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.