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Item #5.2. <br /> <br />City of <br /> <br />E <br /> <br />River <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />January 8, 2001 <br /> <br />SUBJECT: Wine and Beer Sales in Grocery Stores <br /> <br />The 2001 Legislative Session is just underway and the first issue of concern <br />to municipalities, especially those who have off-sale liquor stores, is a <br />proposal to allow the selling of wine in grocery stores in the seven county <br />metropolitan area. It is widely believed that if this legislation is approved it <br />will expand within a very short time to include beer sales, include <br />gas/convenience stores, and spread to the outstate area. This in turn would <br />create some significant enforcement issues for our local police department as <br />it relates to underage purchases. <br /> <br />Attached for your information is a memo from Chief of Police Tom Zerwas <br />regarding his concern about the increased number of establishments that <br />could sell wine. <br /> <br />Municipalities being allowed to have off-sale liquor establishments and a <br />monopoly on this activity within their city limits allows for easy enforcement <br />of state laws relating to underage purchases and monitoring any off-sale <br />liquor transactions. One of the main purposes of this law is management and <br />control of the industry. Any legislation that would increase our enforcement <br />costs or erode our current ability to enforce liquor laws would be a detriment <br />to the city. Additionally, a well run and managed liquor store is a nice source <br />of funds for special projects and can keep taxes lower. Certainly allowing <br />wine to be sold in grocery stores would reduce profits at Northbound. <br /> <br />The Minnesota Municipal Beverage Association (MMBA), of which we are a <br />member, is strongly opposed to the expansion of the liquor laws that would <br />allow wine (or strong beer) to be sold at any place outside of a licensed liquor <br />establishment. The MMBA is requesting members to adopt resolutions in <br />opposition to this type of legislation. Additionally, the MMBA Board has <br />authorized a membership dues assessment plan to help fund an education <br />and lobbying effort against the wine in grocery store proposal. Based on <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425 <br /> <br /> <br />