HomeMy WebLinkAboutOrdinance 30-2008 ORDINANCE NO. 30-08
AN ORDINANCE ESTABLISHING PROCEDURE FOR THE ISSUANCE AND
REGULATION OF ON-SALE LICENSES FOR FULL-SERVICE RESTAURANTS IN THE
CITY OF BROOKINGS, SOUTH DAKOTA.
BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF
BROOKINGS,STATE OF SOUTH DAKOTA,AS FOLLOWS:
I.
Sec. 6-50. Full-Service On-Sale Restaurant Licenses.
a. Definitions of Terms:
Terms used in this ordinance mean:
(1) "Bar," any permanently installed counter within the restaurant area from which alcoholic
beverages are regularly served to customers by a person who is tending bar or drawing
or mixing alcoholic beverages;
(2) "Full-service restaurant," any restaurant at which a waiter or waitress delivers food and
drink offered from a printed food menu to patrons at tables,booths,or the bar.Any
restaurant that only serves fry orders or food such as sandwiches,hamburgers,or salads
is not a full-service restaurant;
(3) "Restaurant," any area in a building maintained,advertised,and held out to the public as
a place where individually priced meals are prepared and served primarily for
consumption in such area and where not more than forty percent of the gross revenue
of the restaurant is derived from the sale of alcohol or alcoholic beverages.The
restaurant shall have a dining room or rooms, a kitchen, and the number and kinds of
employees necessary for the preparing, cooking,and serving of meals.
b. License Application Requirements:
Documentation: An applicant for a full-service restaurant on-sale license shall provide
sufficient documentation to the municipality with an application form provided by the
municipality to prove that the primary source of revenue from the operation of the
restaurant will be derived from the sale of prepared food and nonalcoholic beverages
and not from the sale of alcoholic beverages. The supporting documentation concerning
the primary source of revenue submitted pursuant to this section is confidential.
c. Annual Reports:
The full-service restaurant on-sale licensee shall submit an annual report and supporting
documentation to the City on forms provided by the City of the annual sales of the full-
service restaurant,which includes an oath verifying the validity of the information
provided in the report. The report and the supporting documentation submitted
pursuant to this section are confidential.The report shall contain the annual gross sales
of the licensee for the following two categories:
(i) Food and nonalcoholic beverage sales;and
(ii) Alcoholic beverages sales.
d. License Renewals:
When renewing a full-service restaurant on-sale license, the City shall condition the
license renewal upon receiving documentation that not more than forty percent of gross
sales from the preceding twelve months operation of the full-service restaurant is
derived from the sale of alcohol or alcoholic beverages.
e. Only Retail, On-Sale Service Permitted:
A full-service restaurant on-sale licensee may only serve alcoholic beverages for on-
premise consumption in the bar and dining room area of the restaurant.
f. Smoking Prohibited:
No licensee that has a full-service restaurant on-sale license may allow smoking on the
licensed premises.
g. Full-Service Restaurant License Fees:
(1) As required by State law, the license fee charged for a full-service restaurant on-sale
license shall be at or above the current fair market value for such license as determined
herein. However,any fair market value so established shall be a minimum of one dollar
for each person residing within the City as measured by the last preceding decennial
federal census.
(2) The license fee shall be initially established by Resolution within ninety (90) days of the
initial adoption of this ordinance. Subsequent changes in the license fee shall not be
made for a period of ten (10) years from the effective date of adoption of this ordinance
unless a population growth reported by the Federal decennial census requires an increase
in the fee.
(3) Fair Market Value for full-service restaurant license shall be established as follows:
(a) Within 90 days of the effective date of this ordinance and as required by State
statute,each licensee within the City who owns an on-sale license issued
pursuant to SDCL 35-4-2 (4) or (6) as of January 1,2008,and who purchased
the license or had the license transferred to such licensee at anytime between
January 1,2003,and January 1,2008, shall report the amount originally paid for
the on-sale license to the City of Brookings City Manager on forms provided by
the City. Any form submitted pursuant to this provision shall be signed under
oath and shall include the documents establishing the amount originally paid for
the on-sale license. If the transaction for the purchase of the on-sale license
included real or personal property,the full market value of the real or personal
property on the date of the original sale shall be deducted from the total
transaction price to determine the amount paid by the licensee for the on-sale
license. The burden of establishing the amount paid for the license shall be on
the licensee.Any licensee contesting the fair market value of the real or personal
property may appeal the valuation adopted by the City to circuit court.
(b) For purposes of this section,the term, "Current Fair Market Value"means the
documented price of the on-sale license most recently sold between January 1,
2003,and January 1,2008,through an arm's length transaction,less the value of
any real or personal property included within the transaction.
(c) In the event it is determined that under SDCL Chapter 35-4,no on-sale license
has been purchased or transferred because such licenses are not transferable in a
local option community,but may only be subject to an Operating Agreement,
then the license fee shall nonetheless be set at or above the minimum of One
($1.00) dollar for each person residing within the City as measured by the last
preceding decennial federal census.
h. Registry of Full-Service Restaurant On-sale Licensees:
The City shall maintain a registry of each full-service on-sale restaurant license that is
being offered for sale and the City shall furnish a copy of the registry to anyone who
requests a new-full service restaurant on-sale license. The existing full-service restaurant
on-sale licensee is responsible for registering with the City that the full-service restaurant
on-sale license is for sale.
i. Issuance of new Full-Service Restaurant Licenses restricted:
The City may only issue a new license pursuant to this ordinance if no on-sale license is
on the registry or a person desiring to purchase an on-sale license listed on the registry
provides documentation showing that the person is unable to purchase the on-sale
license at the price established in section g of this ordinance and on terms satisfactory to
both the potential buyer and seller.The price of any on-sale license registered as "for
sale"with the City shall be sold at the current fair market price set by the City pursuant
to a Resolution adopted in accordance with section g(2) of this ordinance.
II.
Any or all ordinances in conflict herewith are hereby repealed.
FIRST READING: August 12,2008
SECOND READING: August 26,2008
PUBLISHED: August 29,2008
CITY OF BROOKINGS,SOUTH DAKOTA
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�"'"Y_, T: cott D. nsterman,Mayor
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