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REQUEST FOR COUNCIL ACTION Date: June 20, 2022 Item No.: 7.c Department Approval City Manager Approval Item Description: c. Discuss changes to City Code 302.02 (D) regarding the issuance of On-sale liquor licenses 1 B ACKGROUND 2 The City received a requestfrom a potential new small business looking to locate in Roseville that would 3 like to secure an on-sale intoxicating liquor license. Under the City’s current requirements, they would 4 not be eligible to receive an On-Sale Intoxicating Liquor License due to the required amount of seating 5 and the required percentage of food salesas part of their operation. Staff was directed to review Chapter 6 302.02 (D) as it compares to neighboring cities, specifically the minimum seating requirement and 7 percentage of gross sales being attributed to the sale of food. 8 9 Roseville City Code 302.02(D) defines a restaurant as any establishment, other than a hotel, having 10 appropriate facilities to serve meals, for seating not less than 100 guests at one time and where, in 11 consideration of payment, meals are regularly served at tables to the general public and which employs 12 an adequate staff for the usual and suitable service to its guests. 13 14 Where the seating capacity of the establishment is between 100 and 174, at least 50% of the gross sales 15 of the establishment must be attributable to the service of meals. Where the seating capacity is 175 or 16 more, at least 25% of the gross sales of the establishment must be attributable to the service of meals. 17 18 State Statute 340A.101defines a restaurant as an establishment, other than a hotel, under the control of a 19 single proprietor or manager, where meals are regularly prepared on the premises and served at tables to 20 the general public, and having a minimum seating capacity for guests as prescribed by the appropriate 21 license issuing authority. State statutes do not require a minimum number of seats or require a certain 22 percentage of revenue be attributable to food sales. 23 24 For comparison purposes Staff reached out to 20 neighboring cities, the information is attachedas 25 Attachment C 26 27 To frame the conversation, staff has come up with a couple of approaches for the City Council to consider 28 and discuss: 29 30 1. Consider lowering the seating requirement and/or the percentage food sales for issuance of an 31 on-sale intoxicating liquor license. As demonstrated in Attachment C, Roseville’s seating 32 requirement is higher than most surveyed communities. The City Council could consider lower 33 the seating requirement to an amount that is closer to the surveyed communities. The City Council 34 could also look at the food sales requirement in conjunction with the seating requirements. As Page 1 of 2