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<br />, . MAR 08 '90 10:09 PETERSON, FRANKE, RIAC 196 P03 <br /> <br /> <br /> <br /> <br />II'ARRl;N f, PETERSON PETERSON, FRANXE & RIACH 'N.SO AD"TmO <br /> <br />RQN,o\.tO]. RIACi':l PROFESSIONAl.. ASSOClA TION IN WlSC::o="l"SrN <br /> <br />JEROME P. HLL\ 300 MlD'\l:'EST J.'EDEAAL BUILDIr-.;'G nA.l.SO AOMrmD <br />llit)R,t M, QUIGLEY 1N TK'\lKESSEE <br />..-I.. P.:\.NT.BL WrrT FMM 50 EAST FIFTH ~TR.J:..Irr _, <br /> <br />GLENN A. B:ERGMAN ST. PAUL.. MINNESOTA 55101 ROSEVltu OF.l':llCe <br />- JOliN .MICHAEL .l\1I.lJ.ER _ 200 ROSF.:DALE l'OWE~ <br />CAS-S S. W1!IL* - 1700 WES" HIGH\'(tA'l" 36 <br />. 'nMOnn' J. HASSETT (611) 391-895, ROSl:iYJLU, i\flJI.:-.'ESOTA 55113 <br /> <br />1HClJAEt T. OBlJRLE PAX NO, (61:2) 228-1753 (612) 636.6400 <br />:BRLJ....,'-f 6, ELKING'1'ONH FA." i'>IO. (612) 636.n3o( <br />CLYDE C. AHLQUlS1 <br /> <br />''')I.IS T. SHJElDS March 8 1990 0' COU:<SEL <br />, JEROME E. FRlINKl: <br />MELVIN J. STJ,VER <br /> <br /> <br />Gary Berger <br />City Administrator <br />City of Arden Hills <br />1450 West Highway 96 <br />Arden Hills, MN 55112 <br /> <br />Re: Bonding Requirements <br />Intoxioating Liquor Licensees <br />Our File No. 10450/900001 <br /> <br />Gary: <br /> <br />Arden Hills Code Section 3-48 requires intoxicating liquor <br />licensees to file e bond with the City for the following <br />purposes: <br /> <br />. 1. To provide a guarantee that the licensee complies with <br />the City's Regulations. <br /> <br />4It 2. To pay delinquent taxes in those cases where e licensee <br />fails to make tax payments. <br /> <br />3. TO provide a source of funds which could be forfeited <br />to the City in the event that licensee violates a City <br />Reguletion. <br /> <br />4. To provide a source of funds for injuries to third <br />parties resulting from the operation of the liquor <br />business. <br /> <br />In eddi tioD, licensees are required to show proof of <br />financial responsibility. Licensees Usually satisfy this <br />obligation by filing a copy of a liability insuranoe policy. <br /> <br />Apparently some licensees have questioned the City's <br />authoJ:'i ty to require the bond as well as the need for such a <br />bond. The bond described in the City Code is not required by <br />state Law. Cities can be more restrictive in regulating the sale <br />of liquoJ:'. Consequently the City has the discretion to require <br />this type of bond. <br /> <br />. In detElrmining whether to continue to require the bond, I <br />would recommend that the City review the purposes for the bond; <br />whether such purposes continue to be a ooncern of the City's; and <br />... whether liability insurance adequately addresses those concerns. <br />Both the bond and liability insurance provide a source of funds <br />for injured third parties. Only the bond provides a source of <br />