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3. SR 05-27-2020
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3. SR 05-27-2020
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allow for this. Some have changed ordinances that require the business to apply for a permit for this temporary <br />increase in size. Others have approved resolutions. The benefit of having a permit process is the option to make <br />this an administrative process that does not require council approval. It is important to work with the city <br />attorney in developing this process. <br />Some important considerations for cities: <br />• The retailer must provide the city with proof that their liquor liability insurance covers alcohol sales in <br />any expanded outdoor spaces which, under Minnesota law, must be "compact and contiguous" to the <br />main structure. Proof of liquor liability insurance must also be provided for onsite catered events. <br />• The city will need to approve a map of expanded service areas. Note that guidance from the Minnesota <br />Department of Employment and Economic Development (DEED) limits bars and restaurants to 50 <br />guests with reservations for the entire outdoor service area. <br />• Cities may want to consider noise and traffic concerns. <br />• Local zoning and building codes would apply to any physical expansions such as new or modified patios <br />and decks. This may include the type of materials for fencing required to have a compact and continuous <br />new space. <br />Q2. Can the city allow businesses to expand their outdoor areas? <br />A2. Minnesota Statutes, section 340A.410, subdivision 7 requires retail alcoholic beverage licensed premises to <br />be compact and contiguous. Minnesota Rules 7515.0430, subpart 2 defines the types of additions license <br />holders can make as part of their licensed premises to include physically connected attachments to the main <br />structure such as patios, decks, or pavilions. The space would have to be owned and/or leased and be a part of <br />the business. The city would have to approve any compact and contiguous additions to the licensed premises <br />and include such additions in the license files and on documentation defining the licensed premises. <br />Sidewalk seating or other types of city -controlled public space that would normally not be used for expanded <br />seating could be used at the city's discretion as it would for sidewalk table seating under normal circumstances. <br />The city would have to allow the license holder use of the space and include it as retail licensed premises patio <br />space. <br />Use of a parking lot would have to constitute a compact and contiguous additional patio space. <br />The Minnesota Department of Transportation is preparing guidance on the use of parking lots and areas <br />traditionally used as right of ways. A link to that guidance will be provided here when available. <br />Q3. Can the city grant catering permits as a way for businesses to expand their outdoor <br />service? <br />A3. If the parking lot or other expansion space is not contiguous to the original licensed premises, another <br />option would be for the business to apply and qualify for an alcohol catering permit to enable alcohol incidental <br />to food service for events (see Minnesota Statutes, section 340A.404, subdivision 12). An event is not daily bar <br />service, but could be weekend parties or music events, etc. <br />Q4. Do municipal on -sale liquor establishments have to follow the same rules as other <br />businesses if they want to expand their outdoor service? <br />A4. Cities that operate an on -sale liquor establishment need to have: <br />0 City approval for expanded outdoor spaces, <br />
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