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A pro rata share of an annual license fee for a retail license to sell intoxicating or 3.2 percent malt <br />liquor, either on -sale or off -sale, may be refunded to the licensee or to the licensee's estate if- <br />(1) the business ceases to operate because of destruction or damage; <br />(2) the licensee dies; <br />(3) the business ceases to be lawful for a reason other than a license revocation; or <br />(4) the licensee ceases to carry on the licensed business under the license. <br />If bars/restaurants can open in early May, operations would have ceased for a little under two months. <br />Council could remove two months of fees from the renewal for those ceased operations. <br />B. Installment Payments <br />The attorney general has ruled on several occasions that a Council may allow payment of liquor license <br />fees in installments, but three criteria must exist: <br />1. An ordinance amendment is required. <br />2. Payment of each installment should come due before the beginning of the period to which it relates. <br />3. The licensee bears responsibility for the full year's license fee upon receiving the license, whether or <br />not the business continues to operate. A city can seek to recover the unpaid installments as they fall <br />due even if the business ceases operation. To minimize problems, the ordinance should contain an <br />express provision to this effect. <br />Financial Impact <br />Prorating a two -month refund would decrease licensing revenue by $12,483.52. <br />Installment payments would require more staff time and resources for follow-up each quarter. If Council <br />chose this option, staff would recommend it only be valid one time for the July 1, 2020 - June 31, 2021 <br />licensing year. Council may need to consider license suspensions for non-payment if an installment is not <br />paid. The business would not be allowed to sell liquor until the payment has been made and the <br />suspension removed by Council. <br />Council has no authority to financially support a business and there is no public purpose for such an <br />expenditure. But Council could consider other financial assistance options through the Economic <br />Development Authority. <br />Attachments <br />■ Financial Impact Detail <br />