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A further complication arises if one of the existing liquor stores residing outside the Regional Business 30 district closes, and a new applicant subsequently requests a license. The City currently has 10 liquor stores 31 whose locations are currently ‘unrestricted’ aside from the normal zoning code requirements. One of these 32 stores is located inside a Regional Business district, while nine are located outside that district designation. 33 34 Let’s assume the Council approves an 11th liquor store under the condition that it locates in a Regional 35 Business district. Now let’s assume one of existing stores outside the Regional Business district closes, 36 bringing the total number of stores back to 10. Can the next applicant locate outside the Regional Business 37 district because it is taking the vacated ‘unrestricted’ license? Or does it have to go into a Regional 38 Business district because any license over 10 is only permitted there? 39 40 If it’s the latter, then once again those within or near Regional Business districts are subjected to greater 41 marketplace competition compared to those that are further away. The disparity would grow each time this 42 sequence of events is repeated. 43 44 Obviously some locations are already inherently more competitive than others. The distinction being made 45 here is that under Option C, the City has artificially created the inequity. It did not arise out of normal 46 ‘unregulated’ market forces. Something existing license holders could be critical of. This inequity does not 47 exist under Options A or B. 48 49 Option C carries a few other challenges as well. It would preclude the City from marketing Twin Lakes to 50 national or local retailers such as Trader Joe’s, or Whole Foods which may want to sell liquor as one of 51 their product lines. In addition, we would create a situation whereby stores like Target (which is zoned 52 Regional Business) could get a liquor license, but their major competitor Walmart (which is not zoned 53 Regional Business) could not. Same goes for Rainbow Foods which already has a license, yet Cub Foods 54 would be prohibited. 55 56 When considering these options, the Council is reminded that off-sale liquor store sites must also conform 57 to both State location requirements. In addition, the current City Code specifies that the issuance of an off- 58 sale liquor license can be denied if the presence of the liquor store would prove to be detrimental to the 59 health, safety and welfare of the citizens including, but not limited to; the effect on market value of 60 neighboring properties, proximity to churches and schools, and effect on traffic and parking. 61 PO OLICYBJECTIVE 62 Not applicable. 63 FI INANCIALMPACTS 64 Not applicable. 65 SR TAFF ECOMMENDATION 66 Not applicable. 67 RCA EQUESTEDOUNCILCTION 68 The Council is asked to provide direction regarding the amendment of City Code Chapter 302; and Cost 69 Plus’ request for an off-sale liquor license. 70 71 72 Page 2 of 3