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HomeMy WebLinkAbout2016-014 CCRMember April Graves introduced the following resolution and moved its adoption: RESOLUTION NO.2016-14 RESOLUTION MAKING FINDINGS OF FACT AND ORDER RELATING TO JAMMIN WINGS LIQUOR LICENSE Upon due notice, a hearing was held by the Brooklyn Center City Council on the 11th day of January, 2016, at 7:00 p.m., at the Brooklyn Center City Hall, on the matter of the liquor license application of Jammin Wings, pursuant to Brooklyn Center City Code, Section 11- 125. City staff presented information relating to the failure of the liquor license applicant to meet the requirements of City Code, Section 11-107, paragraph 4(b) relating to the percentage of revenue derived from the serving of food for consumption on the premises, and City Code, Section 11-118, paragraph 8 relating to inspection of business records to demonstrate compliance with the provisions of Chapter 11. Having heard and duly considered the evidence presented at the hearing, the Council makes the following FINDINGS OF FACT and ORDER: FINDINGS OF FACT Jammin Wings, LLC d/b/a Jammin Wings (the "Licensee") held an on-sale Class B intoxicating liquor license for 2015 and has applied for a license for 2016. 2.Brooklyn Center City Code, Section 11-107, paragraph 4(b) requires that, to be entitled to a Class B liquor license, a restaurant must derive at least 50% of its revenue from the serving of food for consumption on the licensed premises. 3.On November 13, 2015, the Licensee submitted a CPA Statement dated November 6, 2015, showing that, for the twelve-month reporting period ending September 30, 2015, 95.71% of sales were derived from the sale of food. The City of Brooklyn Center (the "City") notified the Licensee on November 17, 2015, that the percentage was much higher than other establishments and asked that the Licensee review the documentation provided to the CPA to ensure that it was true and accurate. 4.On November 25, 2015, the Licensee submitted an amended CPA Statement showing that, for the twelve-month reporting period ending September 30, 2015, 50.80% of sales were derived from the sale of food. Due to the significant change in percentage of food sales, the City, pursuant to Brooklyn Center City Code 11-118, paragraph 8, engaged its auditor to inspect the business records of Jammin Wings to demonstrate compliance. 5.The City's auditor noted that both CPA Statements that were submitted were only for nine months rather than the full twelve months. On December 11, 2015, the Licensee RESOLUTION NO. 20 16-14 submitted a second amended CPA Statement showing that, for the twelve-month report period ending September 30, 2015, 51.78% of sales were derived from the sale of food. 6.The City's auditor reviewed the same data that the Licensee presented to its CPA and found several errors and, after eliminating negative sales, what appears to be gross sales of $436,958 and food sales of $216,823 or 49.621%. 7.The City's auditor submitted its report on December 30, 2015, identifying several business records and documentation that the Licensee was unable to provide to demonstrate and substantiate compliance with Brooklyn Center City Code, Section 11- 118, paragraph 8. 8.Therefore, the Licensee has not complied with the requirements of Section 11-107, paragraph 4(b) and Section 11-118, paragraph 8 (the "Violation"). 9.City staff and the Licensee met on January 5, 2016, to review the City auditor's findings and recommendations, and the Licensee has represented that it can, and will, take steps necessary to meet the requirement of City Code that at least 50% of its revenues be derived from the serving of food for consumption on the licensed premises. 10. The Council has determined that it is reasonable to grant a Class B liquor license to the Licensee, but only on the terms and conditions set forth in the following order: On the basis of the FINDINGS and evidence and testimony presented at the hearing, the Council orders that a Class B intoxicating liquor license be granted to the Licensee for the 2016 license year on the following conditions: 1.The Licensee shall submit a CPA Statement no later than February 15, 2016, for the period October 1, 2015, through January 31, 2016, showing the percentage of revenue derived from the serving of food for consumption on premises. 2.Each full month following license approval and during the term of the license, no later than the 15th day of each calendar month, commencing March 15, 2016, the Licensee shall submit to the City a monthly sales report certified by a Certified Public Accountant, showing the percentage of revenue derived from the serving of food for consumption on premises for the preceding calendar month. 3. Each month the Licensee shall submit a Sales Report which at a minimum must show: a.On premise food sales b.Liquor sales c.Food sales tax and liquor sales tax d.Total gross sales (food sales plus liquor plus respective sales taxes) RESOLUTION NO.20 16-14 4. Each month the Licensee shall submit a daily Point of Sale (POS) Sales Summary (covering the CPA Statement Period) documenting: a.On premise food sales b.Liquor sales c.Food sales tax and liquor sales tax d.Total gross sales (food sales plus liquor plus respective sales taxes) 5. The Licensee shall make available upon request any or all supporting documentation for the subject monthly/daily summary report. 6.The Licensee must have achieved a cumulative percentage of 50% of revenues derived from the serving of food for consumption on the premises for the period October 1, 2015, through May 31, 2016; otherwise the license shall be subject to revocation upon review by the City Council. 7.The Licensee shall comply will all requirements of Brooklyn Center City Code and State Law relating to the sale of alcoholic beverages. The Licensee is advised and admonished that it is the Licensee's responsibility to meet the requirements of this Order and to meet the required percentage of revenues derived from the serving of food for consumption on the premises. If it is not possible for the Licensee to meet the requirements of this Order and of City Code through efforts to increase the sale of food, the Licensee may have to take other steps to reduce the revenues received from the sale of alcoholic beverages. By Order of the City Council of the City of Brooklyn Center this 11th day of January, 2016. I ) /)7 January 11, 2016 Date Mayor ATTEST: IM, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Lin Myszkowski and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, April Graves,Kris Lawrence-Anderson, Lin Myszkowski, Dan Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted.