Consent Agenda- Cathy Sorensen, City Clerk
Title
Title
Second Reading
Amendment to Chapter 6, Alcoholic Beverages, Article II. - Intoxicating Liquor and 3.2 Percent Malt Liquor, Sec. 6-33, Definitions. Restaurant
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Executive Summary
Council is asked to hold second reading and adopt an amendment to the definition of a restaurant in Chapter 6, Sec. 6-33, to match statute that would allow for different food options in conjunction with an on-sale liquor license. First reading was held on May 2 with no comments.
Background
Staff has been approached by a group who would like to open a self-serve tap wall location that would serve craft beer, wine, and possibly pre-mixed cocktails. Their business will utilize IpourIt, a technology that allows customers to self-pour alcohol once scanning of their government-issued ID is done for age verification. The technology will automatically limit self-pours to a predetermined amount after which the customer must check with a manager to be reactivated for more to ensure overserving/underage serving does not occur. While the tap wall will be a first in Blaine, this concept has been successful in other cities and, after review, staff is comfortable with the overall concept. Staff will review the applicant’s alcohol service policy once submitted to ensure sufficient controls are in place surrounding the self-serve mechanism.
Another different element being proposed by the applicant is to not include a restaurant or full kitchen onsite but, instead, serve already-prepared food items and partner with local restaurants to have customers order food for delivery. Below is the current definition of a restaurant in City Code:
Restaurant means an eating facility, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises, where full waitress/waiter table service is provided, where a customer orders food from printed menus and where the main food course is served and consumed while seated at a single location. To be a restaurant as defined by this term in this article, an establishment shall have a license from the state as required by Minn. Stat. § 157.16. With the exception of a brewer taproom license, all restaurants shall derive a significant portion of their gross sales revenue from food.
State Statute definition differs slightly from City Code:
340A.101 DEFINITIONS.
Subd. 25.Restaurant.
“Restaurant" is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority.
As statute only allows cities to issue on-sale liquor licenses to restaurants, in order to allow for this type of business model the restaurant definition could be amended to match statute by removing reference to full waitress/waiter table service and ordering food from printed menus as well as the reference to gross sales revenue coming from food:
Restaurant means an eating facility is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises, where full waitress/waiter table service is provided, where a customer orders food from printed menus and where the main food course is served and consumed while seated at a single location and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority. To be a restaurant as defined by this term in this article, an establishment shall have a license from the state as required by Minn. Stat. § 157.16. With the exception of a brewer taproom license, all restaurants shall derive a significant portion of their gross sales revenue from food.
Matching the definition from statute would still allow an applicant to meet the requirements of a restaurant needed for a liquor license but lessen the level of food and allow for pre-packaged items and delivery. City code currently requires that food service must be provided to customers everywhere on the premises where alcohol is present or served and that food service means a licensed restaurant that provides sandwiches, pizza, hamburgers, hot dogs, chicken wings, or other principal food items. Food items such as popcorn, peanuts, chips, pretzels, and other snack foods only would not be considered as meeting the requirements and proof of a food establishment license from Anoka County would be required as part of any liquor license application.
This concept was reviewed at a workshop where Council indicated overall support but asked staff to solicit feedback from current restaurants regarding the lesser level of food and consider any unintended consequences. Staff contacted Previn Solberg of Invictus who shared his support for this proposed amendment and is confident that any concerns that may arise from potential liquor license violations can be properly addressed through the current violations section of code.
Strategic Plan Relationship
This item relates to the Growth Management strategic priority in the 2020-2023 strategic plan by providing additional opportunities for new and existing businesses to thrive while ensuring safe practices are employed.
Board/Commission Review
N/A
Financial Impact
N/A
Public Outreach/Input
N/A
Staff Recommendation
Hold second reading and adopt an ordinance amending the definition of a restaurant.
Attachment List
Body
THE CITY OF BLAINE DOES ORDAIN: (Added portions are underscored and deleted portions are shown with overstrike.)
Restaurant means an eating facility is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises, where full waitress/waiter table service is provided, where a customer orders food from printed menus and where the main food course is served and consumed while seated at a single location and served at tables to the general public, and having a minimum seating capacity for guests as prescribed by the appropriate license issuing authority. To be a restaurant as defined by this term in this article, an establishment shall have a license from the state as required by Minn. Stat. § 157.16. With the exception of a brewer taproom license, all restaurants shall derive a significant portion of their gross sales revenue from food.
INTRODUCED AND READ in full the 2nd day of May, 2022.
PASSED by the City Council of the City of Blaine this 16th day of May, 2022.