses. The reduction amounts to $40,000 and is allowed per the following Minnesota Statute: 

 

340A.408 RETAIL LICENSE FEES.

Subd. 5.Refunds.

A pro rata share of an annual license fee for a retail license to sell intoxicating or 3.2 percent malt liquor, either on-sale or off-sale, may be refunded to the licensee or to the licensee's estate if:

(1) the business ceases to operate because of destruction or damage;

(2) the licensee dies;

(3) the business ceases to be lawful for a reason other than a license revocation; or

(4) the licensee ceases to carry on the licensed business under the license.

 

License fees could be adjusted further if the closure order is renewed at a future date. License renewals will be on Council’s June 1 agenda for approval.

 

Recommendation

Staff is recommending Council approve a fee reduction equal to 20% for all on-sale liquor license renewals for the 2020-2021 license period.