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G-1138 - 10/23/2018 - LICENSE -ALCOHOL - Ordinances Supporting DocumentsBOT 10.23.18 AGENDA New Classification Class A-4 Page 1 BOARD OF TRUSTEES MEETING SAMUEL E. DEAN BOARD ROOM BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of October 23, 2018 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 Kathy Vonachen, Deputy Clerk BUDGET SOURCE/BUDGET IMPACT: N/A RECOMMENDED MOTION: I move to approve passage of 2018-LC-AL-G- 1138 “An Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Liquor Controls Within Certain Retail Premises” Background/History: Crate & Barrel and Cornerstone Restaurant Group have requested that the Village consider the creation of a new classification that would allow a restaurant to be located within a portion of a larger retail store under specific circumstances and with specific limitations, particularly as to customer movements between the restaurant and store when those customers have been served alcoholic beverages by the restaurant. Staff and the Village Attorney have prepared the attached Ordinance to create this classification. Explanations for all of the amendments are as follows: Section 4-1-7 The amendment proposed to Section 4-1-7 would add a new classification (Class A-4) specifically permitting retail sale of alcoholic liquor by a restaurant with a premises that: (i) has an interior area of between 2,000 and 8,000 square feet; (ii) has an interior seating capacity between 50 and 200 customers; ITEM 10.A.1 BOT 10.23.18 AGENDA New Classification Class A-4 Page 2 (iii) has a seasonal or year-round outdoor seating of no greater than 6,000 square feet; (iv) is located within a retail store that has no less than 25,000 square feet of area and a portion of which is designated as the retail store’s “Retail Service Area” for purposes of the restaurant’s A-4 License; (v) is subleased by the holder of the license from the store tenant; (vi) is located within a regional retail or mixed use center in the B-2 Zoning District having no less than 80 acres of land area and no less than one million square feet of building area, (vii) is not within 500 feet of any public right of way; and (viii) has a ratio of seating that is predominantly or exclusively used for dining purposes to seating for bar or lounge areas equaling or exceeding three and one- half to one (3.5:1). Holders of a Class A-4 license are permitted to conduct cooking classes under that license. Section 4-1-8 The amendments to Section 4-1-8 create an application fee and annual license fee for the new Class A-4 liquor license. The proposed application fee is $2,000 and the proposed annual license fee is $2,750. These fees are consistent with the fees charged by the Village for other types of restaurant liquor licenses. The amendments to Section 4-1-8 would permit the Village to issue only one A-4 license at this time. The amendments to Section 4-1-8 also clarify that Section 4-1-8B2 does not prohibit customers of the restaurant from bringing beverages into the retail store. This provision is similar to a provision incorporated by the Village for the District (Food Hall). Section 4-1-15 The amendments to Section 4-1-15 impose the same sanitation and insurance requirements on the retail store and retail store tenant as the Village imposed for Food Halls. The amendments to Section 4-1-15 also clarify that specific subsections of Section 4-1-15 do not prohibit customers of the restaurant from bringing beverages into the retail store. These provisions are similar to the provisions incorporated by the Village into Section 4- 1-15 for the Food Halls. Section 4-1-16.8 The ordinance also proposes to add a new Section 4-1-16.8 to the Village Code which contains specific application requirements and conditions that a Class A-4 licensee would need to follow in order to serve liquor. These conditions have been specifically tailored for the A-4 license. The Village Board may remove or add any conditions it deems desirable if it decides to create a new Class A-4 liquor license. BOT 10.23.18 AGENDA New Classification Class A-4 Page 3 A. The applicant must submit a site plan clearly delineating the boundaries of the restaurant premises to be licensed (including any outdoor areas) the areas of the adjacent retail store in which alcohol can be consumed. The site plan also must show designated points of ingress/egress to and from the restaurant area and the designated retail service area. The site plan must include examples of signage in compliance with the applicable Village Code requirements. The site plan also must show the location of furniture within the restaurant area. B. The applicant must provide written evidence that the restaurant and store premises are leased to the store tenant and that the restaurant is subleased by the store tenant to the license applicant. The applicant also must provide evidence of insurance compliance for both itself and for the store tenant. C. The applicant must provide written policies or employee training manual provisions of both itself and the store tenant addressing the cleaning and operations of the retail service area in relation to alcoholic beverage service and consumption, and they must require that applicant personnel regularly monitor the retail service area for used beverage containers and regularly retrieve any such containers. D. The location of furniture within the restaurant must remain consistent with the latest approved site plan. Later revisions to the furniture diagrams must be reviewed and approved by the Village Clerk, Village Fire Department and Village Building Inspections Supervisor. E. One partially consumed bottle of wine may be taken outside of the restaurant (or store) if it has been sealed in compliance with section 6-33 of the Liquor Control Act of 1934 (235 ILCS 5/6-33). F. The license holder must provide a visually distinct and branded non- transferable wristband, bracelet, or similar item to persons seeking to consume alcoholic beverages within the store prior to such persons exiting the restaurant with alcoholic liquor. G. The license holder may only serve alcoholic liquor for consumption within the store if the beverages are in glassware or containers with a tag or other feature making them visually distinct from merchandise in the store. H. Alcoholic liquor served or dispensed within the restaurant may only be consumed within the restaurant and designated areas of the store. Also, alcoholic liquor may only be consumed within the store if it was purchased from or dispensed within the restaurant. This limitation does not preclude licensed special events or private events in the store that are not open to the general public. BOT 10.23.18 AGENDA New Classification Class A-4 Page 4 I. Other than emergency exits, the restaurant may only be entered from either the store or the Village Green. The amendment also establishes specific ingress, egress and enclosure standards for the restaurant’s outdoor dining areas consistent with existing Village policies. J. The amendment establishes specific signage controls for the restaurant and store that complement the ingress and egress restrictions. For example, the licensee must have signage directing customers to see the restaurant’s host stand for admission to or seating within the outdoor dining areas. Signage must alert customers that exiting the restaurant with any alcoholic beverages (other than to the store) is prohibited. Additional signage must alert customers that exiting directly from the restaurant to the Village Green is prohibited except in emergency circumstances or when the store is not open for business. K. No more than twenty-four (24) ounces of beer may be sold in a single container at a time; no more than eight (8) ounces of wine may be sold in a single container at a time; and no drink other than beer or wine may be sold that contains more than three (3) ounces of alcohol. Section 4-1-18 The amendments to Section 4-1-18 clarify that outdoor dining areas, in addition to being accessed through licensed premises, may also have emergency ingress and ingress, and that the Class A-4 outdoor dining area has particular ingress and egress provisions established in Section 4-1-16.8. Section 4-1-24 The amendments to Section 4-1-24 also clarify that specific subsections of Section 4-1-24 do not prohibit customers of the restaurant from bringing beverages into the retail store. These provisions are similar to the provisions incorporated by the Village into Section 4- 1-24 for the Food Halls. Recommendation: The recommendation is for passage of 2018-LC-AL-G-1138 “An Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook, Illinois Regarding Liquor Controls Within Certain Retail Premises”. ORDINANCE 2018-LC-AL-G-1138 AN ORDINANCE AMENDING CHAPTER 1 OF TITLE 4 OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS REGARDING LIQUOR CONTROLS WITHIN CERTAIN RETAIL PREMISES 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 ("Liquor Regulations"), the Village regulates the number, kind, and classification of licenses for retail sales of alcoholic liquor; 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 establish a new license classification for restaurants that are located within retail establishments under the specifically defined and limited circumstances set forth herein; 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 subsection 4-1-18D of the Liquor Regulations to clarify the Village’s requirements for outdoor dining area ingress and egress, as set forth herein. 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 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 to establish a new license classification, Class A-4, to be added to the existing classes as follows: CLASS A-4: Retail sale of alcoholic liquor by a restaurant with a premises that: (i) has an interior area of between two thousand (2,000) and eight thousand (8,000) square feet; (ii) has an interior seating capacity between fifty (50) and two hundred (200) customers; (iii) has a seasonal or year-round outdoor seating of no greater than six thousand (6,000) square feet; (iv) is located within a retail store that has no less than twenty-five thousand (25,000) square feet of area and a portion of which is designated as the retail store’s “Retail Service Area,” as defined in Section 4-1-16.8 of this chapter; (v) is subleased by the holder of the license from the Store Tenant, as defined in Section 4-1-16.8 of this chapter; (vi) is located within a regional retail or mixed use center in the B-2 Zoning District Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 2 of 7 2 having no less than 80 acres of land area and no less than one million square feet of building area, (vii) is not within five hundred (500) feet of any public right of way; and (viii) has a ratio of seating that is predominantly or exclusively used for dining purposes to seating for bar or lounge areas equaling or exceeding three and one-half to one (3.5:1). Holders of a Class A-4 license are permitted to conduct cooking classes. Section 3: Amendment to Title 4, Chapter 1, Section 8A of the Village Code. Subsection A, entitled “Fees and Number of Licenses Authorized,” 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 A-4, shall be added with an application fee of $2,000 and an annual license fee of $2,750 with only one Class A-4 License to be issued. Section 4: Amendment to Title 4, Chapter 1, Section 8B2 of the Village Code. Paragraph 2 of Subsection B, entitled “Fee Regulations,” 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 by adding the following at the end of Paragraph 2: Further, nothing herein contained shall prohibit: (i) the holder of Class A-4 License from selling or serving alcoholic liquor to a customer for consumption within a Retail Service Area or (ii) a retail store from permitting the consumption of such alcoholic liquor within the Retail Service Area associated with the Class A-4 License, as described in Section 4-1-16.8 of this chapter. Section 5: Amendment to Title 4, Chapter 1, Section 15 of the Village Code. Subsections D, E, 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; deletions shown struck-through): 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 or Retail Service Area as defined in Section 4-1-16.8 of this chapter, 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 4-1-17 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. Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 3 of 7 3 2. Except for private functions not open to the public, or for 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 requirements of Section 4-1-15A, or Food Hall Restaurants that satisfy the insurance requirements of Section 4-1-15A, or a Retail Service Area as defined in Section 4-1-16.8 of this chapter, 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 adjacent food hall restaurants and food hall coffee shops. Nothing herein contained shall be so construed as to prevent a retail store from permitting the consumption of alcoholic liquor within a Retail Service Area as described in Section 4-1-16.8 of this chapter. 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. Nothing herein contained shall be so construed as to prevent the lawful operations of a licensed food hall, licensed food hall restaurant or licensed Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 4 of 7 4 food hall coffee shop from serving liquor for consumption to any 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 through that same licensed food hall. Nothing herein contained shall be so construed as to prevent the holder of a Class A-4 license or applicable Store Tenant from allowing customers with alcoholic beverages from moving between the adjacent Restaurant Areas and Retail Service Areas as provided in Section 4-1- 16.8 of this chapter. Section 6: Amendment to Title 4, Chapter 1 of the Village Code. Chapter 1, entitled “Liquor Control,” of Title 4, entitled “Business and License Regulations,” of the Village Code shall be amended further by adding a new Section 4-1-16.8, entitled Class A-4 License Regulations, “ that shall read as follows: 4-1-16.8: CLASS A-4 LICENSE REGULATIONS: A. In addition to the other applicable conditions and requirements of this chapter, each holder of a Class A-4 License shall be subject to the following conditions and restrictions: 1. In addition to the application requirements of Section 4-1-9 of this chapter, an application for a Class A-4 License must include the following: a. A site plan clearly delineating the boundaries of the restaurant premises to be licensed, including any outdoor areas (the “Restaurant Area”); the areas of the adjacent retail store in which alcohol can be consumed (the “Retail Service Area”); designated points of ingress/egress to and from the Restaurant Area and the Retail Service Area; examples of signage in compliance with this chapter; and the location of furniture within the Restaurant Area, b. Written evidence of the following: (i) that both the Retail Service Area and Restaurant Area are leased pursuant to a single, valid lease (the “Store Lease”), the tenant under such Store Lease being referred to herein as the “Store Tenant”; (ii) that the applicant holds a valid sublease of the Restaurant Area from the Store Tenant, and (iii) that both the applicant and the Store Tenant satisfy the insurance requirements of Section 4-1-15A of this chapter, and c. Written policies or employee training manual provisions of both the applicant and the Store Tenant addressing the cleaning and operations of the Retail Service Area in relation to alcoholic beverage service and consumption within the Retail Service Area. Such policies or training manuals shall, in any event, require that applicant personnel regularly monitor the Retail Service Area for used beverage containers and regularly retrieve any such containers. Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 5 of 7 5 2. The location of furniture within the Restaurant Area shall remain consistent during the term of the license, provided, however, the license holder may submit revised furniture diagrams for administrative review and approval by the Village Clerk, Village Fire Department and Village Building Inspections Supervisor. 3. One (1) partially consumed bottle of wine may be taken outside the Restaurant Area and the Retail Service Area if it has been sealed in compliance with section 6-33 of the Liquor Control Act of 1934 (235 ILCS 5/6-33). 4. The license holder shall be required to provide a visually distinct and branded non-transferable wristband, bracelet, or similar item to persons seeking to consume alcoholic beverages within the Retail Service Area prior to such persons exiting the Restaurant Area with alcoholic liquor. 5. The license holder shall only serve alcoholic liquor for consumption within the Retail Service Area in glassware or containers having a tag or other feature making them visually distinct from merchandise in the Retail Service Area. 6. Alcoholic liquor served or dispensed within the Restaurant Area (as opposed to alcohol sold by the license holder in sealed packages for off- premises consumption) may only be consumed within the Restaurant Area and Retail Service Area. Further, alcoholic liquor may only be consumed within the Retail Service Area (i) if purchased from or dispensed within the Restaurant Area; (ii) during licensed Special Events held pursuant to Class F licenses held by the Store Tenant, or (iii) during private events not open to the general public. 7. Other than for purposes of emergency ingress and egress, ingress to the Restaurant Area shall only be from the Retail Service Area or from the Village Green as defined in Village Ordinance 2014-ZO-PUD-EX-S-1391 (the “Village Green”). 8. Notwithstanding the requirements of Section 4-1-18 of this chapter, egress from the Restaurant Area’s outdoor dining areas may occur via: (i) gates for emergency use only, with signage to that effect; and (ii) a walkway to the Village Green that has the signage described in Section 4- 1-16.8D10. In addition, each of the Restaurant Area’s outdoor dining areas must be surrounded on all sides by the exterior walls of the Restaurant Area or planters, fences, railings, or similar enclosure improvements except in the locations of required or permitted ingress and egress. 9. Signage must: a. Direct customers to see the Restaurant Area’s host stand for admission to or seating within the outdoor dining areas, Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 6 of 7 6 b. Alert customers that exiting the Restaurant Area with any alcoholic beverages (other than to the Retail Service Area) is prohibited; and c. Provide for and alert customers that exiting directly from the Restaurant Area to the Village Green is prohibited except in emergency circumstances or when the Retail Service Area is not open for business. 10. No more than twenty four (24) ounces of beer may be sold in a single container at a time. No more than eight (8) ounces of wine may be sold in a single container at a time. Except for the sale of beer and wine, no drink may be sold that contains more than three (3) ounces of alcohol. Section 7: Amendment to Title 4, Chapter 1, Section 18, Subsection D of the Village Code. Subsection D of Section 8, entitled "Outdoor Sales," 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; deletions shown struck-through): D. Except as otherwise provided in Section 4-1-16.8 of this chapter, Aaccess to the outdoor area is through the licensed premises, and no direct entrance to or exit from such area is availablepermitted, except as required for emergency ingress and egress; and Section 8: Amendment to Title 4, Chapter 1, Section 24, Subsection 10A of the Village Code. Subsection 10 of Paragraph A of Section 24, entitled "Prohibited Acts," of Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village Code shall be amended further by adding the following paragraph at the end of Subsection 10 as follows (additions shown in bold and double-underline; deletions shown struck-through): Nothing herein contained shall be so construed as to prevent the holder of a Class A-4 license or applicable Store Tenant from allowing customers with alcoholic beverages from moving between the adjacent Restaurant Areas and Retail Service Areas established pursuant to Section 4-1-16.8 of this chapter. Section 9: Severability. 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 10: 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. Ordinance 2018-LC-AL-G-1138 Amending Portions of the Liquor Control Ordinance to Establish a New Class O License Page 7 of 7 7 APPROVED THIS 23rd day of October, 2018 ____________________________ Gopal G. Lalmalani Village President PASSED THIS 23rd day of October, 2018 Ayes: ___________________________________________________________ Nays: ___________________________________________________________ Absent: __________________________________________________________ ATTEST: _____________________________________ Charlotte K. Pruss Village Clerk 4845-9678-6553, v. 1