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q4&o,,,SPAL+zE REQUEST FOR COUNCIL ACTION 1 BACKGROUND 2 At the November 18, 2013 City Council meeting, a public hearing was held to consider the transfer of 3 an off -sale liquor license to Total Wine & More. That action was tabled until the November 25th 4 Council meeting to allow for further discussion. 5 6 Minnesota Fine Wines & Spirits, LLC, operating under the name of Total Wine & More, recently 7 purchased Network Liquors along with all of their assets. Network Liquors resided at 2727 Lexington s Avenue North. Total Wine & More intends to eventually re- locate to a new location located at 2401 9 Fairview Avenue North, Suite 105. The store is expected to open in the spring of 2014, pending local lo and State approvals. 11 12 Under State Statute 340A.412 and City Code Chapter 302.07B, the acquisition of an existing off -sale 13 retail location is effectively categorized as a transfer of an existing license; for which City Council 14 consent is required. The City Code reads as follows: 15 16 Person and Premises Licensed; Transfer: Each license shall be issued only to the 17 applicant and for the premises described in the application. No license may be 18 transferred to another person or place without City Council approval. Before a transfer 19 is approved, the transferee shall comply with the requirements for a new application. Any 20 transfer of the controlling interest of a licensee is deemed a transfer of the license. 21 Transfer of a license without prior City Council approval is a ground for revocation of 22 the license. (Ord. 972, 5 -13 -1985) (Ord. 1390, 3 -29 -2010) 23 24 Specific to City Code, Total Wine's application materials are considered complete and in full 25 compliance with City documentation requirements. It should be noted that the City has received a 26 substantial amount of information from the MN Licensed Beverage Association (MLBA) that appears 27 to take issue with Total Wine & More's business and legal practices. They include various newspaper 28 articles and court cases from other states. These issues generally involve: 29 so a) Alleged violation of restrictions in some states that limit the number of retail establishments that 31 an individual owner can have. 32 b) Alleged discount pricing practices in another state that violated working agreements between 33 distributors and retailers. Page 1 of 2 Date: 11/25/13 Item No.: 13.a Department Approval City Manager Approval Item Description: Continue the Public Hearing to Consider the Transfer of an Off Sale Liquor License to Minnesota Fine Wines &Spirits, LLC (Total Wine &More) 1 BACKGROUND 2 At the November 18, 2013 City Council meeting, a public hearing was held to consider the transfer of 3 an off -sale liquor license to Total Wine & More. That action was tabled until the November 25th 4 Council meeting to allow for further discussion. 5 6 Minnesota Fine Wines & Spirits, LLC, operating under the name of Total Wine & More, recently 7 purchased Network Liquors along with all of their assets. Network Liquors resided at 2727 Lexington s Avenue North. Total Wine & More intends to eventually re- locate to a new location located at 2401 9 Fairview Avenue North, Suite 105. The store is expected to open in the spring of 2014, pending local lo and State approvals. 11 12 Under State Statute 340A.412 and City Code Chapter 302.07B, the acquisition of an existing off -sale 13 retail location is effectively categorized as a transfer of an existing license; for which City Council 14 consent is required. The City Code reads as follows: 15 16 Person and Premises Licensed; Transfer: Each license shall be issued only to the 17 applicant and for the premises described in the application. No license may be 18 transferred to another person or place without City Council approval. Before a transfer 19 is approved, the transferee shall comply with the requirements for a new application. Any 20 transfer of the controlling interest of a licensee is deemed a transfer of the license. 21 Transfer of a license without prior City Council approval is a ground for revocation of 22 the license. (Ord. 972, 5 -13 -1985) (Ord. 1390, 3 -29 -2010) 23 24 Specific to City Code, Total Wine's application materials are considered complete and in full 25 compliance with City documentation requirements. It should be noted that the City has received a 26 substantial amount of information from the MN Licensed Beverage Association (MLBA) that appears 27 to take issue with Total Wine & More's business and legal practices. They include various newspaper 28 articles and court cases from other states. These issues generally involve: 29 so a) Alleged violation of restrictions in some states that limit the number of retail establishments that 31 an individual owner can have. 32 b) Alleged discount pricing practices in another state that violated working agreements between 33 distributors and retailers. Page 1 of 2