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G-1078 - 07/12/2016 - LICENSE -ALCOHOL - Ordinances Supporting Documents ITEM 9.A. 1) BOARD OF TRUSTEES MEETING VILLAGE OF SAMUEL E. DEAN BOARD ROOM OAK B R k K � BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of July 12, 2016 SUBJECT: An Amendment to Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Liquor License Regulations FROM: Charlotte K.Pruss, Village Clerk d BUDGET SOURCE/BUDGET IMPACT: N/A RECOMMENDED MOTION: I move to approve passage of Ordinance G-1078, "An Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Liquor License Regulations" Background/History: In the review of our current Village's Liquor License Ordinance, and in consultation with the Village Attorney, we recommend that Title 4, Chapter 1, Section 7 ("Liquor Regulations") of the Village Code be amended to permit the sale and consumption of liquor at Food Halls in the Village and any adjacent Restaurants and Coffee Shops. The amendments to Section 4-1-3, 4-1-7, 4-1-8, 4-1-15, and 4-1-24 of the Liquor Regulations would create a new classification specifically permitting a Food Hall and any adjacent licensed premises to sell liquor to their patrons. We are also recommending the Village Board adopt a new Section 4-1-16.6 that imposes specific conditions that would regulate how Food Halls, Class A-1 licensee's for Food Hall Restaurants, and Class K Licensee's for Food Hall Coffee Shops may sell liquor. The proposed amendments are as follows: Section 4-1-3 The amendment to Section 4-1-3 states the definitions of a Food Hall, a Food Hall Coffee Shop and a Food Hall Restaurant as it pertains to in the ordinance. BOT AGENDA Page] Section 4-1-7 The amendment proposed to Section 4-1-7 would add a new classification (Class L) specifically permitting retail sale of alcoholic beverages within a Food Hall, including consumption within the Food Hall of beer, wine and other alcoholic liquor that is purchased from an adjacent Food Hall Restaurant or Food Hall Coffee Shop. Section 4-1-8 The amendment to Section 4-1-8 creates an application fee and annual license fee for the new Class L liquor license. The proposed application fee is $2,000.00 and the proposed annual license fee is $2,750.00. These fees are consistent with the fees charged by the Village for other types of liquor licenses. The ordinance also proposes nothing to prevent the operations of a Licensed Food Hall or to prevent any Licensed Food Hall Restaurant or Licensed Food Hall Coffee Shop from serving a customer liquor for consumption within the adjacent Licensed Food Hall and within any other Food Hall Restaurants and Coffee Shops that are accessible only from or through the same Food Hall. Further, nothing will prevent the operations of a Licensed Food Hall, a Food Hall Restaurant (whether or not such Food Hall Restaurant holds a Class A-1 liquor license), or a Food Hall Coffee Shop (whether or not such Food Hall Coffee Shop holds a Class K liquor license) from permitting the consumption, on premises, of liquor purchased within the adjacent Food Hall, Licensed Food Hall Restaurants or Licensed Food Hall Coffee Shops. Section 4-1-15 The amendments to Section 4-1-15 specific conditions that Food Halls, Food Hall Restaurants or Food Hall Coffee Shops licensee's with a Class L license would need to follow in order to sell or for consumption of alcoholic beverages to their patrons. These conditions have been specifically tailored for the Class L license. The Village Board may remove or add any conditions it deems desirable if it decides to create a new liquor license specifically for Food Halls, Food Hall Restaurants or Food Hall Coffee Shops with a Class L license. Section 4-1-16.6 The ordinance also proposes to add a new Section 4-1-16.6 to the Village Code, which section contains additional liquor controls for Class L licenses, Class A-1 liquor licenses for Food Hall Restaurants, and Class K licenses for Food Hall Coffee Shops would need to follow to serve liquor in a Food Hall. These conditions have been specifically tailored for Food Hall Restaurants or Food Hall Coffee Shops. The Village Board may remove or add any conditions it deems desirable if it decides to create a new liquor license specifically for Food Hall Restaurants or Food Hall Coffee Shops. Section 4-1-24 The amendment to Section 4-1-24 are not intended to prevent a Food Hall Restaurant (whether or not such Food Hall Restaurant holds a Class A-1 License), a Food Hall Coffee Shop (whether or not such Food Hall holds a Class K liquor license), or a Licensed Food Hall from allowing patrons to bring alcoholic beverages into their respective licensed premises that was purchased from the other licensed premises comprising of or adjacent to the same Licensed Food Hall. Page 2 of 3 Recommendation: The recommendation is for passage of Ordinance G-1078, 'An Ordinance Amending Chapter 1, Title 4 of the Village Code of the Village of OakBrook, Illinois Regarding Liquor Control Within a Food Hall,Food Hall Coffee Shops and Food Hall Restaurants. Page 3 of 3 ORDINANCE 2016-LC-AL-G-1078 AN ORDINANCE AMENDING CHAPTER 1 OF TITLE 4 OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS REGARDING LIQUOR CONTROLS WITHIN FOOD HALLS WHEREAS, the Village of Oak Brook, Illinois ("Village") is a body politic and corporate, organized and existing pursuant to the Illinois Municipal Code, 65 ILCS 5/1-1-1 et seq.; and WHEREAS, Section 11-42-10.1 of the Illinois Municipal Code, 65 ILCS 5/11-42-10.1, and Section 4-1 of the Illinois Liquor Control Act, 235 ILCS 5/4-1, provide the Village the authority to determine the number, kind, and classification of licenses for retail sales of alcoholic liquor; and WHEREAS, pursuant to Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois, the Village regulates the number, kind, and classification of licenses for retail sales of alcoholic liquor("Liquor Regulations"); and WHEREAS, the Liquor Regulations contain certain liquor classifications available to Restaurants and Coffee Shops that operate entirely within their respective licensed premises, but the Liquor Regulations and classifications do not specifically permit or specifically govern the manner in which multiple Restaurants and Coffee Shops may be located in conjunction with a controlled-access food hall, with access only from and through that food hall and with open seating for customers throughout the entirety of the food hall premises and throughout multiple adjacent Restaurants and Coffee Shops; and WHEREAS, the Village President and Board of Trustees have determined that it is in the best interest of the Village and its residents to amend the Liquor Regulations to provide for Liquor Regulations that specifically govern the sale and consumption of liquor at food halls in the Village and any adjacent Restaurants and Coffee Shops; NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Amendment to Title 4 Chapter 1 Section 3 of the Village Code. Section 3, entitled "Definitions," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further in that new definitions shall be added in their proper alphabetical places, as follows: FOOD HALL: Means a place of business that: (a) holds a Class L License if alcoholic liquor is sold, possessed, or consumed on the premises; Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 2 of 9 (b) is located in the B-2 District and within a building having no less than 20,000 square feet of building area; (c) has seating capacity, whether with stools, chairs, benches, couches or other furniture, for no more than 430 persons (not including the seating capacity of any adjacent Food Hall Restaurants and Food Hall Coffee Shops); (d) provides the exclusive means of customer access to no fewer than five and no more than ten premises suitable for occupancy by Restaurants or Coffee Shops (whether or not any one or more of such premises are occupied, and whether or not any one or more of such premises are licensed for the sale of alcohol); (e) has at least one access control point with an enclosed vestibule, video surveillance, and signage prohibiting customers from exiting or entering the Food Hall with any alcoholic beverage; (f) is fully-enclosed by some or all of the following: solid walls; planters no less than thirty inches in height and no less than two feet in width; other non-permeable or barriers approved by the Liquor Control Commissioner; access control points; one-way emergency exit gates identified as such with signage; doorways specifically marked and located for use only by employees and delivery personnel; and premises for Food Hall Restaurants and Food Hall Coffee Shops (whether or not occupied); and (g) complies with enclosure and access control plans reviewed and approved by the Liquor Control Commissioner, Village Fire Department, and Community Development Department, which enclosure and access control plans shall be designed and constructed to ensure that: (i) no customer of a Restaurant or Coffee Shop that is adjacent and accessible to a Food Hall may enter except through that Food Hall's access control points; and (ii) no such customer may exit such Restaurant or Coffee Shop except through that Food Hall's approved access control points and approved one-way emergency exit gates. FOOD HALL COFFEE SHOP: Means a Coffee Shop that is adjacent to a Food Hall and accessible by customers only from or through that Food Hall, regardless of whether such Coffee Shop holds a Class K License or has had a Class K License that is permanently revoked or temporarily suspended and regardless of whether the adjacent Food Hall holds a Class L liquor license. FOOD HALL RESTAURANT: Means a Restaurant that is adjacent to a Food Hall and accessible by customers only from or through that Food Hall, regardless of whether such Restaurant holds a Class A-1 License or has had a Class A-1 License that is permanently revoked or temporarily suspended and regardless of whether the adjacent Food Hall holds a Class L liquor license. Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 3 of 9 LICENSED FOOD HALL: Means a Food Hall that holds a Class L License. No Food Hall shall be required to have hold a Class L License unless any of the following applies: (i) alcohol will be sold, possessed, or consumed within the Food Hall premises; (ii) an adjacent Food Hall Restaurant holds a Class A-1 License; or(iii) an adjacent Food Hall Coffee Shop holds a Class K License. LICENSED FOOD HALL COFFEE SHOP: Means a Food Hall Coffee Shop that holds a Class K License. No Food Hall Coffee Shop shall be required to hold a Class K License unless alcohol will be sold by the Food Hall Coffee Shop. LICENSED FOOD HALL RESTAURANT: Means a Food Hall Restaurant that holds a Class A-1 License. No Food Hall Restaurant shall be required to hold a Class A-1 License unless alcohol will be sold by the Food Hall Restaurant. Section 3: Amendment to Title 4 Chapter 1 Section 7 of the Village Code. Section 7, entitled "License Classifications" of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further in that a new license classification, Class L, shall be added to the existing classes. Class L shall read as follows: CLASS L: Sale and consumption of beer, wine, and other alcoholic beverages within a Food Hall, including consumption within the Food Hall of beer, wine, and other alcoholic liquor that is purchased from an adjacent Food Hall Restaurant or Food Hall Coffee Shop. Section 4: Amendment to Title 4 Chapter 1 Section 8 Subsection A of the Village Code. Subsection A of Section 8, entitled "License Fees and Numbers," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code, shall be amended further in that a new class of license, Class L, shall be added with an application fee of [$2,000] and an annual license fee of [$2,750] with only one Class L License to be issued. Section 5: Amendment to Title 4 Chapter 1 Section 8 Subsection B of the Village Code. Subsection B of Section 8, entitled "License Fees and Numbers," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further and shall read as follows d and double- underline; deletiei shown 6414& thr919,): B. Fee Regulations: 1. There shall be no refund or proration of the license application fee. For any license issued on or after July 1 of any year, the annual license fee shall be prorated by dividing the fee set forth in this section by twelve (12) and multiplying the resulting sum by the number of months, or parts thereof, remaining in the license year. Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 4 of 9 2. If an applicant conducts, or proposes to conduct, the retail sale of alcoholic liquor within a single building in ways which would require the issuance of more than one license to authorize all of the subject activities, the fee for the second or any additional licenses shall be five hundred dollars ($500.00), and no application fee shall be required for the second or any additional licenses. Each license issued shall be publicly posted at the appropriate location where alcoholic liquor is being offered for retail sale. All of the subject activities must be conducted within a single building, and must be under the same ownership and control. Nothing herein contained shall be so construed as to prevent any hotel operator licensed under the provisions of this chapter from serving alcoholic liquor to his registered guests in any room or part of his hotel, if such liquor so served shall be kept in and served from a licensed location, place, or premises in the hotel. Nothing herein contained shall be so construed as to prevent any holder of a class I liquor license from serving a customer in any movie theater if such liquor is kept in, and served from, a bar located in the lobby of the movie theater. Nothing herein contained shall be so construed as to prevent the operations of a Licensed Food Hall or to prevent any Licensed Food Hall Restaurant or Licensed Food Hall Coffee Shop from serving a customer liquor for consumption within the adracent Licensed Food Hall and within any other. Food Hall Restaurants and Coffee Shops that are accessible only from or through the same Food Hall. Further, nothing herein contained shall be so construed as to prevent the operations of a Licensed Food Hall a Food Hall Restaurant (whether or not such Food Hall Restaurant holds a Class A-1 liquor license), or a Food Hall Coffee Shop (whether or not such Food Hall Coffee Shop holds-& Class K liquor license) from permitting the consumption on premises of liquor purchased within the adjacent Food Hall Licensed Food Ball Restaurants or Licensed Food Hall Coffee Shops. Section 5: Amendment to Title 4 Chapter 1 Section 15 of the Village Code. Subsections D, G, and H of Section 15, entitled "Conditions of Licenses," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further and shall read as follows (additions shown in bold and double- underline; deletTaRs shown +., Gk th Fe 9h): 4-1-15:CONDITIONS OF LICENSES: D. Sanitation: All premises used for the retail sale of alcoholic liquor or for the storage of such liquor for such sale or for consumption within a Licensed Food Hall shall be kept in a clean and sanitary condition and shall be kept in full compliance with all ordinances and regulations concerning the condition of premises used for the storage or sale of food for human consumption. E. Consumption On Premises: 1. Except for tasting of samples as authorized in subsection 4-1-23B of this chapter and for special events as authorized by the commissioner pursuant to section 4=1- Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 5 of 9 17 of this chapter, it shall be unlawful for anyone having a class B license under this chapter to sell or offer for sale any alcoholic liquor for consumption on the licensed premises, or to permit alcoholic liquor to be consumed on such premises. 2. Except for private functions not open to the public, or fe special events as authorized by the local liquor control commissioner pursuant to section 4-1-17 of this chapter, Food Hall Coffee Shops that satisfy the insurance reauirements of Section 4-1-15A, or Food Hall Restaurants that satisfy the insurance reauirements of Section 4-1-15A, it shall be unlawful for any person operating or employed by any business establishment which is not licensed to sell alcoholic liquor in the village pursuant to the requirements of this chapter to permit alcoholic liquor to be consumed on the business premises. G. License Limited To Single Business: All licenses issued pursuant to this chapter shall be limited to a single business establishment. No licensee shall operate, advertise or otherwise represent that it is operating a liquor establishment or business except as expressly designated on the face of the license. Nothing herein contained shall be so construed as to prevent the lawful operations of a Food Hall or its adjagent Food Hall Restaurants and Food Hall Coffee Shops. H. Delivery Of Alcoholic Liquor Off Premises: It shall be unlawful for any liquor licensee licensed by the Village to deliver alcoholic liquor to someone located in the Village and outside of the licensee's licensed premises. Notwithstanding anything contained herein to the contrary, Class B liquor licensees may deliver alcoholic liquor to their customers outside of the licensee's licensed premises provided that the Class B liquor licensee complies with the following regulations: 1. Alcoholic liquor must be delivered to, and signed for at the time of delivery by, a person who is twenty one (21) years of age or older; 2. The person delivering alcoholic liquor on behalf of the liquor licensee must check the identification of any person accepting delivery of the alcoholic liquor at the time of delivery; 3. Alcoholic liquor may only be delivered in its original and unopened container; and 4. The liquor licensee must comply with all federal, state, and local laws, regulations, rules and ordinances that are applicable to the delivery of alcoholic liquor. Nothina herein contained shall be so construed as to prevent the lawful operations of a Licensed Food Hall Licensed Food Man Restaurant or Licensed Food Hall Coffee Shop from serving liquor for consumption customer seated within an adjacent Licensed Food Hall or within any other Food Hall Restaurant or Food Hall Coffee Shop that is accessible only from or throuah that same Licensed Food Hall Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 6 of 9 Section 6: Adoption of Title 4 Chapter 1 Section 16.6 of the Village Code. Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended by adding a new Section 4-1-16.6 as follows: 4-1-16.6: ADDITIONAL LIQUOR CONTROLS FOR CLASS L LICENSES, CLASS A-1 LICENSES FOR FOOD HALL RESTAURANTS, AND CLASS K LICENSES FOR FOOD HALL COFFEE SHOPS: A. In addition to the other applicable conditions and requirements of this chapter, each Class A-1 liquor licensee whose licensed premises is a Food Hall Restaurant and each Class K liquor licensee whose licensed premises is a Food Hall Coffee Shop may only sell alcoholic liquor subject to the following conditions and restrictions: 1. Alcoholic liquor shall only be drawn, poured, or mixed within the licensed premises owned or leased by the licensee; 2. Alcoholic liquor may be delivered and consumed only within: i) the licensed premises owned or leased by the licensee; ii) the adjacent Licensed Food Hall; or iii) the premises of other Food Hall Restaurants or Coffee Shops that satisfy the insurance requirements of Section 4-1-15A and are located adjacent to a Licensed Food Hall; 3. Alcoholic liquor may only be served in containers that are of a different color, size and design than those in which non-alcoholic beverages are served by any one or more Food Hall Restaurants or Coffee Shops adjacent to the same Food Hall, and such alcoholic liquor containers shall clearly and legibly state on the container's exterior the name of the Licensed Food Hall Restaurant or Licensed Food Hall Coffee Shop that served the alcoholic liquor; 4. No more than 24 ounces of beer may be sold in a single container at a time, and no more than eight ounces of wine may be sold in a single container at a time; and 5. Except for the sale of beer and wine, no drink may be sold that contains more than three ounces of alcohol. B. Without limiting the provisions of Section 6A, neither this Section 6 nor any other provision in this Chapter requires that every Food Hall Restaurant adjacent to a Food Hall or Licensed Food Hall hold a Class A-1 License or that every Food Hall Coffee Shop adjacent to a Food Hall or Licensed Food Hall hold a Class K License. Further, the suspension or revocation of any one or more Class A-1 licenses or Class K licenses issued to Food Hall Restaurants or Food Hall Coffee Shops shall not cause a revocation, suspension or impairment of licenses held by the other licensees accessible from the same Food Hall. C. In consideration for the practical operations of multiple, independent Food Hall Restaurants and Food Hall Coffee Shops that have been designed to be accessible only from and through a particular Food Hall, no revocation or suspension of a Licensed Food Hall's Class L license shall cause the revocation or suspension of any one or more Class A-1 Licenses held by the adjacent Licensed Food Hall Restaurants or Class K Licenses held by the adjacent Licensed Food Hall Coffee Shops so long as: Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 7 of 9 (i) the Food Hall premises continues to be accessible for customers only through access control points with enclosed vestibules, video surveillance, and signage prohibiting customers from exiting or entering the Food Hall premises with any alcoholic beverage; and (ii) while such revocation or suspension of the Food Hall's Class L license is in effect, no alcoholic beverages purchased at its adjacent Licensed Food Hall Restaurants and adjacent Licensed Food Hall Coffee Shops may be consumed within the Food Hall premises, and such alcoholic beverages may only be consumed within the premises where the beverages were purchased or within the premises of other Licensed Food Hall Restaurants and Licensed Food Hall Coffee Shops. Section 7: Amendment to Title 4 Chapter 1 Section 24 Subsection 10A of the Village Code. Subsection 10A of Section 24, entitled "Prohibited Act," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further and shall read as follows (additions shown in bold and double- underline; °'a�letie rs shown GtFUGk through): 4-1-24: PROHIBITED ACTS: A. Prohibited Activities on License Premises: 10. No liquor licensee may permit a patron to bring alcoholic liquor into a licensed premises for consumption in the licensed premises except for: a. Class A-1 liquor licensees with banquet hall facilities containing not less than three thousand (3,000) square feet of floor space open to the public; b. Class A-2 liquor licensees with banquet hall facilities containing not less than three thousand (3,000) square feet of floor space open to the public; c. Class J liquor licensees; d. Class E liquor licensees, provided that such consumption occurs only within hotel or motel rooms; and e. Special event licensees specifically authorized within such special event license to allow patrons to bring alcoholic liquor onto a licensed premises for consumption on the licensed premises. Nothing herein contained shall be so construed as to prevent a Food Hall Restaurant whether or not such Food Hall Restaurant holds a Class A-1 License) Food Hall Coffee Shop (whether or not such Food Hall holds a Class K liquor license) or Licensed Food Hall from allowing patrons to bring j d premises that was alcoholic beverages into their respective license II Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 8 of 9 purchased from the other licensed premises comprising of or adjacent to the same Licensed Food Hall. Section 8: SeverabilitV. If any provision of this Ordinance or part thereof is held invalid by a court of competent jurisdiction, the remaining provisions of this Ordinance shall remain in full force and effect, and shall be interpreted, applied, and enforced so as to achieve, as near as may be, the purpose and intent of this Ordinance to the greatest extent permitted by applicable law. Section 9: Effective Date. This Ordinance shall be in full force and effect from and after its passage, approval, and publication in the manner provided by law. [SIGNATURE PAGE FOLLOWS] Ordinance 2016-LC-AL-G-1078 Amending Chap. 1,Title 4 Liquor Controls Within Food Halls Page 9 of 9 APPROVED THIS 12th day of July, 2016. Gopal G. Lalmalani Village President PASSED THIS 12th day of July, 2016. Ayes: Nays: Absent:: ATTEST: Charlotte K. Pruss Village Clerk