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CCM 10/26/2020 CITY COUNCIL MEETING CITY OF FRIDLEY OCTOBER 26, 2020 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:05 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember Ostwald Councilmember Tillberry Councilmember Eggert Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Andrew Biggerstaff, City Attorney Ryan George, Deputy Director of Public Safety Angel Morocho-Carchi, Halo’s Restaurant and Bar APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF CITY COUNCIL MINUTES: 1. City Council Meeting of October 12, 2020. APPROVED. NEW BUSINESS: 2. Final Plat Request, PS #20-02, by Harry S. Johnson Co., Inc., to Subdivide the Slumberland Parcel at 8490 University Avenue to Create a New Commercial Lot on the South Side of the Existing Property. and Adopt Resolution No. 2020-66 Approving Final Plat, PS #20-02, by Harry S. Johnson on Behalf of the Property Owner of 8490 University Avenue N.E., Larson Enterprises (Ward 3). APPROVED FINAL PLAT REQUEST, PS #20-02 AND ADOPTED RESOLUTION NO. 2020-66. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 2 3. Approve the First Amendment to a Public Signage Easement Between the City of Fridley and Larson Enterprises for the Slumberland Property Generally Located at 8490 University Avue N.E. (Ward 3). APPROVED. 4. Approve a Termination of Declaration of Easements, Covenants and Restrictions at 8201 Hickory Street N.E. (Ward 3). Wally Wysopal, City Manager, stated this is a private matter the City was asked to participate in. APPROVED. 5. Revoke Two-Hour Parking Restriction on Fireside Drive from TH 65 to Central Avenue N.E. (Ward 2). Mr. Wysopal stated this was initially done by a motion by the City Council many years ago and only requires this motion to take care of this. APPROVED. 6. Adopt Resolution No. 2020-67 Approving Gifts, Donations and Sponsorships for the City of Fridley. ADOPTED RESOLUTION NO. 2020-67. 7. License: Temporary Lawful Gambling Permit for Totino Grace High School. APPROVED. 8. Claims: 190554-190752, and ACH PCard 2020-09. APPROVED. ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Ostwald to adopt the proposed consent agenda. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 3 OPEN FORUM, VISITORS: No one from the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda. Seconded by Councilmember Tillberry. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 9. Consider an On-Sale Liquor License Application for Angel Morocho-Carchi to Operate Halo’s Restaurant Bar and Vero’s Banquet Located at 1040 Osborne Road N.E. (Ward 1). MOTION by Councilmember Tillberry to waive the reading of the public notice and open the public hearing. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE HEARING WAS OPENED AT 7:10 P.M. Ryan George, Deputy Director of Public Safety, stated the applicant applied for an on-sale liquor license on October 1, 2020, to operate a restaurant and event center at 1040 Osborne Road. The location was previously the site of the Fridley VFW which held a club on-sale liquor license. Deputy Director George stated Section 603.07 of Fridley City Code requires a public hearing be held to consider the approval of an on-sale intoxicating liquor license. The notice of that public hearing was published in the Life newspaper on October 16, 2020, which meets the ten- day advanced notice requirement. Deputy Director George stated the applicant has worked in the food industry in the past. Most recently, the applicant worked for Agra Culture Kitchen in Uptown as a general manager and also for Chipotle in Bloomington. He has never possessed a liquor license. The Police division did conduct a background investigation for the applicant and did not find any outstanding issues or reasons to deny the license. Deputy Director George stated the applicant’s father, Manuel Morocho, purchased the building in February 2020. It is actually a pretty large building and is separated into several spaces. On the far west side is a 6,005-foot large event space; in the middle of the building are a kitchen and restrooms; there is a restaurant and dining room on the east side of the building which is just FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 4 under 3,000 square feet; and on the southeast corner of the building there is a space for another kitchen. Deputy Director George stated the Fire Marshal, Building Official, and Anoka County Public Health have provided authorization for use of this space as a restaurant and event space. A City of Fridley food establishment license was issued by staff on August 4, 2020. Deputy Director George stated there were some concerns that came up throughout this process. On February 11, 2020, during their development review committee meeting which is held by staff, the applicant spoke about his intent to open a restaurant at 1040 Osborne Road and there was mention at the time of a large security staff and metal detectors. Some of the aspects of the proposed business were consistent with a night club business. The applicant was cautioned about opening a night club as the 60/40 percent food-to-liquor ratio might not be met. The applicant did assure them at that time the business would not be a night club. On September 11, 2020, Deputy Director George did conduct a walkthrough of the business. At that time, the applicant assured staff again that the event center would not be used as a night club but more for traditional events--like weddings, baptisms, family events, retirements, etc. Deputy Director George stated on October 11, 2020,the Facebook page for Halo’s Restaurant Bar and Vero’s Banquet did advertise an upcoming event to be held on Halloween. The business name is shown on this advertisement as Club Halo’s. The event hours were at 10 p.m. to 2 a.m. and was a ticketed 21+ event. Standard admission was $20. There were V.I.P. tickets available for $600 which included two bottles of liquor and a bottle of champagne for up to 12 people. Deputy Director George stated he did bring up these concerns to the applicant. The applicant assured him by a letter which was provided to Council in the Council packet that despite appearances, Halo’s is not a night club. It will be a neighborhood restaurant and bar and again reiterated that the banquet hall would be used for events such as baptisms, baby showers, wedding, retirement parties, and holidays. Deputy Director George stated at this time staff is recommending they hold the public hearing regarding the on-sale liquor license application for Angel Morocho-Carchi to Operate Halo’s Restaurant Bar and Vero’s Banquet located at 1040 Osborne Road NE and consider approval of the liquor license at the next Council meeting on November 9. Mayor Lund asked Deputy Director George to give them a distinction between a bar and restaurant vs. night club. He asked because Route 47 has a restaurant and a bar, but it also seems on Saturday night when they have the big bands, the venue seems more like a night club. Deputy Director George replied, the Fridley City Code does not specifically define a night club. As has been said in the past, Fridley does not have bars. It has restaurants that serve liquor. They certainly do have bars and restaurants that have a little more night life, especially ones that are open until 2 a.m. They have an opportunity to have entertainment, whether it is live bands, DJ’s, or any other entertainment they have. The concern sometimes with a night club is a lot of people congregating in one space and having the late hours. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 5 They have had some issues in the past with some businesses where things got out of hand. They do not want to go down that road again. That is why it is good to have that healthy mix between the food-and-liquor ratio where there is that food component and you can have that family restaurant where most of your revenue is not coming from liquor, bottle service, V.I.P. service, etc. Mayor Lund stated he likened it to some of the things in the past where they have had some issues down on East River Road, and that got pretty ugly for a while to the point where they were ready to pull the liquor license. He said he was concerned about the night club atmosphere, and with the City’s 60/40 food and alcohol ratio that has served them fairly well. It sounds like the applicant has reiterated that, okay, they have this concern and no, it is not going to be that. He might consider this for approval, but he would like to think about it for a little while and see if he has other concerns. Councilmember Eggert said with respect to the 60/40 food to liquor ratio, is there an annual report that had to be done? Deputy Director George replied, the 60/40 food-to-liquor ratio does have to be certified by a CPA at the time of renewal. The time period starts when the liquor license is issued. Every year when they conduct the license renewals for all on-sale liquor licensees, they will look at those food-to-liquor ratios and the number of calls for service at each establishment. They then come up with a ratio of how much police resources these businesses are using, which helps determine who is consuming those resources. Mayor Lund said if there is sufficient cause in between annual reviews, as the Deputy Director has stated, calls for service are a big thing. Councilmember Bolkcom stated going back to metal detectors and bouncers. She asked if any restaurants had metal detectors and bouncers. Deputy Director George replied, no, they do have security at some of the bar and restaurants but none of them have metal detectors. Councilmember Bolkcom said there are some type of bouncers at bigger events like those at Banquets of Minnesota. Councilmember Bolkcom asked him to explain the difference between having a liquor license and but you have to have a manager, and the manager has to have a license. Deputy Director George replied, each liquor licensee needs to have a license. There is one applicant representing the business essentially, and they are the one who holds the liquor license. Each manager of the business also needs to have a managerial license. In this case, the applicant seeking the liquor license is the sole manager; however, if another manager came on board, , each manager would have to have their own individual managerial license as well. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 6 Councilmember Bolkcom asked how they defined another manager. Deputy Director George replied, usually it is self-reported by the business. They will have a general manager. It is someone making the decisions at the business during normal business hours. Some places have one, some have two. Applebee’s has four or five. Councilmember Bolkcom asked if they always have to have a manager who has a license when the business is open. Deputy Director George replied, no, the manager does not have to be present at all times when it is open. Councilmember Bolkcom stated they just have to be able to respond if need be for issues. Deputy Director George replied, correct. Councilmember Bolkcom asked regarding Halloween advertisement, it makes her nervous that the applicant is going to have a Halloween party during COVID in a really big building and how they were going to prevent a lot of people from coming through the door. If they are going to be serving alcohol, they are going to have to have a lot of food service to back that up. Councilmember Tillberry asked how an advertisement for Route 47 look would be different from Halo’s. Deputy Director George replied, typically Route 47 has a live band. They would not advertise themselves as a “club.” Typically, the bands start earlier in the evening than 10:00 p.m. and do not go until 2:00 a.m. The 2 a.m. close is actually something that needs to be approved by the State, so there are some steps that need to be followed. It needs to be authorized first by Council and then by the State. Typically, Route 47, may have a cover charge, but they would not have V.I.P. areas with bottle service or sell champagne as part of the admission. That is where things can get kind of gray with the food-to-liquor ratio because if you are charging $600 for services, you are also selling alcohol within that $600 and that is not being accounted for as alcohol. Mayor Lund asked the applicant to step up to the podium and talk about what he plans to do. Angel Morocho-Carchi, Halo’s Restaurant and Bar, stated when he first applied for a license, he mentioned he going to do a day event. Invite the whole community to come by with their kids, grab a bag of candy, and enjoy the food they would be serving throughout the day. For the evening he thought people could come and enjoy the night, some good music with a live performance at the end, and then just have fun with friends and family. The reason why he did it as a ticketed event was so they could keep track of how many people were going to attend the event. That way at the door they would check names and have their phone number on record if anything were to happen that night. Mayor Lund stated to Mr. Morocho-Carchi, he understands there is a restriction as to how many people can be in the space. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 7 Mr. Morocho-Carchi replied, 250. The State has limited it as 250 overall. Mayor Lund said he thought 250 sounds pretty high for that space. Mr. Morocho-Carchi replied, the Minnesota Department of Health maxed it out at 250 as the max capacity for any establishment that the knows of. Mayor Lund stated it is 250 he thinks at Viking Stadium which holds like 80,000 people. Mr. Morocho-Carchi replied he walked it through with Tony, James, and Officer Ryan throughout the whole building as they both measured out the size of the room before he even applied for a license. Mayor Lund stated hopefully they will get beyond this COVID thing at some point. Mr. Morocho-Carchi said they would have guidelines in place for the Halloween event--no mask/no entry, they were going to check temperatures at the door, and his staff would be security guards. The security has their own equipment for detecting if they have anything beyond their car keys, wallet, or phone. They have metal detectors if you were to request it from them, for that event. Mayor Lund stated they may seem to be a bit more on the conservative side when it comes to alcohol than some communities obviously. As the applicant understands, the City requires they have to serve food. Mr. Morocho-Carchi replied, his goal is he is bringing food to Fridley, not just a bar. He is trying to bring food as there are not many places around there. He is bringing in Tex Mex which is a southern kind of food. You are looking at tacos, burritos, quesadillas, and also mixing it up with some of his Latin culture as he is from Ecuador, so he is bringing in hot plates and deep roasted pig. His main goal is to open it up as a restaurant. The bar is there. He cannot tear it down. Mayor Lund stated the concern is having large gatherings there, not just during COVID, and that it is not just a night club. When an event starts at 10 p.m. it is not for those people going after work. Mayor Lund said should he be granted a liquor license, the City is probably going to be a little watchful as to how things are going and a lot of that will determine how often the applicant has trouble there. He has also heard before, if someone gets a liquor license, they tell their staff not to call the police. The City does not want that. Safety first. Mr. Morocho-Carchi replied when he did ask if they could request a squad car to come and supervise the parking lot as everyone leaves. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 8 Mayor Lund said because he wants everybody to be safe, too. If he gets like an unsafe rating and news travels, word of mouth is some of the best and worst advertisement he can have as a business. Mr. Morocho-Carchi replied, correct, and he has reached out to Uber and Lyft drivers to be present if they have over-intoxicated patrons they can offer a ride or Yellow Taxi. Whoever is nearby to come by and take them back safely home and they can leave their car there. Councilmember Tillberry stated to Mr. Morocho-Carchi, he advertised this as a club. Mr. Morocho-Carchi said the reason he did was so he could tell what people were coming to that event versus the restaurant. There is a divide with a door where they come into the restaurant and another door that goes into the banquet room. Councilmember Tillberry said he basically sold this as a club. The City Council is not willing to do that. He asked Mr. Morocho-Carchi, how he could have done this differently. Mr. Morocho-Carchi replied, hold it just as a Halloween get together. He was not trying to advertise it as a club. It sounded cool on his end when he put it on the flyer. He did present it as Halo’s Restaurant & Bar as the main title. Councilmember Tillberry said his concern is he referenced it as a club and he has a late time that is consistent with a club, and he also has security guards and metal detectors listed. Mr. Morocho-Carchi replied, yes, keeping everybody safe as they come in. He does not want any trouble. Councilmember Tillberry stated it does sound like a club. He does not know how they rule on that. That is why he asked what it would look like for someone who has a license to do the bands and so on. He said he was in a band and so he is with the applicant on that. However, what the applicant advertised seems to be a club. That just makes him feel a little uncomfortable. Mayor Lund stated he thinks the applicant recognizes that maybe he was a little generous in presenting it as a club with this flyer, but he certainly has gotten everybody’s attention in doing so. He is going to tone this down considerably from what this advertisement says. Mr. Morocho-Carchi replied he had Phyllis Humboldt come back and see if she can perform on the banquet side and if he can cater the food to that event. They rebuilt the stage in the banquet room for that kind of scene, baby showers, weddings, retirement, holidays. He told Ryan he had another person come in to see if they can hold a fundraiser for the buildings that have been burned down. He has nothing against it and let’s make it work for the businesses that were burned down. He is a new timer there. He would rather give back than hold back. Councilmember Tillberry stated that is why he asked how he could have done that differently. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 9 Mr. Morocho-Carchi replied he would have advertised that food was available throughout the night. The kitchen is right there with a pick-up window. He should have just advertised it as Halo’s Restaurant & Bar, Halloween Night, come by and grab goodies for the kids, and stay for the good music. Mayor Lund stated the flyer is out there. He asked Mr. Morocho-Carchi whether he still intended to hold this thing even though he will not have a liquor license. Mr. Morocho-Carchi replied, no, he cancelled it on Friday. However, he is holding a day event for the community which is fairly free--come by and grab some food. He is doing a soft launch this weekend for food. He is looking to see what they can do for Thanksgiving. Something they can do to bring the community together as they go through COVID. Mayor Lund stated he has learned that some of this has to do with those who have live music, DJ’s, bands, whatever. Quite frankly a lot of the type of people who come to that is dependent on the type of venue. If you have polka music there, the applicant will probably attract an older crowd that is a lot more subdued than the 21-year olds. It really changes the vibe on a facility depending on the venues. Mr. Morocho-Carchi stated he wants to be able to accommodate everybody who comes by. If it is, they have country weekend. If you have a band, come by and play. They will come to an agreement. They will use the big banquet side. Do your cover fee or whatever on your side. He will cater the food. On his side he will keep doing the food and everything else. Councilmember Tillberry stated he needed to hear the event was cancelled. Councilmember Bolkcom stated going back to the comment the applicant asked the police to be at the venue. That is not fair to any other business or to anyone else who has a 911 call, etc. If they are coming to the applicant’s property. The City cannot make that commitment. Mr. Morocho-Carchi replied that was an “if they can come by.” Councilmember Bolkcom stated that is really concerning to her. First of all, the applicant is brand new to management. She loves that he wants to have this restaurant. They needed that place to be cleaned up. They need a restaurant where people can go and feel comfortable. When she heard he asked police to come by, they cannot do that. Mr. Morocho-Carchi replied when he was at the building for the last couple of weeks, before the VFW closed, there was no security or nobody at the end of the night and the bartender who was closing was a female. She did not feel safe because some of the patrons were already beyond drunk. He stayed behind because, he has never left any staff behind alone. They either stay with another manager or, in this case, they would stay with a security guard who is there. Councilmember Bolkcom stated right, but again going back to he cannot expect the Fridley Police Department to be at his event at any time, any night, unless they call the police for help. They want him to call because if something else goes on, and he does not call, that is an even FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 10 bigger deal. She has been around a long time and the business that was brought up here tonight was in her ward. They had a lot of police calls there because someone was letting people get intoxicated and not serving food. She also has a concern about when he says he is inviting people to come during the day, he has to be very concerned about how many people he has coming to the building at one time. There is a recommendation right now as far as CDC not doing any trick or treating. Mr. Morocho-Carchi replied this is an outside event. They will have goodie bags pre-bagged. They can come through the front where they decorated, and they can go right through the banquet room, and will go straight out the back door. They can stay around for the food. He is saying come back with your kids and grab a bag of candy. Councilmember Bolkcom asked how they will control the number of people and how will they have them lined up outside. They have to be six feet apart outside. Mr. Morocho-Carchi replied at the back of the parking lot he has a nice space where he can put ropes out, six feet apart, if they are picking up. He has the front door that they can just come in if they are going into the restaurant. Same for the back side. He is very concerned also especially with COVID restrictions in place. He wants to keep the community safe. It is not just for him. Councilmember Bolkcom asked with respect to the state license, how long does that take and what are the requirements. Deputy Director George replied, the first requirement is the local municipality or county overseeing the licensing certifies that license. The City Clerk will then sign off on it, and they mail it to the State. The State reviews it and it will take a couple of days usually. They will then issue the license. As far as the 2 a.m. license, that sometimes takes a little longer. Councilmember Bolkcom stated even without this event Mr. Morocho-Carchi cannot stay open until 2 a.m. Mr. Morocho-Carchi replied, no, they are open until midnight or until no one else is showing up. Councilmember Bolkcom stated Mr. Morocho-Carchi mentioned he runs other restaurants. Mr. Morocho-Carchi replied he is finishing up his 30-day request for Agra Culture. They are a local organic brand. The owners are within the state. Councilmember Bolkcom asked if at any of the other places he worked they had metal detectors. Mr. Morocho-Carchi replied, they are more of a fast-casual restaurant. They switched over to fine dining so they can follow the COVID guidelines. Other locations have their own servers and everything else to implement the COVID guidelines. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 11 Councilmember Bolkcom asked him how he would define the restaurant he is opening. Mr. Morocho-Carchi replied, his restaurant is more of a come in and sit down and eat. Like a fine dining but it is also not fast casual. Councilmember Bolkcom asked, so, not like a Chipotle. Is that what he would call fast casual? Mr. Morocho-Carchi replied, fast casual is like a Chipotle where you stand in line, you order and go back out or sit and eat. This is where he has a server. You can come in, sit down, they will take your order, and you can enjoy your food. Councilmember Bolkcom asked at the other restaurants where he has been a manager, has he had the responsibility of making sure he had the food-to-liquor ratio? Mr. Morocho-Carchi replied, yes. Councilmember Bolkcom stated and he would need a certified accountant for this. She asked if he had someone lined up. Mr. Morocho-Carchi replied correct. Food and liquor orders come directly from him. He looks at the numbers and the sales every Sunday night. He reports it every Monday morning. Councilmember Bolkcom asked if he would hire some other managers for when he is not there? Mr. Morocho-Carchi replied, for the meantime he is the one who is there, open to close. He did it for a year when he was with them. He will see what the trend is. From there, he will see what he needs. Councilmember Bolkcom asked him how big were the restaurants he was managing? How many people would they seat? Mr. Morocho-Carchi replied, the one he runs is roughly, including patio, 120. With COVID 6-feet guidelines it is a lot less. It has been a good business still because they do takeout. Councilmember Bolkcom asked him if he would have takeout. Mr. Morocho-Carchi replied there is takeout. Door Dash is one of his delivery drivers. You can order delivery, order on-line, or take it go. Councilmember Ostwald asked when he was opening. Mr. Morocho-Carchi replied, right now he is opening for takeout. He is waiting to hear back. He did want to do a soft opening this weekend for people to come in and eat. The customers who have come by have asked when he was going to get his liquor license and he said he was waiting to hear from Council. Yesterday everybody turned away because he is not serving any alcohol. FRIDLEY CITY COUNCIL MEETING OF OCTOBER 26, 2020 PAGE 12 Councilmember Ostwald asked Mr. Morocho-Carchi when is he doing his hard opening for sit- down restaurant service? Mr. Morocho-Carchi replied, he is hoping by Monday or the following Monday depending on how the soft weekend goes. Councilmember Eggert asked Deputy Director George if Fridley police officers occasionally stopped by bars and restaurants? Deputy Director George replied, they do. As part of their patrol and driving around during bar times, they will check lots and make sure they are creating a presence and stop things before they start. However, they certainly cannot guarantee they can be in one place at a certain time because calls of service dictate where they go and what they do. MOTION by Councilmember Tillberry to close the public hearing. Seconded by Councilmember Ostwald. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE HEARING WAS CLOSED AT 7:49 P.M. NEW BUSINESS: 10. Informal Status Reports – There no reports. ADJOURN: MOTION by Councilmember Ostwald to adjourn. Seconded by Councilmember Eggert. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:56 P.M. Respectfully submitted by, Denise M. Johnson Scott J. Lund Recording Secretary Mayor