Liquor Commission — Naperville, IL
Date: 2018-08-09

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



 Meeting Agenda

 Liquor Commission

Thursday, August 9, 2018 3:00 PM Council Chambers




A. CALL TO ORDER:

B. ROLL CALL:

C. PUBLIC FORUM:

D. OLD BUSINESS:
1. 18-652 Consider VR 360’s request to expand the Class M liquor license cap and
 direct staff accordingly.
2. 18-666 Consider proposed amendment to the Class G liquor license.

3. 18-657 Discussion related to the retail sale of CBD (Cabbabidiol) and Kratom in
 Downtown Naperville

4. 18-653 Discussion Related to the Delivery of Alcohol


E. NEW BUSINESS:
1. 18-658 Consider Noon Whistle Brewing’s request to expand the Class P liquor
 license cap and direct staff accordingly.

F. REPORTS:
1. 18-660 Approval of June 7, 2018 Liquor Commission Meeting Minutes


 2. Restaurant Association Report - Jeffries

 3. BASSET- Employee Training Statistics - Riggs

 4. Tobacco Enforcement Review - Riggs

 5. Liquor Report - Riggs

 6. Liquor Concept Committee Update - Trotz



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Liquor Commission Meeting Agenda August 9, 2018



G. EXECUTIVE SESSION:

H. ADJOURNMENT:




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



 Meeting Minutes

 Liquor Commission


Thursday, August 9, 2018 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, Pam Davis, Charles Maher, Paul O'Toole,
 Whitney Robbins, Mitch Stauffer, Joe Vozar, and Scott Wehrli
 Absent 1- Kimberly White


C. PUBLIC FORUM:

 There was no one to speak under Public Forum.

D. OLD BUSINESS:

1. Consider VR 360’s request to expand the Class M liquor license cap and direct staff
 accordingly.
 Marcus Beam was present to request the increase in the Class M liquor license
 cap. Mayor Chirico stated that Marcus had been before this commission before
 but was directed to go through the Planning and Zoning Commission to make
 sure that his business could be located on a first floor space in downtown
 Naperville. Seeking that permission, he is here now to request the increase in
 the cap for the Class M Liquor License.

 Marcus stated that the slogan for his business is "Drink, Laugh, Play". The
 average customers are males between the ages of 21 - 45. They also appeal to
 families and teenagers. A patron's visit is from one hour to an hour and a half.

 They will offer non alcoholic drinks, beer and wine. Everything will be served in
 bottles or cans. Technology will be used to monitor alcoholic sales. The patron
 has to go to the bar to buy drinks.

 Commissioner Stauffer asked if all of the staff would be BASSET trained and
 they will be.

 It's a gaming center that offers liquor.

 The license would be a Class M - Recreation. There is no limit on the number of
 servings.


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Liquor Commission Meeting Minutes August 9, 2018

 The Downtown Naperville Alliance supports this business.




 Commissioner Maher moved to increase the Class M liquor license by one,
 seconded by Commissioner Davis.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White


2. Consider proposed amendment to the Class G liquor license.

 Jennifer Lutzke, Senior Assistant City Attorney, stated that the proposed
 amendments to the Class G License was based on the discussion we had after
 Pride was approved to receive a Class G license. The amendment cleans up
 the language and defines what we mean by square footage. It now says square
 feet of gross building floor area. The word Shopping Center was also added.
 The cap will be reduced from 6 to 4.
 Commissioner Vozar moved to approve the revised Class G amendment as
 presented, seconded by Commissioner O'Toole.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White


3. Discussion related to the retail sale of CBD (Cabbabidiol) and Kratom in Downtown
 Naperville
 David Palatnik, owner of CBD/Kratom, handed out information about his
 business. He will be preceding with out Kratom. He has been in discussion with
 Jennifer Lutzke, Senior Assistant City Attorney, to make sure that the products
 he will be selling do not contain cannabis. He will email a letter from his attorney
 about his products. He will be selling CBD oil, CBD edibles, CBD lotions,CBD
 water, CBD Tea, CBD coffee, and CBD smoothie packets.

 Mayor Chirico asked if the products contain THC and there are traces of THC
 but they are below the legal limit. The legal limit is 0.3%.

 Commissioner O'Toole asked if any of the products he sells are addictive? Not
 to his knowledge.

 There is CBD in hemp oil.

 CBD is used for pain, nausea, anxiety and sleeplessness.

 In order to prohibit Kratom, we would need a text amendment to our ordinance.


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 Currently, the city's code has a definition of cannabis. CBD does not fit in that
 definition. To prohibit CBD, there would need to be a text amendment to the
 ordinance. The text amendment would be applicable to all CBD products that
 are currently being sold.

 He is opening at 22 E. Chicago next to Bar Louie.

 Colin Dalough, Director of Government Affairs and Business Development for
 the Naperville Area Chamber of Commerce, stated that they do not want to
 speak to the specific permit or applications before you but to the policy of
 whether or not the City of Naperville should allow the sale of Kratom or CBD.
 Regarding Kratom, it is an opioid like substance or it is an opioid. He sees no
 reason why the City of Naperville should allow Kratom to be sold within the City
 boundaries. The Chamber would be opposed to Kratom categorically. Separate
 from that is the question of CBD. He agrees that there is confusion on what
 CBD is. He stated that there are state bills that may affect this and they are in
 front of the Governor for signatures. The Chamber stands ready to help with
 research. The Chamber has members that are interested in selling CBD but
 are interested in having a clear statement from the Liquor Commission and the
 City Council on what is legal and what is not legal, so they may operate within
 the laws of the City of Naperville.

 Currently the City ordinance is identical with the State ordinance concerning
 cannabis.




 Commissioner Blackman moved to table this topic pending legal interpretation of
 CBD and reserch information about the differences between Hemp oil and CBD
 oil and the implications and direct staff to bring back a revised ordinance
 language or clarification, seconded by Commissioner Vozar.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White

 Commissioner Vozar moved to direct staff to develop an amendment to the
 ordinance to restrict the sale of Kratom in the City of Naperville, seconded by
 Commissioner Robbins.

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


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 Excused: 1- Mayor Chirico

 Absent: 1- White


4. Discussion Related to the Delivery of Alcohol

 Jennifer Lutzke, Senior Assistant City Attorney, stated that at the last Liquor
 Commission Meeting, Miss Kitty's requested being able to deliver alcohol within
 the City of Naperville. The state law currently allows for the delivery of alcohol as
 long as it is not prohibited by the local municipality and there is confirmation that
 the person purchasing it is twenty-one (21) years old or older. At the last Liquor
 Commission Meeting, Ms. Lutzke was directed to put language into the
 ordinance that concerns the delivery of liquor within the City of Naperville. The
 proposed amendment requires the following:
 Alcoholic liquor must be delivered by an employee of a liquor license holder who
 is twenty-one (21) years of age or older. Deliveries must be during prescribed
 hours that are set forth in the ordinance for liquor license holders to be open.
 The employee that transports alcoholic liquor within the City must get a
 signature from the purchaser who must be twenty-one (21) years of age or
 older. Government issued identification establishing proof of age must be
 produced to the delivering employee. A record shall be kept by the liquor license
 holder who delivers alcoholic liquor within the City indicating the purchaser's
 name, address, driver's license/state identification number, time, date and place
 of delivery and the individual employees identity. All employees of liquor license
 holders delivering alcoholic liquor within the City shall meet the BASSET
 requirements of our ordinance. The delivery of alcoholic liquor is limited to
 alcoholic liquor by the package for off premise consumption. Any liquor license
 holder delivering alcohol must have a valid liquor license that authorizes the sale
 of alcoholic liquor by the package for off premises consumption.

 Commissioner Blackman asked Detective Riggs what his thoughts were on
 this. It hasn't shown itself to be a problem. Detective Riggs likes the idea that
 there is training involved. The State doesn't require BASSET training for
 delivery.

 Currently Instacart does delivery of alcohol.

 Commissioner O'Toole feels that the first point, Alcoholic liquor must be
 delivered by an employee of a liquor license holder is over kill. He feels a lot of
 these points are over kill. The systems working and it's legal in the state.

 Commissioner Staufer questioned the BASSET training requirement. Requiring
 the delivery service to keep a copy of the drivers license, time and date of
 delivery, feels like we are building a bureacracy that exceeds the social good it
 creates. He asked Detective Riggs if BASSET training was just about checking
 ID's? No, it's a significant part of the class, but they discuss fake ID's and things
 to look for.

 Jennifer Lutzke clarified that this ordinance is only for Naperville current liquor
 license holders. It would not apply to those apps that you were referring too. It's
 a mechanism for our liquor license holders to be able to compete with those

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 businesses that are offering it. We would't be able to regulate Instacart since
 they are not a liquor license holder of the city.

 Commissioner Robbins asked if Miss Kitty's was the only liquor licensee that
 has requested this. They are.

 Include in the ordinance that payment must be made at time of purchase on
 line.

 Commissioner Stauffer would like to strike 11.5 in the ordinance.

 Jennifer Lutzke clarified that this is only for licensees who have an off premise
 license.


 Commissioner Stauffer moved to make a recommendation to City Council to
 change this ordinance to allow alcohol delivery service, striking 11.5 and adding
 payment in advance on line to be in compliance with the Illinois
 statute,seconded by Commissioner Robbins.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White

E. NEW BUSINESS:

1. Consider Noon Whistle Brewing’s request to expand the Class P liquor license cap and
 direct staff accordingly.
 Mike Condon, Noon Whistle Brewing Company, presented information about his
 business. They are a small production brewery with a tasting room in Lombard.
 They opened in 2014. They have outgrown their space. They are looking for a
 second location to be a production facility. They are looking for a building with
 30,000 sq. ft with 20 ft ceilings. There will not be a kitchen. In looking at space in
 Naperville, there maybe some parking challenges.

 Commissioner Vozar wanted him to be aware of the current Naperville
 ordinance with the restrictions on servings. He is aware and would be interested
 in discussing possible changes in the future on the serving limits. At this time,
 there is a three drink limit.
 Commissioner Vozar moved to give an indication to the petitioner that the
 Commission, after the location is chosen, would be willing to suport increasing
 the cap on the Class P license by one, seconded by Commissioner Blackman.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White

F. REPORTS:

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1. Approval of June 7, 2018 Liquor Commission Meeting Minutes

 A motion was made by Commissioner Maher, seconded by Commissioner
 O'Toole to appove the June 7, 2018 meeting minutes.

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

 Excused: 1- Mayor Chirico

 Absent: 1- White

 2. Restaurant Association Report - Jeffries

 Christine Jeffries, NDP, reported there are new restaurants - Che Figata, Vai's
 and Midici's.

 Sales tax numbers are in for 2017. From 2016 - 2017 on food and beverage, we
 went up 5.3%. In 2008, the total retail sales for food and dining was $268 million.
 Last year, it was $405 million.

 Naperville has the highest gross retail sales outside of the City of Chicago. In
 the category of food and dining, Naperville is number one outside of the City of
 Chicago.

 A new business coming in is Whirly Ball next to Top Golf.

 Dine Naperville is working with Loaves & Fishes on a program called "Dollar Up,
 Hunger Down".

 3. BASSET- Employee Training Statistics - Riggs

 Detective Riggs reported that since the June meeting we have had 173 people
 attend BASSET class with 16 no shows.

 4. Tobacco Enforcement Review - Riggs

 Detective Riggs reported that the next grant has been completed and approved
 but the State is waiting for Tobacco 21 to be signed by the Governor before
 starting any inspections.

 5. Liquor Report - Riggs

 Detective Riggs reported that in June 2017 there were 12 DUI's and in June
 2018 there were 9 DUI's. In July 2017 and July 2018 there were 19 DUI's.

 6. Liquor Concept Committee Update - Trotz

 Trotz reported the following Liquor Concepts:
 July 19, 2018
 Last Fling - requested to serve a 22 ounce plastic stein of Oktoberfest beer.
 Mayor Chirico approved this request.

 Miss Kitty's - he is looking to expanding his business to the space next door.

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 This was approved by Mayor Chirico.

G. EXECUTIVE SESSION:

 Commissioner Maher moved to table Executive Session until the September
 meeting, seconded by Commissioner Vozar. Motion was approved
 unanimously.

H. ADJOURNMENT:

 Commissioner Blackman moved to adjourn the meeting at 4:51pm, seconded
 by Commissioner Vozar. Motion was approved unanimously.




 /S/ Emy Trotz
 Emy Trotz
 Executive Assistatn/Mayor




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