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HomeMy WebLinkAbout2014 11-24 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION NOVEMBER 24, 2014 CITY HALL—COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 7:46 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Planning and Zoning Specialist Tim Benetti, City Attorney Charlie LeFevere, and Mary Mullen and Megan Pace, TimeSaver Off Site Secretarial, Inc. EARLE BROWN LANES 2015 LIQUOR LICENSE APPLICATION City Manager Curt Boganey introduced this issue and provided information for the City Council's review. He stated AMF Earle Brown Lanes was granted a conditional license in 2010, when they failed to meet minimum requirements for food/alcohol ratios. He added the applicant was present at this evening's meeting to provide additional information and request the issuance of a conditional license for AMF Earle Brown Lanes for 2015. Mayor/President Willson requested clarification regarding a discrepancy in two of the columns on the financial document provided by the applicant with regard to food and non-alcoholic beverages. City Attorney Charlie LeFevere stated the second column includes bowling and shoe rental. Mayor/President Willson referred to the year-to-date total amounts, which are different. Councilmember/Commissioner Ryan asked why the restaurant was closed from September 2013 to May 2014. Kaela Brennan, 800 Nicollet Mall, Suite 2600, stated she is the attorney for the applicant. She introduced Gary Paone, District Manager, overseeing eight AMF facilities in the Midwest region. Ms. Brennan stated, with regard to the financial spreadsheet discrepancy, she believes that is a typo, and the two numbers should be the same. She apologized for the error. Ms. Brennan stated the AMF Brooklyn Center location was experiencing a loss of business revenues, and the restaurant was closed for 8 months to address overhead expenses. She noted the snack bar remained open during the entire period, and a full menu was available at the snack 11/24/14 4- bar. Gary Paone, AMF District Manager, stated he represents AMF Earle Brown Lanes. He added the bowling center has been a fixture in the community for years, with over 600 regular league bowlers and 18 different leagues. He noted the facility hosts corporate functions, church and school group events and holiday parties. He reviewed various improvements and upgrades to the facility within the past year. Councilmember/Commissioner Ryan stated this is a difficult issue for the City Council as a similar conditional license was approved for this applicant 4 years ago. He expressed concern that the future success of AMF Earle Brown Lanes would be compromised if the City Council denies the conditional license application.' Mayor/President Willson stated while he agrees this is a difficult decision, approval of this conditional license does not follow the letter of the ordinance. Mr. Boganey stated the ratio stayed over_40% for the balance of the license period, because of actions taken by the applicant at that time. Mr. Paone stated in 2010 the company made efforts to address the revenue loss. He added the liquor license is vital to the financial stability of AMF Earle Brown Lanes. City Attorney Charlie LeFevere stated it would be helpful for the applicant to have a decision by the end of December. He added the applicant could be required to provide regular updates to the City Council with regard to their progress toward meeting the requirements of the conditional license. Mr. LeFevere stated the ordinance related to municipal liquor licenses includes requirements based on the type of establishment. He added the City Council could consider an ordinance amendment to change the definition of a restaurant, and an amendment to reduce the ratio percentage required for license approval. Mayor/President Willson expressed concern that this conditional license, if approved, will have implications with regard to precedence for other liquor license applications in the City. He added he would not support changing the ordinance to accommodate this license request. Mayor/President Willson asked whether the restaurant is currently open. Mr. Paone stated, with regard to the restaurant, many changes and improvements have been made to attempt to increase food sales, including introducing a new menu, a newly remodeled dining room, and the hiring of a new restaurant manager. He noted the restaurant was closed 3 weeks ago when the manager resigned,to re-group and figure out a plan for fixing the ratio and moving forward. Councilmember/Commissioner Ryan asked whether management has tried to obtain feedback regarding where customers spend their money when they come to AMF Earle Brown Lanes for bowling, and whether there are any obvious trends. Mr. Paone stated other AMF bowling centers typically have a combined food/beverage ratio of 35% of total revenue. Councilmember/Commissioner Ryan stated he supports a conditional license similar to the license approved in 2010 for AMF Earle Brown Lanes, requiring that the applicant meet the 11/24/14 -2- food/beverage ratio percentage. He added the applicant met the ratio requirement for most of the license period when the license was approved in 2010. Mr. LeFevere stated a copy of the Resolution passed in 2010 was included in the City Council meeting packet. Councilmember/Commissioner Myszkowski asked whether there is a food and beverage manager currently employed at Earle Brown Lanes. Mr. Paone stated he is the District Manager, and there is a new General Manager on site. Councilmember/Commissioner Lawrence-Anderson asked whether the restaurant will re-open in the future. Mr. Paone stated the restaurant was closed because no one was corning in to eat. Mayor/President Willson stated there are other areas where patrons can eat within the facility, including the lounge and seating areas in the bowling area. Mr. LeFevere stated the City Council can interpret the ordinance with regard to the definition of a restaurant. He added cities are authorized to issue liquor licenses to bowling alleys. Councilmember/Commissioner Ryan stated the issuance of a conditional license would keep Earle Brown Lanes in business, and a lower ratio of 35% could be incorporated into the license requirements. Mr. LeFevere stated 35% is a realistic revenue percentage. Mr. Paone stated AMF will do whatever is necessary to keep the liquor license for Earle Brown Lanes. Mr. Boganey expressed concern that, with the closing of the restaurant at Earle Brown Lanes, the food/beverage ratio reflects a higher percentage of alcoholic beverage sales than food sales. He asked whether AMF management intends to make bowling a significant part of Earle Brown Lane's revenue. Mr. Paone stated AMF has a new marketing campaign and an increased presence in the Twin Cities metropolitan area with the recent acquisition of Brunswick Bowling Centers. Councilmember/Commissioner Lawrence-Anderson stated she is a member of the Brooklyn Center Business Association. She encouraged the applicant to get involved in the community and make their presence known, as local residents will want to support the business. Mr. Paone agreed that is a good idea, and bowling events are a major component of their growth plan. Councilmember/Commissioner Myszkowski agreed, adding she has not heard anything about the new management. She stated people go to Brunswick Lanes in Brooklyn Park.. She noted she is a liaison to the Brooklyns Youth Council, and she regularly hears that there is not enough to do in Brooklyn Center. Councilmember/Commissioner Lawrence-Anderson asked whether the Earle Brown restaurant dining room could be used as a youth gathering place. Mr. Paone stated that is a possibility. Mayor/President Willson requested clarification with regard to the $1,000 penalty, and asked whether it is enough incentive for the applicant to meet the ratio. Mr. LeFevere stated the City Council has the discretion to impose greater penalties or revoke the conditional license. Councilmember/Commissioner Ryan re-iterated his support of a conditional license with the option of civil penalties should the applicant fail to meet the 40% ratio. He added the applicant 11/24/14 -3- could be required to provide monthly revenue reporting to the City Council. Councilmember/Commissioner Myszkowski agreed, adding the conditional license would give the applicant some time and allow the City Council to review this issue and consider possible ordinance amendments. He asked whether the City Council could reserve the option to suspend the conditional license if there is a significant drop in the required ratio. Mr. LeFevere stated a conditional license with sanctions could be imposed, and the applicant could be instructed to provide a plan for meeting the percentage required by ordinance. He added a resolution can be addressed in December, with a more detailed discussion and more specific information. Mr. Boganey stated the license approval could contain the condition that failure to comply with restrictions may result in suspension of the conditional license. Councilmember/Commissioner Lawrence-Anderson stated she is optimistic that the new management of AMF Earle Brown Lane understands the implications and will work to remedy the situation. Mr. LeFevere stated the applicant should understand the definition of a dining room as defined by City ordinance, and if the dining room remains closed, whether that is consistent with City ordinance. Councilmember/Commissioner Kleven stated she agrees with the City Council's position on this issue. She urged the applicant to get out into the community and encourage people to bowl at AMF Earle Brown Lanes. She added the applicant should work hard to connect with organizations such as the Brooklyn Center Business Association. Mayor/President Willson requested that this issue be added to the City Council's December 8, 2014, Regular Session meeting agenda. ADJOURNMENT Councilmember/Commissioner Myszkowski moved and Councilmember/Commissioner Ryan seconded adjournment of the City Council/Economic Development Authority Work Session at 9:15 p.m. Motion passed unanimously. 11/24/14 4- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Work Session of the City Council of the City of Brooklyn Center held on November 24, 2014. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its November 24,2014, Regular Session. City Clerk Mayor 11/24/14 -5-