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273599 WH17E - CITV CLERK � • PINK - FINANCE (`jI OF AINT PALTL Council ��35�9�. CANARY -DEPARTMENT File NO. BLUE -MAVOR • '��L. / ' � Ce Ordinance N 0. Presented By " Referred To C mittee: Date Out of Committee By Date An ordinance repealing the multiple ownership prohibition for on-sale liquor licenses. THE COUNCIL OF THE CITY OF SAINT PAUL DOE5 ORDAIN: Section 1. That Section 308.08 of the Saint Paul Legisladive Code is amended to read as follaws: 308.08. One License Only. Not more than one "off sale" retailer ' s license shall be directly or indirectly issued to any one person or for any one place in this city, nor shall any retailer' s '-e�e-sa�e-' e�+ "off sale" license be directly or indirectly issued for any place for which a license of another class has been granted. It shall not be a violation of this section for a person who owns, directly or indirectly, or who has an interest in, any intoxicating liquor license in this city, addi- tionally to own directly or indirectly or to have an interest in one or more corporations owning or operating � a hotel holding an intoxicating liquor license in con- nection therewith, provided that such hotel shall have at least 150 or more rental units. Section 2. This ordinance shall take effect and be in force thirty (30) days from and after its passage, approval and publication. COUI�ICILME[V Requested by Department of: Yeas Nays ��r mGm��� In Favor Hozza . Hunt � Levine Against BY M owalter Tedesco SEP 13 1979 Form Approved by City Attorney opted by Counci . Date �� Certified P d b Coun il Secreta BY � ' '-"',` � By Approve ayor: Da e P 1 4 19�9 Approved by Mayor for Submission to Council By By vu�usNEO SEP 2 2 1979 - ^ , ��QS7� � . .....,,,,�,,,R,: . �;{ ;..�.,�,T Y���Lr,� C I TY �57� A U L -�� � � '��'� OFFICE OF THE CITY ATTORNEY >o �, �;/ _ �..'� iiu�i��ii�ii �= , � EDWARD P. STARR, CITY ATTORNEY ,.,. ,; 647 City Hall, Sai�t Paul,Minnesota 55102 , ,, 612-298-5121 GEORGE LATIMER MAYOR June 18, 1979 RC�j D � � Councilman Ron Maddox JUN 21 1979 703 City Hall COUNCfL1l1AN Saint Paul, Minnesota 55102 f'ON NiAQDOX Dear Mr. Maddox: - Yt�u,r,,raqu±est �or an opinion froaaa this o�f��e canc�rnfng the muI- tiple v�iership of liquor li.censes has been-ref�rred to� t�e n��a� siq�ed_for response. The facts are briefly that M. S. � 340.13, Subd. 3, prohibits the City from issuing more than one intoxicat- ing liquor license directly or indirectly to any one person. The City of Saint Paul has an ordinance, Sec. 308.08 of the Legislative Code, which prohibits the City from issuing to any one person more than one intoxicating liquor license. The Legislature amended M. S. § 340. 13, Subd. 3 (S. F. 521) , to read as follows : Subd. 3. �IMITATIONS ON A LICENSE ISSUED TO A PERSON OR PLACE: PENALTY,J No more than one off-sale intoxicat- ing liquor license shall be directly or indirectly issued to any one person or for any one place in each municipal- ity. It is a gross misdemeanor for any person, partner- ship, or corporation to knowingly have or possess a direct or indirect interest in more than one off-sale license in each municipality and upon conviction therefor the govern- ing body of such municipality may immediately revoke all licenses in which such person, partnership or corporation has an interest. The term "interest" includes any pecun- iary interest in the ownership, operation, management, or profits of a retail liquor establishment, but does not include: bona fide loans; bona fide rental agreements; bond fide open accounts or other obligations held with or without security arising out of the ordinary and regular course of business of selling or leasing merchandise, fixtures or supplies to such establishment; an interest in a corporation owning or operating a hotel but having at least 150 or more rental units holding a liquor li- cense in conjunction therewith; or 10 percent or less in- terest in any other corporation holding a license. A "\�J . �c�s�� '� �F` � ������ Ron Maddox Page Two June 18, 1979 person who receives moneys from time to time directly or indirectly from a licensee, in the absence of a bona fide consideration therefor and excluding bona fide gifts or donations, shall be deemed to have a pecuniary interest in such retail license. In determining "bona fides" the reasonable value of the goods or things received as con- sideration for any payment by the licensee and all other facts reasonably tending to prove or disprove the exis- tence of any purposeful scheme or arrangement to evade the prohibitions of this subdivision shall be considered. The amendment becomes effective August 1, 1979. T'he thrust of the amenc�nent effective August l, 1979, is to prohibit muI.tiple o�wnership of off-sale liquor licenses. Your question is whether the State legislation amending $ 340.13, Subdivision 3, by i.mplication repeal.s Section 308.Q8 of the Saint Paul Leqislative Code. The answer is NO. The legal effect of S. F. 521 is to prohibit multiple awnership of off-sale liquor establishments within a municipality. The leg- islation is silent as to multiple awnership of on-sale liquor establishments within a municipality. By implication, hawever, since multiple ownership of on-sale l�:c�uor establiahment is not prohibited it is permissibl�e. Nonetheless, municipalities may regulate by ordinance in the exer- cise of a police power as long as the ordinance is in harmony with State statutes. The City cannot authorize what a statute forbids or forbid what a statute expressly permits. Power v. Nordstrom, 150 Minn. 228, 184 N.W. 967. Since the Legislature did not expressly permit multiple ownership of on-sale liquor establishments, Section 308.08 of the Saint Paul Legislative Code is still valid. Furthermore, in the area of liquor regulations, the State statutes are the upper limit with respect to permissibility. Pursuant to M. S. � 340.11, Subd. 17, the Legislature has specifically granted ��P�.7� . , . � . . � � ;��7���9 Ron Maddox Page Three June 18, 1979 to municipalities the power to impose by ordinance regulations on the sale of liquor more restrictive than State statute. Section 340.11, Subd. 17, of Minnesota Statutes reads as follows: "Municipal Restrictions. Any local authority shall have power to impose further restrictions and regulations upon the sale and possession of intoxicating liquor within its limits. " In conclusion, Section 308.08 of the Saint Paul Legislative Code prohibiting the multiple ownership of intoxicating liquor estab- lishments is the controlling law withir,�•.the City of Saint Paul until amended or repealed. "�Y f, Respectfully submitted, � G-�,--- , - TERRENCE J. GA Y /y Assistant Cit torney TJG:er cc:Council of the City of Saint Paul Mayor George Latimer , _ : _ �:;� 1 Co57S ��• +E :�._ I 11 4�� ����V CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM .����'� ��� ��.�� � k�� � , Au st 9 9 AUG --� `? �qi�) TO• David Hozza Council P�asident � `� David H, Houa FRQM: Maureen L. McAvey��V\ SUBJ�CT: Lic�or Licenses/Change in State Law As you are probably aware the State Legislature this year am�ended Minnesota Statute 10.5.340.13, Subdivision 3 (Senate File #521) which prohi.bits multiple ownership of off-sa.le liquor licenses. The legislation is silent as to multiple awnership of on-sale establishments within the maznicipality. By implication, since irnultiple ownership of on-sale licenses is not prahibited, it is nPrm;ssible. This, at least, is the apinion of Terry Garvey frcan the City Attorney's office. I called Mr. Garvey relative to this issue follawing some discussion which City staff had regarding downtaun develognent, the need for additional liquor licenses and the problans atta.ched to multiple ownership of on-sale liquor licenses. Mr. Garvey indicated at that time that he had prepared. some legislation for Councilm�n Maddox whic,h would bring the City's legislation into confornnarice with the state legislation relative to this matter. Since Mr. Maddox was in ownership of a liquor establish�nt he, apparently, expressed some caricern to Mr. Garvey regarding an apparent conflict of interest in changing liquor licensing laws while he awned an ari-sale liquor establishment. I raised the point simply because we have had several inquiries frocn develapers who wish to do dc.xantawn develognerit but may currently ha.ve a liquor license in another pa.rt of tawn. In several cases, these developers wpxe aware of the proposed change in state law and were raising the question regarcling how this might affect liquor laws within St. Paul. Since all of the legal vx�rk has been dc,ne by Mr. Garvey relative to this point and a proposed ordinance has been drafted by Mr. Garvey, I would like to pursue this matter further and see if we might be able to put this on the City Council agenda and bring the City law in conforniance with the state law. I would be happy to m�eet with you and/or any manbers of the License Cannittee when you think it wr�uld be appropriate, or to answer any questions you might have relative to this issue. cc: Gary Stout Doug Ford Jim Bellus Bill Patton MLM/edl �-=�; i�s�s Y St. Pau R� � ��,e � � �� AUG 2 � 147� �� � On-Sale Liquor Dealers � Council President Association Inc. Davicl H. Houa SECRETARY: RINDA M. WILLIAMS - 345 WABASHA AVE. - ST. PAUL, MINNESOTA 55102 TELEPHONE 222-5222 August 21, 1979 Councilman David Hozza City Hall Court House St. Paul, Minnesota 55102 Dear Sir: During the last legislative session, a law was passed allowing multiple ownership of liquor licenses. In view of this state decision we, the Board of Directors of The Greater St. Paul Area On-Sale Liquor Dealers Association urge the City Council of St. Paul to take the necessary action to allow this law ta become part of our cities licensing procedure by allowing a maximum of two licenses per individual. We hope that this option can be excercised as soon as possible. Sincere , i�,� Fred Primol��`"' Presiclent FP:rw OFFICERS DIRECTORS FRED D. PRIMOLI FRANK BELGEA DIST. #1 AL HAFNER DIST. #6 VERN LANDREV[LLE PRESIDENT SECRETARY DIST. #2 JOE PERKOVICH DIST. #7 GENE BEAULIEU DIST.#3 JERRY EVANS DIST. #8 EARL MONTPETIT BOB COMPARONI JIM TONER DIST. #4 EARL SCOTT AT LARGE: RICH THOMAS VICE PRESIDENT TREASURER DIST. #5 TOM KAUFMAN IT PAYS TO BELONG