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