90-1294 �RIGtNAl,, Council File # �D"/�1�`f'
Green Sheet # d `�'
RESOLUTION
CITY OF SAINT PA MINNESOTA
Presented By �
Referred To Camiittee: Date
RESOLVED, that all of the licenses, including on sale intoxicating liquor, Sunday on sale
into�cicating liquor, off sale malt, and restaurant-B, issued for H. K. Inc. of St. Paul dba Michael's, at
1179 E. 7th Street, Saint Paul, axe hereby suspended for a period of six (6) days, commencing on
the Sunday following publication of this resolution; and be it
FURTHER RESOLVED, that the report of the AL.J dated May 25, 1990, with its Findings of
Fact and Conclusions of Law, Recommendation and the attached Memorandum, is expressly ratified
and adopted as the written findings and conclusions of the Council; provided, however, that the
Council.accepts the recommendation made by the ALJ that the penalty should be increased, for the
reasons expressed in his Memorandum.
This resolution is based on the record of proceedings before the Administrative Law Judge,
including the hearing on May 11, 1990, the briefs, documents and exhibits introduced therein, the
arguments and statements of counsel for the parties on July 19, 1990, and the deliberations of the
Council in open session. The Report of the ALJ is attached hereto and is expressly incorporated in
and made a part of this resolution.
A copy of this resolution, as adopted, shall be sent by first class mail to the Administrative
Law Judge, and to the counsel for the licenseholder.
------- ------- ------ ---------
Yeas Na s Absent Requested by Department of:
Dimond
Goswitz
Lon
Maccabee
Rettman
T une
Wi son BY:
__________________�___—=4°===—_________
Adopted by Council: Date ��JL � � l9gQ Form Approved by City Attorney
Adoption Certified by Council Secretary BY: '�i _9�
By: ���
Y�"\ Approved by Mayor for Submission to
Council
Approved by Mayor: Date j
�� G � 1990
BY• � C�.�C' r� By:
DUBUSNED ��� 1 1199Q
..�
�. Cax�cil File # �'"d9�
Green Sheet # /D l°'��
RESOLUTION �
CITY OF SAINT PAUL, MINNESOTA '�+
,.� r�
.� 1�:�
�
�
Presented By
Referred To � C ttee: Date
RESOLVED, that all of the licenses, includi on sale intoxicating liquor, Sunday on sale
into�cicating liquor, off sale malt, and restaurant- , issued for H. K. Inc. of St. Paul dba Michael's, at
1179 E. 7th Street, Saint Paul, are hereby sus nded for a period of six (6) days, commencing on
the second Sunday following publication of is resolution; and be it
FURTHER RESOLVED, that t report of the ALJ dated May 25, 1990, with its Findings of
Fact and Conclusions of Law, Reco endation and the attached Memorandwn, is expressly ratified
and adopted as the written findin and conclusions of the Council; provided, however, that the
Council accepts the recommend on made by the ALJ that the penalty should be increased, for the
reasons expressed in his Mem andum.
This resolution is b d on the record of proceedings before the Administrative Law Judge,
including the hearing on ay 11, 1990, the briefs, documents and exhibits introduced therein, the
arguments and stateme s of counsel for the parties on July 19, 1990, and the deliberations of the
Council in open sessi . The Report of the ALT is attached hereto and is expressly incorporated in
and made a part of is resolution.
A copy of is resolution, as adopted, shall be sent by first class mail to the Administrative
Law Judge, an to the counsel for the licenseholder.
----------------------------------------
--------------- ------- ------ ---------
Yeas Na s Absent Requested by Department of:
Dimon
Goswitz
lon
Macca e
Rettman
Wiuson BY°
Form Approved by City Attorney
Adopted by Council: Date
�
Adoption Certified by Council Secretary By. J�_ � �
BY� Approved by Mayor for Submission to
Council
Approved by Mayor: Date
By:
By:
- � iVC��"' T �l `�� ' ���1
- � • �� C�� � l� 1 _
DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� _10 6 4 6
c,«�;� GREEN SHEET
CO PERSO &PHONE �DEPARTMENT DIRECTQR NITIAL/DATE CITY COUNCIL �NITIAUDATE
��� ������� �1� A8S��N �CITYATTORNEY CITYCLERK
MUST 8E ON COUNCIL AGENDA BY(DATE) NUMBER FOR ❑BUDGET DIRECTOR FIN.8 MOT.SERVICES DIR.
ROUTING
CONSENT AGENDA 7/31/90 ORDEfi �MAYOR(OR ASSISTANn �
TOTAL#OF SIGNATURE PA(iES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
License - Adverse Action
Resolution represents action taken by the Council during public hearing on July 19, 1990.
MUST be on COUNCIL AGENDA OF 7/31/90.
RECOMMENDATIONS:Approve(A)or Rsject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER TFIE FOLLOWIN<i GUESTIONB:
_PLANNING COMMI3310N _ CIVIL 3ERVICE COMMISSION 1• Has this person/firm ever wOrked under a contract for this department?
_CIB COMMITfEE _ YES NO
2. Has this person/firm ever been a city employeeT
_STAFF — YES NO
_DI8TRIC7 COUR7 _ 3. Does this personlfirm possess a skill not normally possessed by any current city employee4
SUPPORTS WHICH COUNCIL OBJECTIVE7 YES NO
Explaln all yss enswen on separate sheet and attach to groe�sheet
INITIATINQ PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): ,
LICENSE ADVERSE ACTION
ADVANTAf3E3 IF APPROVED:
DISADVANTAGES IFAPPROVED:
DISADVANTACiE3 IF NOT APPROVED:
TOTAL AMOUNT OF TRANSACTION s � COST/REVENUE BUDGETEO(CIRCLE ONE) YES NO
FUNDINO SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) l'Q JOC : ��S ^� •
IV (.� 1 J
. � .
NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL
MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225).
ROUTING ORDER:
Betow are correct routings for the five most frequent types of documents:
CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION(Amend Budgets/Accept. Grants)
1. Outside Agency 1. Department Director
2. Department Director 2. City Attorney
3. Ciry Attomey 3. Budget Director
4. Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. City Council
6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
7. finance Accounting -
ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others,and Ordinances)
1. Activity Manager 1. Department Director
2. Department Accountant 2. Ciry Attorney
3. Department Director 3. Mayor Assistant
4. Budget Director 4. Ciry Council
5. City Clerk
6. Chief Accountant, Finance and Management Services
ADMINISTRATIVE ORDERS(all others)
1. Department Director
2. City Attorney
3. Finance and Management Services Director
4. City Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flag
each of these pages.
ACTION REQUESTED
Describe what the projecUrequest seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
issue. Do not write complete sentences. Begin each item in your list with
a verb.
RECOMMENDATIONS
Complete if the issue in question has been presented before any body, public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
Indicate which Council objective(s)your projecUrequest supports by listing
the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET,SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
PERSONAL SERVICE CONTRACTS:
This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rules.
INITIATING PROBLEM, ISSUE, OPPORTUNITY
Explain the situation or conditions that created a need for your project
or request
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by law/
charter or whether there are specific ways in which the City of Saint Paul
and its citizens will benefit from this projecUaction.
DISADVANTAGES IF APPROVED
What negative effects or major changes to existing or past processes might
this projecUrequest produce if it is passed (e.g.,traffic delays, noise,
tax increases or assessments)?To Whom?When?For how long?
DISADVANTAGES IF NOT APPROVED
What wilt be the negative consequences if the promised action is not
approved?tnability to deliver service?Continued high traffic,noise,
accident rate?Loss of revenue?
FINANCIAL IMPACT
Aithough you must tailor the information you provide here to the issue you
are addressing, in general you must answer two questions: How much is it
going to cost?Who is going to pay?
„� � . �/
3-2101-4623-6 � `'y���°Z�/
STATE OF MINNESOTA ������E��,
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE ST. PAUL CITY COUNCIL 1VIAY 3 0 1990
���� ��”~� �.�������`
In the Matter of the License
of H.K. , Inc. d/b/a Michael ' s . FINDINGS OF FACT,
1179 East Seventh Street, CONCLUSIONS AND
St. Paul , Minnesota 55106 RECOMMENDATION
The above-entitled matter came on for hearing before Administrative Law
Judge Allen E. Giles on May 11 , 1990 in Room 1503A, City Hall Annex, 25 West
4th Street, St. Paul , Minnesota 55102.
Appearing on behalf of the St. Paul City License Inspector (hereinafter
also referred to as "City Inspector"> was Philip B. Byrne, Assistant City
a±±�Y�,py, ri±y of St. Paul ; 647 City Hall . St. Paul , Minnesota 55102.
Appearing on behalf of the Licensee was Dennis Johnson, Attorney at Law,
Chestnut & Brooks , 3700 Piper Jaffray Tower, 222 South 9th Street, Minneapolis,
Minnesota 55402.
The record closed upon the conclusion of the hearing on May 11 , 1990.
This Report is a recommendation only, not a final decision. The St. Paul
City Council will make the final decision after a review of the record. The
St. Paul City Council may adopt, reject or modify the Findings of Fact,
Conclusions and Recommendation contained herein. Pursuant to Minn. Stat.
§ 14.61 , the final decision of the City Council shall not be made until this
Report has been made available to the parties to the proceeding for at least
ten days. An opportunity must be afforded to each party adversely affected by
this report to file exceptions and present argument to the City Council . The
parties should contact the St. Paul City Council , 386 City Hall , St. Paul ,
Minnesota 55102 to ascertain the procedure for filing exceptions or presenting
argument.
STATEMENT OF ISSUE
Whether the Licensee permitted gambling on the licensed premises by
allowing persons renting a portion of ihe establishment to conduct a variety of
different types of gambling for cash in violation of St. Paul Legislative Code
section 409.08(6> and Minn. Stat. § 340A.410, subd. 5 (Supp. 1989) .
Based upon all of. the proceedings herein the Administrative Law Judge
makes the following:
FINDINGS OF FACT
1 . H.K. , Inc. d/b/a Michael ' s lounge (hereinafter referred to as
"Michael ' s lounge"> is located at 1179 East 7th Street. St. Paul , Minnesota.
Michael ' s lounge holds several liquor license; issued by the City of St.
Paul-entertainment, off-sale malt, restau�-ant, on-sale liquor and Sunday liquor.
� � , . �'90-/���
2. The manager and equity owner of Michael ' s lounge is Michael James
Kalis, 2638 Burke Street, North St. Paul , Minnesota 55109. Mr. Kalis has been
in the lounge business for approximately 15 years during which time he has been
an owner of four different bars. He will have owned Michael ' s lounge for six
years in July of this year. He has not been sub�ect to any previous
disciplinary proceeding.
3. Upstairs from the main bar area at Michael ' s lounge there is a hall
that is rented out from time to time. In December of 1989, Mr. Kalis was
contacted by a Mr. Donald Bowman regardinq rental of the hall for a softball
"smoker" for two softball teams-the "Sports Hero' s" and the "Sultans" . The
event was scheduled to occur on January 19, 1990 in the evening. Mr. Kalis
rented the hall to Mr. Bowman' s group for , $200.00 for rental space and $45.00
per keg of beer.
4. Sometime before the softball "smoker" was scheduled to be held
admission tickets �ere printed announcing the event. The admission tickets had
the following text printed on them:
SPORTS HERO'S SOFTBALL LAS VEGAS NIGHT
Friday,. Jan. 19th 7:00 p.m. - midnight
MICHAEL'S LOUNGE 1179 E. 7th, St. Paul
(Upstairs Hall >
FREE BEER, GAMES, DOOR PRIZES,
DRAWING FOR COMPLETE STEREO SYSTEM
(Winner need not be present>
Donation Only $1 .00
5. The "Las Vegas Night" at Michael ' s lounge on January 19, 1990 was
organized and sponsored by the softball teams as a part of an effort to raise
money needed by the teams for travel , clothes, or equipment.
6. The event was widely publicized by softball team members who sold
admission tickets in advance of the event.
7. On January 19, 1990, acting on information received from an
informant, Gregory S. Price and Wayne T. Lang, Special Investigators, Minnesota
Department of Revenue (hereinafter "Special Investigators"> entered the main
bar area of Michael ' s lounge at approximately 8:00 p.m. They had been informed
tFat a "Las ���y'd5 (v�g�t" irvo�virg illeqai gar�biing was scheduled to accur at
the upstairs hall at Michael ' s lounge.
8. The special investigators walked through the main bar area at
Michael ' s lounge through an exit into a vestibule area. The vestibule area
contained a stairway and an exit outside.
9. The stairway led to the upstairs hall at Michael ' s lounge. At the
top of the stairs the Special Investigators Price and Lang were required to pay
$2.00 for admission to the Las Vegas Night.
10. At approximately 8:00 p.m. appr�ximately 75 people were present in
the upstairs hall . Gambling was being conducted at 3 "black-jack" tables > one
"seven card stud" poker table and a "beat the house" dice table. Each table
had a card dealer (or a dice handler at the dice table) and a money collector
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. � �D �/��'�
or holder. Signs were posted on the wall near each of the gambl9ng tables
identifying the rules of the games and play. At each of the tables bets of
$1 .00 or $2.00 were accepted and pay outs were made for winning card hands or
dice rolls. At least on one occasion a megaphone was used to announce that
additional players were needed at one of the card tables.
11 . Special Investigators Price and Lang left Michael ' s lounge at
approximately 9:45 p.m. , went to the St. Paul Police Department and met with
vice unit police officers. At approximately 11 :15 the Special Investigators
returned to Michael ' s lounge accompanied by plain clothes police officers.
12. Upon returning Special Investigator Price observed that the number of
persons present in the upstairs hall had grown to between 100 - 125 people and
that there were several additional tables of black-�ack and poker.
13. At approximately 12:35 a.m. uniformed St. Paul Police Officers
entered the upstairs hall and announced that they were closing the illegal
gambling operation. The police officers confiscated various paraphernalia used
in the illegal gambling operatlon including playing cards, dice, tipboards,
signs which explain the rules of play and over $1 ,000.00 in cash.
14. Pat Flaherty who is employed as a part-time bartender at Michael ' s
lounge met with the organizers of the "Las Vegas Night" at approximately
7:00 p.m. and at that time opened the upstairs hall . Mr. Flaherty also sold
mixed drinks and dispensed beer from the bar 9n the upstairs hall .
15. Dice and a dice box are kept and stored at Michael ' s lounge.
16. Mr. Flaherty or some other employee aided the organizers of the "Las
Vegas Night" by making available the dice box stored at Michael ' s lounge.
17. Mr. Flaherty or some other employee at Michael ' s lounge informed the
organizers that they could use cash instead of poker chips in connection with
the illegal gambling.
18. In addition to the event on January 19, 1990, numerous other "Las
Vegas Night" type gambling activities have previously been held at Michael ' s
lounge. Michael Kalis knew about and permitted these illegal activities.
19. On April 6, 1990, a Notice of Hearing was issued by the City of St.
Paul , Office of the City Attorney to determine whether or not the Licensee' s
liquor licenses should be suspended, revoked or a fine imposed based upon the
following alleged violations:
On or about January 19, 1990, you permitted gambling on
the licensed premises, allowing persons renting a portion
of the establishment to conduct a variety of different
types of gambling for cash, activities which were known
to you and to employees of the lounge.
20. The Notice of Hearing was served upon the Licensee by first class
mail on April 6, 1990. City Ex. l .
Based upon the foregoing Findings of Fact the Administrative Law Judge
makes the following:
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CON�LUSIONS
1 . St. Paul Legislative Code section 310.06 provides in relevant part as
follows:
(a) The council is authorized to take adverse action, as
defined in section 310.01 above, against any license or
permlt, licensee or appllcant for a license as provided
in and by these chapters. Such actions shall be
initiated and carried out in accordance with the
procedures outlined in section 310.05.
(b> Such adverse action may be based on one or more of
the following reasons, which are in addition to any other
reasons specifically provided by law or in these chapters:
(6>(i > The licensee or applicant (or any person whose
conduct may by law be imputed to the licensee or
applicant) has violated, or performed any act which is a
violation of, any of the provisions of these chapters or
of any statute, ordinance or regulation reasonably
related to the licensed activity, regardless of whether
criminal charges have or have not been brought in
connection therewith.
2. Minn. Stat. § 340A.415 provides in pertinent part:
The authority issuing or approving any retail license or
permit under this chapter shall either suspend for up to
60 days or revoke the license or permit or impose a civil
fine not to exceed $2,000 for each violation on a finding
that the license or perm9t holder has failed to comply
with an applicable statute, rule, or ordinance relating
to alcoholic beverages. No suspension or revocation
takes effect until the license or permit holder has been
afforded an opportunity for a hearing under sections -
14.57 to 14.69 of the Administrative Procedure Act.
3. Section 409.08 (6> of the St. Paul Legislative Code provides in part
as follows:
No licensee shall keep, possess or operate, or permit the
keeping, possession or operation of, on any licensed
premises or in any room ad�oining the licensed premises
any slot machine, dice or any gambling device or
apparatus, nor permit any gambling therein (whether or
not licensed by the state) , nor permit the licensed
premises or any room in the same or in any adjoining
building directly or indirectly under his control to be
used as a resort for prostitutes or other disorderly
persons, except that pull-tabs and tip-boards may be sold
on licensed premises when such activity is licensed by
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� � , � (�qo-����
the state pursuant to Minnesota Statutes, Chapter 349,
and conducted pursuant to regulations contained in this
Legislative Code.
4. Minn. Stat. § 340A.410, subd. 5 (Supp. 1989) provides as follows:
No retail establishment licensed to sell alcoholic
beverages may keep, possess, or operate, or permit the
keeping, possession, or operation on the licensed
premises of dice or any gambling device as defined in
section 349.30, or permit gambling therein except as
provided in this subdivision.
5. The St. Paul City Council and the Administrative Law Judge have
jurisdiction in this matter pursuant to Minn. Stat. §§ 14.50 and 340A.415.
6. The Licensee received timely and proper notice of the hearing. The
City has c�mplied with all orocedural and substantive requirements of law and
rule.
7. As a holder of liquor licenses, H.K. Inc. d/b/a Michael ' s must comply
with the applicable laws , rules and regulations relating to sale of
intoxicating liquors.
8. Licensee' s employees knew that illegal gambling was occurring on the
licensed premises on January 19; their knowledge of illegal gambling is imputed
to the Licensee pursuant to sections 310.17 and 409. 14 of the St. Paul
Legislative Code. Mr. Michael Kalis knew about the illegal gambling of his own
accord, independent of the vicarious knowledge imposed by these sectlons. `
9. The City Inspector has the burden of proving the alleqed violations
contained in the Notice of Hearing by a preponderance of the evidence. Minn.
Rules pt. 1400.7300, subp. 5 (1989) In Re the A�plication of City of White Bear
Lake , 311 Minn. 146, 247 N.W.2d 901 ; cf. , In Re Kaldahl , 418 N.W.2d 532, 535
(Minn. App. 1988> .
10. The City Inspector has proved by a preponderance of the evidence that
Licensee permitted gambling on the licensed premises on January 19, 1990 and on
previous occasions in violation of St. Paul Legislative Code section 409.08(6)
and Minn. Stat. § 340A.410, subd. 5 (Supp. 1989) .
11 . The City Inspector has proved by a preponderance of evidence that the
Licensee knew or should have known that illegal gambling occurred on January
19, 1990 and on previous occasions. �
,'
12. The City Inspector has proved by a preponderance of evidence that the
Licensee stored and kept a dice box and dice in violation of sectlon 409.08(6>
of the St. Paul Legislative Code and Minn. Stat. § 340A.410, subd. 5 (Supp.
1989> .
12. The above conclusions are arrived at for the reasons set forth in the
Memorandum which follows and which is in�^rpnrated into these Conclusions .
Based upon the foregoing Conclusions, the Administrative Law Judge makes
the following:
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RECOMMENDATION
IT IS RESPECTFULLY RECOMMENDED that the St. Paul City Council suspend the
license of Michael ' s lounge, or in the alternative impose a civil penalty for
the violations, and due to the aggravating circumstances the suspension or
penalty should be in excess of that presumed to be appropriate for the
violations.
� 1990.
Dated: May �, .,
:�� ��
, .
, ALLEN E. GILES
Administrative Law Judge
NOT�CE
Pursuant to Minn. Stat. § 14.62, subd. 1 the St. Paul City Council is
required to serve its final decision upon each party and the Administrative Law
Judge by first class mail .
Reported: Taped (tape nos. 8838, 8839 and 8845)
MEMORANDUM
This is a proceeding under the Minnesota Administrative Procedure
Act-Minn. Stat. ch. 14 and sections 310.05 and 310.06 of the St. Paul
Legislative Code to determine whether adverse act9on should be taken against a
license for alleged violations of applicable license law. The City Inspector
asserts that the Licensee knew of and permitted the illegal gambling for cash
by persons renting the upstairs hall at Michael ' s lounge in violation of Minn.
Stat. § 340A.410, subd. 5 (Supp. 1989> and St. Paul Legislative Code section
409.08(6) . The Licensee denies that he permitted gambling to take place on the
licensed premises on January 19, 1990 and that as soon as he became aware of
the 111ega1 activity he intended to bring it to a halt.
The evidence that illegal gambling took place on January 19, 1990 at
Michael ' s lounge is overwhelming and uncontroverted. The Licensee however,
claims that he and none of his employees were aware of the gambling activity.
The Administrative Law Judge has carefully considered of the testimony given by
the witnesses including Mr. Michael Kalis and Mr. Pat Flaherty. The
Administrative Law Judge believes that the testimony of Mr. Kalis and
Mr. Flaherty lacks credibility. Based upon this record the Administrative Law
Judge believes that Mr. Kalis knew and permitted illegal gambling to take place
at Michael ' s lounge on January 19 and on previous occasions .
Mr. Kalis' s ctaim that he has acted in accordance with applicable
regulatory laws and his denials of wrong doing either by error or omission
suggest to the Administrative Law Judge that Mr. Kalis has not acted and is not
acting responsibly and reasonably as a license holder subject to the regulatory
supervision and oversight of the St. Paul City Council . A reasonable and
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. � . . . � �o-ia�y
responsible license holder in this circumstance would have seriously addressed
these claims, demonstrating how these activities would never occur 1n the
future. Mr. Kalis' s testimony that he was unaware that gambling was occurring °'
at Michael ' s place presents a scenarlo that is so unbellevable that it calls
into question his willingness to act as a responslble 1lcense holder sub�ect to
regulatory supervision. The failure to seriously examine the violations
alleged in this proceeding constitutes an aggravating circumstance �ustifying a
suspension or financial penalty in excess in..that presumed appropriate under
the regulatory laws.
Mr Kalis Knew or Should Have Known of the Illegal Gambling Activitv On
January 19. 1990.
Mr. Pat Flaherty the upstairs bartender opened the area for the organizers
at approximately 7:00 p.m. at which time the organizers began to set up for the
Las Vegas Night. Mr. Flaherty claims that he did not realize gambling was
occurring until 9:00 p.m. However, the Administrative Law Judge believes that
Mr. Flaherty knew that gam�? iny was taking �lace that ever.ing from th� tir�e
that the organizers began to set up for the Las Vegas Night activities.
Mr. Flaherty or some other employee had to direct the organizers to the
location of the dice box that was stored at Michael ' s lounge. Mr. Flaherty or
some other employee granted permission to the organizers to put posters on the
wall explaining the rules of play. Mr. Flaherty or some other employee
informed the organizers that cash instead of chips could be used in placing
bets. Mr. Flaherty or some other employee did nat object to the use of a
megaphone to announce that additional players were needed at one of the card
tables .
This activity was so brazenly undertaken (posting gamblinq rules on the
walls, use of cash for bets, and the use of a megaphone> that it is unlikely
that these activities were undertaken without Mr. Kalis's approval . Moreover,
if there had not been previous approval by Mr. Kalis it is difficult to believe
that employees would have allowed these activities to continue.
This event was widely publicized. Admission tickets were printed in
advance of the event. Over 100 people attended. Mr. Kalis testified that he
knew gambling sometimes occurred at softball smokers. Given this awareness and
knowledge, and consistent with his duty as a regulated license holder, he had
an affirmative obligation to inquire about the nature of the activities that
would take place that evening. His failure to do so is another example of his
unwillingness to compl_y w�th reg��latory autharity und ano�he� basis fcr
increasing the penalties or suspension in this case.
Gamblinq Occurred on the Premises Prior to January 19.
Lieutenant Olson testified that Mr. Flaherty told him that there had been
approximately 40 previous such softball smokers at Michael ' s lounge.
Mr. Flaherty denies that he ever said that to Lt. Olson. Special Investigator
Price overheard an interview of Mr. Kalis by �t. Olson in which Mr. Kalis
stated that there had been approximately 30 previous such softball smokers .
Mr. Kalis denies that he made such a statement to Lt. Olson. The
Administrative Law Judge believes that the te;timony of Mr. Kalis and
Mr. Flaherty lacks credibility on this is;ue. Based upon the entire record of
this proceeding, including the advanced printing of admission tickets , the
—7—
.. r . �yo_,���
brazen operation of illegal gambling on January 19, 1990, the storage of
gambling materials at the bar and crediting the testimony of Lt. Olson and
Special Investigator Price, the Administrative Law Judge believes that gambling
had occurred on the premises on numerous occasions prior to January 19, 1990.
A.E.G.
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��.�:o,
�� � CITY OF SAINT PAUL
a � -
; „�;;;��; ; OFFICE OF THE CITY ATTORi�` EY
♦ �a
•
'��� JANE A. MC PEAK, CITY ATTORNEY
RECEIVEn 647 City Hall,Saint Paul,Minnesota 55102
6 - 98-5121
JAMES SCHEIBEL ����0 F 612-29s- 19 __
MAYOR ��
June 5, 1990 ���'�LEkn �..-�
Mr. Dennis Johnson
Attorney At Law NOTICE OF COUNCIL HEARING
Chestnut & Brooks
3700 Piper Jaffray Tower
222 South 9th Street
Minneapolis, MN 55402
RE: City of St. Paul vs. H. K. Inc. d/b/a Michaels, 1179 E. 7th
Street.
Dear Mr. Johnson:
Please take notice that a hearing on the report of the
Administrative Law Judge concerning the above-mentioned
establishment has been scheduled for 9: 00 o'clock a.m. , July 19,
1990 in the City Council Chambers, Third FLoor, Saint Paul City
Hall and Ramsey County Courthouse.
You have the opportunity to file exceptions to the report with the
City CLerk at any time during normal business hours. You may also
present oral or written argument to the Council at the ?Iearing.
No new evidence will be received or testimony taken at this
hearing. The Council will base its decision on the record of the
proceedings before the Administrative Law Judge and on the
arguments made and exception filed, but may depart from the
recommendations of such Judge as permitted by law in the exercise
of its judgment and discretion.
Very Truly Yours,
PHILIP B. BYRNE
Assistant City Attorney
cc: Robert Kessler
Acting License Inspector
Lt. Nancy DiPerna
Vice Unit
Albert Olson
City Clerk
i
� 4d�/�`'�
.
' 3-? 1�1-4G23-G
STATE OF MINNESOTA)
)ss .
COUNTY OF HENNEPIN>
AFFIDAVIT OF SERVICE BY U.S. MAIL
Paige L. Purcell , being first duly Sworn, hereby deposes and says that on
, ..�
the `�t�lday of � 11l , 1990, at the City of Minneapolis , county and
state aforementioned, she served the attached rT'`��I���'`�' nr r:��A',
�.n,_,,,T t�C'J'1:;C� ^•,,-� nT'/�1..,.I�;`.;i.",TT_�.';
l l
by depositing in the United States mail at said City of Minneapolis , a true
and correct copy thereof, properly enveloped, with first class postage prepaid,
and addressed to the following individual/individuals .
^.1_'�crt ?'>. '�lson
f��t. P���.il �'ity Council �
3^6 rity "a1i
`�t . ���111 � 'f.} ,i.,� �u
T"11� l� 7� . ;��'TIl@
-�SS LSt�lIit: �1tV :�ttOiI1CV
:'ity of St . P���zl
�,�l7 Citv ;iall
`�t. ?'�itii , •,r• �5102
'�;ennis Jo;zii_,o�:�
?ttornev at La��
Citest_z��� �; Proo}:<?s
37�� Piper .7,�ffray To;aer ,
�22 Sout'� 'Jt�l `�treet �
"��ls , "i'v 7540?
Subscribed and sworn to before me
this ?�r?� day of *!��� _ , 1990.
d�� --� �
Notary Public
LA VON REGAN
NOTARY FUBL�MINNESOTA
`���i HENhEPIN COUNTY
IlY COMMISSION EXPIRE8 5304
� _ -� C�t� �uG,i�
5-c�-90
- �� -����
MEMORANDUM
ON : _7am_�ary 19 , 1990
BY: Gre�orv S . Price, Speci�l Investi��t�r, 1?Ppt . ni Re��en�ie
RE: M1 CL1�?1 `S Lnt�n�e
1179 East 7th �treer
St . Paul , MN
At apnroximatelV 203o hn�Zrs on rhis d�te; Department ot RP�T?Tlll�
��7PC�1�.1 InvPstisc"i'r02�$ �regory S . PT'1�P 2.I]Q W�VTlP L�nc�,r PT1tPI'Pf`( t t"_P
Iar�P h�ll which is lnc-ated on the 2nd flo�r of the s��hje�t t�ar. , �_n_
nrdez' rn c�asn enr_ry tci this hall Pri�e �ne� Lancr were rec:�t_�irer_': �r_:
nt�rr_.]'?aSr� �c�m].SS1OI1 tickets from a� ticket seller at the d�o,- . ��e
stilbs of tI1CQSP t-ir.kr�ts were c�epn�itat� int�? � box_ t=or � ri��a.w? �� ,
These tlGkPtS rl�t�, t-�1P t'Qllf?W1I1�T 'r'PXt �?rinred OIl t'r1P111 ;
SpC�RTS HEft4 ' S SOFTBALL LAS VErAS I�IGHT
Fri��v, ,7an. 19rh 7??,m. - mic�nig�?t_
h!ICF±A.EI� ' S L•OCjiYGE 1179 _F. . Zt�r St . P�1�7.
(r7��1=��?'� Fi:�.l l 1
FFZEE R��:R, GA�'!ES, DOOR PRIZE� .
L�RAWING FnR c;pMP�F7'F STEREO �YST�M
{win_ner nPee� nnt he nrp�ent 1
DoZ�atin?1 CZnIy $1 . C?p
PI'2C? ari� Lan�r �hserved tn�t thQrP WPTp �?�?�?�'C?Xlfi�t?1v 1 5 ���n���
in r_re nall , and th�r_ �amhlinn was b��.ng conducr_�� ar �:nr�P
hl�ck-�ar_ir (21i tabl?s; nne seven r-arc� Gtud pok?r table. �nd � "heat-
the ho,_isP" cficP table. Sic�ns were �?�sr_?d nn �?a11s near ea�h Q1_ �hPSP
t�t�Ies which iclentiriec� rhe gam�s in play; anci whir_:h Si?E'C1�1P� r_:���
rules of th� g�mes in g1ay. A male 17�?'tendPr was enr�ac�er� 3.n servi��r
�?p¢I' �12� ��rc�i'2C��.1C c_�I'1.I1kS .
Fach tahle haci a carc� �Paler Inrs ar rhe "heat thP ho,7.�e" �-�h�e ;
� dirP Lnan1 and a monev �n1�.F?r-tnr c�r holder , M�ny ofi rhPse men wPre
wearincs ,�,'acKets c�r shirts whi�n h�c� �h� ghrasP; "5�'ORTS HE�?n ` S" ;
�rritr_en nn them. The dealers anc� thP "money men" appearec� tn ,_���
t,_irns nf �rarqinc�r r�urar_ion _a_t the ���r�n17_G tables; th?y wPr_e tilF'Tl
TP��a.C:P(�. r1V nrt�ers . Price and Tic1L1�J c��Ch. j?�rt_].c:lj?c'�.t_aC1 1.71 C_�72Tt;;l_I. ?c[T aT
� T11J_LR�e_T' (lf 't'�'1F?tiP 't�hlP_.S W�1PY'P �f?1'S Qf� � Qt1E1 nr t4yQ �lZ.l_.l�Y'ti C':�r;`1 Wr-r•,-
a.C'CP��F?C'� tT_��1TIl them, �anci W}2QT'P_. �t��'OtrS Lr�PTP T(1�.�.P-' tQr W1T117.1Y1G� C;.?3'�:
hands �r �ice rc�Ils .
,
Price observe� a man wh'o was lat?r ICJPj'Z�.lr1P(� a.s pnNALn �pWMAN a�
�OWMAN served a� a dealer tor blackjack at QI1P _Ot ��1P_$P T?ih12S .
�nW�piTJ WaS .l�t'P_.T' Ob�ervPrli �S hP 7ZSP�. � mac�r:��iinnE? i_Q �g�1T1Ct::.riC'f? �''?"_'
ac�ditional glagers werP n�ede� at thP seven c_:ard stuei pnKPr r�t,-i� .
i -
P?'i�P aJ.sci s�w ��iat , when c�ne �t the 'r.,l�rir �a_r_k tab1P d.ea_Ler� neer.eci
ad�? tional "har,i�° money; RnWMA.nr wa.s ca_i 1ec_� r_o rhe tahie r_o nrov;.�P
rnis r�oney. j
�
I
_ 9o��a��
-2-
Pri�e and Lan� departPC� thP hal]. at a
D�ryl Olsnr� �nc� S t FFr�xim�tPly 2145 ho»rs . Lt ,
� - Rick Klein Qf the St , p�,�l pc,li�e Den�rtment_
were rontacrP� and were �dvised af the
�nprnXimately 2315 hours, gamhling ar Mi�haa� � s . At
member or rhP St , PrinP, Lan�, Olson, Klein, �nd one other
Pa,.il Pnlice De��rtment entered rhe ��pstairs h�ll. at
Mi�hael 's Louna? .
QhsPrvar�c�ns were then made ot rhe gamhlin in
whir_h, hy th�t time � pro�ress in the ha�ll ;
, inc1,��Pd spvPral ac�clition�l tables c�f �1ar__k���k
an� PokPr. Alsn� th� n,imhPr of gPrsans presPn� in the ha 13 ha�i g�-�y,rn
to �pproximatPlg 1�0 to 125 pPrsnn� ,
?'PjI1�1P� WP_.TP Pj'1(T�C3pCj in $P_.I'��iT1C7 j-}Zp Twc� h�r��n�c�r's� a m�l� �nd �
crowcl.
NOTF; Tj1PSP ��TYP_.I1_C�PT'S were �»hseq��enrly ar�'P$1"QC� and I�PTI'C'j r If?(� hv
the St . ?a�z1 Pnl].c,P r�e�,artmPnt . Tnev are hnth PmPlove� �,y �It;HAEI1 ' �
LOITNGE. � :
Pr jc�a s�w rha� rhP man latPr
IIP�r . i�entifienl as MIc:HAEL GAr;�: i,.ras e_ �r
in c,n 12?�r a�im.issinr�.s tgPg -- -- --_____ rl��.c,sPC�
operation, an.� ��tin�r �s •=hP ��d�or man" t=o,- rhi�
'�e �1�n �bserver_I rh�t ti�P mar� later identiti�d a.� Tn;�
!.:tTr7S�IFR was enga�PC� in r�P�linc�r SPVP r-
man 1a�rer identified �s �n _ard stl�ci ��o1rPr: �n�i that t-hP
MIKE RITTER was Pn�aaed an d?�1in�r h�a�k����.
---
__.
At -�PAr�ximarely 2335 ho,�.rs j ,_zni formed memhers of thP �r ,
L�enartmenr �rrl�,e� at rhe ha.11 and ann�,�zn�e� th�t r Py Pa.nJ �`�1i�e
the cra.mhlina o�erarion Kown. h= were �:1n�in�
Price r_onfiscarec� $2_?7 , OQ _rro�n thP
tahle where gii�fgHIER w�s cie�linc� p�ker,- an� 5177 . oo was cnnrisr�tPC�
from the tahle where RITTFR was dpalinc� hlar_ki�c�k.
th� �o�rPr ,z��d rn .. Prica also �Pi2?('(
�1S��c�V $P�7�I7 r�ard Sf_UCj �QIzPj' Tl��.?S . j-��..1 SP1Z?�
ItP7T1S WPI�f? t127'Ilf?� QVPI' r(� f'�'jP St. P�11�. Pn�ic_�P pP�,artmenr_ ,
KiTNSgIER: RITTER, GAGg, �n� BOWMAN were �rresred �y St , p�,�l Pc�lice;
�s werP afiArnxim�r�ly nine others {dPalers, and rhe �,�rr_endPrs) ,
Ad�iti�nal SQ1�11I�PS WprP IIl�C�?• gPP
Poli�P nfticers . The Irems seize� in�l�r_iPr�$�b�,a���.anraininP a*n, �at� +
�f unre�isrered ti�t�Q�r�s. � �3 .unber
3(IWMAN advised Price rh�t the b�r ocyner
7amblina ac-rivitv, a�nd th�t the owner ha� ( `rjlvPnn �Pw�' aware �t rhP
.onducr or ��mhlin� in the hall . � � � � P�rmission tor thP
'he St . P�,.zl P�lice ne�artment case num�er is : q4-007E?59 ,
i
�� --/� ��
���
/��.t�p1Le oU�.o\�'. /�/�
;/W�W '�'q
• ' (
�'•, '
�,��;1��;.-,y
uw¢mia�„
STATE O F M I N N ESOTA
OFFICE OF ADMINISTRATIVE HEARINGS R�C�IVED
FIFTH FLOOR,FLOUR EXCHANGE BUfLDING �Y�Q,�O
310 FOURTH AVENUE SOUTH
MINNEAPOLIS,MINNESOTA 55415 (�,� j� i"����
(612)341•7600
May 29, 1990
Albert B. Olson
St. Paul City Council
386 City Hall
St. Paul , Minnesota 55102
Re: In the Matter of the License of H.K. , Inc. d/b/a Michael ' s; OAH
Docket No. 3-2101-4623-6
Dear Mr. Olson:
Enclosed herein and served upon you by U.S. mail is the Findings of Fact,
Conclusions and Recommendation of the Administrative Law Judge in the
above-entitled matter. I am also closing our file and returning the official
record to you.
Sincerely,
�'l.�C,��`
ALLEN E. GILES
Administrative Law Judge
Telephone: 612/349-2543
AEG:pp
Enclosure
cc: Philip B. Byrne
Dennis Johnson
AN EQUAL OPPORTUNITY EMPLOYER
C1ty of St. Pa�,l vs• N NC � � ��
of SC. Paul �.b.a. f�1icl�aels �
340A.408 LIQUOR ACT NlAt"1�q ddte: i•1ay I1, 2990 ��o
City's Exhibit ��_
340A.408 RETAIL LICENSE FEES.'
(For text of subds 1 to�, see M.S.1988J
Subd. 3a. Fee increases; notice, hearing. No city, town, or county shall increase
the fee for a liquor license govemed by subdivision 1, 2, or 3, except after notice and -
hearing on the proposed increase. Notice of the proposed increase must be mailed to
all affected licensees at least 30 days before the date set for the hearing. This subdivi-
sion supersedes any inconsistent provision of law or charter.
�For text of subds 4 and S, see M.S.1988J
History: 1989 c 104 s 1
340A.410 LICENSE RESTRICTIONS; GENERAL.
(For text of subds 1 to 4, see M.S.1988J
Subd. 5. Gambling proWbited.(a)No retail establishment licensed to sell alcoholic
beverages may keep,possess,or operate,or permit the keeping,possession,or operation
on the licensed premises of dice or�any gambling device as defined in section 349.30,
or permit gambling therein except as provided in this subdivision.
(b) Gambling equipment may be kept or operated and raffles conducted on licensed
premises and adjoining rooms when the use of the gambling equipment is authorized
under chapter 349. � �
(c) Lottery tickets may be purchased and sold within the licensed premises as �
authorized by the director of the lottery under chapter 349A. �
�For text of subds 6 to 9, see M.S.1988J �
History: 1989 c 334 art 6 s S �
t
340A.412 LICENSE RESTRICTIONS; INTOXICATING LIQUOR LICENSES. �
Subdivision 1. [Repealed, 1989 c 49 s 8] �
[For text of subds 2 to 11, see M.S.1988J �
340A.414 LICENSING OF BOTTLE CLUBS. �
1[For text of subds 1 to S, see M.S.1988J �
�
Subd. 6. Permit fees.The�annual fee for issuance of a permit under this section �
is$150. The governing body of a city or county where the establishment is located may 3
impose an additional fee of not more than $300.
" [For text of subds 7 to 9, see M.S.1988J ,
History: 1989 c 209 art 1 s 34 : ; . .
340A.503 PERSONS UNDER 21; ILLEGAL ACTS.
[For text of subd 1, see M.S.1988J
Subd. 2. Purchasing.It is unlawful for any person:
(1) to sell,barter,fumish,or give alcoholic beverages to a person under 21 years
of age,except that a parent or guardian of a person under the age of 21 years may give
' or fumish alcoholic beverages to that person solely for consumption in the household
of the parent or guardian; - �
(2) under the age of 21 years to purchase or attempt to purchase any alcoholic
beverage; or . .r
(3) to induce a person under the age of 21 years to purchase or procure.any
alcoholic beverage, or to lend or knowingly permit the use of the person's driver's
s � . ,,
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� 340A.409 LIQUOR ACP 73pq
(5) The commissioner shall render a decision within ten business days of the
` � receipt of the administrative law judge's report.
Fi '.� (6) If all parties to the proceeding agree,any of the previous requirements may be
� � , waived or modified.
� . � , (7) A petition for a hearing to amend the rating pl�`n received by the commissioner
� ' within 180 days of the date of the commissioner's decision in a prior proceeding to
T � amend the rating plan is invalid and requires no action.
�
� , (i) A liquor vendor shall be denied or terminated from coverage through the
` ' assigned risk plan if the liquor vendor disregards safety standards, laws, rules, or
�� ; ordinances pertaining to the offer, sale, or other distribution of liquor.
`� The commissioner may by rule e�tablish other conditions for denial or termination
<s ; from coverage through the assigned risk plan.
� ; (j) The commissioner of commerce shall adopt rules needed to implement this'
"'`1 subdivision. The rules may include:
(1) appeal procedures from actions of the assigned risk plan;
(2) formation of an advisory committee composed of insurers, vendors of risk
management services and licensees,to advise the commissioner of commerce regarding
operation of the plan; and
, �� (3) applicable rating plans and rating standards.
� : Subd. 3a. Notification by insurer of status of claim. Upon the request of the
x` insured, an insurer who is providing coverage required by subdivision 1 shall inform
' the insured of the status of any claims made under the policy. The information must
�� include:
.�
: ' (1) the employees of the insured that may be involved and the nature of theit
� involvement;
`{ � (2) any amount the insurer is holding in reserve for payment of a claim or has '
' � ; in the disposition of the claim;and
a � (3) any amount paid in the defense of the claim. �w
e:.
; ' This subdivision dces not require disclosure of otherwise nondiscoverable inf
i mation to an adverse party in litigation. '�
Subd. 4. Insarance not required. Subdivision 1 does not apply to licensees
by affidavit establish that:
(1) they are on-sale nonintoxicating malt liquor licensees with sales of less
$10,000 of nonintoxicating malt liquor for the preceding year; � '� ° `
(2) they are off-sale nonintoxicating malt liquor licensees with sales of less
$20,000 of nonintoxicating malt liquor for the preceding year, `�" �,
(3) they are holders of on-sale wine licenses with sales of less than$10,000 for
't(-�'f;,°.
for the preceding year;or �1;;�, "
(4) they are holders of temporary wine licenses issued under law }�.,.�,;,;,�:
History: 1985 c 200 s 2; 1985 c 305 art 6 s 9; 1985 c 309 s 7-9: 1Sp1985 c�6 .
r� • s 3 subd 1; 1Sp1986 c 3 art 1 s 38; 1987 c 107 s 1; 1987 c 152 art 1 s 1, 1988 c S
� :,4d� -
4 ' 340A.410 LICENSE RFSTRICTIONS;GENERAL. ���na{�
t ,.
; Subdivision 1. Coanties; town consent. A county may not issue.a reta�l..,
to sell any alcoholic beverage within an organized town unless the governin8 t�
the town has consented to the issuance of the license. :.t? z`��.
�i ' Subd. 2. Counties;recommendation and review of applicants• (1)No .
;� j issue or renew a retail license to sell any alcoholic beverage until the countY.-.-,
received a written recommendation from the sheriff and county attorneY:s,U,�.-.
to the best of their knowledge that the applicant is eligible to be licensed un�.
; 340A.402. A copy of ihe$tatements must be given to the town board if a toa'p!�i
� , is required issuance of the license under subdivision 3. . .�.s�k��'��
(2) The county board shall consider the recommendations of t1�e�;
. ._k,., ,.E.<
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�
�5 LIQUOR ACT 340A.412 �
1
,unty attomey, the character and reputation of the applicant, and the nature and ' `
cation of the business prior to issuance of any license. ;
Subd. 3. License extension;death of licensee. In the case of the death of a retail
xnsee to sell alcoholic beverages,the personal representative is authorized to contin-
;operation of the business for not more than 90 days after the death of the licensee.
Subd. 4. License posting. A retail license to sell alcoholic beverages must be '
�sted in a conspicuous place in the premises for which it is used.
Subd. 5.. Gambling pmhibited. (a) No retail establishment licensed to sell
.coholic beverages may keep, possess, or operate, or permit the keeping, possession,
r operation on the licensed premises of dice or any gambling device as defined in
;ction 349.30, or permit gambling therein except as provided in this subdivision. �
(b) Gambling equipment may be kept or operated and raflles conducted on licensed °
remises and adjoining rooms when the use of the gambling equipment is authorized
nder chapter 349.
Subd. 6. Racial discrimination;clabs. No retail license to sell alcoholic beverages
_iay be issued or renewed by a municipality or county to a club which discriminates
gainst members or applicants for membership or guests of inembers on the basis of
ace.
Subd. 7. License limited to space specified. A retail license to sell any alcoholic
�everage is only effective for the compact and contiguous space specified in the
�pproved license application.
Subd. 8. Copy of summons. Every application for the issuance or renewal of
ntoxicating or nonintoxicating liquor licenses must include a copy of each summons ;
�eceived by the applicant under section 340A.802 during the preceding year. ��`
Subd. 9. Coin-operated devices. Coin-operated amusement devices may not be 4
nade available in establishments licensed solely for the off-sale of intoxicating liquor
�r municipal stores which sell only at off-sale. An establishment holding a combination
�n-sale and off-sale license or a municipal liquor store which sells at on-sale and off-sale
which makes coin-operated devices available shall keep such devices to the greatest
extent practicable in that area of the establishment where on-sales are made.
History: 1985 c 305 art 6 s 10; 1Sp1986 c 3 art 1 s 39; 1987 c 152 art 1 s 1; 1987 '�
c381s4 ``
340A.411 LICENSE RESTRICTIONS; NO1vINTOXICATING_ MALT LIQUOR
LICENSES.
Subdivision 1. On-sale licenses. On-sale nonintoxicating liquor licenses may only
be issued to drugstores,restaurants,hotels,clubs,bowling centers,and establishments
used exclusively for the sale of nonintoxicating mait liquor with the incidental sale of ��
tobacco and soft drinks. `'
Subd. 2. License duration. All retail nonintoxicating malt liquor licenses must
be issued for one year,except that for the purpose of coordinating the time of expiration
of licenses in general,licenses may be issued for a shorter time,in which case a pro rata
license fee must be charged.
History: 1985 c 305 art 6 s 11; 1987 c S s 3; 1987 c 152 art 1 s 1 �
340A.412 LICENSE RESTRICTIONS;INTOXICATING LIQUOR LICENSES. '�
Subdivision 1. Bond required. A local unit of government shall not grant a retail �
license to sell intoxicating liquor until the applicant has filed a bond with corporate �
surety, or cash, or United States government bonds in the amount of not less than r
$3,000 nor more than$5,000 for on-sale licenses,and not less than$1,000 nor more i�
than $3,000 for off-sale licenses. � common carrier who applies for a license to sell t
intoxicating liquor under section 340A.407, must file with the commissioner a bond
with corporate surety,or cash,or government bonds in the sum of$1,000. A bond filed
under this subdivision must be conditional on the licensee obeying all laws goveming ;;;
�
, �_
- - �� --�� �`�
C{ty of St. Pa��l vs. H K IP�C
o�' St. Paul �i.b.a. t°1ich�els
Heari�,g date: �°�Y 11, 1.990
�� ' �' Ci ty's Exh 1 b i� #,,,,�.,_ LICENSES § 310.01
5yti.
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SUBTITLE A. IN GENERAL Legislative
,�_ Code
Chapter 310.Uniform License Procedures Class I Licenses Chapter
Automobile Repair Garage and
Sec. 310.01. Definitions. Body Shop 315
Animal Foods Manufacturing and
For the purposes of this chapter,any chapter of Distributing 316 -
the Legislative Code pertaining to licenses as here- Amusement Rides 317
inafter mentioned, and subsequently enacted ordi- Mechanical Amusement Devices 318
nances establishing or relating to the requirements ' Bill Posters 319
for Class I, Class II and Class III licenses under Bituminous Contractors 320
authority of the City of Saint Paul, the terms Boarding and Roominghouses;
defined in this section shall have the meanings Dormitories 321
ascribed to them: Bowling Alleys;Pool Halls 322
Christmas�ee Sales 323
Adverse action means the revocation or suspen- Cigarettes 324
sion of a license,the imposition of conditions upon Close-Out Sales 325
a license,the denial of an application for the grant, - Building Contractors 326
issuance, renewal or transfer of a license, and Dry Cleaning and Dry Dyeing
any other disciplinary or unfavorable action taken plants; Laundries 327
with respect to a license,licensee or applicant for Electrical and Appliance Repair 328
'�. a license. Fire Alarm—Telephone Devices;
Bond means a bond meeting the requirements Apparatus Installers 329
;�'�;r of Section 310.07 and indemnifying the City of Florists 330
` f Saint Paul against all claims,judgments or suits Food License 331
caused by, resulting from or in connection with Fuel Dealers—Liquid Fuel 332
any licensed business, activity, premises, thing, Fuel Dealers—Solid Fuel 333
facility, occurrence or otherwise under these Fumigating—Pest Control 334
chapters. Gasoline Filling Stations 335
Private Fuel Pumps 336
Building official means the supervisor of code Hardware Stores 337
enforcement in the department of community House Sewer Contractors 338
services. Ice Cream Prceessing and Distrib-
uting 339
Chapters and these chapters shall mean this Mercantile Broker 340
Uniform License Ordinance, any chapter of the Milk 341
. Legislative Code pertaining to licenses as here- Oil—Bulk Storage 342
inafter mentioned, and subsequently enacted ordi- Opticians 343
nances establishing or relating to the requirements Pawn Shops 344
for Class I, Class II and Class III licenses under Peddlers 345
authority of the City of Saint Paul. Soliciting 346
Pet Shops 347
Class I licenses means those licenses which can gadio and Television Repairs 348
be approved and issued or denied by the inspec-. Rental of Clothing 349
tor, subject to the procedures required by these �ntal of Hospital Equipment 350
chapters. The following licenses are so class�ed, �ntal of Kitchenware 351
and the numbers shown opposite them correspond Rental of�ailers 352
to the chapters in the Legislative Code pertaining Roller Rinka 353
,� to each license: Sanitary Disposal 354
�"�' � Supp.No.9
:�
2027
$ 310.01 LEGISLATIVE CODE . ����; ��,�s�t
_ "��:x;
�����
,,�,�:
Legislatiue Legislative
Code �- Code
Class I Licenses Chapter Class III Licenses Chapter
Secondhand Dealers 355 Auctioneers 400
Sidewalk Contractors 356 Motor Vehicle and Parts Dealer 401
Solid Waste 357 Bingo 402
Sign and Billboard Construction 358 Bingo Halls , 403
Sound Trucks and Broadcasting Private Clubs 404
Vehicles 359 Dance Halls 405
Public Swimming Pools 360 Game Rooms 406
Tow Trucks—Service Vehicles 361 Hotel 407
Tree�imming 362 Junk Salvage and Scrap 408
Vending Machines 363 Intoxicating Liquor 409
Veterinary Hospital 364 Nonintoxicating Liquor 410
Window Cleaning 365 Entertainment 411
Block Parties 366 Massage Parlors and Saunas 412
Tattoo Parlors 367 Conversion Parlors 413
Wrecking of Buildings 368 Masseur-Masseuse 414
Building�ades Business Licenses 369 Motion Picture Theatres 415
Building Trades Certificates of Motion Picture Drive-In Theatres 416
Competency 370 Parking Lots 417
Finishing Shop 371 Taxicabs 376
Tire Recapping Plants 372 Gambling License 419 ���,,,
�ansient Merchants 373 Director means the director of the department �'��
��::
Class II licenses means those licenses which of finance and management services, unless oth- �`"''
must be approved or denied by the director, sub- erwise defined in the specific chapter, section or
ject to the procedures required by these chapters. subdivision referred to.
The following licenses are so classified, and the Division means the division of license and per-
numbers shown opposite them correspond to the mit administration in the department of�nance
chapters in the Legislative Code pertaining to
each license: and management services.
� Legislative Fee means and includes both the license fee
Class II Licenses Code and application fee unless otherwise provided.
Auctioneers—Short Chapter 390 License means and includes all licenses and
Term License permits provided for or covered by these chapters.
City Gambling Permit Section 402.06 Person means and includes any person, firm,
Soliciting Funds—Tag Days Chapter 391 corporation, partnership, company, organization,
Temporary On-Sale Beer Section 410.10 agency, club or any group or association thereof.
Temporary Wine and Liquor Section 409.25 It shall also include any egecutor, administrator,
Class III licenses means those licenses which trustee,receiver or other representative appointed
can be approved or denied only by the council, by law.
subject to the procedures required by these chap- Zoning administrator means the supervisor of
ters. The following licenses are so classified, and code enforcement in the department of commu-
the numbers shown opposite them correspond to
the chapters in the Legislative Code pertaining to
each license:
��-:.
Supp.No.9 `'
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2028
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�=3� LICENSES §310.02
F'r"a'''J`�'.�,
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nity services, or the official charged with respon- If a license is issued, renewed or transferred be-
sibility for enforcement of the zoning code. cause of the existence of ar,ragreement as described
(Code 1956, § 510.01;Ord.No. 17303, §3, 10-29-85; in subsection (1) above, the license may be re-
Ord. No. 17569, § 1, 6-7-88) � voked if the licensee defaults upon such agreement.
Sec. 310.02. Application. (c) Additional information. The inspector shall
prescribe the information required to be submit-
(a) Form. All applicants for licenses or permits ted by each applicant in his application, in addi- '
issued pursuant to these chapters shall make both tion to that required by specific sections in these
original and renewal applications to the inspector chapters, as may be necessary to carry out and
on such forms as aze provided by the division. enforce any provision hereunder. He shall require
Such applications shall not be received by the in every case the applicant to submit his name;
inspector until completely filled out, accompanied business or corporate name; names of partners,
by all fees, insurance policies, bonds, deposits, officers,directors,shareholders or trustees involved
sureties, and indemnifications or certificates re- in the business; age; address; description or blue-
quired by these chapters, together with the certi- print of the premises,if any,and the owner thereof,
fication required in paragraph(b)below. and locations and addresses of other business lo-
cations in Minnesota.
(b) Taxes. No person shall be granted a license,
a renewal of a license or transfer of a license (d) No reapplication within one year after de-
required by the Saint Paul Legislative Code un- nial or reuocation. No person may apply for any
less, prior to and in addition to any other require- license within one year of the denial or revoca-
ments,rules or ordinances heretofore or hereafter tion of the same or similar license by the city
�''�' required,the Ramsey County Department of Prop- council, if such denial or revocation was based
�:�;�:,_
;�,; .`�,,� erty Taxation certifies that said applicant has solely or partially upon misconduct or un�'�tness
paid any and all taxes, real or personal, before of the applicant, evidence of violations of law in-
said taxes become delinquent, on any property, volving licensed premises, evidence that the ap-
� real or personal,situated within the City of Saint plicant had been involved in the operation of a
Paul and used in connection with the business nuisance, or fraud or deception in the license ap-
operated under said license. plication. Denial of a license, as used in this para-
graph, shall include a refusal of permission to
Notwithstanding the previous paragraph, the transfer a license to the applicant. A license is
council, the director or the inspector may issue, "similar," within the meaning of this paragraph,
renew or transfer a license if it is found that: if the basis upon which the revocation or denial of
the oxiginal license was made would have been a
(1) The applicant has made an agreement sat- relevant basis on which to deny or revoke a li-
isfactory to the Ramsey County attorney to cense of the type subsequently applied for.
pay delinquent taxes in periodic installments;
(e) Reapplication after denia� "interest" of a�
(2) The applicant has properly commenced a plicant in reuoked license. An application by a
proceeding to contest the amount of tax person having an interest in,or whose sharehold-
due or the valuation of his property, and ers or officers have an interest in, any premises
has made all partial payments required by or enterprise whose license has been revoked or
law in connection with such proceeding; or to which a license has been denied shall be treated
(3) The business property with respect to which as an application by the person whose license was
taxes are delinquent is not owned by the denied or revoked. The term "interest," as used
applicant, but by a lessor, and it would be in this paragraph, includes any pecuniary inter-
inequitable to require the lessee to pay such est in the ownership, operation, management or
��
taxes. profits of an establishment, but does not include:
�.�. �p
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�`"6� Supp.No.4
2029
�310.0'L LEGISLATNE CODE w^-��:
..�-_,:
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.•�`�,,,.,�:;,i�`
bona fide loans;bona fide rental agreements;bona priate, the assistance of other city divisions or
fide open accounts or other obligations held with departments in making addition�l-investigations
or without security arising out of the ordinary for the purpose of determining whether the appli-
and regular course of business of selling or leas- cant is or will be in compliance with all applica-
ing merchandise, fixtures or supplies to such es- ble ordinances and statutes.The approval of such
tablishment; an interest in a corporation owning other divisions or departments is not required for
or operating a hotel but having at least one hun- issuance of a license unless otherwise required by _
dred fifty (150) or more rental units holding a specific sections ii� these chapters. All new appli-
license in conjunction therewith; or ten (10) per- cations shall be reviewed by the zoning adminis-
cent or less interest in any other corporation hold- trator or his designee for compliance with all re-
ing a license. quirements of the Saint Paul Zoning Code, and
no new license shall be granted without full com-
(fl Prohibition on reapplication; exception. The pliance with said requirements. All new applica-
prohibition on reapplication herein provided shall tions involving a premises, location, building or
not apply in cases where it is otherwise expressly structure shall be referred to the director of the
provided by statute or ordinance. department of fire and safety services and to the
Ig) Waiting period after �ling of petition. Any building official for investigation and recom-
petition required to be filed with the application mendation.
for any license shall not be considered as offic- (Code 1956, § 510.03; Ord. No. 17361, § 1, 6-5-86)
ially �led and irrevocable until seven(7)working
days after a petition is received in the inspector's Sec. 310.04. Levels of approval;recommenda-
office. During the seven-day waiting period, any tions.
signator of any petition may withdraw his name ,�``���,
therefrom b written re uest, and such re uest �a) Class 1 licenses. Where an application for �: .
y 4 q the ant issuance renewal or transfer of a Class �r�_`�
shall be appended to the subject petition and made � ' ' i�`�ti�'
a part thereof. After the seven-day waiting peri- I license meets all the requirements of law, and
od, signatures may not be withdrawn unless it is there exists no ground for denial, revocation or
suspension of,or the imposition of conditions upon,
shown they were obtained by fraud or duress. such license,the inspector shall grant,issue,renew
Signa�ures withdrawn or obtained by fraud or or transfer said license in accordance with the
duress shall not be counted in determining the application.
sufficiency of the petition. This subdivision shall
apply in any case where the applicant for a li- (b) Class II licenses. Where an application for
cense or license transfer must present a state- the grant,issuance,renewal or transfer of a Class
ment in writing signed by a specified number or II license meets all the requirements of law, and
percentage of persons that they have given their there exists no ground for denial, revocation or
consent to the grant of the license or license transfer. suspension of,or the imposition of conditions upon,
(Code 1956, § 510.02) such license,the director shall require the inspec-
tor to grant, issue, renew or transfer said license
Sec. 310.03. Investigation and review of new in accordance with the application.
applications,etc. (c) Class I and Class II licenses, if denied by
The inspector shall determine the suff`iciency inspector or director. In the event the inspector,
and accuracy of each new application and obtain in the case of Class I licenses, or the director, in
such criminal history information as may be used the case of Class II licenses, determines that the
under Minnesota Statutes, Chapter 364, and is application for grant, issuance, renewal or trans-
otherwise available by law. The inspector shall fer.of the license does not meet all the require-
make reasonable and appropriate investigation ments of law or that there exist grounds for deni-
of the premises or personal property, vehicles or al,revocation,suspension or other adverse action
facilities, as may be involved in or related to the against the license or the licensee, the inspector ;��°,;;�:
licensed activity, and shall request, where appro- or director shall recommend denial of the applica- ��� :
Supp.No.4 ""'°
2030
. - �o �/��'�
'�� LICENSES §310.05
A,
�' us`' M.j
�}: 8
tion and follow the procedures for notice and hear- determination that the decision was based on an
ing as set forth in Section 310.05. error of law.The filing of afii appeal shall not stay
(d) Class III licenses. U on recei t of a full the issuance�of the license.
p p Y (Code 1956, § 510.04; Ord. No. 17455, § 1, 5-21-87;
completed application and required fees for a Class Ord.No. 17551, § 1,4-19-88)
III license, and after the investigation required, '
the inspector shall notify the council. A public
hearing shall be held by the council's committee �c. 310.05. Hearing procedures. -
designated to hear license matters on the grant, (a) Aduerse action; notice and hearing require-
issuance or transfer of all Class III licenses. The ments. In any case where the council may or in-
council's committee designated to hear license mat- tends to consider any adverse action, including
ters may hold a hearing on the renewal of any the revocation or suspension of a license, the im-
Class III license. In any case where the inspector position of conditions upon a license,or the denial
recommends denial of the grant,issuance,renewal of an application for the grant,issuance,renewal
or transfer of a Class III license, or where the or transfer of a license, the applicant or licensee
council's committee designated to hear license mat- shall be given notice and an opportunity to be
ters believes that evidence might be received at heard as provided herein. The council may con-
the public hearing which might result in action sider such adverse actions when recommended by
adverse to the application, the inspector or coun- the inspector, by the director, by the director of
cil's committee designated to hear license mat- any executive department established pursuant
ters shall follow the procedures for notice and to Chapter 9 of the Charter, by the city attorney
hearing as set forth in Section 310.05. Where the or on its own initiative.
application for the grant, issuance, renewal or
°'�'�� (b) Notice. In each such case where adverse ac-
:*:';::<>�; transfer of a Class III license meets all the re-
� �`? tion is or will be considered b the council the
��� � quirements of law,and where there exists no ground Y �
�-- for adverse action, the council shall by resolution applicant or licensee shall have been notified in
direct that the inspector issue said license in ac- �'iting that adverse action may be taken against
cordance with law. the license or application, and that he or she is .
entitled to a hearing before action is taken by the
(e) Appeal; Class I or Class II licenses. An ap- council. The notice shall be served or mailed a
peal to the city council may be taken by any reasonable time before the hearing date, and shall
person aggrieved by the grant, issuance,renewal state the place,date and time of the hearing. The
or transfer of a Class I or Class II license; provid- notice shall state the issues involved or grounds
ed,however,that the appeal shall have been filed upon which the adverse action may be sought or
with the city clerk within thirty (30) days after based.The council may request that such written
the action by the license inspector or director. notice be prepared and served or mailed by the
The only grounds for appeal shall be that there inspector or by the city attorney.
has been an error of law in the grant, issuance,
, renewal or transfer of the license. The appeal (c) Hearing. Where there is no dispute as to the
shall be in writing and shall set forth in particu- facts underlying the violation or as to the facts
lar the alleged errors of law. The council shall establishing mitigating or aggravating circum-
conduct a hearing on the appeal within thirty(30) stances, the hearing shall be held before the coun-
days of the date of filing and shall notify the cil. Otherwise the hearing shall be conducted be-
licensee and the appellant at least ten (10) days fore a hearing examiner appointed by the council
prior to the hearing date. The prceedures set forth or retained by contract with the city for that pur-
in Section 310.05, insofar as is practicable, shall pose. The applicant or the licensee shall be pro-
apply to this hearing. Following the hearing,the vided an opportunity to present evidence and ar-
council may affirm or remand the matter to the gument as well as meet adverse testimony or
' inspector or director,or may reverse or place con- evidence by reasonable cross-examination and re-
f:. y1 ditions upon the license based on the counciPs buttal evidence.The hearing examiner may in its
, -
1 �::,-.f,';:'-�,�i�
:�
�°'�'4'' Supp.No.8 .
2031
§310.05 LEGISLATNE CODE �'
4��,�`'
`�.�"-s:.:�
�,,�.>
discretion permit other interested persons the op- (� Council action; resolution to contain findin s.
g
portunity to present testimony or evidence or oth- Where the council takes advers�-action with re-
erwise participate in such hearing. spect to a license, licensee or applicant for a li-
(c-1) Procedure; hearing examiner. The hearing cense,the resolution by which such action is taken
examiner shall hear all evidence as may be pre- shall contain its findings and determination, in-
sented on behalf of the city and the applicarit or cluding the imposition of conditions, if any. The
licensee, and shall present to the council written council may adopt all or part of the�ndings, con- -
findings of fact and conclusions of law, together clusions and recommendations of the hearing ex-
with a recommendation for adverse action. aminer, and incorporate the same in its resolu-
tion taking the adverse action.
The council shall consider the evidence contained
in the record,the hearing examiner's recommended �g� Additional procedures where required Where
findings of fact and conclusions, and shall not the provisions of any statute or ordinance require
consider any factual testimony not previously sub- additional notice or hearing procedures, such pro-
mitted to and considered by the hearing examin- �sions shall be complied with and shall super-
er. After receipt of the hearing examiner's �nd- sede inconsistent provisions of these chapters.This
ings,conclusions, and recommendations,the council shall include,without limitation by reason of this
shall provide the applicant or licensee an oppor- speci�c reference, Minnesota Statutes, Chapter
tunity to present oral or written arguments alleg- 364 and Minnesota Statutes, Section 340A.415.
' ing error on the part of the examiner in the appli- (h) Discretion to hear notwithstanding withdrawal
cation of the law or interpretation of the facts, or surrender of application or license. The council
�i and to present argument related to the recom- may, at its discretion, conduct a hearing or direct
; hearand and after conside rn the r cord the ext that a hearing be held regarding revocation or �;�*��,�
g� g � denial of a license, notwithstanding that the ap- �'����-�
iaminer's findings and recommendations, together plicant or licensee has attempted or purported to ����
I with such additional arguments presented at the withdraw or surrender said license or application,
� hearing,the council shall determine what,if any, if the attempted withdrawal or surrender took
j adverse action shall be taken, which action shall place after the applicant or licensee had been
� be by resolution.The council may accept,reject or notified of the hearing and potential adverse action.
modify the findings, conclusions and recommen-
� dations of the hearing examiner. (i) Continuances. Where a hearing for the pur-
; pose of considering revocation or suspension of a
; (c-2) Ex parte contacts. If a license matter has license or other disciplinary action involving a
4 been scheduled for an adverse hearing, council license has been scheduled before the council, a
members shall not discuss the license matter with continuation of the hearing may be granted by
each other or with any of the parties or interested the council president or by the council at the
persons involved in the matter unless such dis- request of the licensee, license applicant, an in-
cussion occurs on the record during the hearings terested person or an attorney representing the
� of the matter or during the council's final delib- foregoing, upon a showing of good cause by the
s erations of the matter. party making the request.
(d) Licensee or applicant may be represented. ' (Code 1956, § 510.05; Ord.No. 17551, § 2, 4-19-88;
The licensee or applicant may represent himself Ord.No. 17559, §§ 1,2,5-17-88;Ord.No. 17659, §
or choose to be represented by another. 1, 6-13-89)
y (e) Recorc�evidence The hearing examiner shall Sec. 310.06. Revocation; suspension; adverse
� receive and keep a record of such proceedings, actions;imposition of conditions.
d including testimony and exhibits, and shall re-
� ceive and give weight to evidence, including heaz- �a) Council may take aduerse action. The coun-
say evidence, which possesses probative value com- cil is authorized to take adverse action,as defined
F monly accepted by reasonable and prudent per- in Section 310.01 above, against any license or � ;
� sons in the conduct of their affairs. permit, licensee or applicant for a license, as pro- �4�;..:
� � Supp.No.8 ��=`
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vided in and by these chapters. Such actions shall formed his work or activity in an unsafe
be initiated and carried out in accordance with manner. ,�_
the procedures outlined in Section 310.05. (g) The licensed business, or the way in which
(b) Basis for action..Such adverse action may said business is operated, maintains or per-
be based on one or more of the following reasons, mits conditions that unreasonably annoy,
which are in addition to any other reason�specifi- injure or endanger the safety, health, mor-
cally provided by law or in these chapters: als, comfort or repose of any considerable -
(1) The license or permit was procured by mis- number of inembers of the public.
representation of material facts, by fraud, (9) Failure to keep sidewalks or pedestrian ways
by deceit or by bad faith. reasonably free of snow and ice as required
(2) The applicant or one acting in his behalf under Chapter 114 of the Saint Paul Legis-
made oral or written misstatements or mis-
lative Code.
representations of material facts in or ac- (10) The licensee or applicant has shown by past
companying the application. misconduct, unfair acts or dealings, or by
(3) The license was issued in violation of any the frequent abuse of alcohol or other drugs,
of the provisions of the Saint Paul Zoning that such licensee or applicant is not a per-
son of the good moral character or �tness
Code. required to engage in a licensed activity,
(4) The license or permit was issued in viola- business or profession.
tion of law, without authority, or under a
material mistake of fact. (c) Imposition of reasonable conditions and/or
restrictions. When a reasonable basis is found to
F��
��;��� (5) The licensee or applicant has failed to com- impose reasonable conditions and/or restrictions
��'i4''�''�� ply with any condition set forth in the li- upon a license issued or held under these chap-
-,:�:�....>
`���� cense, or set forth in the resolution grant- ters, any one or more such reasonable conditions
ing or renewing the license. and/or restrictions may be imposed upon such li-
(6) (i) The licensee or applicant (or any per- cense for the purpose of promoting public health,
son whose conduct may by law be im- safety and welfare, of advancing the public peace
puted to the licensee or applicant)has and the elimination of conditions or actions that
violated,or performed any act which is constitute a nuisance or a detriment to the peace-
a violation of, any of the provisions of ful enjoyment of urban life,or promoting security
these chapters or of any.statute, ordi- and safety in nearby neighborhoods. Such reason-
nance or regulation reasonably related able conditions and/or restrictions may include or
to the licensed activity, regardless of Pertain to,but are not limited to:
whether criminal charges have or have (1) A limitation on the hours of operation of
not been brought in connection there- the licensed business or establishment, or
with. on particular types of activities conducted
(ii) The licensee or applicant has been con- in or on said business or establishment;
victed of a crime that may disqualify
said applicant from holding the license �2) A limitation or restriction as to the loca-
in question under the standards and tion within the licensed business or estab-
procedures in Minnesota Statutes,Chap- lishment whose[sic]particular type of activ-
ter 364. ities may be conducted;
(7) The activities of the licensee irn the licensed �3) A limitation as to the means of ingress or
egress from the licensed establishment or
activity create or have created a serious its parking lot or immediately adjacent area;
danger to the public health, safety or wel-
���, fare, or the licensee performs or has per-
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2032.1
§310.06 LEGISLATNE CODE
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(4) A requirement to provide off-street park- acts or omissions of agents, brokers, employees,
ing in excess of other requirements of law; attorneys or any other person�'-as a defense or
(5) A limitation on the manner and means of Justification for failure to comply with such filing
advertising the operation or merchandise and maintenance requirements. In the event the
licensee reinstates and files such policies, depos-
of the licensed establishment; its,bonds or certifications within thirty(30)days,
(6) Any other reasonable condition or restric-
tion limiting the operation of the licensed '
business or establishment to ensure that
the business or establishment will harmo-
nize with the character of the area in which
it is located,or to prevent the development
or continuation of a nuisance.
The inspector may impose such conditions on Class
I licenses with the consent of the licenseholder,or
may recommend the imposition of such conditions
as an adverse action against the license or licen-
ses; the director has the same power with respect
to Class II licenses.The council may impose such
conditions on Class III licenses with the consent
of the licenseholder, or upon any class of license
as an adverse action against the license or licen-
ses following notice and hearing as may be re- ���+,
quired. Such conditions may be imposed on a li- � '
cense or licenses upon issuance,renewal or transfer ����
thereof,or upon and as part of any adverse action
against a license or licenses,including suspension.
(Code 1956, § 510.06; Ord. No. 17584, § 1,8-25-88;
Ord. No. 17657, § 15, 6-8-89; Ord. No. 17659, § 2,
6-13-89)
Sec. 310.07. Termination of licenses; surety
bonds;insurance contracts. �
(a) Automatic termination, reinstatement; re-
sponsibility of licensee All licenses or permits which
must,by the provisions of these chapters or other
ordinanc.es or laws, be accompanied by the filing
and maintenance of insurance policies, deposits,
guarantees, bonds or certifications shall automati-
cally terminate on cancellation or withdrawal of
said policies, deposits, bonds or certifications. No
licensee may continue to operate or perform the
licensed activity after such termination. The li-
censee is liable and responsible for the filing and
maintenance of such policies,deposits,guarantees,
bonds or certifications as are required in these
chapters, and shall not be entitled to assert the
l;:���`��-
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Supp.No.8
20322
� � �'o-�a��
1�, LICENSES §310.09
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the license is automatically reinstated on the same (d) Expiration date to be concurrent with term
terms and conditions, and for the same period as of license or permi�. The �xpiration date of all
originally issued. After thirty (30) days, the ap- such policies, bonds, guarantees or certifications
plicant must reapply for a renewal of his license shall be concurrent with the expiration date of
as though it were an original application. the license or permit.
(b) Bonds and insurance requirements: (Code 1956, § 510.07) _
(1) Surety Companies: All surety bonds rur_- �c. 310.08. Terms of licenses;uniform dates.
ning to the City of Saint Paul shall be writ- (a) All licenses or permits shall be valid for a
ten by surety companies authorized to do period of one year from the date of issuance by
business in the State of Minnesota. All in- the inspector, except as otherwise provided herein
surance policies required by these chapters or in these chapters or in cases of revocation,
shall be written by insurance companies suspension or termination under Section 310.06.
authorized to do business in the State of (b) Licensees may continue to operate their busi-
Minnesota. ness after the expiration date of their license;
provided, that the licensee has filed with the in-
(2) Approved as to Form: All bonds filed with sp�{�r on or before the expiration date the ap-
the City of Saint Paul in connection with propriate license application, license fees, insur-
the issuance of licenses for whatever pur- ance and bonds. The inspector shall process the
pose, and all policies of insurance required renewal application in the manner provided for
to be filed with or by the City of Saint Paul in this Code.
in connection with the issuance of licenses
��-�.
for any purpose whatsoever, shall first be �c) Whenever any licensee is the holder of the
,�. ;:A two(2)or more licenses of the ity o aint au
�-�r� approved as to form by the city attorney.
�� which expire on different dates, the inspector is
(3) Uniform Endorsement: Each insurance pol- authorized, at the request of the licensee, to de-
icy required to be filed pursuant to these termine a uniform date for the expiration of all or
chapters shall contain the endorsement set any number of such licenses,notwithstanding the
forth in Chapter 7 of the Saint Paul Legis- term and expiration dates of such licenses as origi-
lative Code. nally issued, and notwithstanding any provision
as to term of license of any ordinance of the city
(4) Conditions:All bonds required by these chap- heretofore or hereafter enacted. The provisions
ters shall be conditioned that the licensee hereof shall govern the issuance of any new li-
shall observe all ordinances and laws in cense to one already holding a license.
relation to the licensed activity, business, �d) In order to conform to the foregoing provi-
premises or facilities and that he shall con- sions, new licenses may be issued for a term of
duct all such activities or business in con- less than one year, and the license fee therefor
formity therewith. Such bonds shall also shall be prorated for the period of issuance.
indemnify the City of Saint Paul against (Code 1956, § 510.08; Ord.No. 17360, § 1,6-5-86)
all claims, judgments or suits caused by,
resulting from or in connection with the �c. 310.09. Fees.
licensed business, premises, activity, thing,
facility, occurrence or otherwise licensed �a) Application charge:
under these chapters. (1) Amount: In addition to the license or per-
mit fees set forth in each chapter of this
(c) Termination of bonds and insurance required Code,each applicant shall pay, at the time
by city. Termination of bonds and insurance re- of filing, a two dollar fifty cent($2.50)pro-
quired to be filed with the city pursuant to these cessing charge for each and every applica-
chapters shall be in accordance with the require- tion for a license or permit to be issued by
¢��; � ments of Chapter 8 of the Saint Paul Legislative the inspector,director or council of the City
°���'-��' Code. of Saint Paul.
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• 2033
§310.09 :LEGISLATNE CODE ,�;
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(2) Refunds: Said two dollar �fty cent ($2.50) met when the license has lapsed by reason of �
processing charge shall not, under any cir- expiration. �_
cumstances,be refunded. (Code 1956, § 510.09; Ord. No. 16884, 2-11-82)
(b) Fee sclzedule. The council may by ordinance �c. 310.10. Refunds of fees.
determine and establish one fee schedule for any
or all licenses and permits issued pursuant to (a) Refund ruhere application withdrawn or de-
these chapters, and a separate fee schedule for niec�service chaa�ge. Unless otherwise specifically
applications for such licenses and permits, which provided by the particular licensing provisions
may include fees to cover costs incurred by reason involved, where an application for any license is
of the late filing. Such fees, in either schedule, withdrawn or denied, the inspector shall refund
shall be reasonably related to the costs of admin- to the applicant the license fee submitted less a
istration incurred in connection with each such service charge to recover in part the costs incuxred
application, license or permit. Costs of adminis- in prceessing the application in the amount of
tration shall mean and include,but without limi- twenty-five(25)percent of the annual license fee.
tation by this specification, both direct and indi- �� Limitation on refuna� other cases. In all other
rect costs and expenses, such as salaries, wages, cases as provided in paragraph (c), the inspector
benefits and all personnel costs including train- may refund not to exceed one hundred dollars
ing, seminars and schooling, expenses of investi-
gations and inspections, handling of inquiries and «100.00) of fees received in connection with any
requests for assistance, telephone and communi- license, permit or application therefor; provided,
cations, stationery, postage, paper, reproduction, that he certify in writing that the amount of the
office capital equipment and all office supplies. refund represents a sum over and above the rea-
Such fee schedules as adopted by ordinance and sonable costs of administration incurred up to i�,
that time in connection with said license, permit ����;�
posted in the office of the inspector shall super- �"�:::,;�;,�,..:.;
or application. The director may refund not to `;^���::�'
sede inconsistent fee provisions in these chapters •.�,�.
or in other ordinances or laws. exceed two hundred fifty dollars($250.00)of such
fees upon a like certification by the inspector.
(c) Fee for one year; may be prorated Unless The council may by resolution authorize all re-
otherwise specifically provided,the license fee stated funds upon a like eertification by the inspector.
is for a period of one year. Such fee may be pro- (c) Bases for refunds. Refunds under paragraph
rated where a license is issued for a period of less (b)may be made to the licensee or his estate:
than a year.
(1) Where the place of business of the licensee
(d) Late fee. Unless otherwise specifically pro- or his principal equipment is destroyed or
vided by the particular licensing provisions in- so damaged by�re or any other cause that
volved, an applicant for the renewal of a license the licensee ceases for the remainder of the
who makes application for such renewal after the licensed period to engage in the licensed
expiration date of such license shall be charged a activity or business;
late fee for each such license.The late fee shall be �2) Where the business or licensed activity ceases
in addition to any other fee or payment required, by reason of the death or illness of the
and shall be ten(10)percent of the annual license licensee or the sole employee or manager;
fee for such license for each thirty-day period or
portion thereof which has elapsed after the expi- or
ration date of such license. The late fee shall not (3) Where it has become unlawful for the li-
exceed fifty(50)percent of the annual license fee. censee to continue in the business or licensed
If any provision of these chapters imposes more activity other than by revocation, suspen-
stringent or additional requirements for the issu- sion,denial or any criminal activity on the
ance of an original license than would be the case part of the licensee.
for mere renewal, those requirements must be (Code 1956, as amended, $ 510.10) '�'"�a�
�
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2034
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�` � '� LICENSES $310.11
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Sec. 310.11. 1'ransfers;general. is provided for on the part of the transferee before
(a) License a priuilege, not property. A�1 licen- any transfer of license is made effective by the
ses or permits issued by the City of Saint Paul action of approving the transfer.
pursuant to these chapters or other ordinances or (fl Transfer; definition. "�ansfer," as used in
laws confer a privilege on the licensee to engage these chapters, shall include a transfer from per-
in the activity or occupation so licensed, and do son to person,or from place to place,or a transfer -
not constitute property or property rights or cre- of stock in a corporate licensee, or of shares or
ate any such rights in any licensee. No such li- interests in a partnership or other legal entity.
cense or permit may be seized, levied upon, at- '��ansfer," as used in these chapters, shall not
tached,executed upon,assessed or in any manner include the instance where a license is held by an
taken for the purpose of satisfaction of any debt individual or partnership and the transfer is by
or obligation whatever. said individual or partnership to a corporation in
(b) Licenses transferable; conditions. All licen- which the majority of the stock is held by said
ses issued by the City of Saint Paul shall be trans- individual or by the members of said partnership.
ferable unless the specific chapter of the Saint (g) Assignment and bond to accompany appli-
Paul Legislative Code pertaining to each specific cation. In the case of a transfer from person to
license shall specifically prohibit the transfer of � person, the application for transfer shall be ac-
such license. No transfer of any Class III license companied by a written assignment of all rights
issued by the City of Saint Paul shall be effective of the original licensee in and to the license and
until the council of the City of Saint Paul has
shall be accompanied by a surety bond in amount
approved the transfer following a public heazing and in form required of an original licensee.
by the council's committee designated to hear li-
��� cense matters and a resolution approving said (h) Public corporations. Notwithstanding other
-�-�� transfer is passed, approved and published. Both provisions of this chapter, publicly owned corpo-
the transferor and transferee shall make applica- rations whose stock is traded in the open market
tion for transfer of a license on such forms as may may comply with the transfer requirements per-
be prescribed by the division, and in accordance taining to stock ownership and stock transfer by
with Section 310.02. furnishing the inspector on request with the names
(c) Transfer ta.x. In all cases of transfer of a and addresses of all stockholders of record upon
license from a present licensee to any other per-
each renewal of the license.
son, there shall be a tax on said transfer in the (i) A�davit of transferor. No license transfer
amount of twenty-�ve (25)percent of the annual shall be effective unless the transferor submits
license fee charged for said license, said tax to be an �davit of such transferor,taken under oath,
paid by the transferee. stating the following:
(d) Transfer taa� deposit retained or returned (1) That in the case of Class III licenses, the
Whenever an application is made for transfer of a transferor-a�ant has posted notice to all
license, the amount as set out in paragraph (c) employees in a conspicuous place on the
shall be deposited with said application. If the licensed premises notifying all employees
transfer of license is approved,the amount depos- of the time,place and date of hearing of the
ited shall be retained by the city.If the transfer is transfer of the license to be held before the
denied,the amount deposited shall be returned to Saint Paul City Council;
the party depositing the same,in accordance with (2) That said notice specified in subparagraph
the requirements and conditions in Section 310.10. (1)above was posted continuously for four-
(e) Transfer ta� exception. Paragraphs (c) and teen(14)days;
(d)shall not apply in any case when,by the terms (3) That transferor has paid all wages due and
,,� of these chapters, payment of the full annual li- owing the persons employed by the trans-
�_ �2 ��,: censee fee or a prorated yearly annual license fee feror or that an agreement has been reached
,�,��
Supp.No.4
2035
���
�310.11 LEGISLATNE CODE Y ` '.
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between transferor and all employees as to (Code 1956, § 510.11;Ord.No. 16822,9-3-81;Ord.
the payment of wages due and owing; No. 17551, § 3,4-19-88) '��
(4) That transferor has made payment to all
employees in lieu of vacation time earned Sec. 310.12. Inspection of premises.
by said employees or in lieu thereof an The premises, facilities, place, device or any-
agreement has been reached between trans- thing named in any license issued pursuant to
feror and all employees as to payment in any provision of the Saint Paul Legislative Code
lieu of vacation time earned; or other law shall at all times while open to the
(5) That transferor has satisfactorily and com- public 'or while being used or occupied for any
pletely complied with his contractual obli- purpose be open also to inspection and examina-
gations pertaining to employer contributions tion by any police, fire, or health officer or any
to employee benefit programs which include, building inspector of the city,as well as the inspector.
but are not limited to, pension programs, (�Code 1956, § 510.12)
hospital,medical and life insurance programs,
profit-sharing programs and holiday pay Sec. 310.13. Renewal.
benefits. Every license renewal under these chapters may
(j) Deceased licensee. Notwithstanding any other be denied for any licensee who is delinquent in
provision of these chapters, in any case where a any payment or contribution to a health and wel-
liquor license is held by a person not incorporated fare trust or pension trust, or similar program,
and where the license would, by reason of the established for the benefit of his employees.
death of said licensee, lapse to the city in the (Code 1956, § 510.13)
absence of this paragraph, the authorized repre- `�`�`� '
�� �.
sentative of the estate of the deceased licensee �c. 310.14. Savings clause. �.�
may consent to and seek to transfer said license ���n" '
to the surviving spouse of the licensee.The trans- �a) If any provision in these chapters is held
fer shall be subject to all applicable requirements unconstitutional or invalid by a court of compe-
of these chapters and existing law. tent jurisdiction, the invalidity shall extend only
to the provision involved and the remainder of
(k) No approval under certain conditions. The these chapters shall remain in force and effect to
council shall not approve any transfer where ei- be construed as a whole.
ther party has not complied with the terms of any (}�) The repeal of any ordinance by ihis ordi-
contract or agreement regarding employee bene- nance (which enacts the Uniform License Ordi-
�t or fringe benefit programs; including, but not nance) shall not affect or impair any act done,
limited to, pension, hospitalization, medical and any rights vested or accrued,or any suit,proceed-
life insurance, profit-sharing or holiday pay pro- ing or prosecution had or commenced in any mat-
grams; provided, that any person or organization ter,prior to the date this ordinance became effec-
objecting to a transfer because of failure to pay tive.Every such act done or right vested or accrued
employee benefit or fringe benefit programs shall shall remain in full force and effect to all intents
file a written notice of objection with the license and purposes as if the repealed ordinances had
inspector seven (7) days prior to the scheduled themselves remained in force and effect. Every
public hearing on the transfer, and said notice such suit, prceeeding or prosecution may be con-
shall contain a complete itemization of the objec- tinued after repeal as though the repealed ordi-
tor's claim. nances were fully in effect. A suit, proceeding or
(1) Transfer of more than one license if one is prosecution which is based upon an act done, a
Class III. If an application is made to transfer right vested or accrued, or a violation committed
more than one license at the same time, the in- prior to repeal of the repealed ordinances, but
spector may, if one of the licenses is a Class III which is commenced or instituted subsequent to
license,handle all said licenses as Class III licenses. repeal of the repealed ordinances,shall be brought �-�� `
� �
��,;,
Supp.No.4
2036
_ � - ._ . .. �:;.:
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�'�:-'.��- LICENSES §317.02
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pursuant to and under the provisions of such re- or any city ordinance, shall be considered to be
pealed ordinances as though they continued to be and treated as the act or�onduct of the licensee
in full force and effect. for the purpose of adverse action against all or
(Code 1956, § 510.14) any of the licenses held by such licensee. To the
extent this section is in conflict with Sections
Sec. 310.15. Penalty. 409.14 and 410.09 of the Legislative Code, this
Any person who violates any provision of these section shall be controlling and prevail;but shall _
chapters, or other ordinances or laws relating to not otherwise amend,alter or affect such sections.
licensing, or who aids, advises, hires, counsels or (Ord. No. 17629, § 1, 1-31-89)
conspires with or otherwise procures another to
violate any provision of these chapters or other Chapters 311-314. Reserved
ordinances or laws relating to licensing is guilty
of a misdemeanor and may be sentenced in ac- SUBTITLE B. CLASS I LICENSES
cordance with Section 1.05 of the Saint Paul Leg-
islative Code. The term "person," in addition to
the definition in Section 310.01, shall for the pur- Cha�ter 315. Reserved*
pose of this section include the individual part-
ners or members of any partnership or corpora- Chapter 316. Animal Foods
tion,and as to corporations,the off`icers,agents or Manufacturing and Distributing
members thereof,who shall be responsible for the
violation. Sec. 316.01. License required.
_ � (Code 1956, § 510.15) No person shall engage in the business of the
s`f �' manufacture or distribution of animal foods in
����_:� Sec. 310.16. License fees,annual increases. Saint Paul without a license.
�'r„i.���
Effective on January 1 of each calendar year, (Code 1956, § 384.01)
all license fees, except building trades business
license fees and fees for building trades certi�- Sec. 316.02. Fee.
cates of competency, shall increase by the per-
centage increase in the budget for the division of �e fee required is forty-five dollars($45.00).
license and permit administration of the depart- (Code 1956, § 384.02)
ment of finance and management services. Prior
to November 1 of each year, the director of fi- Chapter 317. Amusement Rides
nance and management services shall file with
the city clerk a notice of the percentage increase, �c. 317.01. License required.
if any, in license fees.
(Ord. No. 16885,2-11-82;Ord. No. 17059, 10-20-83; No person shall engage in the business of pro-
Ord. No. 17303, § 4, 10-29-85) viding amusement rides,for charge,to the public
in Saint Paul without a license.
Sec. 310.17. Licensee's responsibility. (Code 1956, § 411.01)
Any act or conduct by any clerk,employee,man- �c. 317.02. Fee.
ager or agent of a licensee, or by any person pro-
viding entertainment or working for or on behalf �e fee required is one hundred dollars($100.00)
of a licensee, whether compensated or not, which for each location at which such person will oper-
act or conduct takes place either on the licensed
premises or in any parking lot or other area adja- sEditor's note—The licenses under this chapter, derived
cent to (or under the lease or control o� the li- from§§345.01-345.03 of the city's 1956 Code,were redesig-
`=�"`` P � nated as Class III licenses by Ord.No.17207,adopted Jan.3I,
.� censed remises and which act or con uct vio-
�� lates any state or federal statutes or regulations, 1985,and recodified as Ch.423.
: �
�����
Supp.No.7
2037
$317A2 " LEGISLATNE CODE ��:�
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ate and maintain the business of providing such devices is seven hundred fifty .doll.ars ($750.00),
rides. together wi:th an additional fe�-of �`ifty .dollars
(Code.195�, � 411:02) ($50.00) for each machine other than music ma-
chines, coin-o.per.ated television units, or coin-
Chapter 318.Mechanical Amusement�Devices �perated amusement rides owned and operated
by.the`licensee.
Sec. 318.01. License required; definitions. (Code 1956, § 412.03; Ord. No. 16784, 4-30-81; -
Ord. No. 16883, �-11-82)
No persun:s'ha'11�own and allow to be operated
for'business purposes any coin-operated mechani- Sec. 318.03. Application.
cal amusement device without a license. A coin- The application shall include, in addition to
operated mechanical amusement device is hereby �ther required information, a list of the locations
defined as any machine which,upon the insertion w,here the applicant proposes to install and oper-
of a coin, token or slug, operates or may be oper- ate such machines, the kind and number thereof,
ated by the public for use as a game, entertain- and the address of the place where the machines
ment or amusement, which amusement device are to be stored. All applicaiions shall contain a
contains no automatic payoff device for the re- statement of the list price of such machines.
turn of money, coins, checks, tokens or merchan- (Code 1956, § 412.03)
dise, or which provides no such pay-off by any
other means or manner. The term "coin-operated �c. 318.04. License tags;no transfer;removal.
mechanical amusement device" shall include so-
called pinball machines; music machines; coin- (a) The licensee shall receive,in addition to the
operated television units;motion picture machines; license, one annual license tag for each machine �:M'%
m=�.�:.
amusement rides, excepting those provided for he is licensed to own, which tag shall be displayed r;,€�:;��
under Chapter 317,pertaining to amusement rides upon the machine in a prominent place. Such �' �
of the type used at carnivals; table shuffleboard license tags must be secured and affixed to the
games or similar games of amusement for which machines before machines are set up for opera-
a fee is charged to players for the playing thereof; tion by the public. It shall be the responsibility of
and all other machines which,by the insertion of licensee to obtain and affix such tags to said
a coin or token, operate for the entertainment or machines.
amusement of the player,except weighing machines.
(Code 1956, §§ 412.01,412.02) (b) No license issued hereunder may be trans-
ferred, but a machine with license tag a�xed
may be moved by the owner from one location to
Sec. 318.02. Fee. another; provided, however, that the owner shall
(a) Amusement rides. The fee required for li- notify the inspector in writing at least five (5)
censes for coin-operated amusement rides shall days before the move to the new location, advis-
be one hundred seventy-five dollars ($175.00) for ing him of the name and address of the new loca-
ten (10) amusement ride machines or fewer, and tion; and, further provided, that in the event the
fif�een dollars($15.00)per machine for each amuse- inspector notifies the owner that the intended
ment ride machines in excess of ten dollars($10.00). location is not properly licensed if a license is
required, is in violation of zoning, health, fire or
(b) Music machin,es; teleuision. The fee required other codes,or is otherwise unlawfully existing or
for licenses for music machines shall be twenty- operated, then the owner shall not move any ma-
five dollars ($25.00) per machine; and for coin- chines to that location until the inspector advises
operated television units shall be sixteen dollars that the illegality has been removed.
($16.00) per location regardless of the number of (Code 1956, § 412.03; Ord. No. 17134, 5-10-84)
machines per location.
(c) Other devices. The fee required for licenses F'•=�
for all other coin-operated mechanical amusement ����;4�
. - �':;'�3�:�
Supp.No.7 ���
2038
i�J f.
j �/�,� i�f'.
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE COUNCIL OF THE
CITY OF SAINT PAUL
In re the Licenses of
H.K. Inc. of St. Paul, dba.
Michael 's Bar
Memorandum on Burden
May 11, 1990 of Proof, Evidence,
Municipal Power and
Employer Responsibility
1. Burden of Proof.
(a) Preponderance of the Evidence.
In a civil hearing concerning adverse action on liquor
licenses, the City as the licensing authority must prove its case
_by a preponderance of the evidence. The City's evidence must lead
the trier of fact to believe that it is more likely that its case
is true than not true. See Civil Jury Instruction Guides, JIG II
70 G. If there is the slightest tipping of the scales in the
direction of the City by credible evidence, then it has proved its
case.
It is not necessary in a civil case, as this is, to prove the
case beyond a reasonable doubt. The criminal standard is not
applicable here. The Minnesota Court of Appeals, in In re Kaldahl,
418 N.W. 2d 532 , 535 (Minn. App. 1988) , said the following:
"The burden of proof in Kaldahl 's criminal misdemeanor
trial was different from the burden of proof in the
administrative proceeding which resulted in the
(administrative) order. . . . Unless otherwise provided by
substantive law, the facts at issue in administrative
hearinas and contested cases must be proven by "a
preponderance of the evidence. " See Minn.R. 1400.7300,
1
�e-izs�
subp. 5 (1985) ; In re Schultz, 375 N.W.2d 509, 514 (Minn.
App. 1985) . " (Emphasis added. )
Also see In re Wana, 441 N.W.2d 488, 492 (Minn. 1989) , which
reaffirmed the preponderance standard for administrative
disciplinary hearings.
The fact that no criminal complaint or charge was brought
against the licensee does not bar this proceeding, nor is it
relevant. In re Kaldahl, supra. Kaldahl makes it clear that the
civil administrative proceeding may still go ahead even if the
criminal charge has resulted in an acquittal for the defendant.
(b) Substantial Evidence.
In re Wana, 441 N.W.2d 488, 492 (Minn. 1989) , also makes clear
that the decisions of the administrative agency must be supported
by "substantial evidence on the record as a whole. " The findings
of the ALJ in this case, and later those of the City Council, as
in other license proceedings, must be supported by "evidence that
a reasonable mind might accept as adequate, " in the context of the
entire record. 441 N.W.2d at 492 .
2 . Hearsay Evidence.
(a) Police Reports.
Police reports which recite the personal observation and
experiences of the police officers who wrote them are admissible
in administrative hearings, and may support findings made by the
administrative or quasi-judicial body which is holding the hearing.
Sabes v. City of Minneapolis, 265 Minn. 166, 120 N.W.2d 871, 877-
78 (Minn. 1963) . This is an exception to the hearsay rule, based
2
�6 -/z�'�
on the admissibility of the official records and reports of public
officials.
(b) Generallv.
In Hagen v. State Civil Service Board, 282 Minn. 296, 164
N.W.2d 629, 632 (1969) , the Minnesota Supreme Court stated in a
case dealing with a challenge to evidence that a civil service
board had admitted:
"It is true that an administrative body acting quasi-
judicially is not bound by strict procedural rules which
circumscribe the action of a court, and that incompetent
evidence is not fatal to its determination. "
The Minnesota Supreme Court, while recognizing that hearsay
evidence is admissible in administrative disciplinary hearings and
that hearsay evidence alone might be sufficient to sustain a
decision, holds that in most cases hearsay evidence alone will not
be enough. In re Wana, 441 N.W.2d at 495.
Minn. Stat. sec. 14.60, in providing for the evidence that may
be received and heard by administrative agencies subject to the
state APA, states in part:
"In contested cases agencies may admit and give probative
effect to evidence which possesses probative value
commonly accepted by reasonable prudent persons in the
conduct of their affairs. " Sec. 14. 60, subd. l.
3 . Municipal Power.
Municipalities in Minnesota have inherent, sweeping powers to
regulate the sale of intoxicating liquor, and to issue and revoke
such licenses pursuant to that authority and local ordinances.
However, the authority vested in them is not limited by the
ordinances they may choose to adopt, but springs from basic police
3
9d-/a 9�
powers. Country Liquors, Inc. v. City Council of the City of
Minneapolis, 264 N.W.2d 821, 824 (Minn. 1978) ; Moskovitz v. Citv
of Saint Paul, 218 Minn. 543, 16 N.W.2d 745 (1944) .
The Court held in Moskovitz that the ordinances adopted by the
city were not the sole source of the power to revoke, which power
could arise under the police power or under (in Moskovitz) an
applicable charter provision. Similar language as to the broad
powers to regulate and deal with licensees can be found in Miller
v. City of Saint Paul, 363 N.W.2d 806, 812 (Minn. App. 1985) ;
Hymanson v. City of Saint Paul, 329 N.W.2d 324 (Minn. 1983) ; and
Sabes v. City of Minneapolis, 265 Minn. 166, 120 N.W.2d 871, 875
(1963) .
Country Liquors. Inc. , supra, makes it clear that the scope
of the discretion in licensing decisions given to municipalities
is so broad that such decisions will not be overturned unless
patently arbitrary and capricious. 264 N.W.2d at 826.
4. Responsibility for Employees� Actions.
Section 409. 14 of the Saint Paul Legislative Code provides in
part that " (a)ny act by any . . . employee of any licensee hereunder,
in violation of this chapter, shall be deemed the act of the
employer and licensee of such place . . . . " In addition, section
310. 17 of the Legislative Code provides in pertinent part that
" (a)ny act or conduct by any . . . employee . . . of a licensee, . . .
which act of conduct takes place on the licensed premises . . . (and
which act violates federal, state or local law) . . . , shall be
considered to be and treated as the act or conduct of the licensee
4
9�-i�-�
for the purpose of adverse action against all or any of the
licenses held by such licensee. . . . " Michael Kalis thus is liable
for the active or inactive permission of his employees in allowing
the unlawful gambling activities to take place in the bar.
Respectfully submitted this ilth day of May, 1990.
JANE A. McPEAK
CITY ATTORNEY
Philip . Byrn
Assist nt City Attorney
647 City Hall
298-5121
Atty. Reg. No. 13961
5
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'f'�� ' LICENSES 3 409.26
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Appearance
Type of Violation 1st 2nd �3rd 4th
(7) Refusal to allow city inspectors or police 5 15 ftevocation NA
admission to inspect premises.
(8) Illegal gambling on premises. 3 6 18 Revocation
(9) Fail to take reasonable steps to stop per- 2 � 4 12 Revocation
son from leaving premises with alcoholic
beverage.
(10) Failure to make application for license re- 3 6 18 Revocation
newal prior to license expiration date.
(11) Sale of intoxicating liquor where only li- 3 6 18 Revocation
cense is for nonintoxicating liquor.
For those violations which occur in on-sale in- under the "lst Appearance" column in paragraph
toxicating liquor establishments, listed above in (b) above. The occurrence of multiple violations
numbers (4), (5), (6), (8), (9) and (11), the council shall be grounds for departure from such penal-
may in its discretion impose a fine in lieu of a ties in the council's discretion.
suspension on the first appearance,in accordance
with the following schedule whose amounts are Violations occurring after the date of the notice
-�?,r�. resum tivel a ro riate: of hearing that are brought to the attention of the
'''��� P P y pp p city attorney prior to the hearing date before an
a� 4.
i3, 4�.�,;".
�`"�Y;'£'' Seating capacity 0-99 .... . . . . . ... $ 500.00 administrative law judge(or before the council in
.<�?��
'��_- Seating capacity 100-149 ... .. . . .. 1,000.00 an uncontested facts hearing) may be added to
Seating capacity 150-199 . . . . . . . . . 1,500.00 the notice(s)by stipulation if the licensee admits
Seating capacity over 200 ......... 2,000.00 to the facts, and shall in that case be treated as
For those violations which occur in off-sale in- though part of the"lst Appearance." In all other
toxicating liquor establishments listed above in cases, violations cecurring after the date of the
numbers (4), (5), (6), (8), (9) and (11), the council formal notice of hearing shall be the subject of a
may in its discretion impose a fine in lieu of a separate proceeding and dealt with as a "2nd
suspension on the first appearance,in accordance Appearance"before the council.
with the following schedule, whose amounts are �e same procedures shall apply to a second,
presumptively appropriate, based on the square third or fourth appearance before the council.
footage of the retail area of the establishment:
(d) Subsequent a�pearances. Upon a second,third
2,000 square feet or less.... ..... $ 500.00 or fourth appearance before the council by a par-
2,001— 5,000 square feet..... .. . 1,000.00 ticular licensee, the council shall impose the pre-
5,001-10,000 square feet........ 1,500.00 sumptive penalty for the violation or violations
10,001 square feet or more. . . .. . . 2,000.00 giving rise to the subsequent appearance without
(c) Multiple violations. At a licensee's first ap- regard to the particular violation or violations
pearance before the city council,the council shall that were the subject of the first or prior appearance.
consider and act upon all the violations that have (e) Computation of time:
been alleged and/or incorporated in the notices �1) If a licensee appears before the council for
sent to the licensee under the administrative pro- any violation in paragraph (b) where that
cedures act up to and including the formal notice �olation has occurred within eighteen(18)
of hearing.The council in that case shall consider calendar months after the first appearance
-� �' the presumptive penalty for each such violation
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2196.1
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§ 409.26 LEGISLATIVE CODE � :�:�=�Y;z
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of the same licensee for a violation listed in (g) Effect of responsible business practices in
paragraph(b)above,the current appearance determining penalty. In deter�fining the appro-
shall be treated as a second appearance for priate penalty,the council may, in its discretion,
the purpose of determining the presump- consider evidence submitted to it in the case of
tive penalty. uncontested adverse actions or submitted to a hear-
(2) If a licensee has appeared before the coun- ing examiner in a contested hearing upon which
cil on two (2) previous occasions, both for �ndings of fact have been made that a licensee _
violations listed in paragraph(b)above, and has followed or'is likely to follow in the future
if said licensee again appears before the responsible business practices in regard to sales
council for a violation listed in said para- to intoxicated persons and sales to minors.
graph (b), and if the current violation oc- (1) For the purposes of service to intoxicated
curred within thirty (30) calendar months persons, evidence of responsible business
of the violation that gave rise to the �rst practices may include,but is not limited to,
appearance before the council, then the cur- those policies, procedures and actions that
rent appearance shall be treated as a third are implemented at time of service and that:
appearance for the purpose of determining
presumptive penalty. a. Encourage persons not to become in-
toxicated if they consume alcoholic bev-
(3) If a licensee has appeared before the coun- erages on the defendant's premises;
cil on three(3)previous occasions, each for b. Promote availability of nonalcoholic bev-
violations listed in paragraph(b)above, and erages and food;
if said licensee again appears before the c. Promote safe transportation alternatives
council for a violation listed in paragraph other than driving while intoxicated; _
(b) above, and if the current violation oc- d. Prohibit employees and agents of de- �i'�-�°�
curred within fo -ei ht(48)calendar months fendant from consumin alcoholic bev- �'"
;
g .'
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,:�..
of the violation that gave rise to the first erages while acting in their capacity ��'�
appearance, then the current appearance as employee or agent;
shall be treated as a fourth appearance for e. Establish promotions and marketing
the purpose of determining the presump- efforts that publicize responsible busi-
tive penalty. ness practices to the defendant's cus-
(4) Any appearance not covered by subsections tomers and community;
(1),(2)or(3)above shall be treated as a first f. Implement comprehensive training
appearance. In case of multiple violations procedures;
in any appearance, the date to be used to g• Maintain an adequate, trained number
measure whether eighteen (18), thirty (30) of employees and agents for the type
or forty-eight(48)months has elapsed shall and size of defendant's business;
be the date of the violation last in time at h. Establish a standardized method for
the first appearance, and the date of the hiring qualified employees; and
violation first in time at any subsequent i. Reprimand employees who violate em-
ployer policies and procedures.
appearance.
(� Other penalties. Nothing in this section shall �2) For the purposes of service to minors, evi-
restrict or limit the authority of the council to dence of responsible business practices may
suspend up to sixty (60) days, revoke the license, include, but is not limited to, those listed
or impose a civil fine not to exceed two thousand in subsection(1)and the following:
dollars ($2,000.00), to impose conditions or take a. Management policies that are imple-
any other adverse action in accordance with law, mented at the time of service and that
provided,that the license holder has been afforded ensure the examination of proof of iden-
an opportunity for a hearing in the manner pro- tification (as established by state law) n.+.,
vided for in Section 310.05 of this Code. for all persons seeking service of alco- � h; .
F �{�.
Supp.No.10 ��`
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2196.2
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LICENSES 4 409.26
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holic beverages who may reasonably
be suspected to be minors; �-
b. Comprehensive training of employees
who are responsible for such examina-
tion regarding the detection of false or
altered identification.
(Ord. No. 17556, § 1, 4-28-86; Ord. No. 17657, § _
14, 6-8-89; Ord. No. 17675, § 1, 8-22-89; Ord. No. '
17694, § 2, 11-7-89)
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holic beverages who may reasonably
be suspected to be minors; �-
b. Comprehensive training of employees
who are responsible for such examina-
tion regarding the detection of false or
altered identi�cation.
(Ord. No. 17556, § 1, 4-28-86; Ord. No. 17657, § _
14, 6-8-89; Ord. No. 17675, § 1, 8-22-89; Ord. No. '
17694, § 2, 11-7-89)
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21962.1
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LICENSES $ 40925
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have been expended for lawful purposes,that the for compensation for services as a gambling
calendar-year total of contributions received as a, manager. �_
result of its status as an eligible recipient does �5) All gambling managers must successfully
not exceed four thousand dollars($4,000.00),that complete a training program established
it does not operate any gambling activities, and
that no such contribution or any previous contri- by the city, which training program shall
bution will be or has been used for capital ex- include state charitable gambling laws,city
penses, salaries or travel expenses except as may charitable gambling ordinances, accounting -
be allowed herein. Notwithstanding the forego- Procedures, record keeping and reporting
ing, an eligible recipient may receive up to four Procedures and methods.
thousand dollars ($4,000.00) in additional funds (Ord. No. 17321, § 6, 12-31-85; Ord. No. 17666, §
from any organization or organizations conduct- 1,7-13-89; Ord. No. 17678, § 2,8-29-89)
ing charitable gambling so long as no part of said �c. 40925. Temporary wine and liquor li-
additional funds are counted toward said organi-
zation's obligation hereunder to contribute ten censes.
(10)percent of its net profits to eligible recipients. (a) Wine licenses. Notwithstanding any other
(� Alternate compliance. Notwithstanding any haritable,�el gious ortveterans organizat npmay
provision of law to the contrary, any organization obtain on-sale license to sell wine not exceeding
conducting charitable gambling within the City fourteen (14) percent alcohol by volume for con-
of Saint Paul may satisfy its obligations under sumption on the licensed premises only. The fee
paragraph(d)above and Sections 402.10,404.10(6) for such license shall be one hundred thirty-five
and 409.22(n)of the Code to give ten(10)percent
of its net profits to eligible recipients by, in lieu dollars ($135.00) per day, and licenses shall be
� ��°; thereof, contributing such ten(10)percent volun- issued for periods not to exceed three(3)consecu-
'=�' tarily to the fund established under Section 40923 tive days: No organization shall be granted more
of the Code. than two(2)such licenses per calendar year.
(Ord.No. 17652, § 4, 6-1-89) (b) Liquor licenses. Notwithstanding any other
provision of this chapter, a club or charitable,
Sec. 409.24. Gambling managers. religious or other nonpro�t organization in exis-
tence for at least three (3) years may obtain on-
No person shall be a manager of any charitable s�e license to sell intoxicating liquor for consump-
organization selling pull-tabs and tipboards in on- tion on the licensed premises only and in connec-
sale liquor establishments unless licensed by the tion with a social event within the city sponsored
city as provided herein and compliance with the by the licensee. The license may authorize on-
following requirements: sales on premises other than premises the licen-
(1) Application for gambling manager license see owns or permanently occupies. The license
shall be made at the office of license in- may provide that the licensee may contract for
spector on forms provided by said office. ��xicating liquor catering services with the holder
The annual license fee is one hundred dol- of a full year on-sale intoxicating liquor license
lars($100.00), issued by the City of Saint Paul. The fee for such
license shall be one hundred thirty-five dollars
(2) Gambling managers shall meet all the re- ($135.00)per day, and shall be issued for not more
quirements of Minnesota Statutes, Chap- than three (3) consecutive days. No organization
ter 349, and must file proof that a ten thou- . shall be granted more than two (2) such licenses
sand dollar ($10,000.00) �delity bond has per calendar year.
been provided.
: (c) Application. Application for such temporary
(3) Reserved. licenses shall be made on forms provided by the
(4) Gambling managers may not receive more inspector and shall contain such information as
��: 'tnax�one lYtuidred d,nllars f$lU0 4�)per week ���by the inspector,including the following:
���?� Supp �0:9' ' `e;; _ __
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§409.25 LEGISLATNE CODE . �� '
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(1) The name, address and purpose of the or- director may require the inspector to issue such
ganization, together with the names and .license before receiving any reco�iimendations on
addresses of its officers. the application therefor if necessary to issue such
(2) The purpose for which the temporary license license on a timely basis.
is sought, together with the place, dates ��rd.No. 17459, § 1,5-28-87;Ord.No. 17569, § 4,
and hours during which wine or intoxicat- 6-7-88�
ing liquor will be sold. Sec. 409.26. Intoxicating liquor;nonintoxicat-
(3) Consent of the owner or manager of the ing malt liquor;presumptive pen-
premises, or person or group with lawful alties.
responsibility for the premises. (a) Purpose. The purpose of this section is to
(4) Evidence that the applicant has obtained establish a standard by which the city council
and has in force a bond in accordance with determines the length of license suspensions and
Section 409.06(j),and liability insurance in the propriety of revocations,and shall apply to all
accordance with Minnesota Statutes 1986, on-sale and off-sale licensed premises for both
Section 340A.409. intoxicating liquor under this chapter and nonin-
toxicating liquor under Chapter 410. These pen-
(d) Application of other prouisions of this cha�r alties are presumed to be appropriate for every
ter. No other provisions of this chapter shall apply case; however the council may deviate therefrom
to licenses granted under this section,except Sec- in an individual case where the council finds and
tions 409.06, 409.07, 409.08 (except clauses (11) determines that there exist substantial and com-
and(12)), and Sections 409.09 through 409.14. pelling reasons making it more appropriate to do
so.When deviating from these standards the coun- �-
(e) Class li Zicense. Notwithstandin an other �"'
g y cil shall provide written reasons that specify why �����`';
provision of law to the contrary, the temporary the penalty selected was more appropriate. ����;;;�
wine and liquor licenses provided in this section �a•=�=�
shall be administered as a Class II license, and (b) Presumptive penalties for violation� Adverse
subject to the provisions of these chapters govern- penalties for convictions or violations shall be
ing Class II licenses.The inspector shall make all presumed as follows (unless specified, numbers
referrals as provided by Section 310.03, but the below indicate consecutive days' suspension):
Appearance
Type of Violation Ist 2nd 3rd 4th
(1) Commission of a felony related to the li- Revocation NA NA NA
censed activity.
(2) Sale of alcoholic beverages while license Revocation NA NA NA
is under suspension.
(3) Sale of alcoholic beverages to under-age 3 6 18 Revocation
person.
(4) Sale of alcoholic beverage to intoxicated 3 6 18 Revocation
person.
(5) After hours sale of alcoholic beverages. 3 6 18 Revocation
(6) After hours display or consumption of al- 2 4 12 Revceation
coholic beverage.
Gity ot St. Pau1 vs. N K INC �� �;
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Supp.No.9 of St. Paul ci.b.a. tlichaels }�=�. -
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- HeariBg date: Ei�y 11, 199Q
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- _ �� -/�9 �
LICENSES $ 409.08
Sec. 409.08. Regulations generally. �
All licensees hereunder are hereby required to '�-
observe the following regulations; provided,how-
ever that any such regulation which spec�cally
refers to an on-sale licensee shall not bind an
off-sale licensee, nor shall any regulation which
spec�cally refers to an off-sale licensee bind an , -
on-sale licensee:
(1) All sales shall be made in full view of the
public.
Ci ty of St. Pa�11 vs. H K ItIC
of St. Pdul ci.b.a. �iicha�ls
Hearl�g date: �'�� 1 > zJ�O -
City's Exhi�i� �_ t� �
Supp.No.9
2i�s.1
. �'v-/as�
4��,h LICENSES §409.08
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(2) A "minor," as used herein, is any person waiters or waitresses at a restaurant,hotel
under the age of twenty-one(21)years. or motel where onl�-wine is sold; provided,
a. No licensee,or agent or employee thereof, that the person under the age of eighteen
shall serve or dispense upon the licensed (18)may not serve or sell any wine.
premises any intoxicating liquor to any (5) Every licensee is hereby made responsible
minor; nor shall such licensee, agent for the conduct of his place of business and
or employee permit any minor to be required to maintain order and sobriety in �
furnished with or to consume any such such place of business.
liquor on the licensed premises; nor
shall such licensee, agent or employee (6) No licensee shall keep, possess or operate,
permit any minor to be delivered any or permit the keeping,possession o: opera-
such liquor. tion of, on any licensed premises or in any
b. No minor shall misrepresent his or her room adjoining the licensed premises an�
age for the purpose of obtaining intox- slot machine, dice or any gambling device
icating liquor nor shall he or she enter or apparatus, nor permit any gambling
any premises licensed for the retail sale therein(whether or not licensed by the state},
of intoxicating liquor for the purpose nor permit the licensed premises or any
of purchasing or having served or de- room in the same or in any adjoining build-
livered to him or her for consumption ing directly or indirectly under his controi
of any such intoxicating liquor or beer to be used as a resort for prostitutes or
nor shall any such person purchase, other disorderly persons, except that pull-
attempt to purchase,consume,or have tabs and tip-boards may be sold on licensed
�`�=��;��� another person purchase for him or her premises when such activity is licensed by
Y�4 �';:>+ any intoxicating liquor or beer. the state pursuant to Minnesota Statutes,
��''��' c. No minor shall induce any person to Chnpter 349, and conducted pursuant to
purchase, procure or obtain intoxicat- regulations contained in this Legislative
ing liquor for him or her. Code. This exception shall not apply to es-
d. Proof of age for purposes of consuming, tablishments licensed by the city for the
purchasing or possessing an alcoholic sale of nonintoxicating malt beverages,non-
beverage, the consumption, sale or pos- intoxicating malt Ueverages and wine, and
session of which is regulated by age, nonintoxicating malt Ueverages and wine
may only be established by a valid as menu items only.
driver's license or a Minnesota Identi- Notwithstanding other provisions of this
fication Card issued pursuant to Min- Legislative Code to the contrary, the coun-
nesota Statutes, Section 171.07, or, in cil may permit an on-sale licensee to per-
the case of a foreign national, by a mit the holding of a single event,such as a
valid passport. banquet, that includes the sale of raffle
(3) No sale shall be made in any place or in tickets as a part of the event activity; pro-
part of a building where such sales are vided, that such events are separate from
prohibited by state law or this chapter. the public areas of the licensed establish-
ment, nor open to the general public, and
(4) No person under eighteen(18)years of age the raffle conducted by a charitable orga-
may be employed in a place where intoxi- nization licensed by the State of Minnesota.
cating liquor is sold for consumption on the (7) No dancing wherein the public participates,
premises,except persons under eighteen(181 and no dancing, singing or other vaudevillc
years of age may be employed as musicians exhibitions or entertainment shall be per-
or in bussing or washing dishes in a res- mitted on the premises of any on-sale li-
�,a,�s, taurant or hotel th�t is licensed to sell in- censee unless such premises are duly licensed
�"��; toxicating liquor and may be employed as for entertainment.
`"`� Supp.No.8
2179
§409.08 LEGISLATNE CODE ?�
5�;.�.»�.;
.. �.�;i�
(8) The license issued to said licensee shall be tional off-street parkin�shall'be,required
posted in a conspicuous place in that por- if the number of additional spaces re-
tion of the premises for which the license quired is five(5)or fewer spaces.
has been issued. c. Expansion of licensed area, off-strect
(9) No person shall remain in or loiter in the parkin�at the same rate as transfer or
parking lot of an on-sale licensee after the new issuance to an existing structure
lawful closing hour. not pr�viously licensed for on-sale pur-
poses, plus twenty-five (25) percent of
(10) When a licensee is notified by the police any parking shortfall for the existing
department that a parade will be held within licensed area. "Parking shortfall" shall
one block of_the licensee's establishment, mean the difference between one space
all beer and all intoxicating liquor or liq- for each forty-five (45) square feet of
uid of any type sold during the entire day patron floor area for the existing licensed
of said parade shall be sold only in plastic area minus the numl�er of parking spaces
or paper containers. In addition, upon re- actually provided for that area.
ceiving such.notice,the licensee shall place d. "Patron area" shall mean to include
a person at each entrance and each exit of all areas used by the public, and ex-
the establishment at least one hour prior � cludes all areas used exclusively by em-
to the time oP parade, and the licensee shall ployees for work,storage or of�ice space.
require a person to remain at those loca- e. Modification of parking requirements:
tions until one hour after the parade, to 1. The council may modify the off-
ensure that patrons do not enter or exit street parking requirements con-
with beer or intoxicatin li uor. �;•=�.,.,
g q tained in this section upon appli- ��,�-'��'�'�,.
cation made for that purpose and ����
(11) There shall be provided in all zoning dis- upon findings made by the council �'��
trict;s, other than B-4 or B-5 Districts, off- that granting of such modification
street parking spaces for all on-sale prem- would not have a substantial det-
ises as provided herein: rimental impact on the surround-
a. Transfer or new issuance to a struc- ing neighborhood. Modification, if
ture newly constructed for that purpose, granted, shall be by resolution
off-street parking at the rate of one adopted by at least five (5) �r-
space for each forty-five(45)square feet mative votes.
' of patron area. 2. The council shall consider the ap-
b. Transfer or new issuance to an exist- plication at a public hearing fol-
ing structure not previously licensed lowing mailed notice thereof to prop-
for on-sale purposes during the twenty- erty owners within three hundred
four (24) months preceding the appli- fifty (350) feet of the proposed li-
cation, off-street parking at the ral:e of censed premises. The council may
' one space for each forty-five (45)square require,by resolution,the payment
feet of licensed patron area minus the of an administrative processing fee
number of off-street parking spaces for parking modi�cation applica-
which would be required for the previ- tions. Applications and fees shall
ous use of the same area under the be made to the license inspector.
� exisLing zoning code provisions. �xist- 3. In granting any modification, the
ing parking which previously served council may attach reasonable con-
' the same area shall not be counted to ditions regarding the location, de-
meet the requirements unless any are sign, character and other features
? in excess of what would have been re- of the licensed structure and park-
? quired for the previous use. No addi- ing area deemed necessary for the �=�
i �;�;,�:a
; �'rr�%
i Supp.No.8 , ..«'.z:>
2180
- - �'o�J� 5'�
4�,__� LICENSES § 409.09
e. ..y. .3
�..:pr:::.;?.(c�;
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protection of the adjacent neigh- to prevent persons from leaving the licensed
borhood. premises with a bo�tle, can or glass con-
4. Off-street modifications shall remain taining any alcoholic beverage, and the fail-
with licensed premises so long as ure to do so may subject such licensee to
the characteristics of the licensed adverse action against his or her license.
establishment remain unaltered. In
the event parking problems arise, (17) No club shall sell any alcoholic beverage to
the council may consider taking any�erson not a member or a bona fide -
adverse action pursuant to the pro- �est of a member.
cedures set forth in Chapter 310 of �Code 1956, § 30823(1)—(10); Ord. No. 17015,
this Code.Such adverse action may 4-28-83; Ord. No. 17043, 8-9-83; Ord. No. 17173,
include requiring the licensee to 10-23-84; Ord. No. 17321, § 2, 12-31-85; Ord. No.
do one or more of the following: 17368, § 1, 6-24-86; Ord. No. 17436, § 1, 2-24-87;
(i) Provide more off-street parking; Ord.No. 17460, § 1,5-28-87;Ord.No. 17473, §§ 1,
(ii) Produce the usable floor space; 2,7-7-87; Ord.No. 17657, §§ 8,2,6-8-89; Ord.No.
(iii) Reduce patron capacity (seat- 17676, § 3, 8-24-89)
ing or bar area). �c. 409.09. Certain sexual conduct prohibited.
(12) When an existing building is converted to
on-sale intoxicatin li uor oses, exist- The following acts or conduct on licensed prem-
g q p� ises are unlawful and shall be punished as pro-
ing off-street parking facilities which serve
the building shall be provided with a vi- vided by Section 1.05 of the Saint Paul Legisla-
sual screen where the parking facility ad- tive Code: ,
joins or abuts across an alley any residen- (1) To employ or use any person in the sale or
�=���. tial use or residential zoning district. The service of alcoholic beverages in or upon
�",;:::�<�;`:^
�,�.�,�., screen shall be between four and one-half the licensed premises while such person is
"�°l (4'/z)and su�and one-half(6'/z)feet in height unclothed or in such attire,costume or cloth-
and of sufficient density to visually sepa- ing as to expose to view any portion of the
rate the parking facility from the adjacent female breast below the top of the areola or
residential use district.The screen may con- of any portion of the pubic hair, anus, cleft
sist of various fence materials, earth berms, of the buttocks,vulva or genitals.
plant materials or a combination thereof.
Access by patrons to the parking facility
from an adjacent alley should generally be
prohibited.
(13) No person shall give, sell, procure or pur-
chase intoxicating liquor to or for any per-
son to whom the sale of intoxicating liquor
is forbidden by law.
(14) No person shall mix or prepare intoxicat-
ing liquor for consumption, or consume it,
in any public place not licensed in accord-
ance with this Code and the State of Min-
nesota.
(15) No intoxicating liquor shall be sold or con-
sumed on a public highway or in an auto-
mobile.
(16) Each on-sale licensee shall have the responsi-
;_��;;,
�:� ��'� blity of taking reasonable and adequate steps
'F��.,y��� Supp.No.9
`,.
2180.1
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I hereby certify that these are the true and accurate copies of
the record of the License and Permit Division of the City of
Saint Paul for H K Inc of Saint Paul DBA Michael's at 1179 East
7th Street.
J dalen, Office nager
A /�'� �0 ' ���
Ltll L
A
M^�
'`"'�� KRISTINA L.VAN HORN �
% .�
���NOTARV PUBUC—MINNESOTu ;
'�•� DAKOTA COUNTY
My Commission Expires Jan.2, !9g� �
v��n�wvvwv�ti
�-�`-"'� �_ �;:Lti..�`�i'��.�
City of St. Pa��1 vs. H K IFlC
of St. Pau1 a.C.a. ��tich�Nls
Hea�iq9 dat�: ;,;3y �1, z99n
City's Exhi�i� � 2
� � . - _ � _ qa--1a��
H K INC. OF ST. PAUL , �N SALE LIQUOR
� dba Michael's
Michael Jahn Ha�lo President
Michael James Kalis Secretary/Treasurer
�-
1179 E 7th Street-55106 •� � � ID4�4926799
H K Inc of St Paul dba Michael's
Entertainment-I 16289 1-31-91
Off Sale Malt 16289 1-31-91
Restaurant(B) 16289 1-31-91 -
. . . . - - � 11?9 E• ?th Street 55106'' ''' ID#4926799
H & K, Inc of St. Paul dba�Michael's
Offe�le�Malt R�2S9 1 31-86
' H K Inc of St Paul dba Michael's
Entertairnnent S00813 1-31-87
Off Sale Malt 500813 1-31-87
� �� "' Entertairnnent 16289 T-31-88
Off Sale malt 16289 1-31-88
Restaurant B 16289 1-31-88
_ " " " Restaurant B 16289 1-31-89
Off Sale Malt 16289 1-31-89
Entertairnnent A 16289 1-31-g9
�� " Entertairmient 1 16289 1/31/90
Off Sale Ma1t 16289 1/31/90
Restaurant B 16289 1/31/90
: . � ���/�s�
::. . . . _ . .:_ _ :_ _ �
� . , „ � . . '` ` � �`.\;
.�. .�v r/r ,.:. . :� /%f� .' /f��:-_�t r _ �,�,;ti l,,,. �. a,�
�- ,! {, .ti s . / /�.. ,+� : �.\ ^ tii.
� f/l'%�i.�y l��i: , �+a.i -i �����,�� �:�"" � :.. :': . �� � '�-s- ' t. _ _ . . � ..
- � 1�'�9 E:���7th�Street 55�;�5�� �:
� H K iNC OF ST.��PAIJL ,
i dba Micha.el's ID #'4926799 � v
, O t 1 S a l e L i q u o r 16289 1/31/90
� , Sunday Liquor
16289 1/31/90
, On Sale Liquor.(C) 16289 1-31-91
! : Sunday Liquor 16289 1-31-91
�. .
.�-. . , .
fi.
i
11654
MN3LL88901�62L� 1��51/90en Nat'1
1/31/85 Great American Ins. Co. Bo
�6�gSJ-Far�Glen�at'1 Ins.
Liq liab NQVLL890162 canc eff 9-1�9
� 9-18-89 Park G1en�Nat'1 Ins. Co.
Liq Liab Pol# I�W LL 890 162
reinstated with no lapse in coverag
on 9-18-89
�: � � 1-3.1-90 Liq :Liab-Park Glen Nat'1
, ,, 4�MNLL9UU126, Ex 1-31-91
::,; , -:-;
- - _ F:� P
_ - . - ° _ '3-28-90 Liq Liaki) Park-61en Nat'1
Ins Pol I�Ai LL 900 126 canc
eff 4-7-90
4-6-90 Park Glen National Ins Co.
� �� liquor liability pol#MN LL 900 126
� reinstated with no lapse inpolicy
reinstated eff 4-5-90
.
I .
�� - ! � ��
City of St. Pa+zl vs. H K ItJC
of St. Paul d•c.a. ��1ich�cals
Hea�i� date: �•'u�y I 1, 2990
City's Exhi�i� ���„^
Affldavit of Servlce By Mall
�fate of �intte�ota�, .
Ramse �
ss.
CountJof............... ........y................._............_.._....._.
_..................... _,..._JOANNE .G: .CLEMENTS ,, , beFng firs ly sworn, deposes and eays
............ .....
......_. . ........._...... •--_...........__..
.
tliat on.....A.p��,.�..,6............:................. 1� .�0�..� s he aerved the attacJz ��ot�C2 0 _earing
...... ...................... . ......... ......... ...�.... .._._.......�...upon...... Mr Dennis�o�inson_._._............_..�..............._...._._....._...__..........._..._
.__.... ,
............._..... ..................._.....__...._........._.._
�.'�X�E�•�X��4X.........................••••-................_...._......_..._..............._._.....»... ._...__.___ ...b� placing a• Erue
�xncl currect copJ thereof in an envelqpe addressed cts followa: Mr. Dennis Jo�i.nson ����
Chestnut & Brooks
3700 P'i�,er Jaffray. Tower
222 South Ninth Street
Minnea lis , MN. 55402
(rvhick is th,e last lcnown,addr�,s s o sdid attorney) dnd depositin� e sa e, with p t e d trz nitecl
States mails at........._._...Saint Y311� , MtnneBO - �
..............••-......._........._.......
,Szcbsci�ibcd and suorn to beforc me a�zt,.......6th.___.._.__ '
.
cta ...... .�.�.]........... ... .....:........ . ..9� ----•- -- . ._ . ......_...........---�---..................._....._
. .........
-•.. _.. _.
.. .. ...
. ..
-�--..... .
... ....- -•.............. ......... �
..... . ............. .....NO�wr
. .�� � �Y��SO?A
_ oa��.a+�r _
i � '
� - 9o-1a��
. • •
,`'__�.• CITY OF SAINT PAUL
a~+ �� —
+ =�n�um v OFFICE OF THE CITY ATTORNEY
. �
�...
JANE A. MC PEAK, CTTY ATTORNEY
647 City Hall,Saint Paul,Minnesota 55102
612-298-5121
JAMES SCHEIBEL FAX 612-298-5619
MAYOR
April 5, 1990
NOTICE OF HEARING
Mr. Dennis Johnson
Chestnut & Brooks
3700 Peiper Jaffray Tower
222 SOuth Ninth Street
Minneapolis, MN 55402
RE: City of St. Paul vs H K INC of St. Paul, d/b/a Michael 's, 1179
East 7th Street
Dear Mr. Johnson:
This is to notify you that the hearing will be held concerning all
the licenses held at the premises stated above at the following
time, date and place:
Date: May 11, 1990
Time: 9 a.m.
Place: Room 1503A
City Hall Annex
25 West Fourth Street
St. Paul, MN 55102
The judge will be an Administrative Law Judge from the State of
Minnesota Office of Administrative Hearings:
Name: Al1en E. Jiles
State of Minnesota
Office of Administrative Hearinqs
Fifth Floor, Exchange Buildinq
310 Fourth Avenue South
Minneapolis, Minnesota 55415
Telephone: (612) 341-7600
The Council of the City of Saint Paul has the authority to provide
for hearings concerning licensed premises, and for adverse action
against such licenses, under Chapter 310, including sections 310.05
and 310.06, of the Saint Paul Legislative Code. In the case of
licenses for intoxicating and non-intoxicating liquor, authority
. � � � � ��--/as�
April 6, 1990
Page two
Mr. Dennis Johnson
is also conveyed by section 340A.415 of the Minnesota Statutes.
Adverse action may include revocation, suspension, fines and other
penalties or conditions.
Evidence will be presented to the judge which may lead to adverse
action against all the licenses you hold at the above premises as
follows:
On or about January 19, 1990, you permitted gambling on
the licensed premises, allowinq persons renting a portion
of the establishment to conduct a variety of different
types of gambling for cash, activities which were known
to you and to employees of the Lounqe.
You have the right to be represented by an attorney before and ,
during the hearing if you so choose, or you can represent yourself.
You may also have a person of you choice represent you, to the
extent not prohibited as unauthorized practice of law.
The hearing will be conducted accordance with the requirements of
sections 14.57 to 14. 62 of the Minnesota Statutes, and such parts
of the procedures under section 310.05 of the Saint Paul
Legislative Code as may be applicable.
At the hearing, the Administrative Law Judge will have all parties
identify themselves for the record. Then the City will present its
witnesses and evidence, each of whom the licensee or attorney may
cross-examine. The licensee may then offer in rebuttal any
witnesses or evidence it may wish to present, each of whom the City
attorney may cross-examine. The Administrative Law Judge may in
addition hear relevant and material testimony from persons not
presented as witnesses who have substantial interest in the outcome
of the proceeding; for example, the owners or occupants of property
located in close proximity to the licensed premises may have
substantial interest in the outcome of the proceeding. Concluding
arguments may be made by the parties. Following the hearing, the
Judge will prepare Findings of Fact, Conclusions of Law, and a
specific recommendation for action to be taken.
You should bring to the hearing all documents, records and
witnesses you will or may need to support your position. Subpoenas
may be available to compel the attendance of witnesses or the
production of documents in conformity with Minnesota Rules, part
1400.7000.
If you think that this matter can be resolved or settled without
a formal hearing, please contact or have your attorney contact the
. � � s • • �J — � � ��
April 6, 1990
Page two
Mr. Dennis Johnson
undersigned. If a stipulation or agreement can be reached as to
the facts, that stipulation will be presented to the Administrative
Law Judge for incorporation into his or her recommendation for
Council action.
If you fail to appear at the hearing, the allegations against you
which have been stated earlier in this notice may be taken as true
and your ability to challenge them forfeited. If non-public data
is received into evidence at the hearing, it may become public
unless objection is made and relief requested under Minnesota
Statutes, section 14. 60, subdivision 2 .
Very Truly Yours,
PHILIP B. BYRNE
Assistant City Attorney
cc: Robert Kessler
Acting License Inspector
Albert B. Olson
City Clerk
Paige Purcell
Office of Administrative Hearings
Lt. Daryl Olson
Vice Unit
Ms. Patricia Rife
C. O. District 5
. �
3 - �la ( — �{(� a 3 - c�
QLTT O� �.rv�� � 90 ����
�'�~ �r
��� CITY OF SAINT PAUL
° ' g 1990 -
; ����„��y ; ��R OFFICE OF THE CITY ATTORNEY
+• AO !'��
.... ��11N��
JANE A. MC PEAK, CITY ATTORNEY
�A� 64'7 City Hall,Saint Paul,Minnesota 55102
612-29&5121
JAMES SCHEIBEL FAX 612-298-5619
MAYOR
April 5, 1990
NOTICE OF HEARING
Mr. Dennis Johnson
Chestnut & Brooks
3700 Peiper Jaffray Tower
222 SOuth Ninth Street
Minneapolis, MN 55402
RE: City of St. Paul vs H K INC of St. Paul, d/b/a Michael 's, 1179
East 7th Street
Dear Mr. Johnson:
This is to notify you that the hearing will be held concerning all
the licenses held at the premises stated above at the following
time, date and place:
Date: May 11, 1990
Time: 9 a.m.
Place: Room 1503A
City Hall Annex
25 West Fourth Street
St. Paul, MN 55102
The judge will be an Administrative Law Judge from the State of
Minnesota Office of Administrative Hearings:
Name: Allen E. G�iles
State of Minnesota
Office of Administrative Hearinqs
Fifth Floor, Exchanqe Buildinq
310 Fourth Avenue South
Minneapolis, Minnesota 55415
Telephone: (612) 341-7600
The Council of the City of Saint Paul has the authority to provide
for hearings concerning licensed premises, and for adverse action
against such licenses, under Chapter 310, including sections 310.05
and 310. 06, of the Saint Paul Legislative Code. In the case of
licenses for intoxicating and non-intoxicating liquor, authority
~ � � '/ � / �-
April 6, 1990
Page two
Mr. Dennis Johnson
is also conveyed by section 340A.415 of the Minnesota Statutes.
Adverse action may include revocation, suspension, fines and other
penalties or conditions.
Evidence will be presented to the judge which may lead to adverse
action against all the licenses you hold at the above premises as
follows:
On or about January 19, 1990, you permitted qamblinq on
the licensed premises, allowinq persons renting a portion
of the establishment to conduct a variety of different
types of qambling for cash, activities which were known
to you and to employees of the Lounqe.
You have the right to be represented by an attorney before and .
during the hearing if you so choose, or you can represent yourself.
You may also have a person of you choice represent you, to the
extent not prohibited as unauthorized practice of law.
The hearing will be conducted accordance with the requirements of
sections 14 .57 to 14.62 of the Minnesota Statutes, and such parts
of the procedures under section 310.05 of the Saint Paul
Legislative Code as may be applicable.
At the hearing, the Administrative Law Judge will have all parties
identify themselves for the record. Then the City will present its
witnesses and evidence, each of whom the licensee or attorney may
cross-examine. The licensee may then offer in rebuttal any
witnesses or evidence it may wish to present, each of whom the City
attorney may cross-examine. The Administrative Law Judge may in
addition hear relevant and material testimony from persons not
presented as witnesses who have substantial interest in the outcome
of the proceeding; for example, the owners or occupants of property
located in close proximity to the licensed premises may have
substantial interest in the outcome of the proceeding. Concluding
arguments may be made by the parties. Following the hearing, the
Judge will prepare Findings of Fact, Conclusions of Law, and a
specific recommendation for action to be taken.
You should bring to the hearing all documents, records and
witnesses you will or may need to support your position. Subpoenas
may be available to compel the attendance of witnesses or the
production of documents in conformity with Minnesota Rules, part
1400.7000.
If you think that this matter can be resolved or settled without
a formal hearing, please contact or have your attorney contact the _
T f !
�� �la��
April 6, 1990
Page two
Mr. Dennis Johnson
undersigned. If a stipulation or agreement can be reached as to
the facts, that stipulation will be presented to the Administrative
Law Judge for incorporation into his or her recommendation for
Council action.
If you fail to appear at the hearing, the allegations against you
which have been stated earlier in this notice may be taken as true
and your ability to challenge them forfeited. If non-public data
is received into evidence at the hearing, it may become public
unless objection is made and relief requested under Minnesota
Statutes, section 14. 60, subdivision 2.
Very Truly Yours,
PH IP . BYRNE
Assistant City ttorney
cc: Robert Kessler
Acting License Inspector
Albert B. Olson
City Clerk
Paige Purcell
Office of Administrative Hearings
Lt. Daryl Olson
Vice Unit
Ms. Patricia Rife
C. O. District 5
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�~ �. 1 CTTY OF SAINT PAUL
O A
� �_��;� o OFFICE OF THE CITY ATTORNEY
. �
�...
JANE A. MC PEAK, CITY ATTORNEY
647 City Hall,Saint Paul,Minnesota 55102
612-298-5121
JAMFS SCHEIBEL FAX 612-298-5619
MAYOR
CITY�B EXHIBIT
CITY OF 8T. PAUL VS. H R INC OF ST. PAIIL d/b/a Michaels
Administrative Law Hearing, Hearing Date: May 11, 1990
EBHIBIT:
1. Notice of Hearing and Affidavit of Service.
2. Certified copies of City of St. Paul, license division
records, indicating licenses held by H K Inc.
3 . Chapter 310 of the Saint Paul Legislative Code, Uniform
License Procedures.
4. Chapter 409. 08 of the Saint Paul Legislative Code,
Regulations generally.
5. 409.26(b) (8) of the Saint Paul Legislative Code,
Presumptive penalties for violations.
6. Minn. Stat. § 340A.410 License Restrictions; General
7. Police reports of Lt. Daryl Olson (CN 90 007 959) ,
includes a two page property record report.
-.
7A. Police reports of Sgt. Andy Gohl (CN 90 007 959) ,
includes a two page property record report.
7B. Police report of Sgt. Andy Ghohl (CN 90 007 959) ,
interview of Steven James Rodriquez and John Steven
Peterson.
7C. Police report of Sgt. Rick Klein, (CN 90 007 959) ,
interview of Michael Jerome Ritt�r and Thomas James
Kunshier.
7D. Supplementary r�' ' ,(``t� icer Peck, (CN 90 007
959) , regardin r -J includes a eight page
property recor� � C�
U
7E. Police property p icer M. Simmons, (CN
90 007 959) . ��,�
7F. Police report of ,avis, referencing photos
taken.
8. Exhibit No 8 through 8P, photos taken by Officer M. Davis.
9. Physical evidence: dice, cards, poker chips, tipboards
and football boards