Liquor Control Board - June 18, 2025 Minutes

Meeting Date: June 18, 2025 Time: 1:30 PM
Attendees:
• Commissioner Dave Piepkorn, Mark Doyle, Robert Nelson, Scott Brekke
1. Approval of May 21st, 2025 Regular Meeting Minutes
The minutes from the May 21st, 2025 regular meeting were presented for approval.
• Motion to approve minutes: Brekke
• Seconded by: Nelson
• Vote: Motion carried
2. Review Liquor Applications
a. Application for a Class W Wine License from Hera Nail Bar
Location: 2701 Uptown Way
Steve Sprague presented the application for Hera Nail Bar, a salon requesting a Class W wine license to serve wine to patrons. The salon's layout allows for a separate area for minors. The Class W license does not require food sales and permits a physical bar, though Hera Nail Bar is not planning to install one. A background check by the police department found no issues. The application comes with a recommendation for approval.
• Discussion:
o A board member expressed opposition, noting this is the third or fourth such application recently. Concerns were raised about the lack of compliance checks for these establishments, health department regulations for cleaning glassware, and whether employees would be allowed to consume alcohol.
o The board member also argued that these licenses devalue wine in the market, as it might be offered as a free add-on, creating unfair competition for traditional bars and restaurants.
o A hypothetical scenario was presented regarding a car parts store requesting a beer and wine license to give away free alcohol, questioning where such allowances would end.
o Another board member acknowledged the increasing number of such requests and while supporting this application due to past precedents, suggested a future review of this growing trend.
• Motion to approve application for a Class W Wine License for Hera Nail Bar: Brekke
• Second: Commissioner Piepkorn
• Discussion: Commissioner Piepkorn initially sought a second but then temporarily stepped down from the chair to second the motion himself, as advised by City Attorney Nancy Morris (it's permissible to second a motion without giving up the chair, unlike making the initial motion).
o In favor: 2 Commissioner Piepkorn, Brekke
o Opposed: 2 Doyle, Nelson
o Result: The motion was tied (2-2) and will be forwarded to the City Commission for a final decision.
b. Application for a Class C Beer License for Lil Jimmies
Location: 2603 Kirsten Lane South (corner of 25th Street and 32nd Avenue South)
Steve Sprague presented the application for Lil Jimmies, located in a strip mall. The applicant intends to create a relaxing environment. Four prior issues were noted in the applicant's history, all being misdemeanors from 2013 or earlier. The police report recommends approval.
• Motion to approve application for a Class C Beer License for Lil Jimmies: Brekke
• Seconded by: Nelson
• Vote: Motion carried.
3. Police Department Monthly Report
Chief Zibolski presented the monthly report. No significant issues were reported, aside from an ironic incident where a person attempting to purchase alcohol with a fake ID walked into an establishment while officers were collecting a fake ID from a previous incident, leading to immediate action.
• Discussion: No questions were raised for Chief Zibolski.
4. Other Items
a. Request for To-Go Cocktails
Steve Sprague provided background on the To-Go Cocktail allowance during the pandemic, which permitted sealed containers of beer, wine, or mixed drinks without requiring an off-sale license. This was an emergency measure to assist businesses during in-person dining restrictions.
Lance Thorson, representing Vinyl Taco and JL Beers, requested the reintroduction of to-go cocktails. He noted continued customer demand for their 32-ounce "crawler can" margaritas. He highlighted that while Vinyl Taco currently has an FAZ license (requiring food sales for take-out), JL Beers already sells canned tap beer. He also mentioned the presence of ready-to-drink (RTD) cocktails in liquor stores and malt-based frozen beverages (like Brewhalla) that are currently permitted.
• Discussion:
o Commissioner Piepkorn asked if a different license would be required for to-go cocktails at Vinyl Taco. Steve Sprague explained that an "add-on" license, similar to the "M" designation for off-sale beer (growlers/crawlers), would likely be implemented.
o Concerns were raised about the legalities of selling spirits-based cocktails in sealed cans, potential state law conflicts, labeling requirements (proof, size), and possible tax implications (wholesale/production taxes vs. volume-based taxes).
o Lance Thorson confirmed they would comply with all labeling requirements, including ABV, as they do with JL Beers' canned beers.
o The board agreed to continue this discussion for further research into state law, local ordinance fitting, and comparisons to existing licenses to ensure integrity and consistency.
• Motion to continue the Request for To-Go Cocktails: Nelson
• Seconded by: Doyle
• Vote: Motion carried.
b. Request to Allow Limited Wine Off-Sales
Steve Sprague introduced this item, noting ongoing discussions with Nikki Berglund for nearly two years. The request aims to allow retailers to have a limited selection of wine for off-sale. Currently, businesses like Mangata and Brewhalla, when a customer wants to take an unfinished bottle of wine to go, must open, recork, bag, seal, and attach a receipt, which is inconvenient. Dan Hurder also sent an email supporting this request. Steve Sprague suggested an add-on "D" license (currently designated for beer-only off-sales).
Nikki Berglund explained that this would provide a convenience and small extra revenue for businesses, particularly for the wines they already sell on-premise. She emphasized that on-sale pricing would likely make it less economical than purchasing from a liquor store, thus not directly competing with off-sale liquor stores. She also cited catering scenarios where unopened bottles must be opened and resealed for customers to take home. She suggested potential guardrails, such as a square footage cap for the off-sale area, to prevent it from becoming a full-fledged wine off-sale license.
Nicole Henson, from Nicole's Pastries, also expressed interest in offering limited wine off-sales to complement "meal packages" in her expanded market space.
• Discussion:
o Commissioner Piepkorn expressed the need for further discussion and research to ensure consistency with existing rules and asked Steve Sprague to research the differences between this proposed add-on and current wine licenses.
o It was noted that places like Cellar 264 already have a similar allowance for events, enabling them to sell wine off-sale.
o Commissioner Piepkorn acknowledged Steve Sprague's efforts in balancing support for new business ideas with maintaining the integrity of existing licenses.
• Motion to continue the Request to Allow Limited Wine Off-Sales: Doyle
• Seconded by: Nelson
• Vote: Motion carried.
The meeting was adjourned at 1:58 PM.