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Mr. Steven North <br />Assistant City Manage <br />Page 2 <br />January 29, 1981 <br />I have f ound no Minnesota cases in point on this issue. I have researched thz <br />Cases f rorn other states and find that the courts from other jurisdictions are split <br />-tin the issue of whether or not such an ordinance would be a denial of equal <br />protection, <br />It is impossible to give you an opinion stating affirmatively that such an <br />-irdinance would ultimately be f ound to be legal or illegal. I believe, however; <br />that certain of the criteria being considered would have more of a chance of <br />weathering a constitutional test than othersO <br />believe that the other types of criteria might be more difficult to justify. As <br />6 <br />an example, imposing a more substantiai food/liquor gross receipts ratio or <br />requiring a greater seating capacity 'in a new facility would put the new applicant <br />at a competitive disadvantage with existing facilities, <br />If such an ordinance is considered, it is my recommendation that the morr; <br />restrictive minimum capital investment criteria be used. <br />I believe that the type of ordinance discussed previously in this letter would be <br />more likely to pass a court test than the denial of an application under the <br />existing criteria, without some health, safety and welfare justification. <br />