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06-636Council File # � Green Sheet # 3031258 RESOLUTION OF SA1NT PAUL, MINNESOTA � Presented bg Referred To Committee Date WHEREAS, the Legislative Hearing Officer recommends that the license application for a Liquor-Outdoor Service Area (Sidewalk) license by Minnesota Music Inc.; Bill Lazson, Vice President; doing business as Minnesota Music Club at 499 Payne Avenue, be approved with the following conditions: 1. A site plan will be submitted and approved, and permits pulled for the construction of the parking lot and work underway by August 1, 2006, or a performance bond or letter of credit submitted at that time. Parking lot construction will be complete by September 20, 2006. 2. There will be no nude dancing or topless waiters or waitresses, nor would the applicant ever apply for such license for those uses. 3. The licensee shall take all reasonable steps to ensure that ail patrons leave the establishment and the neighborhood in an orderly fashion at closing time. The licensee's responsibility shall include, but not be limited to, barring patrons from the establishment who do not comply with this condition. 4. The parking lot and surrounding neighborhood are to be picked up of cans, bottles and other litter associated with the barlrestaurant. The licensee shall agree to a nightly clean-up schedule. 5. The licensee shall post signage in the establishment advising patrons where to park. 6. The licensee shall agree to provide adequate lighting on the premises. The lighting plan must be reviewed and approved by the Saint Paul Police Department. THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license application with the aforementioned conditions. Green Sheet 3031258 Yeas Nays Absent Benanav � Bostrom a / Harris v Helgen ,i Lantry r Montgomery v Thune � Adopted by Council: Date Adoption Certified by Com BY� ��✓� Approved b� te By: � �I Page 2 alo'�0 �° Requested by Department of: By: Form Approved by City Attorney � Approved by Mayor for Submission to Council By: � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � ��-1�3.6 DepartmeM/office/council: Date Initiated: co -�w�,� OS-JUL-O6 Green Sheet NO: 3031258 Contact Person & Phone: DeoartmeM Sent To Person Initial/Date Marcia Mcertnond 0 o n il 68570 pujyn 1 oencil De rtme t Direcfor Must Be on Councii Agenda by (Date): Number Z � � 12-JUL-06 Por Routing 3 a or's Oilic Ma oNAssistaot Order 4 uocil 5 ler Ci Clerk Total # of Signature Pages _(Clip Ail Locations for Signature) Action Requested: Approving the license applicarion with conditions, per the L.egislative Heazing Office, for Liquor-Outdoor Service Area {Sidewallc) license for Minnesota Music Inq Bill Lazson, Vice President, doing business as Minnesota Music Club at 499 Payne Avenue. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: Planning Commission 1. Has this personffirm ever worked under a contrad for this department? CIB Committee Yes No Civil Service Commission 2. Has this personlfirm ever been a city employee? Yes No 3. Does this personffirm possess a skill not nortnally possessed by any current city employee? Yes No Explain all yes answersbn separate sheet aad attach to green sheet lnitiating Problem, Issues, Opportunity (Who, What, When, Where, Why): AdvantapesffApproved: DisadvantaaeslfApproved: Disadvanqges If Not Approved: Tofal Amount of CasHRevenue Butlgeted: Tra�saction: Fundinp Source: Activity Number: Fi nancial Information: � (6cptain) � V K /� ✓ ` MINUTES OF THE LICENSE HEAI2ING Minnesota Music Inc. doing business as The Minnesota Music Cafe, 449 Payne Aven �� Tuesday, June 27, 2006 Room 330 City Hall, 15 Kellogg Boulevard Marcia Moermond, Legislative Hearing Officer The hearing was called to order at 1:44 p.m. Staff Present: Kristina Schweinler and Tom Beach, License, Inspecfions and Environmental Protection (LIEP); and Jean Birkholz, Council Research. Others Present: Bill Larson and Karen Palm, Minnesota Music Cafe; Eric MitcLell, District 5 Planning Council; and Anne Bresenio. Request to add Liquor-Outdoor Service Area (Sidewalk) to the existing Liquor On-Sale License. Ms. Moermond explained the process. When this type of request is made, a notification goes out to the neighborhood; they are invited to shaze any concerns or objections that they may have about the addition or change to the license. In this case, a letter of concern was received from a neighboring business person, which triggered this hearing. There are three (3) possible outcomes of this hearing: 1) a recommendation from the Legislative Hearing Officer to the City Council that they approve this license without conditions; 2) a recommendation from the Legislative Heazing Officer to the City council that they approve this license with conditions that have been agreed to by the applicant; or 3) a recommendation from the Legislative Hearing Officer to the City Council that they refer this matter to an administrative law judge. Ms. Schweinler, Senior License Inspector, LIEP, reported that all inspections have taken place and staffls recommendation is for approval with the following conditions: 1. The parking lot shall be constnxcted and completed in accordance with the site plan approved by the LIEP office by September 1, 20Q6. A separate building permit shall be obtained for the construction of this off-street parking facility. A performance bond or letter of credit shall be submitted by July 1, 2006 to cover the improvements of the proposed parking lot. 2. There will be no nude dancing or topless waiters or waitresses nor would the applicant ever apply for such license for those uses. 3. The owner will take all reasonable steps to ensure that all patrons leave the establishment and the neighborhood in an orderly fashion at closing time. The owner's responsibility shall include but not be limited to barring patrons from the establishment who do not comply with this condition. 4. The pazking lot and surrounding neighborhood are to be picked-up of cans, bottles and other litter associated with the bar/restaurant. Applicant shall agree to nightly clean-up schedule. 5. Applicant shall provide and put up signage at their expense, on other adjacent businesses that have concerns about patrons pazking on their property. Signs would be required to say: `Private Parking not allowed for MN Music Cafe patrons. All violators will be towed at their own expense.' Applicant shall agree to provide signage upon request of adjacent businesses. Applicant shall agree to also monitor the parking situation to insure compliance by patrons in regard to parking restrictions. 6�-���r� � 6. Applicant shall agree to provide adequate lighting on the premises. Lighting plan must be reviewed and approved by the Saint Paul Police Department. Ms. Palm noted that they already have a patio license; they have been working with LIEP for the past three (3) months to build a patio and deck. It will help to make the business look more appealing, friendly and inviting. Ms. Palm reported that they have a financial agreement with the asphalt company. They have already paid $7,000 of that money. The asphalt company is allowing them to make payments. They gave that paperwork to LIEP. Mr. Beech responded that in this case, LIEP is requiring a Perforniance Bond or a Letter of Credit be submitted because in 1947, LIEP required that the parking lot be paved, but it wasn't. The City is still waiting for that lot to be finished. Ms. Schweinler reiterated that LIEP is requiring a performance bond, which says that the applicant will finish the pazking lot. Ms. Palm responded that they are ready to go with it. Mr. Beech stated that there are a few minor issues related to the site plan that have haited progress. He finally had a chance to evaluate the site last week. While he was out there, he noticed that the grade shown for the new pazking lot doesn't tie in with the existing grade, so, he asked Phil Sutherland, the contractor, to provide a grading plan that shows the existing grade and the proposed grade. Ms. Palm responded that the grading is the same as it has always been. Mr. Beech added that new plan does not show the actual grade that is out there. It shows the water going from south to north into the catch basin and right now, he thinks that the site drains down to the south. Ms. Moermond refened to the last hearing notes on this held June 21, 2005, on an appeal of Orders from the Fire Department that the parking lot should be paved with asphalt, concrete or other durable dustless surfacing. Also mentioned was that the site plan called for paving of this parking lot. Other concerns were the installation of the drain and filling-in of a hole. At that time, the applicant was granted an extension for the paving of the parking lot through September 20, 2006. She wants the conditions to reflect that extension to make it consistent with the Fire requirements. Ms. Moermond also wants to make sure the puking lot will be paved to give a cleaner, more pleasing, anviting look as well as a safer area in which to pazk. She assumes that the applicant is stili on target with the September 20, 200b deadline. Ms. Palm reported that they brought paperwork on this project in to LIEP the first week of April 2006. Last week, Ms. Palm called and spoke to Tom Beach. She told him that all the contractors told them that the concrete needs to be done before the asphalt. She asked him if there was any reason that they could not start on the concrete work. Mr. Beach told her that it was up to Larry Zangs, and he would have Mr. Zangs cali Ms. Palm. Mr. Zangs has not yet called, and she does not want to bother peopie at the City everyday. She feels that the parking lot could probably be finished within a week. Ms. Moermond asked staff if communication could be ironed-out. Mr. Beach responded that an official site plan had been submitted 5-6 weeks ago. Initially, he figured this would be a"no-brainer," so he didn't take it through the normal process, but it turned out to be a little mare complicated that he thought. In order to grade the a11ey that runs between the buiidings, Public Works said that a catch basin needs to be installed out to Payne Avenue. Last week, however, he decided to visit the site and he saw that there was a grading problem. At this point, Mr. Beach is waiting for the grading plan from Bill Sutherland, engineer, so that he can evaluate the grading pian to make sure the water will go to the catch basin. Ms. Palm reiterated that she asked Mr. Beach if they could start on the patio and deck because the contractor had told them that they must do the concrete before the asphalt. Mr. Beach told her that it was up to Larry Zangs and he would have Mr. Zangs call her. Ms. Schweinler asked Ms. Palm if they had submitted a site plan for a patio and deck. Ms. Palm responded that they submitted it in April. Mr. 2 o�-c��t� Beach explained that the current site plan for the parking lot also shows the patio. Ms. Schweinler added that they have a patio pernut, but have not constructed a patio. Ms. Moermond asked if the Outdoor Service Area (Sidewalk) License would also cover the patio. Ms. Schweinler responded that it would not cover the patio, only the public sidewalk. Ms. Moermond then asked if there was a license that would allow them to serve right now on the patio. Ms. Schweinler responded that they have had that since they applied for the license in 1997. Mr. Beach clarified that the licensee cannot begin working on the patio and deck until he has approved the grading for the site plan. A Performance Bond or a Letter of Credit is also necessary. He encouraged Ms. Palm and Mr. Lazson to decide which they would do because each has different paper work. Ms. Moermond asked about what they intended to put out on the sidewalk. Ms. Palm said that they haven't yet found the fiuniture but it would probabiy be four (4) bistro tables with chairs. There is ten (10) feet from the front of the building out to the curb. Ms. Moermond asked staff to ponder using the sidewalk license to achieve compliance on the site plan; and the alternative to achieving compliance if these things are disconnected. Could it be an adverse action on the license? She wants the applicants to be clear about the regulatory options the City has. Ms. Moermond asked if there was anyone present who was in opposition. There being no one present who was in opposition, Ms. Moermond inizoduced a letter of opposition that she had received from Jim and Sue Davidson, C/o Stockship, 506 Kenny Road. The buik of their concerns are about pazking. Patrons are evidently using their business pazking lots and blocking their drives. She added that she also received an email from Bub Benson, addressed to Dave Thune, copying her. It says that Dick Leitner of Local 21 has called in support of the application of this additional license. Dave Titus, Saint Paul Police Federation Union and resident, spoke in support. He spoke as a character witness for both Billy and Kazen. He felt that it was important to point out that entertainment establishments are going through some rough times right now. It is very difficult for businesses to succeed in this environment. He commented that Billy and Karen have been very creative in finding ways to maintain a wonderful establishment. They always employ security, and their empioyees are very much on top of whaYs going on in that bar. The atmosphere is very clean and very safe, and the owners are very responsive to people's concerns about safety. He and many of his co-warkers are patrons at this establishments because they know there's not going to be probiems. He has never had to invoke his authority as a police officer while he was in the establishment whether on of off duty. Eric Mitchell, President of Payne-Phalen District 5 Planning Councii and resident, spoke in support. He noted that their Planning and Economic Development Committee has discussed this issue, and their planning council recommended approval of the plan. Ms. Moermond stated that she has no letter of recommendation from the Payne-Phalen District 5 Planning Council. He added that the Minnesota Music Cafe has not been a problem at all in District 5. They feel that it is a great gateway business into the community, and that the owners are perfect examples of how business owners in a community should interact. They took a blighted piece of property and turned it into a very coveted entertainment establishment. The district council has no complaints. This business is one of the draws for people who are moving into the community. The establishment has a welcoming environment and everyone feels safe and comfortable there. The district council is all for anyone who wants to add to the neighborhood and invest money to make it more attractive and more inviting. �t�-��(� Anne Bresenio, Director of Commercial Development for East Side Neighborhood Development Company, spoke in support. She understands some of the issues that came up here today, and there aze workable solutions. She offered her help to work with the owners to resolve some of the issues. Beyond what's being proposed, Biliy and Kazen have also applied to the East Side Neighborhood Development Company for financing for facade improvements. Their committee did not approve any financing for pazking lot improvements but they are confident that can happen. If a financing package needs to be put together, she offered to help with that to make sure the parking lot, patio, deck, wrought iron fencing, painting, etc., all get done. She noted that she is also working with some of this business' neighbors to make improvements to their properties, including Cneg's Auto Body, right next door, and she has also met with Jnn Davidson to make improvements on his building, as well. Jim Morelli has just built a new office building (still under construction). That whole Railroad Island azea is a renaissance happening. One thing that has come up in severai meetings is the problem of lost pazking area because of the building of the townhomes. They aze working on a workable solution to reartange that whole gateway of Payne and 7`� Street East, and have enlisted the Design Center (Tim Griffin) to look at the entire area. The Minnesota Music Cafe project is a critical piece of that. ESNDC created a Streetscape Improvement Plan several years ago of which sidewalk seating is a criterion and something that is preferred in that plan, as it is in the Main Street Plan. Ms. Moermond said that it sounded as though the financing for the parking lot had already been worked out. Ms. Palm responded that it wasn't really worked out. They are working with Anne; they need to come up with $60,OOQ in order to get $40,OOQ. In their situation, the pazking lot man will let them make payments because they can't come up with $60,000 or $40,000. The concrete company will also allow them to make payments as well as the fence company. Some of the expense will go onto a credit card. So, they are not able to accept ESNDC's money because they cannot come up with their portion. Perhaps, BSNDC will be able to help them with the awning purchase. Ms. Moermond stated that LIEP's primary concern without a doubt is getting that pazking lot paved, a $30,OOQ job. The grading difficulties need to be resolved so that it drains properly, and the plan for that needs to be submitted to LIEP. The other thing that LIEP needs is eather to have a Performance Bond posted or a Lerier of Credit from a bank submitted by July l, 2006; either one will show that this work will be done by September 20, 2006. Either needs to be submitted before permits can be pulled. The conditions were discussed and the following conditions were agreed upon: 1. A site plan will be submitted and approved, and permits pulled for the construction of the parking lot and work underway by August 1, 2006, or a Performance Bond or Letter of Credit submitted at that time. Parking lot construction will be complete by September 20, 2006. 2. There will be no nude dancing or topless waiters or waitresses, nor would the applicant ever apply for such license for those uses. 3. The licensee shall take all reasonable steps to ensure that all patrons leave the establishment and the neighborhood in an orderly fashion at closing time. The licensee's responsibility shall include, but not be limited to, barring patrons from the establishment who do not comply with this condition. 4. The parking lot and surrounding neighborhood are to be picked up of cans, bottles and other litter associated with the baz/restaurant. The licensee shail agree to a nightly clean-up schedule. 5. The licensee shall post signage in the establishment advising patrons where to park. 6. The licensee sha11 agree to provide adequate lighting on the premises. The lighting plan must be reviewed and approved by the Saint Paui Police Department. The hearing was adjourned at 3:44 p.m. /jab 4