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AGENDA ITEM - 3C <br />'It <br />-ADEN HILLS <br />MEMORANDUM <br />DATE: July 8, 2024 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perault, City Administrator <br />FROM: Julie Hanson, Assistant to the City Administrator/City Clerk <br />SUBJECT: Tobacco Moratorium Discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />The City Council should consider giving feedback and direction on tobacco as it relates to the <br />moratorium that was established in November 2023 regarding tobacco licensing. <br />Background <br />Currently, there are five businesses that hold an active City tobacco license: Brausen Holiday, <br />Cub Discount Liquor, Cub Foods, Holiday Stationstore (on Hwy 96) and Walgreens. <br />In late 2023, the City's sole standalone tobacco store forfeited its license following compliance <br />issues. No standalone stores currently operate in the City. <br />On December 11, 2023, the City Council adopted a one-year moratorium regarding the issuance <br />of new tobacco licenses in the city effective November 23, 2023 (Attachment A). This would <br />afford the City Council time to consider if it would like to make any changes to license fees, <br />violation fees, capping the number of licenses issued (related to tobacco product stores or to the <br />total number of licenses issued anywhere in the city, regardless), and zoning. Please note the <br />moratorium ends November 26, 2024. <br />Attached for Council review is information pertaining to the number of licenses and any caps in <br />various metro cities (Attachment B), neighboring cities' fee violations (Attachment C), and <br />various cities' license fee comparisons (Attachment D). <br />State Statute does not regulate the number of licenses a city can issue. State Statute §461.12, <br />Subd. 2 does set forth the minimum fees for violations; however, cities can choose to impose <br />higher fees. <br />Council may decide not to change the current rule in Arden Hills of no cap on the number of <br />licenses issued and make no changes to the current license and/or violation fees, or Council may <br />Page 1 of 2 <br />