Agenda - Council - 06/23/2020 - Laserfiche WebLink

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allows for the sale of e cigarettes. I have attached a pdffile from the Minnesota House of Representatives House Research last updated in June of 2018 where e cigarettes are licensed and regulated as tobacco related devices. The concern I have related to an e-cig operation trying to become an exclusive liquor store would be related to other items they might sell in their store, such a CBD oils and related products. There are many products these stores sell that would not be allowed in the exclusive off -sale liquor store. It is going to be a business decision on the part of the business as to whether or not they limit items they can sell by combining the current store with a liquor store or whether they open a liquor store to operate exclusive with no public access to the e-cig store. Based on this information there are a number of paths that City could choose to take on this matter. The City Council should consider the following options. 1. Approval of the license as presented based on existing City Code provisions. 2. Approval of the current license as presented and direct staff to draft an ordinance further defining "tobacco products" permitted for sale at off sale liquor stores to be implemented prior to renewals of licenses next year. 3. Table action on the license and direct staff to draft an ordinance further defining "tobacco products" that would restrict the sales of off -sale liquor and certain tobacco products such as eCigarettes in the same location. Staff does note that there would be some challenges in enforcement of the above, but not out of the ordinary. Of particular note, as part of regular audits of the liquor license and tobacco license, Staff would need to ensure that the business is not selling products inconsistent with these licenses such as CBD products. Funding Source: This case is being handled as part of normal Staff duties. The Applicant is responsible for an Application Fee. Recommendation: Staff needs clear policy direction on how to proceed. If the City Council does not desire to amend City Code placing additional restrictions on the sales of off -sale liquor and electronic cigarettes in the same location, it should approve the current license. If the City Council does desire an amendment to City Code to place additional restrictions, it should table the current application pending the outcome of that process. At this stage, Staff would not recommend a denial of the Application. As noted above, City Code would need to be amended first giving the City Council the authority to deny this application. Action: Motion to approve/deny/table an off -sale liquor license for CLOUD X VAPES at 13939 St. Francis Boulevard NW, Suite 200. Note - if the motion is to table action, the motion should also include direction to begin a process to amend City Code. House Research E-cigarettes Attachments Form Review Inbox Reviewed By Date Sean Sullivan (Originator) Sean Sullivan 06/18/2020 10:13 AM Tim Gladhill Tim Gladhill 06/18/2020 10:52 AM Kurt Ulrich Kurt Ulrich 06/18/2020 03:56 PM Form Started By: Sean Sullivan Started On: 06/16/2020 09:03 AM Final Approval Date: 06/18/2020