#03 Economic development grant for Red Robin International
COMMUNITY DEVELOPMENT DEPARTMENT
May 6, 2009
TO: City Council
FROM: Gale S. Price, AICP, Manager of Building and Development Services
SUBJECT: Review and approval of an Economic Development Grant to Red Robin
International, Inc. owners of Red Robin Restaurant located at 2430 Humes Road.
Executive Summary
In 2002 the City Council adopted an ordinance to establish an Economic Development Grant
program to permit the City Council to approve economic grants to those establishments that
obtain a Reserve Class B liquor license. Based on specific criteria the City Council may
approve such grants up to the one-time $10,000 Reserve Class B liquor license fee. Red Robin
International has requested an Economic Development Grant for their Reserve Class B license
which was issued on May 15, 2008.
Committee and Staff Recommendation
The Alcohol License Advisory Committee and the Community Development Department
recommends that following City Council review, a motion to approve an Economic
Development Grant in the amount of $10,000 for Red Robin International Inc, owners of Red
Robin Restaurant be approved.
Suggested Motion
To make a motion to approve an Economic Development Grant in the amount of $10,000 for
Red Robin International, Incorporated.
Request
The City Clerks Office has received a written request for a $10,000 Economic Development
Grant from Susan Lapinski of Quarles & Brady LLP, representing Red Robin International, Inc.,
owner of the Red Robin restaurant which is located at 2430 Humes Road. Red Robin
International was issued a Reserve Class B license on May 15, 2008 and paid their initial
$10,000 Reserve Class B license fee at that time.
Background
Alcohol licenses are regulated by State Statute Chapter 125 and Janesville Code of General
Ordinances Chapter 5. In 1997, the State reduced the number of Class B licenses that a
municipality may issue and created a new Reserve Class B alcohol license. A Class B license
and a Reserve Class B license are the same except for the cost. A Class B license costs $600
per year and a Reserve Class B license costs $600 per year plus a one-time fee of $10,000
when the license is initially issued. The fees are paid to and retained by the City.
Since the enactment of this Reserve Class B license fee, several cities in Wisconsin have
created an economic development grant program which in effect refunds all or part of the initial
$10,000 fee. In 2002, the City Council adopted an ordinance to establish such an Economic
Development Grant Program to allow the City Council to issue a one-time non-repayable grant
to businesses who receive a Reserve Class B License. According to the ordinance, after
submission by the applicant of a written application to the City Clerk for a grant, the City Council
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may provide an Economic Development Grant to the licensee in an amount not to exceed
$10,000 following a review and recommendation from the Alcohol Licensing Advisory
Committee (ALAC).
The ordinance further provides that the City Council may consider the following criteria when
determining whether to grant all or part of the $10,000 grant to a particular applicant:
1. That the extent to which the license and/or the grant will promote a redevelopment or
rehabilitation project in the downtown or other commercial areas including the amount of
investment, the extent of rehabilitation, historic preservation and public improvement
effectuated, and related revitalization, health, welfare, peace and public good order
factors.
2. That the applicant demonstrates that their investment and the establishment issued the
Class B reserve intoxicating liquor alcohol beverage license is equal to or greater than
the dollar amount of the grant request.
3. That the Class B reserve establishment is located at least 300 feet from any residential-
zoned area.
Analysis
The Community Development Department has evaluated this request based on the above
criteria and believes that the entire $10,000 initial license fee could be refunded as a grant.
Staff’s findings are based on:
1. While the property is not located within the downtown area, it is located in a developed
commercial corridor. This project could be considered in-fill development. In the
approval of this project the developer was required to landscape the adjacent Shopko
property in order for both commercial projects to comply with the green space and
landscaping requirements. The landscape and green area improvements, in addition to
the building’s high quality architecture have improved the appearance of this portion of
the Humes Road commercial corridor.
2. The Red Robin restaurant investment has increased property value on the site to well
over $600,000 and the development required a total investment of 1.5 million dollars. In
addition, the facility employs approximately 78 full and part-time employees. This
amount of investment far exceeds the $10,000 initial license fee.
3. The proposed establishment is located greater than 300 feet from a residentially-zoned
area.
The Alcohol License Advisory Committee reviewed this request at it’s May 5, 2009 meeting and
voted unanimously to forward the request with a favorable recommendation.
cc: Eric Levitt
Jacob J. Winzenz
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