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06-1040Council File # D - O �D Green Sheet # 3034342 Presented by RESOLUTION CITY OF SAINT PAUL, MIFiNfESOTA � n WHEREAS, the Legislative Hearing Officer recommends that the license application for Liquor-Off Sale and Retail Food Grocery licenses by Thomas Kokaisel, Chief Manager, doing business as Mound Liquor LLC, 1047 Hudson Road, be approved with the following conditions: 1. Business owner will make all reasonable efforts to control litter in the area and regularly pickup trash on the property. 2. No sale of 40 ounce containers of malt liquor. 3. No sale of single service containers of malt liquor, nor sale of fortified wines, nor sale of half pints. 4. Signage to be posted that loitering is discouraged. 5. Per State of Minnesota Statute 340A, 412, Subd. 14, a liquor store may sell only the following items: 1) alcoholic beverages, 2) tobacco products, 3) ice, 4) beverages for mixing with intoxicating liquor, 5) soft drinks, 6) liqueur-filled candies, 7) food products that contain more than one-half of one percent alcohol by volume, 8) cork extraction devices, 9) books and videos on the use of alcoholic beverages, 10) magazines and other publications published primarily for information and education on alcoholic beverages, and 11) home brewing equipment, 6. Licensee will install video surveillance equipment prior to opening for business. 7. Licensee will maintain video surveillance equipment in good working order. Tapes must be maintained for seven (7) days. 8. The hours of operation will be Monday through Thursday, 9:00 a.m. to 8:00 p.m.; Friday and Saturday, 9:00 a.m. to 10:00 p.m. THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license application with the aforementioned conditions. Green Sheet 3034342 Page 2 O� /a�fb Yeas Nays Absent Benanav � Bostrom � Harris � Helgen Y Lanny ,/ Montgomery J Thune ;/ s � Adopted by � o - uncil: Date DYD��r�t�.� la o1d�� AdopYion Certified by Co ncil Secretary By: n.�/�s �2� Approved by ayo : ate �(—���� By: Requested by Depariinent of: � Form Approved by CiTy Attorney B Approved by Mayor for Submission to Council By: � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � D� /o�o Depar6nenUoffice/council: Date initiated: co �oW�,� �-NO�� Green Sheet NO: 3034342 Corrtact Person & Phone� �eoa*1meM Sent To Person InitiallDate MarCia Mcertnond � 0 oocil Z6G8560 ASSign I uncil D artmentDirector Must Be on Council Agenda by (Date): Number 2 roe �oc Routing 3 a or's O�ce Ma odAssi nt Order 4 uncii 5 Tofal # of Signature Pages, (Clip All Locations for Signature) AcGon Requested: � Approving license application with conditions, per the Legislative Hearing Officer, for Liquor-Off Sale and Retail Food Grocery licenses by Thomas Kokaisel, Chief Manager, doing business as Mound Liquor LLC, 1047 Hudson Road. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Pollowing Questions: Planning Commission �. Has this person�rtn ever worlced under a conSract for this department? CIB Committee Yes No Civil Service Commission 2. Has this person/firm ever been a ciry employee? Yes No 3. Does this personffirtn possess a skill not normally possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Advantapes If Approved: Disadvantaqes lf Approved: Disadvanqpes If Not Approved: Total Amount of CastlRevenue Budgeted: Transaction: � Funding Source: Acfivity Number. Fi nancial I nformation: (Explain) �` � �-tb s-�e.r � MINUTES OF THE LEGISLATIVE HEEIRING MOiJND LIQUOR —1047 Hudson Road Thursday, October 19, 2006 Room 330 City Ha1UCourthouse Marcia Moermond, Legislative Hearing Officer The hearing was called to order at 10:00 a.m. Staff Present: Reid Soley and Kristine Schweinler, License, Inspections, Environmental Protection (LIEP) Tom Kokaisel, owner, appeared and stated he was here before for the same reason. He is back here again because he changed appropriations. Mazcia Moermond explained the process: this is a Class N License, which means that neighborhood notification occurs and people can write letters and e-mails regarding the issuance of the license. This is what triggers today's hearing. At this hearing, there are three possible recommendations Ms. Moermond can recommend to the City CounciL• 1) issue license without conditions, but this is not likely because LIEP is recommending a standard list of conditions, 2) issue license with conditions that are agreed to by the applicant, 3) matter is sent to an Administrative Law Judge (ALJ). The ALJ option would be used if Ms. Moermond thinks there is no way the license would work in this location. An ALJ process lasts three to six months, and most applicants choose to get an attorney, so there is time expense and legal expense involved. Reid Soley, LIEP, appeared and reported that he is an inspector for LIEP. This application is before us because of a change in the corporate ownership for the applicant. He had previously applied under a different corporate structure, and then withdrew that application. This is a reapplication under a different corporate name. There are several license conditions recommended as follows: 1. Business owner will make all reasonable efforts to control litter in the area and regularly pickup trash on the property. 2. No sale of 40 ounce containers of malt liquor. 3. No sale of single service containers of malt liquor, nor sale of fortified wines, nor sale of half pints. 4. Signage to be posted that loitering is discouraged. 5. Per State of Minnesota Statute 340A, 412, Subd. 14: a liquor store may sell only the following items: 1) alcoholic beverages, 2) tobacco products, 3) ice, 4) beverages for mixing with intoxicating liquor, 5) soft drinks, 6) liqueur-filled candies, 7) food products that contain more than one-half of one percent alcohol by volume, 8) cork extraction devices, 9) books and videos on the use of alcoholic beverages, 10) magazines and other publications published primarily for information and education on alcoholic beverages, and 11) home brewing equipment. 6. Licensee will install video surveillance equipment prior to opening for business. 7. Licensee wil] maintain video surveillance equipment in good working order. Tapes must be maintained for seven (7) days. �� 1b�-V O LEGISLATIVE HEARING MTNLTTES FOR MOLTND LIQUOR Page 2 Mr. Soley stated that LIEP's recommendation is approval with the aforementioned conditions. Currently the establishment is not open. The neighborhood organization recommendation is to suggest the store's name be posted and placed on the bottles and bags in case there is trash left in the neighborhood. Ms. Moermond asked has this business ever been opened. She had a Legislative Hearing on it last July. NIr. Soley responded the business was never open. Thomas Kokaisel, owner, appeazed and stated he is in partnership with two other liquor stores in Chisago and Wyoming. They decided to tie it in under the same corporate name rather than his corporation. The new name would be Liquor Works of Minnesota, doing business as Mound Liquor. Liquor Works is the corporate name. Mr. Reid responded that his paperwork has Mound Liquor LLC, Limited Liability Company. Mr. Kokaisel responded that is a sepazate entity, but all his books wiil be under Liquor Works of Minnesota. Ms. Moermond called a recess to review the files. This is an important point to clazify. (Recess from 10:16 to 10:20) Ms. Moermond asked what is on the application. Mr. Soley responded Mound Liquor LLC is the corporate entity that will be the licensee for this establishment, doing business as Mound Liquor. Ms. Moermond asked how Liquor Works of Minnesota fits in. Mr. Kokaisel responded there are Liquor Works of Chisago, Liquor Works of Wyoming, and Liquor Works of Minnesota. The Liquor Works of Minnesota is the sole entity of those branches. Ms. Moermond asked how it relates to Mound Liquor LLC. Mr. Kokaisel responded it does not relate at all. He was wrong. Ms. Moermond asked what happened to the plans to open up the store. Mr. Kokaisel responded he needed to get a walk-in cooler. They built one. Licensing told him that they did not apply for a permit to build it, so he had to get the sketches done, equipment, insulation, a variance, and a permit that there would not be food stored in the cooler. That took a couple of months. In answer to several questions, Mr. Kokaisel said that his business plans do not differ from a yeaz ago last July. He owns the building. Looking at the previous minutes, Ms. Moermond asked was the liquor store the former Mama's Pizza. Mr. Kokaisel responded it was Monda's Pizza. Ms. Moermond responded that the minutes are inconect. Ms. Moermond asked what the building looks like. Mr. Kokaisel responded it is a two-story. It has one entrance in the front; the left side had a take-out pizza business for a short time. He has people that are interested. They aze working with the City now to get that opened. LEGISLATIVE HEARING MINUTES FOR MOUND LIQUOR ��- lc.�o Page 3 Ms. Moermond stated she is asking about litter because it comes up repeatedly in these heazeings. She was trying to get a sense of whether other businesses would be generating litter. Ms. Moermond asked how many apartments aze upstairs. Mr. Kokaisel responded two. (Kristine Schweinler provided a map to Ms. Mcermond. Mr. Soley showed where the building is located.) Ms. Moermond asked did he get a copy of the letters. Mr. Kokaisel responded yes. Ms. Moermond stated that the district council suggested waiving the 45 day notification. If letters were not received, he would haue received his license quicker, but they did receive letters: 1. Luella Heroff, 1037 Hudson Road, wrote about the conditions of the neighborhood, chronic inebriation of people, lingering in front of her residence and leaving material there, pazking problems, and she does not want to exacerbate the problem pertaining to liquor in that area; 2. Karin Dupaul, Dayton's Bluff District 4 Community Council, 798 Seventh Street East, wrote about drinking in the neighborhood, trash, and suggested adding a condition about putting the store name on bottles and bags. 3. Bill Gray, owns duplex at 1021 Hudson Road, wrote that he objects to the addition of a liquor establishment when substance abuse is already high; 4. Gazy and Laurie Hippie, 1025 Wakefield Avenue, wrote about deterioration in the azea, vandalism, crime, pedestrian traffic through his yazd, litter, increased activity between 11:00 p.m. and 3:00 a.m., there are no provisions for monitoring conditions placed on the license, and they do not need another light to attract the moths. Cassandra Moe, 844 Mound Street, appeared and staYed the owner has done a lot of work and invested a lot in it. They do not want to oppose. They feel it would be nice to walk to a liquor store. Her husband said it well: it would be nice to allow the neighborhood to mature to a point that it is known for more than crime before something is added that might increase crime. Their concern reflects what is stated in the letters. At the same time, they want to support any businesses in the neighborhood. When she drives through the area, there is a lot of activity that makes her uncomfortable. There is a lot of hanging azound. They aze concerned about property crimes; however, she does not think there is a direct connection between a liqnor store and property crimes. Karin DuPaul, Dayton's Bluff District 4 Community Council, 798 Seventh Street East, reported that she is a community organizer in Dayton's Bluff. Mr. Kokaisel has been working with them. They are concerned about some of the issues. Mr. Kokaisel has attracted people that are there for a good time and not there to get smashed. As for the liquor store, she wonders if there are certain kinds of liquors and wines people would be interested in to make it a little more upscale. He is an asset to the neighborhood and is working on fa�ade improvements. Ms. Moermond asked what these crime prevention meetings have included and where that work is at. Ms. DuPaul responded they started them because of concerns in the businesses: loitering, crimes. They talked to tenants in some of the buildings. One of the landlords has cleaned up the building, getting new tenants, and not causing problems. One of the peopie that sent the letter had a building that was a major probiem. They are trying to instruct people on doing a better job O(� tc�4 O LEGISLATIVE HEARING MINiJTES FOR MOIJND LIQUOR Page 4 in screening and getting people that will not cause havoc in the neighborhood. A lot of it is vandalism and different things like that. Commander Pavlak is at all the meetings. They have a beat officer that has worked a lot in the area to change it. It is not the business people that are pazt of the problem. It is some of the neighbors that are causing the problems. T'hings are getting better over there. An upscale liquor store would be nice. Ms. Moermond asked about distance requirements for off-sale liquor establishment. Mr. Soley zesponded this liquor store has to be at least half a mile from another liquor store in the City. That requirement is met. It also needs to be 300 feet from any public or parochial school, church or synagogue. There can be a waiver with a written petition, but that is not an issue here. It is an existing liquor store. Ms. Moermond stated the other thing that struck her are the tenants in the building. She asked is he getting new tenants now. Mr. Kokaisel responded there was a lot of activity in the back of the building. He gave a list of license numbers, times, and dates, and there were a number of arrests. Ms. Moermond stated there are tenant screening techniques. Ms. DuPaul responded they talked about that. Ms. Moermond stated the owner's presence is good: he is working with the police and the neighborhood. She asked is this a stare he is going to own and operate. Mr. Kokaisel stated he owns the bar next door and is there six days a week as he bartends during the day. He will do the ordering and running of the liquor store next door, and will have staff at Mound Liquor. Ms. Moermond stated she will take a few minutes to read the concerns and the conditions and then she will talk to him a little more. (Recess from 10:45 to 10:49.) Ms. Moermond read Code 310.06, which has to do with the imposition of conditions on licenses and what circumstances would conditions be warranted: (c) Imposition of reasonable conditions and/or restrictions. When a reasonable basis is found to impose reasonable conditions and/or restrictions upon a license issued or held under these chapters, any one (1) or more such reasonable conditions and/ar restrictions may be imposed upon such license for the purpose of promoting public health, safety and welfare, of advancing the public peace and the elimination of conditions or actions that constitute a nuisance or a detriment to the peaceful enjoyme�t of urban life, or promoting security and safety in nearby neighborhoods. Such reasonable conditions and/or restrictions may include or pertain to, but aze not limited to... She is hearing that the neighborhood is in trouble. She has heard that if this was a high end liquor store, it would not have a negative impact. If it was a low end liquor store, there is no question that it would be negative. She would like to see the hours of operation listed on the license. The last time she saw him, he was talking about Monday through Thursday, 9:00 a.m. LEGISLATIVE HEARING MINUTES FOR MOUND LIQUOR ��f M ZL � I�age �� to 8:00 p.m., Friday and Saturday, 9:00 a.m. to 10:00 p.m. Ms. Schweinler responded those are state requirements. Because Mr. Kokaisel works with the neighborhood and plays an active and good role with the neighborhood, having an occupied, productive business is better than having a vacant space. She will recommend the conditions of the license and would like to add to the license a condition about hours. Ms. Moermond recommends approval of the license application with the following conditions: l. Business owner will make all reasonabie efforts to control litter in the azea and regularly pickup trash on the properiy. 2. No sale of 40 ounce containers of malt liquor. 3. No sale of single service containers of malt liquor, nor sale of fortified wines, nor sale of half pints. 4. Signage to be posted that loitering is discouraged. 5. Per State of Minnesota Statute 340A, 412, Subd. 14: a liquor store may sell only the following items: 1) alcoholic beverages, 2) tobacco products, 3) ice, 4) beverages for mixing with intoxicating liquor, 5) soft drinks, 6) liqueur-filled candies, 7) food products that contain more than one-haif of one percent alcohol by volume, 8) cork extraction devices, 9) books and videos on the use of alcoholic beverages, 10) magazines and other publications published primarily for information and education on alcoholic beverages, and 11) home brewing equipment, 6. Licensee will install video surveillance equipment prior to opening for business. 7. Licensee will maintain video surveillance equipment in good working order. Tapes must be maintained for seven (7) days. 8. The hours of operation will be Monday through Thursday, 9:00 a.m. to 8:00 p.m.; Friday and Saturday, 9:00 a.m. to 10:00 p.m. The hearing was adjourned at 10:54 a.m. rrn