84-485 �NHITE - CITV CLERK
PINK - FINANGE G I TY O F SA I NT PA LT L Council /� �/�
CANARV - DEPARTMENT File NO• v� 4�
BLUE - MAVOR
�ity Attny'PBB Council Resolution
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Presented By � '' ' �
�
Referred To Committee: Date
Out of Committee By Date
WHEREAS , the Council has been advised that officials of the
Minnesota Department of Revenue have seized the papers evidencing
possession of an intoxicating liquor license, and have announced
their intent to attempt to sell and transfer the license on
April 19, 1984; now, therefore, be it
RESOLVED, that the Council adopts and approves the statement
of position contained in the attached Notice, and requests that
the License Inspector and City Attorney or their delegates provide
a copy of this Notice to persons at the purported auction of the
license on April 19, 1984; and be it
FURTHER RESOLVED, that the Council intends to maintain its
obligations , rights and discretion concerning the issuance and
transfer of liquor licenses and who are proper persons to hold
such privileges , including the particular license involved herein.
COUNCILMEN Requested by Department of:
Yeas Nays
Fletcher �
Drew [n Favor
Masanz
Nicosia
Scheibel � __ Against BY
Tedesco
, Wilson
APR 1 2 1984 Form Ap oved by City Attorney
Adopted by Council: Date -
Certified P s ed Counc� ec r By . � • �/Z-�'�
By
Appr a or: Date � 6 �98� Approved by Mayor Eor Submission to Council
y By
� PUBtISHED APR 2 1 1984
, /�+ �l� �J ���
NOTICE
Saint Paul Legislative Code , Section 310 . 11, Subdivision 1 ,
provides :
"Subdivision 1 . License a �rivile e, not
�ro e�rty. Al1 licenses or permits issue by
the ci.ty of Saint Paul pursuant to these
chapters or other ordinances or laws confer
a privilege on the licensee to engzge in the
activity or occupation so licensed, and do
not constitute property or property rights
or create any such rights in any licensee.
No such license or permit may_be seized,
levied upon, attached, executed upon,
assessed or in any manner taken for the
purpose of satisfaction of any debt or
obligation whatever . "
The Minnesota Supreme Courtjhas repeatedly held that a liquor
license is a privilege and not a property right. See, e .g�. , Arens
v, Village of Rogers , 240 rlinn. 386, 61 N.tid. 2d 508 (1953) .
Minn. Stat . §340. 135 (1982) provides that before the City of
St . Paul can revoke an intoxicating liquor license, the license
holder must be afforded an opportunity for a hearing pursuant to
the state administrative procedure a:ct. Such a hearing has not
been held, nor do there appear to be sufficient grounds for such
revocation at this time .
The City of St . Paul has heretofore consistently taken the
position, based on state and local law, that an intoxicating
liquor license is neither property nor a prop erty ri�ht . Such a
� license �s a privilege , personal to the holder, accorded to the
holder to operate that particular business . The City has not
recognized attempts to create security interests in licenses , nor
the power to levy on licenses to satisfy debts or judgments .
It is solely within the discretion of the City, acting through
its Council and Mayor , as to when and to whon such licenses will
be transferred. Consent of an existing licer_se holder has been
a prerequisite to all transfers . In addition, no successful bidder
at a tax auction sale will be able to acquire the license or the
privilege to operate the business , unless the Council determines
that the prospective licensee is fit and suitable.
All prospective bidders should be on notice that the City
does not reco,�nize a successful bidder as the rolder of an on-
sale intoxicating liquor license , that any d��ges or expenses
•`s
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incurred cannot be satisfied out of the license or public funds ,
and that the City reserves its rights to seek reimbursement for
attorneys fees , costs , damages and any other expenditures caused
by this purported auction or sale of a license.
You may contact for further information Joseph F . Carchedi ,
License Inspector , 298-5056 , or Phili� B. Byrne, Assistant City
Attorney, 298-5121 . .
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