84-1144 WHIYE - CITV CLERK
PINK - FINANCE
CANARV - OEPARTMENT GITY OF SA.INT PAUL COl1I1C11 ), ,/
BLUE� -1.AAVOR File NO. � • -/� �/
City Attny/PBB •
• Ordin�znce Ordinance N 0. �����
Presented By ������
�q/ Referred To �` � �"r���/ Committee: Date ��3��
Out of Committee By ' Date
An ordinanc� to restrict the transferability
of on-sale intoxicating liquor licenses , provide
for the redemption and re-issuance of such
licenses , establish priorities for the issuance
of such licenses, and for other purposes .
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
The first paragraph of Section 409. 03 of the St. Paul
Legislative Code is hereby amended to read as follows :
"409. 03 . Number of licenses . "On sale" licenses
shall be issue on y to hotels , clubs , restaurants ,
and establishments for the sale of "on sale" liquors
exclusively. 8�.�� eae s�.ek ��ee�.se sk.a�� be �sst�ed
�e� e�e��* �;3AA �xka�}�ar�.�e �t� �k.e e���*; exb�ee� �e
a �a���x�.� e� �AA s�.el� ��eexses-"
Section 2
The second and third paragraphs of Section 409. 05 of the
St. Paul Legislative Code ,are hereby amended to read as follows :
"Said sum shall be paid in two equal amounts , the
first to be paid befare February 1 of each year,
the second payment ta be made before August 1 of
each such year. The licensee must present his
COUNCILMEN '
Yeas Nays ,Requested by Department of:
Fletcher '
Drew [n Favor
Masanz
Nicosia g
Schelbel A gai ns t Y
Tedesco
W ilson
Adopted by Council: Date Form App v d by City tt ey
Certified Passed by Council Secretary gy " ��Zs�
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By By
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original license to the inspector when paying the
second half fee due before August l , e� ��. �ke
e�ea� ��ee�.see agg��es �e� a ��a�s�e�; ea}d e�}���a�
��.ee�.se rRt�s� aeee�paa� �ke apg��ea��er�. �e� ��ar�.s�e�-
�� �k.e ��.ee�.see agg�}es �s� a ��aas�e� e� �ke •��ee�se
be�e�e At�gt3.s� � e� a�.� �ea�; �l�e ��eer�see x�t�.s� pa�
�ke �e�a}a��.� ba�a�.ee e� �ke ��ee�se �ee dt�e �e�e�e
�ke apg��ea�}e�. �xa� be p�eeessed-"
Section 3
Section 409 . 06 , subd. 1(2) , of the Saint Paul Legislative
Code is hereby amended to read as follows :
" (2) The location of the premises upon which the
applicant proposes to sell such liquor and an exact
description, includin the roposed floor lan and
seating capacity, o the particu ar p ace wit in the
building structure where such sales are proposed. "
Section 4
Section 409 . 11 of the Saint Paul Legislative Code is hereby
amended by designating the entire existing section as subparagraph
(1) , and by adding the following new subpara�raphs (2) and (3) :
" (2) Notwithstanding any other provision in the
Saint Paul Legislative Code, no "on sale" license
shall be transferable from person to person; provided
however that until Dec . 31 , 1989 , such license may be
transferred from person to person if the following
requirements are met :
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(a) the consideration for the transfer,
whether expressed as payment for the license
or for the transferor' s consent to the trans-
fer, shall not exceed the license redemption
value under section 409 . 19 at the time the
transfer is approved;
(b) the transferee may operate said "on
sale" license for the twenty-four month
period next followin� the approval of the
transfer only in a commercial development
district as defined in section 17 . 07 of
the city charter; and
(c) the "on sale" licensed business of
the transferor has for the six months pre-
ceding approval of the transfer discontin-
ued its operation or closed for any reason.
From and after January 1 , 1990, no "on sale" license
shall be transferable from person to person.
(3) Notwithstanding any other provision in the Saint
Paul Legislative Code, an "on sale" license may be trans-
ferable from place to place within one liquor patrol limit
as defined in section 17 . 07 of the city charter, and from
such liquor patrol limit to any location in a commercial
development district , also as defined in said section of
the charter, so long as the transfer and new location
meet all the requirements of law, ordinance , code or
charter. An "on sale" license may be transferable from
place to place into a liquor patrol limit subject to all
the restrictions and requirements of section 17 . 07 . 2 of
the city charter.
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Section 5
Subd. 4 of section 409. 16 of the Saint Paul Legislative Code
is hereby amended by re-designating the existing subdivision as
"Subd. 4a. Selection - "Off sale. " ; and by adding a new subdivision
to read as follows :
"Subd. 4b. Selection - "On sale. "
(1) Upon receivinQ the report from the inspector
that all the eligible applications have been received,
inspected and investi�ated, and after hearing having
considered and determined whose application may further
be considered despite any adverse recommendation made,
the council shall by motion set a date for a public
hearing at which one or more applicants , depending on
the number of licenses to be issued, are to be chosen
according to the priorities set forth in this sub-
division.
(2) If there are more qualified applicants than "on
sale" licenses to be issued, applicants shall be entitled
to receive such licenses according to the following order
of priority:
(a) As an absolute first priority, an appli-
cant who purchases an existing business havin�
an "on sale" license with the intent of operating
said business at the same location for at least
one year thereafter;
(b) Ap�licants , for the operation of rest-
aurants capable of seating and serving meals
to not less than 100 guests at one time, ranked
in the order of such seating and serving capa-
city from the greatest number down to 100;
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(c) Applicants , for the operation of hotels
having dining rooms capable of seating and
serving meals to not less than 50 guests at one
time, ranked in the order of such seating and
serving capacity for the greatest number down
to 50;
(d) Applicants , for the operation of rest-
aurants or hotels not covered above, ranked in
the order of capacity for seating and serving
meals to guests from the greatest to the lowest
seating and serving capacity; and
(e) All other applicants , in the order b,y
date and time on which their completed applica-
tions were received by the license inspector.
No person whose license was redeemed by the city ma_y anply
for the issuance of a new "on sale" license within one year
of such redemption.
Section 6
Subd. 2 of section 409 . 16 of the Saint Paul Legislative Code
is hereby amended by re-designating the existin� subdivision as
"Subd. 2a. Special issuance excise tax - "Off sale. " ; and by
addin� a new subdivision to read as follows :
"Subd. 2b. Special issuance tax - "On
sale. "
(1) Notwithstanding any other provision of law or
ordinance, the council shall condition the issuance or
reissuance (hereafter, "issuance") of an "on sale"
license under this section upon payment of a special
issuance tax determined in accordance with this sub-
division, in addition to all other requirements of
chapter 409 and this section. The proceeds of such
tax shall be used for the redemption of licenses under
section 409 . 19. The terms "issuance or reissuance" as
used in this subdivision do not include the issuance
of an "on sale" license as an absolute first priority
under section 409 . 16 , subd. 4b, and no such tax will
be imposed thereon.
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(2) The special issuance tax shall be an amount
determined by the followin� schedule :
(a) from August 1 , 1984 through
January 31, 1986 , $40, 00�;
(b) from February l, 1986 through
January 31 , 1987 , $36 , 000;
(c) from February l, 1987 through
January 31, 1988 , $32, 000;
(d) from February l , 1988 through
January 31, 1989 , $28 , 000;
(e) from February l, 1989 through
December 31 , 1989 , $24, 000.
(3) An "on sale" license is a privilege accorded
to the licensee to engage in the activities permitted
thereby, and is neither property nor a property right .
Such privilege is not impliedly altered by the city' s
discretionary option to pay a redemption value for
outstanding licenses or by the payment of a special
issuance tax. Such provisions have been adopted by
the city council in order to take into account the
private pecuniary value customarily placed on the
consent of a license holder to the transfer of a
license by the private parties to that transaction,
said transfers now being prohibited by law.
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Section 7
A new Section 409. 19 is hereby enacted as part of the Saint
Paul Legislative Code:
"409 . 19. License redem tion. The city may at its
option and in it ss ole iscretion, and only to the
extent funds therefor received from the special
issuance tax are available , redeem any "on sale"
license, with the consent of the licensee, by
payment of the redemption value to said licensee.
Such redemption terminates the license for that
licenseholder, and permits the city at its option
and in its sole discretion to issue said license in
accordance with the requirements of law and ordinance.
The city may not redeem any "on sale" license which
has been revoked or not renewed for cause. The re-
demption value shall be an amount determined by the
following schedule:
(a) from August 1 , 1984 through
January 31 , 1986 , $70, 000;
(b) from February l , 1986 through
January 31 , 1987 , $60, 000;
(c) from February l , 1987 through
January 31 , 1988 , $50 , 000;
(d) from February l , 1988 through
January 31 , 1989, $40, 000;
(e) from February l , 1989 through
December 31 , 1989, $30, 000; and
(f) from and after January l , 1990,
there shall be no redemption value.
All "on sale" licenses which are revoked or not
renewed for cause, or which are not renewed as
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required by Section 409. 06, subd. 11 , may be issued
or re-issued by the city in accordance with law.
Section 8
The Council hereby explicitly finds and determines , after
consideration of the proposed liquor reform ordinance, charter
amendment, and resolution approvirig state law; and after a
public hearing on two weeks ' published notice as required by
law, that the ordinances proposing amendments to both the
Charter and the Legislative Code, and the resolution approving
state law, are for and do meet a public purpose. While the
expenditure of certain funds collected through the special
issuance tax herein is an integral and inseparable part of
this total reform of on-sale liquor licensing, the Council
finds and determines that the expenditure of such funds to
"redeem" or recover on-sale intoxicating liquor licenses is
for a public purpose and is not intended for the primary
benefit of private persons , firms or corporations . The overall
liquor reform package in its purposes is intended to increase ,
both by increasing the number of licenses available and by
moving inactive licenses to active status , the numbers of
on-sale intoxicating liquor licenses available for businesses
which contribute to economic growth and development, resulting
in increased tax base for the City, new construction and jobs ,
and the increase of various retail and merchandising centers .
The liquor reform package will tend to encourage the movement
of licenses out of residential areas into those designated as
commercial development di5tricts , and modify the old liquor
patrol limits , providing greater protections to residential
areas from the problems often arising in connection with on-
sale intoxicating liquor establishments . The liquor reform
package will end the transferability of such licenses by the
beginning of 1990, and the holding of "in-pocket" licenses ,
both practices which make more difficult and costly the
licensing of restaurants and hotels in larger developments ,
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WHITE - C1TV CLERK
PINK - FINANCE
CANARV -�DEPARTMENT GITY OF SAINT PAUL COUI1C11
BLUE - MAVOR File � NO. � _^ �
' T � Ordin�nce Ordinance N�. ��/��
Presented By
Referred To Committee: Date
Out of Committee By Date
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as well as making the entry of smaller firms or corporations into
the on-sale liquor business field almost prohibitively expensive.
The Council hereby adopts all of the above findings , and makes
its determination that the liquor reform legislative package is
for and will achieve a public purpose, and is not for the private
benefit of any person, firm or corporation.
Section 9
This ordinance shall take effect and be in force ninety
(90) days after its passage, approval and publication; provided,
however, that Section 2 hereof shall not take effect until
January 1 , 1990.
COUNCILMEN
Yeas Nays Requested by Department of:
�s+�r'j�l�l�it!
Drew In Favor
Masanz A
scne��ei Aga�,nst BY
TedesCo
Wilson
��+r 2 3 1�g8� Form Approved by City Attorney
Adopted by Council: Date !i
Certified Pas o ci Se ta BY
By
Ap d by Mayor: Dat y �CT Approved by Mayor for Submission to Council
By By
��sL1�� OCT 2 '7 1984
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WHITE - CITV GLERK i
PINK � FINANCE � � COUI1C11
CANARV - DEPARTMENT GITY �F SAI'NT PAUL
BLUE - MAVOR , Flle NO. �� //�
O'rdin�nce Ordinance 1�0.
Presented By '
Referred To Committee: Date
Out of Committee B Date
�g_
required by Secti 4p9 . 06 , subd. 11 , may be issued
or re-issued by the city in accordance with law.
Section 8
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This ordinance shall tak effect and be in force thirty days
after its passage, approva�L an publication; provided, however,
that Section 2 hereof shall not tal�e effect until January 1 , 1990.
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COUNCILMEN ' Requested by Department of:
Yeas Nays �
Fletcher
��aw [n Favor
Masanz �
Scheibel Against ' BY
Tedesco '
Wilson
Form Appr d by City ttorn y
Adopted by Council: Date '
Certified Passed by Council Secretary , By Z��
By
Appcoved by Mayor: Date Approved by Mayor for Submission to Council
BY BY
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CITY OP` SAINT PAUL �'/��
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Date ;
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. COMMITT � E RE PORT
TO = SQint Pau 1 City Council
F� 0 M � C o m m i r t e e O h Legislation (Committee of the Whole)
, C H A I R Councilman John Drew
Ordinance to amend the Charter of the City of Saint Paul
by expanding the liquor patrol limits, limiting the
numbers of on-sale intoxicating liquor licenses within
such areas, establishing commercial development districts,
and for other purposes. (Coun�il File 84-1143)
Resolution approving the State Law.
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Ordinance to restrict the transferability of on-sale
intoxicating liquor licenses, provide for the redemption
and re-issuance of such licenses , establish priorities
for issuance of such licenses , and for other purposes.
(Council File 84-1144)
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At the September 4 , 1984 meeting of the Legislation Committee
the above ordinances were passed on to the City Council with
the recommendation for approval . ,
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