CONSENT - Cathy Sorensen, City Clerk
Title
SECOND READING
AMEND ARTICLE II. - INTOXICATING LIQUOR AND 3.2 PERCENT MALT LIQUOR - SEC. 6-45. - INVESTIGATION OF APPLICANT FOR LICENSE
Background
With the taproom application likely being submitted soon from Invictus Brewing, staff is recommending the option to waive the background investigation for taprooms and brew pubs applicants. As part of the Wholesaler’s/Manufacturer’s Intoxicating Liquor License application process with Alcohol and Gambling Enforcement Division, brewers must undergo the same background investigation the City conducts for liquor license applications. Applicants cannot even apply for a taproom or brew pub license without first having been issued a brewer’s license by the State, which is contingent upon a successful background investigation. Therefore, staff is suggesting amending the ordinance to waive background investigations for licensed brewers if the applicant provides a copy of all background investigation materials from the State. Duplicate background investigations seem redundant and unnecessary and allowing for waiver of the process and corresponding fees would be positive for businesses. The proposed language still allows for a background investigation and fee to be required if determined necessary by the Police Chief after the applicant’s background results from the State have been reviewed.
In addition, staff is recommending some housekeeping amendments to this portion of the ordinance as results of preliminary or comprehensive background and financial investigations are no longer required to be sent to the commissioner of public safety.
First reading was held on May 19 with no comments.
Recommendation
Hold second reading and adopt the proposed ordinance.
Body
THE CITY OF BLAINE DOES ORDAIN: (Added portions are underscored and deleted portions are shown in brackets with overstrike.)
Sec. 6-45. - Investigation of applicant for license.
(a) Preliminary background and financial investigation. On an initial application for a license, on an application for transfer or modification of a license, and, in the discretion of the city, on an application for renewal of a license, the city shall conduct a preliminary background and financial investigation of the applicant or it may contract with the commissioner of public safety for the investigation. The applicant shall pay with the application an investigation fee as established by the city council which shall be in addition to any license fee. [The results of the preliminary investigation shall be sent to the commissioner of public safety if the application is for an on-sale intoxicating liquor license or an on-sale wine license.]
(b) Comprehensive background and financial investigation. If in the discretion of the city, the results of a preliminary investigation warrant, a comprehensive background and financial investigation may occur. The city may either conduct the investigation itself or contract with the commissioner of public safety for the investigation. If a comprehensive background and financial investigation is conducted, and if any part of the investigation occurs outside of the state, the fee for such comprehensive background and financial investigation shall not exceed $10,000.00, less any amount paid for the initial investigation. The unused balance of the fee shall be returned to the applicant whether or not the application is denied. The fee shall be paid in advance of any investigation and the amount actually expended on the investigation shall not be refundable in the event the application is denied. [The results of the comprehensive background and financial investigation shall be sent to the commissioner of public safety if the application is for an on-sale intoxicating liquor license or an on-sale wine license.]
(c) Background investigations for brewer/brew pub applications. The city, in its sole discretion, may waive a background and/or financial investigation pursuant to 6-45(a) and/or (b) if the applicant, as a State-licensed wholesaler/manufacturer of intoxicating liquor, provides all background investigation materials from the Department of Public Safety Alcohol and Gambling Enforcement Division of the State of Minnesota to the police chief or designee. If the city, in its sole discretion, requires any level of background and/or financial investigation, the applicant shall the investigation fee(s) outlined in Sec. 6-45(a) or (b).
(d) Applicant(s) must cooperate with any required investigation(s) otherwise the license(s) may be denied or revoked. Any false statement or material omission made by the applicant(s) during the course of any investigation(s) will be grounds for denying or revoking the license.
Sec. 6-46. - Hearing and issuance of license.
The city shall investigate all facts set out in the application and not investigated in the preliminary or comprehensive background and financial investigations, if required. Opportunity shall be given to any person to be heard for or against the granting of the license. After any required [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.
INTRODUCED AND READ in full the 19th day of May, 2016.
PASSED by the City Council of the City of Blaine this16th day of June, 2016.