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Public hearing and action on Resolution No. 18-102, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On-Sale Restaurant Liquor License for or the Lodge, DenWil Hospitality Group, Inc., owner, 2515 6th Street, Brookings, South Dakota, legal description: Block 12, Telkamp Addition.
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Summary:
DenWil Hospitality Group, Inc. has applied for an On-Sale Restaurant Liquor License for The Lodge, 2515 6th Street, Block 12, Telkamp Addition. A public hearing and action by the local governing body is required to approve all alcohol licenses. All required documents and fee have been submitted for this application.
Resolution No. 18-102 would allow the City Manager to enter into the first five years of the enclosed 10-year agreement effective through 2023. The license would be effective January 1, 2019 through December 31, 2019 and subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license.
Background:
In August 2018, The Lodge transferred its convention liquor license to Wilbert’s, the new convention facility. Whiskey Creek is the only other business in Brookings with a restaurant liquor license.
If approved, the applicant will pay the City a one-time fee of $100,000 as per approved Resolution No. 98-11, a Resolution Establishing the Fee for the Issuance of Full-Service Restaurant On-Sale Licenses in the City of Brookings. Further, the licensee would be subject to $1500 annual renewals.
SDCL 35-4-117 Price of full-service restaurant on-sale license set at or above current fair market value.
35-4-117. Price of full-service restaurant on-sale license set at or above current fair market value. Any municipality or county adopting the ordinance pursuant to § 35-4-111 shall, for a period of ten years following adoption of such ordinance, set the price of a new full-service restaurant on-sale license, pursuant to § 35-4-116, at or above the current fair market value. However, the full-service restaurant on-sale license fee may not be less than the minimum on-sale license fee as provided in subdivision 35-4-2(4) or (6). For purposes of this section, the term, current fair market value, means the documented price of the on-sale license most recently sold through an arm's-length transaction, less the value of any real or personal property included in the transaction. If there are no documented sales of on-sale licenses, the municipality or county may request from any on-sale license holder within the municipality or county, the date and price originally paid for its on-sale license to determine the current fair market value.
Fiscal Impact
Net impact to the City General Fund Revenue will be a one-time Restaurant License fee of $100,000 and one-time $100 application fee.
Recommendation
Recommendation:
Staff recommends approval
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Attachments:
Resolution 18-102
Legal Notice
Restaurant Operating Agreement
Resolution Establishing the Fee
Enabling Ordinance