Liquor Commission — Naperville, IL
Date: 2019-01-03

City of Naperville

 400 S. Eagle Street
 Naperville, IL 60540




  Meeting Agenda

Thursday, January 3, 2019

 3:00 PM




 Council Chambers


Liquor Commission
Liquor Commission Meeting Agenda January 3, 2019



A. CALL TO ORDER:

B. ROLL CALL:

C. PUBLIC FORUM:

D. OLD BUSINESS:
 18-1126 Discussion related to the retail sale of CBD (Cannabidiol) in Naperville

 Attachments: Ordinance

 18-1131 Consider allowing cash beverage sales for Special and Temporary
 Permits
 Attachments: Beverage Ticket Sale Report


E. NEW BUSINESS:
 18-1129 Consider Star 7’s request for a variance of the square footage requirement
 for a Class D liquor license.
 Attachments: Star 7 Memo


F. REPORTS:
 18-1130 Approval of November 8, 2018 Liquor Commission meeting minutes.

 Attachments: Draft Meeting Minutes


 1. Restaurant Association Report - Jeffries

 2. BASSET- Employee Training Statistics - Riggs

 3. Tobacco Enforcement Review - Riggs

 4. Liquor Report - Riggs

 5. Liquor Concept Committee Update - Trotz


G. EXECUTIVE SESSION:




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Liquor Commission Meeting Agenda January 3, 2019



H. ADJOURNMENT:
 Any individual with a disability requesting a reasonable accommodation in order to
 participate in a public meeting should contact the Communications Department at least
 48 hours in advance of the scheduled meeting. The Communications Department can
 be reached in person at 400 S. Eagle Street, Naperville, IL., via telephone at
 630-420-6707 or 630-305-5205 (TDD) or via e-mail at info@naperville.il.us. Every effort
 will be made to allow for meeting participation.




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400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Minutes

 Liquor Commission


Thursday, January 3, 2019 3:00 PM Council Chambers


A. CALL TO ORDER:

 Mayor Chirico called the meeting to order at 3:00pm.

B. ROLL CALL:
 Present 9- Marc Blackman, Mayor Steve Chirico, Charles Maher, Paul O'Toole, Whitney
 Robbins, Mitch Stauffer, Joe Vozar, Scott Wehrli, and Kimberly White
 Absent 1- Pam Davis


C. PUBLIC FORUM:

 Steve Vukasovic, owner of Balboa's Cheesesteaks, was present to request a
 BYOB liquor license. Mayor Chirico directed him to attend a Liquor Concept
 Meeting.

D. OLD BUSINESS:

 Discussion related to the retail sale of CBD (Cannabidiol) in Naperville

 Jennifer Lutzke, Senior Assistant City Attorney, stated for a brief overview we
 previously discussed the sale of CBD in downtown Naperville. One of the
 issues that arose during that discussion was differntiating between Hemp and
 CBD. Since that time, there has been a 2018 Farm Bill which was Federally
 passed and signed by the President, which basically removed Hemp from the
 marijuana definition. Also the State Legislation, the Illinois Industrial Hemp Act
 removed Industrial Hemp from the definition of marijuana. She is proposing that
 we mirror the language from the Federal Law by removing Hemp from our
 definition of marijuana and using the hemp definition used in the new Federal
 Law. The new definition of Hemp would be excluded from the definition of
 cannabis in the code, would include the plant Cannabis sativa L. and any part of
 that plant including the seeds thereof and all derivatives, extracts, cannabinids,
 isomers, acids, salts, and salts of isomers, whether growing or not, with a
 delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a
 dry weight basis.

 Mayor Chirico stated that this topic is before the Liquor Commission because a
 request was made to open a store in downtown Naperville to sell CBD and
 Kratom. This is only discussing CBD not Kratom.

 Commissioner Stauffer questioned if the term should be "limited to" opposed to
 "includes". Jennifer Lutzke responded that the definition being proposed is

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Liquor Commission Meeting Minutes January 3, 2019

 identical to the Federal definition.

 Colin Dalough, Director of Government Affairs for the Naperville Area Chamber
 of Commerce, spoke about CBD. Looking at the language proposed by City
 Staff, the Chamber is in favor with this change. He asked that this be moved
 forward.

 Commissioner Blackman stated that what we are trying to accomplish is to
 differentiate between cannabis and hemp. And CBD falls under the hemp.
 Jennifer Lutzke responded that we want to differentiate between marijuana and
 hemp.
 We may need to do additional clarification on CBD at a later date.

 This definition is only protecting people who are possessing this product. It does
 not pertain to the sale of CBD.

 Detective Riggs commented regarding impairment. With legal drugs or illegal
 drugs, there maybe signs of impairment that may be tested for without doing
 blood tests.




 Commissioner Blackman moved to recommend approval of the language as
 submitted, seconded by Commissioner O'Toole.

 Aye: 8- Blackman, Maher, O'Toole, Robbins, Stauffer, Vozar, Wehrli, and White

 Excused: 1- Mayor Chirico

 Absent: 1- Davis


 Consider allowing cash beverage sales for Special and Temporary Permits

 Jennifer Lutzke, Senior Assistant City Attorney, stated that at the last Liquor
 Commission meeting we discussed the sale of beverage tickets at special
 events. Detective Riggs reported that Emy Trotz reached out to local Mayor's
 regarding what type of ordinances they have regarding the sale of beverages at
 local events.The cities did not have any written ordinance that requires
 beverage tickets at various events. The majority left it up to the vendors.
 Detective Riggs reached out to vendors of events taking place within the State.
 Some said they would never go to cash sales and they believe ticket sales have
 worked for them in the past. Something that was consistent was when
 volunteers were used, they preferred to go to tickets. This mirrors some of the
 discussion of the last meeting. There would be a bonded company or a vested
 member of the organization or employee who would take the cash.

 Mayor Chirico stated that this is coming to the commission because we have
 organizations that want to take cash instead of tickets.

 Detective Riggs stated that he reached out to several police officers and that
 the police prefer tickets when volunteer take money.

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 Commissioner Vozar asked if there was a question at the last meeting that
 stated that over consumption could be measured better by using tickets.
 Detective Riggs responded that during his conversations with other
 organizations, several of them said that with tickets that was a means in their
 mind of curtailing the consumption. People had an extra step that they had to go
 through before they would actually get an alcoholic beverage. A lot thought this
 slows the process down. Some felt that they may not use all of the beverage
 tickets which is good for the event.

 Commissioner O'Toole said this is not a safety issue but more of a monetary
 issue and it should be up to the event organizers. Detective Riggs responded
 that historically, the use of volunteers needed more police presence.

 Mayor Chirico stated that this is not an ordinance, it is a Rule.

 Commissioner Wehrli stated that when you attend a Mega/large event, you go
 get your ID checked and get banded, then you purchase the tickets and finally
 go and redeem the ticket for the beverage. This would reduce the check points.

 The City Special Events classifies the Mega events by the number of attendees
 and City Services.

 Commissioner Stauffer would revert to the event organizers to decide how they
 sell the beverages at special events.

 Trotz stated that the Liquor Commission has required ticket sales for beverages
 for all of the events. Tickets are also used for Fish Frys and they would like to
 use cash.

 Detective Riggs stated that if the Mega events use bonded/insured agents to
 take cash, he would not have a problem with that. The problem is with
 volunteers.

 Commissioners Stauffer, Vozar and O' Toole would be in favor of removing this
 rule.

 Jennifer Lutzke stated that there is no written rule. This is a non written rule that
 we've been following that only applies to Special and Temporary Events.

 Commissioner Wehrli stated he is more concerned with over serving. Do drink
 tickets curb over serving or not? Insurance industry suggests that drink tickets
 do curb over serving. He feels Mega events need a plan. Mega events need to
 submit a liquor service plan for the Mayor's approval if they don't want to sell
 drink tickets.

 Commissioner Blackman agrees with Commissioner Wehrli. The events
 should continue to sell drink tickets unless you come up with a new inovative
 plan that meets the Mayor's approval.

 Commissioner Maher agrees with Commissioners Wehrli and Blackman.

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 This Rule came about due to theft not over consumption.

 Mayor Chirico is leaning towards not eliminating this rule but modifying it
 depending on the size of the event and the plan to purchase alcohol.

 Commissioner Maher suggested that we give it a year to see how it goes.




 Commissioner Vozar moved to direct staff to analyze the last two years of
 Special Event license requests and make recommendations to the Commission
 for their review to provide the Mayor guiding priciples on the use of ticket versus
 cash beverage sales, seconded by Commissioner Maher.

 Aye: 8- Blackman, Maher, O'Toole, Robbins, Stauffer, Vozar, Wehrli, and White

 Excused: 1- Mayor Chirico

 Absent: 1- Davis

E. NEW BUSINESS:

 Consider Star 7’s request for a variance of the square footage requirement for a Class D
 liquor license.


 Jennifer Lutzke, Senior Assistant City Attorney, stated that in 2005 the City
 annexed a property on Rt. 59 and 103rd Street that was in unincorporated Will
 County which included in that shopping center Star 7 Liquor. In the annexation
 agreement, it grandfathered Star 7's liquor license until April 30, 2019 unless
 the City's code was amended to allow a center of their size. Star 7 currently has
 a Class D liquor license which requires it to be in a 60,000 sq. ft. shopping
 center. The Star 7 shopping center is 44,000 sq. ft. When the liquor code
 rewrite took place it allowed for a variance process. Section 3-3-6 of the
 Naperville Liquor and Tobacco Code outlines things that should be considered
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 whether a variance should be granted. Those things are that the variance would
 be in harmony with the general purpose and intent of the code, not precedent
 setting, that strict enforcement of the code would result in practical difficulties
 due to special and unusual circumstances and that the variance would not alter
 essential characteristics of the business. Star 7 has filed an application for a
 variance and will be presenting why a variance should be granted. The Liquor
 Commission would make a recommendation to the City Council and the City
 Council would have the ultimate decision of whether a variance is granted.

 Irene Bahr was present representing Star 7 with her was Hemant Dhanami, one
 of the officers.
 She wanted to add that everyone had the memo she submitted. There were
 three options presented in that memo.
 1. The property at the time it was annexed had a liquor license from Will County
 and continued to have a liquor license from then until now and is up for renewal
 in April of this year. They would like to have that license renewed. At the time of
 the annexation, there was a grandfather clause in the code. Now there is a
 provision for the variance.
 2. Amendment to the Class D license provision. This would be limited to this
 circumstance.
 3. Apply for a variance. They have paid the $400 fee for the variance.
 The only criteria Star 7 does not meet is the size of the shopping center. The
 variance they are asking for is granting a license for this location.

 Mayor Chirico stated that it was Ms. Bahr and her client that brought this matter
 to our attention since we don't have a mechanism to track these things. This
 adds to the client's credibility.

 Jennifer Lutzke stated that they are required to follow the Naperville Liquor
 ordinance. They haven't had any violations.

 Commissioner Stauffer asked why the original annexation was time barred. No
 one knows the reason for the date. He feels that the fact that you were
 grandfathered via annexation is very relevant and would it be helpful to the City
 of Naperville to focus on that and make it an extension to the original
 grandfathering then making it an exception to the Naperville rules. Irene Bahr
 stated that the annexation agreement is set to expire in 20 years from when it
 started.

 Jennifer Lutzke stated that granting a variance to Star 7 will not be precedent
 setting.

 Commissioner Blackman asked Commissioner Wehrli for the reason how they
 came about the 60,000 sq. ft. rule. The former Liquor Commissioners didn't
 want a liquor store on every corner. They felt a 60,000 sq. ft. shopping center
 was a good size. This was during Mayor Price's administration.

 Commissioner Vozar stated that the property owner is not present. He wants to
 make sure that we can proceed with the variance without the property owner
 being present.


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 Jennifer Lutzke stated that the property owner has renewed Star 7's lease. The
 property owner was informed that Star 7 was seeking a variance.




 Commissioner Wehrli moved to recommend to City Council that a variance be
 granted to Star 7, seconded by Commissioner Maher.

 Aye: 8- Blackman, Maher, O'Toole, Robbins, Stauffer, Vozar, Wehrli, and White

 Excused: 1- Mayor Chirico

 Absent: 1- Davis

F. REPORTS:

 Approval of November 8, 2018 Liquor Commission meeting minutes.

 A motion was made by Commissioner Blackman, seconded by Commissioner
 Maher to approve the November 8, 2018 meeting minutes.

 Aye: 8- Blackman, Maher, O'Toole, Robbins, Stauffer, Vozar, Wehrli, and White

 Excused: 1- Mayor Chirico

 Absent: 1- Davis

 1. Restaurant Association Report - Jeffries

 Christine Jeffries, President of the Naperville Development Partnership,
 Naperville Convention and Visitor's Bureau and Dine in Naperville, was present
 to report on the Restaurant Association. She distributed a copy of the 2019
 Dining Guide to the Commission members.She also gave them a Naperville
 Banquet Guide. This is used at Trade Shows.

 She thanked the Mayor's Office, TED and City Clerk's Office on notifying them
 when a new restaurant opens. There are 320 restaurants in Naperville.

 Restaurant Week will be January 20th - February 3rd, 2019.

 2. BASSET- Employee Training Statistics - Riggs

 Detective Riggs reported that in November we had 111 attend with 16 no
 shows. In December, we had 75 attend with 10 no shows. The online training
 since it began in March, 2018 has had 216 people trained.

 3. Tobacco Enforcement Review - Riggs

 Detective Riggs reported that they finished the first round for the grant period.
 They are required to pass out the new materials for 2019, including signage.
 The next round will begin in the next few weeks.

 Jennifer Lutzke gave an update on the 2018 Tobacco Enforcement
 In April 2018, Detective Riggs did tobacco enforcement checks. An employee of
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 Stogies & More was fined for selling cigarettes to someone under the age of 21.
 They were issued a violation. On September 26, 2018 an order was entered
 after they waived their right to a hearing and were fined $500.

 Also in April 2018, Vape & Tobacco was cited for selling cigarettes to someone
 under the age of 21. On September 18, 2018, Mayor Chirico signed an order
 assessing a $500 fine after they stipulated to the violation that was issued to the
 business and they waived the right to a hearing.

 On April 2018, Vape 58 was issued a citation for selling vape juice to someone
 who is under the age of 21. During the second round of checks, they were
 issued another violation for selling vape juice to someone under the age of 21.
 Violations were issued against Vape 58. On December 26, 2018, they stipulated
 to a finding of guilt and waived their right to a hearing. On January 2, 2019 an
 order was entered assessing a $1500 fine.

 4. Liquor Report - Riggs

 Detective Riggs reported that in November 2017 there were 10 DUI's and
 November 2018 there were 15 DUI's. In December 2017 there were 21 DUI's
 and in December 2018 there were 16 DUI's. Total number of DUI's in 2018 were
 216.

 Jennifer Lutzke stated that on May 31, 2018, Malloy's Fine Wine and Spirits
 were fined for having three employees without BASSET training. In November
 15, 2018, the owner entered into a stipulation with the City waiving their right to a
 hearing, admitting to the violations and agreeing to a $500 fine. The Malloy's
 violation as well as the prior revocation of the Mexican Grille's liquor license for
 the violation are what was cited in 2018.

 5. Liquor Concept Committee Update - Trotz

 Trotz reported the following Liquor Concept:
 There was no Liquor Concept meeting in November.
 December 20, 2018

 Winter Ale Fest
 February 23, 2019 Frontier Park
 Opens at 11:30am but will not begin serving until noon. The last serving will be
 at 4pm with the event finished by 4:30pm.

 Winery
 They are looking at the Quincy Avenue area for their location. They will come to
 the Liquor Commission at a later time. They won't be opening until the Fall of
 2019.

 Bellisimo Bar Co.
 She has a 25 year old Vespo vehicle that is trailered that she will take to Special
 Events and weddings and sell prosecco and limited beer from the vehicle.
 There is no current license for this concept. She will come to the February
 Liquor Commission meeting and present her concept.


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G. EXECUTIVE SESSION:

H. ADJOURNMENT:

 Commissioner Maher moved to adjourn the meeting at 4:31pm, seconded by
 Commissioner Vozar. The motion was unanimously approved.




 /S/ Emy Trotz
 Emy Trotz
 Executive Assistant/Mayor




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