06-787Council File # (�� - 7$ 7
Green Sheet # 3031031
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented
WHEREAS, the Legislative Hearing Officer recommends that a request for a(ID # 20060000985) Malt Off-
Sale, Retail Food Grocery, Retail Food Restricted Food Service and Cigarette/Tobacco License (Change
of Ownership) for 7AK Retails Inc doing business as Maryland Super USA at 1198 Eazl Street be approved
with the following conditions:
1. 3.2 beer and beer products can not be sold by the individual bottle or can.
2. Sale of 40 ounce botties of beer is not permitted.
THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license
application.
Yeas
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Boshom f/
Harris �
Helgen �
Lantry �
Montgomery �/
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Adopted by Council: Date
Nays � AbsenY
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Adoption Certified by Council Secretary
By: �
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Approved by Mayor. Date
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Requested by Department of.
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Form Approved by City Attorney
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Approved by Mayor for Submission to Counci]
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Confac[ Person & Phone:
Marcial Mcertnond
68570
Must Be on Council Agenda by
ContractType:
RE-RESOLUTION
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Green Sheet NO:
b�-�87
3031031
Department SentToPerson
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1 unc� De artment " ec[or
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5 ' Clerk � Cierk
Approval of a request for a(ID #20060000985) Malt Off-Sale, Retail Food Grocery, Retail Food Restricted Food Service and
Cigazette(Tobacco License (Change of Ownership) for JAK Reta'sls Inc doing business as Maryland Super USA at 1198 Earl Sfreet.
or
Questions:
Planning Commission 1. Has this personlfirtn e�er worked under a contract for this department?
q6 Committee Yes No
Ciul Senice Commission 2. Has this persorJfirtn e�er been a city employee?
Yes No
3. Dces this persoNfirtn possess a skill not nortnally possessed by any
cu�nt city employee?
Yes No
Explain all,yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, Wha; When, Where, Why):
Advantages HApproved:
Disadvantages IfApproved:
Disadvantages H Not ApProved:
Trensaction:
Funding Source:
Financial Information:
(Explain)
CostlRevenue Budgeted:
Activily Number:
Council Research
�JUN 16 2006
��un�il Research
,�r°"" �'�'"'� AU614 2�6
June 15, 2006 3:49 PM Page 1
D�- 7B7
MINUTES OF THE LICENSE HEARING
Maryland Super USA
1198 Earl Street
Tuesday, June 13, 2006, 10:00 a.m.
330 City Hall, 15 Kellogg Boulevazd
Mazcia Moermond, Legislative Hearing Officer
The hearing was called to order at 10:02 a.m.
Staff Present: Kristina Schweinler, License, Inspections and Environmental Protection (LIEP);
and Jean Birkholz, Council Research.
Others Present: Joseph A. Kl�alil, JAK Retails Inc doing business as Maryland Super USA and
Cheryl D. Indehar, pastor, Eastside Community Lutheran Church.
Application for Malt Off-Sale, Retail Food Grocery, Retail Food Restricted Food Service and
Cigarette(Tobacco License (Change of Ownership)
Ms. Moermond stated that there aze three (3) possible out comes from this hearing: 1) she could
recommend to the City Council that they grant the license without conditions; 2) she could recommend
to the City Council that they grant the license with agreed upon conditions; or 3) she could recommend
that the City Council refer this matter to an Administrative Law Judge. With respect to conditions that
might address some of the neighborhood concerns, Ms. Moermond said that she can encourage Mr.
Khalil to take conditions onto his license, but she can't force him to. If this goes to a judge, the judge
can make findings and recommendations to the Council, which they could force as conditions onto his
license.
Ms. Moermond explained that she received four (4) letters of concern. Neighborhoods often have
concerns about this type of license.
Ms. Schweinler, license inspector, LIEP, reported that all of the necessary inspections have been
reviewed and approved. Mr. Khalil has met all of the requirements. LIEP recommends approval with
the following conditions:
1. 3.2 beer and beer products can not be sold by the individual bottle or can.
2. Sa1e of 40 once bottles of beer is not permitted.
Mr. Khalil explained that this store has been under his management since April 1, 2006. He started his
plan on May 1, 2006. He remodeled his store and cleaned it up. He has also hired someone to clean-up
outside the store everyday. From day one, his intention has been to make this a better convenience store
for the community. For added security, he has installed a new digital camera system outside and inside
the store. He considers himself part of the community. He wants a nice store in a nice neighborhood—
that way, it will be less of a headache for himself and a better business for everyone. Ms. Moermond
asked Mr. Khalil if he is at the store everyday. He replied that he is usually at the store everyday. Ms.
Moermond asked if this is the first convenience store that he has run. Mr. Kha1i1 responded that he has
been in the convenience store business for about eight (8) years. This is the second business he has
owned; he had a liquor store in New Hope.
Cheryl Indehar, pastor, Eastside Community Lutheran Church, addressed the hearing. Ms. Indehar
explained that the church received a letter of concern about this business. The letter was brought to the
chwch council meeting. The council raised concerns about the liquor being sold. How does it benefit
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the community to have another liquor selling place in the neighborhood? The church staff and
parishioners are customers of the store, and they like hauing the store across the street. She stated that
Mr. Khalil has done a wonderfixl job of cleaning up the store. IYs the best that it has looked. The
church appreciates the job Mr. Khalil has done. The only concern the church council really has is how
liquor products aze soid in the City of Saint Paul. There are off-sale liquor places on the East Side.
They aze closed on Sunday. They aze open Monday — Thursday from 8 am to 8 pm; and Friday--
Saturday, from 8 am to 10 pm. Mr. Khalil's business is open until 10 pm. She wonders what the city is
crearing by allowing liquor products to even be sold at these places. The city is allowing certain
businesses to sell liquor outside the normal pazameters. The store will be amacting people to that
particulaz business whose sole purpose may be just to buy alcohol. Ms. Indehar doesn't know how
thaYs beneficial. The church sees that there's ample opportunity in other places for people to buy any
kind of liquor, alcohol, beer products, etc. The church doesn't see a benefit to the community of having
another place that allows more hours to sell alcohol and brings people into that particulaz azea. Ms.
Schweinler clarified that Mr. Khalil is allowed to sell only 3.2 beer; iYs not liquor.
Ms. Moermond listed concems from the letters. Mr. Goulet wrote that he is not supporting this license
because he thinks it will increase the amount of trash in the neighborhood; and that there are already
liquor stores in the area. Ms. Lopez indicates that she is opposed to the sale of beer and beer products.
She also mentions concerns with past owners and with trash. The letter from Joanne Fox states that she
thinks iYs a problem area and that aicohol sales only exacerbate that problem.
Ms. Schweinler explained that state laws were changed this year that allow off-sale liquor stores to
remain open until 10 pm, Monday — Saturday. However, Saint Paul's ordinances did not change to
allow alcohol to be sold after 8 pm on Monday — Thursday. Off-sale 3.2 malt licenses aze not limited to
the same hours as off-sale liquor. Off-sale malt is sold at many convenience and grocery stores through
out the City of Saint Paul. Off-sale malt is a completely separate license from off-sale liquor. The state
considers malt a non-intoxicating drink. The state calls it a 3.2 non-intoxicating malt liquor license.
Mr. Khalil noted that 3.2 can not be sold after 1:00 am. Ms. Schweinler concurred. Technically, Mr.
Khalil stated that he is not bringing in any strangers to the neighborhood by selling 3.2. beer. He
introduced a petition that had been signed by 76 people, mostly his regular customers who come to the
store daily. Many of these people do not have a ride to get to the liquor store. Many work unti14:00 pm
at which time the liquor stores would be closed. This provides a convenience for them.
Ms. Moermond asked if there had been a management agreement in order for the store to se113.2 beer at
this time. Ms. Schweinler responded that there was. A management agreement is an agreement
between the current licensee and the pending licensee to allow the pending licensee to operate under the
current licensee's license. They take full responsibility for all activities of the pending license.
Ms. Indehar explained that she had gone into the convenience store on May 9, 2006. There were 40
once bottles on sale. Even though Mr. Khalil knew this license recommendation hearing was coming,
he hadn't made the requested change. Ms. Schweinler pointed out that it was not required of him. Mr.
Khalil added that when he took over the store, he was actually operating under the previous owner's
license. There were 32 ounce and 40 ounce bottles on the shel£ He stated that he didn't have any idea
that one of the requirements of his license would be that he wouldn't sell 40 ounce bottles. Since he
received the letter from the City noting the conditions, he stopped ordering them. Currently, there is not
one bottle in the store.
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Ms. Moermond noted that she has checked police cails on this property, and iYs not a problem property.
There haven't been significant police issues. Most calls have been generated by the store to deal with
situations in a way that the City would want the store to be calling, and there have been a relatively low
number of them.
Ms. Moermond added that as a neighbor, there is nothing worse and makes you feel as though you live
in an uncazed about area than a malt liquor bottle in a paper bag in your back yard, so picking up the
trash is extremely important. The sale of the 40 ounce size is particulazly, anecdotaily, highly associated
with nuisance drinking.
Ms. Moermond recommended approval with the following conditions:
1. 3.2 beer and beer products can not be sold by the individual bottle or can.
2. Sa1e of 40 once bottle of beer is not permitted.
Mr. Khalil stated that he sells only 12-packs and 6-packs.
The hearing was adjourned at 10:33 a.m.
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