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HomeMy WebLinkAbout10043ORDINANCE NO. 10043 AN ORDINANCE ADDING ARTICLE VII TO CHAPTER 3 OF TITLE XI – AUTHORIZING THE CITY TO ESTABLISH ENTERTAINMENT DISTRICTS AND ADOPTING RULES GOVERNING PROMOTIONAL ASSOCIATIONS AND COMMON CONSUMPTION AREAS WHEREAS, Article 3 of Title 44 of the Colorado Revised Statutes allows municipalities to establish entertainment districts wherein common consumption of alcoholic beverages is allowed; and WHEREAS, the people of Pueblo have demonstrated an interest in establishing entertainment districts for the purpose of establishing common consumption areas; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Article VII, of Chapter 3, of Title XI of the Pueblo Municipal Code is hereby adopted and reads as follows: Article VII – Entertainment District; Common Consumption Areas. Section 11-3-71 – Purpose. It is the purpose of this Article for the City to exercise its local option to allow common consumption areas in the City by establishing entertainment districts as provided in Section 44-3-301(11), C.R.S., as amended. The standards adopted herein shall be considered to be in addition to all other standards applicable to entertainment districts, promotional associations, and common consumption areas. Section 11-3-72 – Authority of the Liquor and Beer Licensing Board and the City Clerk. (a) The Liquor and Beer Licensing Board is hereby authorized to: (i) certify and decertify promotional associations; (ii) designate the location, size, security, and hours of operation of common consumption areas; (iii) conduct hearings on violations of state and local liquor laws and impose penalties consistent with the provisions of this Chapter; (iv) allow attachment of licensed premises to common consumption areas consistent with this Section and the provisions included herein; and (v) take all other necessary actions consistent with the Colorado Liquor Code and this Chapter for the creation and regulation of entertainment districts, promotional associations, and common consumption areas. (b) The Liquor and Beer Licensing Board shall have the authority to impose additional reasonable conditions on the certification of promotional associations, the licensing of common consumption areas and the attachment of licensed premises to common consumption areas, not inconsistent with the Colorado Liquor Code. (c) The City Clerk may adopt rules as reasonably necessary to implement the provisions of this Article. Section 11-3-73 – Entertainment District; Creation; Boundaries (a) In order to exercise the City's local option to allow common consumption areas in the City, the City Council and Mayor are hereby authorized to create, by ordinance, entertainment districts in the City. (1) Entertainment Districts shall fall entirely within the City Limits. (2) Entertainment Districts shall not exceed 100 acres and must contain at least twenty thousand square feet of premises that, at the time the district is created, is licensed pursuant to this Article and Article 3 of Title 44 of the Colorado Revised Statutes as a: (I) Tavern; (II) Hotel and restaurant; (III) Brew pub; (IV) Distillery pub; (V) Vintner's restaurant; (VI) Beer and wine licensee; (VII) Manufacturer that operates a sales room pursuant to Section 44-3-402(2) or (7) of the Colorado Revised Statutes; (VIII) Beer wholesaler that operates a sales room pursuant to Section 44-3-407(1)(b)(I) of the Colorado Revised Statutes; (IX) Limited winery; (X) Lodging and entertainment facility licensee; or (XI) Optional premises. (3) By establishing the Entertainment District, the City authorizes the licensing of designated common consumption areas in which alcoholic beverages may be sold and consumed subject to the requirements of this Code and the Colorado Liquor Code. Section 11-3-74 – Application for certifying a promotional association and establishing a common consumption area; notice; hearing. (a) An application form for certifying a promotional association and establishing a common consumption area shall be available at the City Clerk’s Office or on the City’s website. No application will be considered by the Liquor and Beer Licensing Board until the completed application, applicable fee, and all attachments are submitted. (b) In addition to the requirements of C.R.S. § 44-3-301(11), as amended, the promotional association seeking certification by the Liquor and Beer Licensing Board shall be required to submit: (1) A copy of the articles of incorporation and bylaws and a list of all directors and officers of the promotional association. A representative of each licensed premises attached to the common consumption area shall serve as one (1) of the directors on the board of the promotional association. At least two (2) liquor licensed premises must be attached to a common consumption area; (2) A list containing the names, addresses, and license types of all liquor licensed businesses that will be applying for attachment to the common consumption area which are known at the time of application for certification; (3) A list of the names and addresses of all non-liquor licensed business which will fall entirely within, will fall partially in, or be immediately adjacent to the common consumption area; along with evidence that the applicant association has either mailed or personally served such businesses with a copy of the notice required in this section; (4) A detailed map of the common consumption area, including location of physical barriers, entrances and exits, location of attached licensed premises, identification of licensed premises that are adjacent but not to be attached to the common consumption area, and approximate location of security personnel; (5) A detailed description of the security arrangements, the approximate number of security personnel and the approximate location of security personnel within the common consumption area. Security arrangements shall include physical barriers to close the common consumption area to vehicular traffic and limit pedestrian access. (6) A detailed health and sanitation plan including but not limited to plans for trash collection and disposal, location of available bathrooms and porta-potties, a description of how the area will be kept clean during the hours of operation of the common consumption area, and a description of how the area will be cleaned up at the end of the hours of operation of the common consumption area. (7) A list of dates and hours of operation of the common consumption area for the upcoming calendar year; (8) Documentation showing permission to use all portions of the common consumption area for all dates the common consumption area will be in use. Such documentation need only cover the period from the date of st application through January 31 of the following year. (9) An insurance certificate of general liability and liquor liability insurance naming the City as an additional insured in a minimum amount of $1,000,000.00 or as may be increased from time to time, by the City’s Director of Finance; (10) Documentation of how the application addresses the reasonable requirements of the neighborhood and the desires of the adult inhabitants as evidenced by petitions, written testimony or otherwise; and (11) In addition to any fee required to be paid to the Colorado Department of Revenue, each promotional association seeking certification by the Liquor and Beer Licensing Board shall pay to such Board a non- refundable application fee of Five-Hundred Dollars ($500.00). (12) A statement of any and all violations of local or state liquor rules or regulations by any attached liquor licensed business within the past five (5) years, from the date of application. (c) Hearing and Notice. (1) The Liquor and Beer Licensing Board shall hold a hearing on all applications for certification of a promotional association and establishment of a common consumption area. (2) Prior to the hearing the City Clerk shall, at least ten days prior to the hearing, cause notice to be posted in a conspicuous place within the proposed common consumption area for which application has been made and by publication on the City’s website. Such posting shall be in the form established in C.R.S. § 44-3-311, as amended. (d) It shall be unlawful and a municipal offense for any person or entity to operate a common consumption area unless currently certified as a promotional association under this section. Section 11-3-75 Terms and Conditions; Modifications; Report of Changes. (a) Terms and conditions. (1) Upon certification of a promotional association, the terms and conditions of the certification shall remain effective until and unless an application for modification is submitted, approved, and authorized by the Liquor and Beer Licensing Board as required by this Section. (2) No person shall make an application nor shall an application for the certification of a promotional association be received by the Liquor and Beer Licensing Board until such time as all fees, fines, costs, taxes, penalties, and interest due and owing to the City by any and all of the licensed premises attached to the common consumption area are paid in full. (b) Modifications and Report of Changes. (1) Prior to any of the following modifications taking place, a promotional association must file an application for modification with the City Clerk’s Office. (a) Changes to the map of the common consumption area; (b) Changes to the hours and dates of operation of the common consumption area or changes to the hours of attached licensees; (c) Changes to the promotional association’s security plan; (d) Changes to the promotional associations health and sanitation plan; (e) Changes to any conditions imposed on the promotional association by the Liquor and Beer Licensing Board. (2) Subject to the notice requirements set forth in Section 11-3- 74(c)(2) above, the Liquor and Beer Licensing Board shall hold a hearing on all applications for modification. At such hearing the said Board shall consider the effect of the amendment on the ability of the promotional association to comply with all local and state liquor laws and regulations. (3) In addition to any fee required to be paid to the Colorado Department of Revenue, all applications for modification shall be accompanied by a non-refundable One-Hundred Dollar ($100.00) fee. (4) The promotional association shall report any of the following changes to the Liquor and Beer Licensing Board within thirty (30) days of the effective date of the change: (a) Any changes to the articles of incorporation or the bylaws of the promotional association. (b) Any change to the list of directors and officers of the promotional association. (c) changes to the ownership or character of non-liquor licensed business which fall entirely within, fall partially in, or are immediately adjacent to the common consumption area. Section 11-3-76 – Application for attachment to a common consumption area. (a) As used in this section ‘attach’ shall mean the connection, as authorized under this section, of a liquor licensed premises, to an adjoining common consumption area to provide alcohol beverages for common consumption within said area. (b) All liquor licensees who wish to attach to a common consumption area must complete an application on forms provided by the City Clerk’s Office. Along with the application the licensee must provide: (1) Authorization for attachment from the certified promotional association. (2) Name of the representative from the licensed premises proposed for attachment who would serve as a director on the board of the certified promotional association. (3) A detailed map of the common consumption area, including location of physical barriers, entrances and exits, location of attached licensed premises, identification of licensed premises that are adjacent but not to be attached to the common consumption area and approximate location of security personnel. (4) A non-refundable application fee of One-Hundred Dollars ($100.00). Such fee shall be in addition to any fee required to be paid to the Colorado Department of Revenue. (c) The Liquor and Beer Licensing Board may refuse to authorize, refuse to reauthorize or may deauthorize attachment if: (1) The licensed premises to be attached is not within or immediately adjacent the common consumption area; (2) The licensee fails to obtain or retain authority to attach to the common consumption area from the certified promotional association; (3) The licensee fails to establish that the licensed premises and the common consumption area can be operated without violating this Code, the Colorado Liquor Code or creating a safety risk to the neighborhood; or (4) The licensee has been found to have violated any provision of local or state liquor rules and regulations within the past five (5) years. Section 11-3-77 – Operation of common consumption areas. (a) A promotional association or attached licensed premises shall not: (1) Employ a person to serve alcoholic beverages or provide security within the common consumption area unless the server has completed the server and seller training program established by the Director of the Liquor Enforcement Division of the Colorado Department of Revenue; (2) Sell or provide an alcoholic beverage to a customer for consumption within the common consumption area but not within the licensed premises in a container that is larger than sixteen (16) ounces; (3) Sell or provide any alcoholic beverage to a customer for consumption within the common consumption area but not within the licensed premises unless the container is disposable and contains the name of the vendor in at least twenty-four-point font; (4) Permit customers to leave the licensed premises with an alcohol beverage unless the beverage container complies with Paragraphs (2) and (3) of this Subsection (a); (5) Operate the common consumption area in an area that exceeds the maximum authorized by the Liquor and Beer Licensing Board or the Colorado Liquor Code; (6) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, giving, or procuring of, an alcoholic beverage to a visibly intoxicated person or to a known habitual drunkard; (7) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, or giving of an alcohol beverage to a person under twenty-one (21) years of age; or (8) Permit a visibly intoxicated person to loiter within the common consumption area; (9) Offer for sale or service alcoholic beverages in the common consumption area unless such sale or service is done upon the licensed premises of an attached licensee; (10) Fail to immediately report to the police any violation of this Title XI occurring on the attached licensed premises or within the common consumption area. (11) Permit any violation of this Chapter or of the Colorado Liquor Code within any attached licensed premises or within the common consumption area. (b) The promotional association shall promptly remove all alcoholic beverages from the common consumption area at the end of the hours of operation. (c) It is unlawful for any person to consume alcohol within the common consumption area unless such alcoholic beverage was obtained from an attached licensed premises. (d) Penalties. (1) The promotional association and all attached liquor licensees shall be jointly responsible for violations of this Chapter and of the Colorado Liquor Code that occur within the common consumption area. If a particular licensee or licensees can be identified as being responsible for a violation only such licensee or licensees shall be penalized under this Section. In the event a responsible licensee or licensees cannot be identified; all attached licensees and the promotional association shall be subject to penalties under this Section. (2) The Liquor and Beer Licensing Board is authorized to impose the following penalties for violations of this article; (a) A fine, (b) Suspension of individual liquor licenses, (c) Suspension of the common consumption area, (d) Revocation of individual liquor licenses, (e) Revocation of the common consumption area, (f) Decertification of the promotional association, and/or (g) Imposition of additional conditions on any attached licensee or on the promotional association. (e) This Section does not apply to a special event permit under this Code or the holder thereof unless the permit holder desires to use an existing common consumption area and agrees in writing to the requirements of this Section and the Liquor and Beer Licensing Board concerning the common consumption area. Section 11-3-78 – Recertification and reporting requirements. (a) A certified promotional association shall apply for recertification by January 31st of each year on forms prepared and furnished by the City Clerk. An application for recertification of a promotional association shall include a report containing: (1) A detailed map of the boundaries of the common consumption area; (2) A list of dates and hours of operation of the common consumption area for the upcoming calendar year; (3) Documentation showing permission to use all portions of the common consumption area for all dates the common consumption area will be in use during the upcoming year; (4) A list of attached licensed premises; (5) A list of the directors and officers of the promotional association; (6) Security arrangements within the common consumption area; (7) Any violation of local or state liquor rules and regulations committed by an attached licensed premises during the preceding year; and (8) Any other information reasonably requested by the Liquor and Beer Licensing Board. (b) Fee – In addition to any fee required to be paid to the Colorado Department of Revenue, the promotional association shall submit a non-refundable recertification fee of Two-Hundred Fifty Dollars ($250.00) with its application for recertification. (c) Late recertification – the Liquor and Beer Licensing Board may, in its discretion, allow a promotional association to apply for recertification after January 31st if; (1) the promotional association has complied with the reporting requirements contained in C.R.S. § 44-3-301(11)(c) as amended, and (2) the promotional association pays an additional non-refundable late fee of One-Hundred Dollars ($100.00). Such late fee shall be in addition to any late fee required to be paid to the Colorado Department of Revenue. (3) Under no circumstances shall a promotional association be st allowed to apply for late recertification more than 60 days after January 31. SECTION 2. Article 2, of Chapter 1, of Title XI of the Pueblo Municipal Code is amended to read as follows: Sec. 11-1-207. - Unlawful possession of an alcoholic beverage. (a) Definitions. When used in this Section: . . . (3) Public place within the City means and includes public buildings and adjacent land, parks, streets, alleys, roads or highways, sidewalks, parking lots, and private parking areas and shopping centers open to the public. Public place within the City shall not include those areas of a licensed premises which are permitted under law to sell alcoholic beverages for consumption thereon or within common consumption areas authorized by law. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 25, 2021 . Final adoption of Ordinance by City Council on November 8, 2021 . President of City Council Action by the Mayor: ☒ Approved on November 10, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-11 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 25, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Kyle Aber, Assistant City Attorney SUBJECT: AN ORDINANCE ADDING ARTICLE VII TO CHAPTER 3 OF TITLE XI – AUTHORIZING THE CITY TO ESTABLISH ENTERTAINMENT DISTRICTS AND ADOPTING RULES GOVERNING PROMOTIONAL ASSOCIATIONS AND COMMON CONSUMPTION AREAS SUMMARY: This Ordinance: - Authorizes City Council and the Mayor to establish entertainment districts within the City wherein liquor licensed businesses are allowed to establish common consumption areas. - Authorizes the Liquor and Beer Licensing Board to certify and decertify promotional associations. Promotional associations are responsible for maintaining order in common consumption areas. - Authorizes the Liquor and Beer Licensing Board to approve or deny applications for common consumption areas. - Adopts regulations governing promotional associations and common consumption areas. - Establishes procedures and fees for application and certification/recertification of promotional associations. - Establishes procedures and fees for application and approval of common consumption areas. This Ordinance does not create an entertainment district, certify any promotional association, or approve any common consumption area. It only provides the framework for future creation of an entertainment district and regulation of promotional associations and common consumption areas therein. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: Article 3 of Title 44 of the Colorado Revised Statutes allow municipalities to create entertainment districts and allow, within the entertainment district, common consumption areas. A common consumption area is a designated area where customers of certain liquor licensed businesses are allowed to exit the licensed premises with alcoholic beverages that they purchased from that business and continue to consume that beverage in the public space. Common consumption areas must be shared by at least two liquor licensed businesses. The City has been asked to adopt legislation that creates an entertainment district wherein common consumption areas would be allowed. The attached Ordinance authorizes the City Council to create entertainment districts by ordinance. If an entertainment district is created the Pueblo Liquor and Beer Licensing Board is authorized to certify promotional associations. Promotional associations are associations that are primarily comprised of members from liquor licensed businesses that wish to create a common consumption area. These associations are responsible for maintaining order in their associated common consumption area. Common consumption areas are highly regulated public areas. Customers of attached liquor licensed businesses may consume alcoholic beverages purchased from those attached businesses within the common consumption area. FINANCIAL IMPLICATIONS: This Ordinance establishes fees for various applications necessary to establish and maintain promotional associations and related common consumption areas. These fees are intended to offset the cost of administering the rules governing entertainment districts, promotional associations, and common consumption areas. The fees collected are not likely to have a significant impact on the finances of the City. BOARD/COMMISSION RECOMMENDATION: The Liquor and Beer Licensing Board has reviewed this Ordinance and has opted not to take a position. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance does not pass entertainment districts and associated common consumption areas will not be allowed within the City. RECOMMENDATION: Passage of the Ordinance. Attachments: Proposed Ordinance