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#3 Public hearing to allow alcohol at the Janesville Ice Arena (File Ord. #2009-432) CLERK-TREASURER MEMORANDUM April 7, 2009 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Second Reading and Public Hearing of a Proposed Ordinance Permitting the Lessee of the Janesville Ice Arena to Apply for and Hold a Class B Fermented Malt Beverage (FMB) and Intoxicating Liquor License (File Ord. No. 2009-432) Alcohol License Advisory Committee (ALAC) Recommendation The ALAC met on April 7, 2009 to review the proposed ordinance that would permit the lessee of the Janesville Ice Arena to apply for and hold a Class B FMB and Intoxicating Liquor License. They have forwarded a positive recommendation of the proposed ordinance conditioned upon making two amendments to the ordinance. The first amendment would limit the type of alcohol to wine and fermented malt beverage. The second amendment would be to allow the sale and consumption of alcohol during Junior A hockey events only. In addition, the Committee Chair questioned whether the City had the authority to limit consumption to persons of lawful alcohol drinking age only. The City Attorney has stated that the City has the authority to limit who may purchase and consume alcohol on City owned property. City Manager Recommendation The City Manager defers to the Alcohol License Advisory Committee recommendation. If the City Council approves a license, I recommend that it be limited to a Class B Fermented Malt Beverage license. Suggested Motion “I move to adopt ordinance 2009-432 permitting the Lessee of the Janesville Ice Arena to apply for and hold a Class B FMB and Intoxicating Liquor License.” This will get the main motion on the floor and the City Council may make one or more amendment(s) as they deem necessary. If the City Council concurs with the ALAC recommendation then the following amendment should be made. “I move to amend the motion by limiting the type of alcohol sold and consumed to fermented malt beverages and wine and allowing the sale and consumption of alcohol during Junior A hockey events only.” Request This item for consideration is in conjunction with the proposal the City received to lease the Ice Arena to the Wisconsin Hockey Partners, LLC facility. Background On March 23, 2008, the City Council approved an agreement with WHP to utilize the Janesville Ice Arena as their team home rink. Currently, alcoholic beverages are not allowed at the Janesville Ice Arena. However, the agreement allows alcohol sales only if the City Council amends our existing ordinances and grants an alcohol license. If the City Council does not grant an alcohol license to WHP then WHP has the right to terminate their agreement with the City. WHP plans on serving fermented malt beverages at the Ice Arena. Analysis of the Ordinance The proposed ordinance was written to allow the sale and consumption of alcohol and to provide the maximum flexibility to the City Council. The ordinance allows the sale, possession and consumption of beer, FMB wine coolers, wines and champagnes, and intoxicating liquor. It permits this activity only in the designated areas approved by the City Council. Customers who are of legal age may purchase and consume alcoholic beverages. Customers who are not of legal age may not purchase nor consume any alcoholic beverages. Pros: ? Encourages a Junior A hockey team to locate in Janesville. ? The City estimates that the property tax levy would be reduced by $15,000-$20,000 if a Junior Hockey team located in Janesville. ? WHP may be more profitable and successful with alcohol sales. ? Generates more revenue for local hotels, restaurants, and stores. Cons: ? WHP may terminate the agreement if they do not receive an alcohol license. ? Citizens have expressed their opposition to allow alcohol at the Ice Arena at various City Council meetings. ? It may be perceived that the City is promoting alcohol at athletic events. ? May promote similar requests to serve alcohol on City property (i.e. Dawson Fields). ? The ordinance allows for a full Class B FMB and Intoxicating Liquor License, when WHP stated that they were interested in fermented malt beverages only. The ordinance was written to provide the maximum flexibility to the City Council. The City Council may adopt the ordinance as written, make amendments, or deny the ordinance. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Acting Police Chief Dave Moore Deputy Police Chief Steve Kopp ORDINANCE NO. 2009-432 An Ordinance Permitting the Lessee of the Janesville Ice Arena to Apply For and Hold a Class B Combined Fermented Malt Beverage and Intoxicating Liquor Alcohol Beverage License, with penalties and injunctive relief for violations thereof as set forth in JGO 5.06.470. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. The Introductory Table of Contents to Chapter 5.06 is hereby amended to include newly created Section 5.06.231 of the Code of General Ordinances of the City of Janesville: “5.06.231 Sale, possession and consumption of beer, FMB wine coolers, wines, champagnes, and intoxicating liquor permitted in certain areas of the Janesville Ice Arena.” SECTION II. Section 5.06.231 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: 5.06.231 Sale, possession and consumption of beer, FMB wine coolers, wines and “ champagnes, and intoxicating liquor permitted in certain areas of Janesville Ice Arena. A. Anything to the contrary elsewhere in the Code of General Ordinances of the City of Janesville (“City”) notwithstanding, the transport to, storage, possession, sale, distribution, provision, use, and consumption of fermented malt beverages, fermented malt beverage based wine coolers, wines, champagnes, and intoxicating liquor alcohol beverages, as defined in Chapter 125 of the Wisconsin Statutes as from time to time amended and/or as defined and/or interpreted by the Wisconsin Department of Revenue (“Alcohol Beverages”) are permitted at the Janesville Ice Arena but only in “designated areas” and only in strict accord with the provisions of this ordinance and the Lease between the City and the Lessee of the Janesville Ice Arena (“Lessee”). B. “Designated areas” shall be these specific geographic areas established and permitted by the Common Council of the City. Designated areas shall constitute the “alcohol licensed premises.” C . The storage, possession, use, sale, and consumption of Alcohol Beverages shall only be permitted, stored, possessed, used, and/or consumed within a designated area. D . In no event shall a designated area include any area outside of the leased premises unless the Common Council of the City expressly so permits. E . Only the City or the Lessee may transport to, store, possess, sell, distribute, provide, use, or allow the consumption of Alcohol Beverages at Janesville Ice Arena, and then only in designated areas. F . No person shall carry on, possess, transport, store, sell, use, or consume any Alcohol Beverages at the Janesville Ice Arena contrary to any provision of this ordinance, any other ordinance or statute governing alcohol, or any provision of the Lease Agreement. G . No person may take, possess, or consume any Alcohol Beverages outside of the Janesville Ice Arena or outside any designated area(s). H . The storage, sale, possession, use, and consumption of Alcohol Beverages at the Janesville Ice Arena shall only be permitted in strict accord with the requirements, terms, conditions, restrictions, permitting, fee payment, and regulations set forth in this ordinance, and provisions set forth in the Lease Agreement between the City and the Lessee (“Lease”). I . In the event of any conflict between any provision of this ordinance and any set forth in the Lease, or between those and any Lessee promulgated restriction, term, requirement, rule or regulation, the more restrictive provision shall govern. 1 J . The Lessee may not modify, waive, amend, or fail to enforce any provision of this ordinance or provisions concerning Alcohol Beverages set forth in the Lease. K . The City may sell Alcohol Beverages at the Janesville Ice Arena at any time unless the City agrees otherwise during a Lease with a Lessee. L . The Lessee may transport to, carry upon, possess, store, sell, distribute, dispense, and allow the consumption of Alcohol Beverages at the Janesville Ice Arena but only in strict accord with each and every of the following conditions: (1) the Lessee applied for, paid the fee for, was granted, issued, and holds a valid Class B combined fermented malt beverage and intoxicating liquor alcohol beverage license from the City for the Janesville Ice Arena; and (2) the Lessee enters into a Lease with the City approved by the Common Council; and (3) the Lessee complies and abides with all applicable provisions of law; and (4) the Lessee complies and abides with all provisions set forth in the Lease. M. The Lessee shall NOT transfer to any other person or place any fermented malt beverage or intoxicating liquor alcohol beverage license granted by the City. N . The Lessee shall NOT directly or indirectly contract with or permit any independent contractor(s) or other person(s) to conduct or engage in any alcohol sales or other alcohol activities anywhere at the Janesville Ice Arena, or operate or engage in the Alcohol Beverage sales upon the licensed premises, either on behalf of the Lessee or for the direct or indirect benefit or behalf of such contractee(s), independent contractor(s), or person(s). Only the Lessee may be the alcohol licensee and only employees of the Lessee may sell, dispense, or provide permitted Alcohol Beverages upon the licensed premises or anywhere at the Janesville Ice Arena, and only in strict accord with all alcohol and other state laws and City ordinances. O. Only employees of the Lessee may conduct alcohol activities at the Janesville Ice Arena and then only in designated areas. The Lessee shall always have at least one City licensed alcohol beverage operator (“Bartender”) on duty at all times alcohol activities occur. P . Only those persons of lawful alcohol drinking age may purchase, be provided, possess, use, or consume Alcohol Beverages at the Janesville Ice Arena. Q. Persons who have not attained the Wisconsin lawful alcohol beverage drinking age NOT (“Underage Persons”) shall be provided, purchase, possess, use, or consume Alcohol even if Beverages at the Janesville Ice Arena accompanied by or granted permission by such Underage Person’s accompanying parent or guardian. R . The Lessee shall at all times place, maintain, and empty not less than ten (10) adequate size trash and recycling containers inside the “designated areas.” S . No person shall litter or leave behind, and the Lessee shall prohibit persons from littering or leaving behind any empty, full, or partially full Alcohol Beverage Container(s) in the “designated area” or elsewhere inside or outside upon the grounds of the Janesville Ice Arena, except that which is placed in City or Lessee trash and/or recycling containers placed at or near the “designated area” for that purpose. T. In the event that City personnel find litter or Alcohol Beverage containers left behind after an event, the City shall remove the items and charge the full cost of said removal and clean-up to the Lessee. The Lessee shall timely pay that charge to the City Clerk-Treasurer. Failure to pay said charge shall constitute a material breach of the Lease Agreement. U . The Common Council of the City hereby expressly and forever reserve unto themselves all rights, privileges, and prerogatives to amend, condition, modify, and otherwise limit, at any time, any alcohol beverage license or permit granted or issued by the City to the Lessee, but only after public hearing and public action thereon in open session, the public peace, health, safety, welfare, and good so requiring.” 2 SECTION III. The Introductory Table of Contents to Chapter 5.06 is hereby amended to include newly created Section 12.60.122 of the Code of General Ordinances of the City of Janesville: “12.60.122 Sale, possession and consumption of beer, FMB wine coolers, wines, champagnes, and intoxicating liquor permitted in certain areas of the Janesville Ice Arena.” SECTION IV. Section 12.60.122 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: 12.60.122 Sale, possession and consumption of beer, FMB wine coolers, wines and “ champagnes, and intoxicating liquor permitted in certain areas of Janesville Ice Arena. A. Anything to the contrary elsewhere in the Code of General Ordinances of the City of Janesville (“City”) notwithstanding, the transport to, storage, possession, sale, distribution, provision, use, and consumption of fermented malt beverages, fermented malt beverage based wine coolers, wines, champagnes, and intoxicating liquor alcohol beverages, as defined in Chapter 125 of the Wisconsin Statutes as from time to time amended, and/or as defined, and/or interpreted by the Wisconsin Department of Revenue (“Alcohol Beverages”) are permitted at and upon the Janesville Ice Arena but only: 1. In “designated areas;” and 2. In strict accord with the provisions of this ordinance; and 3. In strict accord with the provisions, terms, and conditions set forth in the Lease between the City and the Lessee of the Janesville Ice Arena (“Lessee”); and 4. In strict accord with the provisions set forth in Janesville General Ordinance 5.06.231, as from time to time amended or renumbered; and 5. In strict accord with other Janesville alcohol ordinances and state alcohol laws.” SECTION V. This ordinance shall take effect the day after publication. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Eric J. Levitt, City Manager Loasching McDonald ATTEST: Rashkin Steeber Truman Jean Ann Wulf, City Clerk-Treasurer Voskuil APPROVED AS TO FORM: City Attorney Proposed by: Council Members Steeber and Rashkin Prepared by: City Attorney Wald Klimczyk J:\Attorney\Word\Shared\Alcohol Ice Arena Enabling Ordinance.doc 3