Agenda - Council - 03/08/1988 - Laserfiche WebLink

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Memo to Mayor, City Council, Acting City Manager Criteria for Expanded LiQuor OFf-Sale Ordinance january 19, 1988 Page 2 If the Council chooses to limit the number of stores, the eight zone concept is recommended which in effect limits the distance between stores to approxi- mately one mile. The eight zone concept is recommended to avoid confusion when the ordinance to expand becomes effective. For instance, if two or more applications are received which are more than a mile distant from the existing license but the applicant stores are less than one mile apart, who gets the license? Implementing the eight zone concept could require a lottery in zones in which more than one applicant chose to apply; however,' a lottery appears to be the fairest way of solving that potential issue, hence the recommendation. SUF~ARY In the final analysis, supply and demand for additional off-sale stores will ultimately dictate which zones will have stores. If Council had decided not to divest of the liquor operation, we were ready to recommend at least two additional City-owned stores now and one or two more in the future as addi- tional growth occurred. After meeting the prospective license holders, there C.~y and the appears to be an immediate demand for two or more stores in the ~' zone concept will provide a workable lottery method to determine who will be lic'ensed where there is competition in a specific area. ACTION RECOM_MENDED That the City Council determine first the limited versus ~nllmited issue. If the unlimited route is chosen, consideration should be given to a minimum taxable va!ua:ion. vf Council chooses the limited approach, consideration should be given to the eight zone approach with no more than one license per zone. The eight zone approach provides a fair method to determine ~o receives the license, assuring there is competition for licenses, within zones. The eight zone approach also ensures ~n element of competi~ion'w~thou~ crea~ing a valuable monopoly for exis:ing and future license holders. The City Council may choose to hold a work session on this matter and we would be happY to meet with the Council at their convenience to discuss this issue in greater detail. After more soecific'direction is given on the above issues, an ordinance will ~. -~o ~tv Attorney ~ud returned to ~he City Council ~o'begin the be drafted ~ formal ordinance process. n ~spec.~. u--5, Finance Director jkh