| | | | | | | |  Shakopee City Council May 5, 2020
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| | | | | | | | | FROM: | Nate Burkett, Assistant City Administrator | | TO: | Mayor and Council Members |
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| | | | | | | | Subject: Pro-rating liquor license fees based on forced closure of licensed businesses | | |
| | | | | | | | Policy/Action Requested: Approve resolution R2020-067 which provides for liquor license fee relief on a pro-rata basis by reducing those liquor license fees due on July 1, 2020 and provides authorization to delay liquor license fees due date. | | |
| | | | | | | | Recommendation: Approve policy/action requested. | | |
| | | | | | | | Discussion:
Governor's executive order 20-04 closed restaurants, bars and clubs effective March 17, 2020. At this time, it is unknown when restaurants, bars and clubs will be allowed to re-open. These businesses have not been generating revenue off of licensed liquor sales since March 17, 2020 - with the exception of some beer and wine sales allowed by legislative action.
The attached resolution authorizes the pro-ration of liquor license fees, and deduction from liquor license fees based on the number of days that a business is forced to be closed due to executive action. It also provides for administrative extension of the due date for fees. However, license applications will be due and processed on the same timeline.
- Specific to bars, restaurants and clubs with on-sale, Sunday, club and taproom licenses - does not apply to liquor stores, grocery stores or gas stations
- Paperwork and applications due on regular schedule, liquor licenses will be processed as normal
- Pro-rated discount is deducted from 2020 liquor license fees NOT refunded from 2019 liquor license fees
- Liquor license payments due the first business day 90 days after liquor license holders have been allowed to re-open, includes an option to apply for half due at 90 days and the second half at 180 days
- Does NOT continue liquor license pro-ration if license holders are allowed to open with restrictions, does NOT continue liquor license pro-ration if license holders choose not to open when allowed (whether fully or partially open)
- Payments will be pro-rated based on the following calculation: (# of days between March 17 and the date they are allowed to open divided by 360) times total liquor license fee due for 2020.
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| | | | | | | | Budget Impact: Approximately $443/day in lost revenue | | |
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