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Home My WebLink About2012-06-27 Handouts Kelly's Korner of Centerville June 27, 2012 What Kelly's has done since March 2011 • Fixed up the interior and exterior of the building making it one of the finer businesses in Centerville • Created a working relationship with the Centennial Lakes Police Department, the Centerville Lions Club, Quad Chamber of Commerce, City Hall, and the community (a few examples below) — Taking part in the grant program given to Anoka County regarding parking lot theft prevention — Hosting the next training for alcohol compliance conducted by the Centennial Lakes PD — Hosted a Quad Chamber of Commerce event - Hosted four benefits in the past year for the community • Have employed a number of local individuals — currently there are 24 • Kelly's used to run mainly on liquor sales; now the food sales are more than the liquor sales • Are dedicated to creating and maintaining a family friendly environment — We do not put up with any of the "old" type behavior that was the "norm" under the previous owner — Caters to families and community events (little league teams, church functions and the like) 2 What Kelly's has done (cont.) • Had all employees who serve alcohol attend the Centennial Lakes Police Department training regarding alcohol compliance. Note: New employees will be asked to do the same • Distributed a handbook to all employees outlining requirements of alcohol compliance and consequences if not met • Implemented a number of preventive measures, including hiring staff to watch the doors during events and regular monitoring of the premises • Installed a high tech state of the art security system 3 Impact Kelly's has on the Community • Paid in property taxes for 2011: $14,221 • Liquor license annually to city of Centerville: $2,800 • Has a monthly payroll of (roughly): $11,000 — Annually: $132,000 • Sales and Use Tax monthly average: $5,100 — Annually: $61,200 • Monetary donations made to the community in the past year: $4,500 • Decreased police calls results in a decreased cost to the city — Under the previous owner there were 2 -3 calls a week — Under Jeff and Vicki's ownership they have been called out just a couple times in 15 months (one being this case) 4 Why we are here Because the Centerville city attorney, Mr. Glaser, told us he is recommending to the city council that Kelly's Korner receive a liquor violation and pay the highest penalty set by city ordinance for an open beer bottle in their parking lot. So, we are here to present our case and prove that Kelly's Korner did nothing wrong and does not deserve to be penalized. 5 The Facts 1. An individual was cited by the Centennial Lakes Police Department in Kelly's parking lot with an open bottle. 2. Kelly's received no citation for this incident from the Centennial Lakes Police Department 3. Kelly's Korner has not had a liquor violation under Jeff and Vicki's ownership 4. MN Statutes 340A indicates that a licensee is responsible for the action of their employees, but it does not indicate the licensee is responsible for the actions of their customers. 6 Our Case An attorney, who practices in alcohol compliance, reviewed our case and Centerville's city ordinance. It is his legal opinion that Kelly's Korner did nothing in violation of MN Statutes 340A or Centerville's City Ordinance, Chapter 111. An open bottle of beer in the parking lot does not constitute an illegal act on the part of Kelly's Korner. 7 I • We cannot completely stop a patron from removing alcohol from the premise into our parking lot or from bringing alcohol into our parking lot because it is impossible to do so. We can only put in reasonable measures to deter this. • Measures we have put in place as a deterrence: — Hiring staff to sit at the doors during events — Posting "no drinking beyond this point" signs on the exits — Conduct periodic monitoring of the outdoor areas and the security cameras throughout the day — Required alcohol compliance training for managers and servers — Asked employees of a neighboring establishment to assist us by insuring patrons of their establishment do not come into our parking lot with an open container of alcohol 8 If having an open beer bottle in the parking lot is considered a liquor violation then what stops competitors or disgruntled persons from "setting us up" - where they make sure they get caught drinking in our parking lot up until they eventually close us down. • If the violations continue and the business cannot afford to pay the penalties or to be shut down (suspended) some negative results are: ✓ the loss of a tax base, ✓ the loss of a community gathering place, ✓ and the loss of local jobs. 9 CityOrdinances We have researched ordinances of neighboring cities and find that: — All were the same in that they referenced Minn. Statutes 340A as the guiding principle — Most were modeled after the League of Minnesota Cities recommended format and content — For the cities we reviewed, there was not one we found where an open bottle of beer in the parking lot warranted a violation — Centerville's ordinance calls for some of the harshest penalties — A number of cities implement reductions in penalties for cities who participate in a "best practices" program (take part in alcohol compliance training). Centerville is not one of these. A few examples are on the following slides and were selected for comparison purposes. 10 City of Centerville — 1st violation = $500 and 5 days suspension — 2nd violation = $1,000 and 10 days suspension — 3 violation = $2,000 and 15 days suspension — 4th violation = revocation 11 City of Circle Pines - 1st violation not addressed - 2 violation within any three year period, at least one day suspension in addition to any criminal or civil penalties which may be imposed. - 3rd violation within any three year period, at least three consecutive days suspension in addition to any criminal or civil penalties which may be imposed. - 4t" violation within any three year period, the license shall be revoked. 12 City of Shoreview (Chapter 801) • For license holders who participate in a "best practices program" with optional manager and server training: — 1st violation = a warning letter and one additional compliance check • For license holders who do not participate in a "best practices program ": — 1st violation = the minimum penalty shall be a $500 fine and one additional compliance check 13 City of Hugo • The city is authorized to impose fees, rates or charges and the same shall be enumerated in this section or elsewhere in this Code. In the event of any conflict between this section and any other provision of the Code, this section shall control. — 1st violation = $200 — 2nd violation = $500 — 3 rd violation = $1000 — 4th violation = Revocation 14 Penalties imposed by other cities • East Bethel Blue Ribbons Pine Golf Course — fined $250 with no suspension for selling to a minor (Feb. 2012) • Purple Reign of Coon Lake - $500 with no suspension for serving a minor (2011) • Miller's on Main served alcohol to an obviously intoxicated person, a civil penalty of $200 with no suspension was imposed for the violation (March 2010) Note: These penalties are for violations that are preventable - Much more negligent than a beer bottle in the parking lot - Much less of a penalty was handed down than is being proposed for Kelly's 15 Centerville city council precedence for liquor violation penalties* • The license holder for the Trio Inn was granted a liquor license for 2012 and was fined $150 and no suspension for not complying with the conditions set by the Council — a License violation. (Nov. 23, 2011) • Wiseguys Pizza and Sager's Liquors were fined $500 and no suspension for failing compliance checks — serving to a minor. (Feb. 23, 2000) • Resolved that Kelly's Korner (under the previous liquor license holder) was fined $1,000 and no suspension for failing a compliance check — serving to a minor, which was the second violation in Tess then a year. (Jan. 14, 2404) Note: These are all violations that are preventable and a lesser penalty than what is being recommended for Kelly's Korner. A "deal" was offered to Kelly's, which was to pay $1,000 as the 1st violation and there would be no suspension. We declined so you as the representatives of Centerville citizens could hear the case and make the decision. *Taken from approved City of Centerville meeting minutes. 16 In Conclusion Kelly's Korner did not violate Centerville City Ordinances or Minnesota Statutes 340A. Kelly's Korner should not be held accountable for something beyond their control. We request that the City Council find that Kelly's Korner did not commit a liquor license violation and should therefore not be penalized. > No liquor violation > No fine > No license suspension We are available for questions. 17 Charges for extra items Centerville WBL Blaine ColumbHts MATTRESS $10.00 $17.50 $22 $22 BOX SPRING $5.00 $17.50 $22 $22 STUFFED CHAIR $5.00 $17.50 $12 $12 COUCH $10.00 $22.50 $17.50 $17 CAR TIRE $1.00 $6 TIRE ON RIM $2.00 $9 AUTOMOTIVE BATTERIES $1.00 ELECTRONICS SMALL/MEDIUM TV /COMPUTER MON. $10.00 $15 $25 $25 LARGE TV $20.00 $20 $45 $45 MISC SMALL ELECTRONICS $ 5.00 $15 $11 $11 (CPU, Clock Radios, VCR, Etc.) Circle Centerville- Blaine- -I Maple Grove White Bear{ Columbia Pines - 20131 2012 2012 Lk 20121 Hts - 2012 2012 Seniors -32 gallon ` $ 7A9 1- $ 6.8 $ 9.50 1- 32 Gallon $ 8.47 I $ 8 j $ 10.63 1$ 9.70 $ 11.25 $ 9.05 64 gallon $ - 12.66 I $ 11.35 I $ 11.93 1 $ 14.25 j $ 11.78 $ 1210 96 gallon $ 17.09 I $ 13.65 I $ 13.39 I $ 19.40 $ 14.69 $ 17.65 Recycling $ 4.20 ± 1 — - -- -- I — -� -} - , 1 I 1