Title
Resolution to Adjust Liquor License Fees for Annual Renewal and New On-Premise License Applications and Eliminate Fees and Local Review for Transfer License and SDD/SDM Applications in Compliance with New Michigan Liquor Control Commission (MLCC) Processes
Memorandum
The City Council Liquor License Review Committee has reviewed and recommends changes to the City's liquor license review process and fees, based upon changes made by the Michigan Liquor Control Commission, as well as an internal staff review regarding the equity of the current fee schedule.
In 2012, the Michigan Liquor Control Commission changed its application process for licenses and since that time, local approval is required only for new on-premise licenses. With these changes, it has become difficult for staff to consistently enforce the local application and approval process for transferred licenses, as the MLCC proceeds with license issuance without input from the City. The Council Liquor License Review Committee has discussed this issue with staff and determined that elimination of the fee and review for on-premise license transfers and all SDM/SDD (packaged sales) license applications be eliminated. The opportunity for local input of on-premise licensed businesses would still be available during the City's annual renewal process in March for existing licensees. New license applications would continue to have a City staff review and recommendation to the MLCC by Council.
In addition to a review of the existing application process, staff and the Council Liquor License Review Committee also reviewed the current fees relative to staff time and conducted a cost recovery analysis. The elimination of the transfer fee and review process is recommended and several changes to the new on-premise application and review fee and the annual renewal fee are recommended in order to bring fees more in line with current costs.
Staff
Prepared by: Jacqueline Beaudry, City Clerk
Sponsored by: City Council Liquor License Review Committee
Body
Whereas, In 2012, the Michigan Liquor Control Commission changed its application process for liquor licenses and since that time, local approval is required only for new on-premise license applications;
Whereas, Due to changes at the State level, the receipt of applications and the collection of fees for SDD/SDM licenses and the transfer of on-premise licenses have been inconsistent and the City has no mechanism for consistent enforcement; and
Whereas, A review of current liquor license related fees was conducted by staff and reviewed and approved by the Council Liquor License Review Committee;
RESOLVED, That the application process and fees be eliminated for all licenses that no longer require a local recommendation by the MLCC (SDD/SDM and on-premise transfers); and
RESOLVED, That the following revised fee schedule be approved for existing liquor license fees associated with new license applications and the annual renewal of on-premise licenses:
On-premise Liquor License Annual Renewal - $90.00 (Increase from $50.00)
New Liquor License - $600.00 (Reduction from $2,500.00)
New Liquor License Application Fee - $150.00 (Increase from $100.00)
New DDA District License - $600.00 (Reduction from $1000.00)
Sponsored by: Council Liquor License Review Committee