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EX~UTIVE SUMMARY <br /> <br />The divestiture of the City's municipal liquor stores in 1987 creates <br />a need to adopt an ordinance to regulate the issuance of licenses for <br />off-sale intoxicating liquor establishments in the community. City <br />staff has reviewed state statutes, relevant court cases, the liquor <br />licensing ordinances of other municipalities and has solicited the <br />input of current Coon Rapids liquor licensees and potential appli- <br />cantS. <br /> <br />Generally, cities vary a great deal in how they regulate off-sale <br />liquor licenses. Many communities have municipal liquor stores and <br />limit the number of such stores to no more than two or three in their <br />city. Other communities place restrictions on the proliferation of <br />liquor establishments by requiring minimum distances between stores, <br />using population ratios or minimum square footage requirements. Other <br />municipalities make no attempt to llml~ licenses and allow the <br />marketplace to dictate the number of liquor establishments. <br />State statutes and court precedents provide municipalities with a <br />great deal of latitude in how they issue liquor licenses. For the <br />most part, it becomes a matter of City Council philosophy as to how <br />extensively municipalities seek to regulate off-sale liquor establish- <br />ments. <br /> <br />Basically, the City Council has three major options: <br /> <br /> 1. Status Quo. Keep things as they are now by allowing no more <br /> than the two existing licenses.' <br /> <br /> 2. Allow an unlimited number o~ .licenses -- let the marketplace <br /> dictate the number and locati6n of liquor establishments. <br /> <br /> 3. Set a limit on the number of licenses and establish criteria <br /> for awarding such licenses. <br /> <br /> Based on examination of the success (or non-success) of other cities <br /> liquor ordinances and after meeting with current and potential liquor <br /> licensees, staff is recommending the City Council set a limit on the <br /> number of licenses issued and establish criteria for awarding such <br /> licenses. Specifically, Staff suggests the following steps: <br /> <br /> - The City Council establish eight zones within the community <br /> (based on factors such as population, distance, an~ availabi- <br /> lity to com~ercia!!y :oned area),.in which one license would <br /> be issued per zone. <br /> <br /> - The establishment of licensing zones would ensure that liquor <br /> stores would be distributed throughout the con, unity for the <br /> residenu's convenience. <br /> <br /> - Require new licenses to have a building and !an~ investment <br /> with an assessed valuation of $300,000 minimum, generating <br /> property taxes cf approximately $14,000 per year. <br /> <br />-2- <br /> <br /> <br />