City Council Agendas, Packets and Minutes

Special Meeting Agenda City Council 12:00 p.m. (Noon) Special Meeting Monday, August 26, 2024 Jack Powell Conference Room – City Hall 25 Center Street Vermillion, South Dakota 57069 1. Roll Call 2. Adoption of the Agenda 3. Visitors to Be Heard. 4. Public Hearings. a. Transfer of Retail On-sale liquor license until December 31, 2024; Retail (on-off) Wine and Cider until December 31, 2024; and retail (on-off) Malt Beverage & SD Farm Wine until June 30, 2025 to Cee Cee’s Hospitality Inc at 1 E Main Street from Red’s Steakhouse. 5. Adjourn Access the City Council Agenda on the web – www.vermillion.us Vermillion City Council: Jon Cole, Mayor Northwest Ward: Mike Murra, Gary Cheeseman Central Ward: Katherine Price, Lindsey Jennewein Northeast Ward: Julia Hellwege, Jay Thaler Southeast Ward: Rich Holland, Al Leber Addressing the Council: Persons addressing the Council shall be recognized. Please state your name and address. Presentations are limited to 5 minutes. For those who do not appear on the agenda, no decision is to be expected at this time. Meeting Assistance: If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City Manager’s Office at 677-7050 at least 3 working days prior to the meeting. Council Meetings: City Council regular meetings are held the first and third Monday of each month at 7:00 p.m. If a meeting falls on a City holiday, the meeting will be scheduled for the following Tuesday. Live Broadcasts of Council Meetings on Cable Channel: Regular City Council meetings are broadcast live on Cable Channel 3. As a courtesy to others, we ask that cellular phones and other electronic devices be turned off during the meeting. Our future as a community depends on recognizing our past. The City of Vermillion exists on the ancestral lands of the Oceti Sakowin and Omaha indigenous people. We honor and appreciate those who have the longest relationship with this place.  6. Public Hearing; item a Council Agenda Memo From: Katie Redden, Finance Officer Meeting: August 26, 2024 Subject: Transfer of Retail on sale liquor license until December 31, 2024; Retail (on- off) Wine and Cider until December 31, 2024; and retail (on-off) Malt Beverage & SD Farm Wine until June 30, 2025 to Cee Cee’s Hospitality Inc at 1 E Main Street from Red’s Steakhouse. Presenter: Katie Redden Background: Applications were received for the transfer of a Retail on sale liquor license until December 31, 2024; a Retail (on-off) Wine and Cider until December 31, 2024; and a retail (on-off) Malt Beverage & SD Farm Wine until June 30, 2025 to Cee Cee’s Hospitality Inc at 1 E Main Street from Red’s Steakhouse. Discussion: The City Council has the ability to transfer a license on two criteria: suitable applicant and suitable location. As to the suitable applicant, the owner, Josh Scherrer, has submitted information to the FBI and South Dakota DCI for background checks. Those background checks are currently pending. The Police Chief’s report states that a check of the Vermillion Police Department Records does not show any contacts that would preclude the owner from receiving the transfer of the license. The full report is included in the packet. With respect to the location criteria, this license will be issued at 18 W. Main Street in the downtown business district. This is the same address where the license was previously held. Below are the City ordinances regarding suitable applicant and suitable location. § 112.20 SUITABLE APPLICANT. (A) South Dakota Codified Law § 35-2-1.2 requires the City Council to determine whether retail alcohol beverage license applicants are suitable before issuing, transferring or renewing said licenses. This determination is required annually for each license the applicant seeks. In order to effectuate a thorough determination of suitable applicant eligibility for license issuance, new applicants must submit to a criminal background check to determine suitability. Each new applicant shall make arrangements with a law enforcement agency and submit to the fingerprinting process. The applicant must also provide to law enforcement payment to the South Dakota Division of Criminal  6. Public Hearing; item a Investigation and FBI in an amount necessary to cover the costs of the criminal record check. These actions must be taken by an applicant prior to publication of hearing notice required by South Dakota law. The applicant's completed application will be attached to the certification of the law enforcement agency when received. (B) A DISQUALIFYING CRIMINAL RECORD for alcoholic beverage license purposes means any conviction for any felony, a crime of violence as defined in SDCL § 22-1-2(9), a sex offense as defined in SDCL § 22-24B-1, or trafficking in controlled drugs or substances which when and where committed would constitute such in the state of South Dakota. Unpardoned convictions of any crime of moral turpitude as defined by SDCL § 22-1-2(25) which when and where committed would constitute such in the state of South Dakota may constitute a disqualifying record as determined by the City Council on a case-by-case basis. Any criminal conviction not disclosed by an applicant on his application form may be treated as a disqualifying record. Any criminal conviction may be considered in making license issuance decision. Suspended imposition of sentence will not be considered a conviction. (C) An applicant subject to this policy shall provide to the law enforcement agency performing the fingerprinting process cash, check, or money order in an amount necessary to cover the costs of fingerprints for the criminal record check. (D) An applicant or principal in any business entity that is an applicant having any indebtedness to the city must satisfy said indebtedness before the City Council will consider any application for alcoholic beverage license issuance or renewal, except for plan one or two special assessment obligations that are not in arrears. § 112.21 SUITABLE LOCATION. (A) South Dakota Codified Laws § 35-2-1.2 requires the City Council to determine whether retail alcohol beverage license applications propose suitable locations before issuing or renewing said licenses. This determination is required annually for each license the applicant seeks. The following are nonexclusive criteria established to assist in determining suitable location status: (1) Identification of a garbage hauler to be utilized by the business and the frequency of the garbage pickup; (2) Zoning restrictions, and (3) Neighborhood characteristics. (B) In determining suitable location, the City Council will also utilize factors developed through South Dakota case law. This includes the manner in which the business is operated; the extent to which minors frequent or are employed in such place of business; the adequacy of police facilities to properly police the proposed location, and other factors associated with the sale of alcoholic beverages, such as noise and litter. § 112.22 SUITABLE APPLICANT AND SUITABLE LOCATION CONSIDERATION. (A) South Dakota codified laws and case law support the premise that the decision to issue an alcoholic beverage license is discretionary. Therefore, the city hereby establishes a two-tiered process to evaluate on-sale liquor applications. The first tier will assess the suitability of the applicant or principals and whether the location is suitable according to §§ 112.20 and 112.21 of this chapter. (B) Upon finding evidence of the suitability of the applicant and location, the City Council will consider second tier criteria. This process can include examining the best location for economic and tourism development, the best ancillary uses (restaurant, etc.) developed with the sale of liquor, the best location in accordance with the city long-range plan, the size of the facility, parking facilities,  6. Public Hearing; item a closeness to existing supplementing businesses, residences, and activities deemed important by the City Council. Financial Consideration: The fee of $450 for transferring the licenses has been received at the Finance Office. $375 is retained by the City and $75 is paid to the SD Department of Revenue. Conclusion/Recommendations: Administration recommends the Transfer of Retail on sale liquor license until December 31, 2024; Retail (on-off) Wine and Cider until December 31, 2024; and retail (on-off) Malt Beverage & SD Farm Wine until June 30, 2025 to Cee Cee’s Hospitality Inc at 1 E Main Street from Red’s Steakhouse contingent on background checks coming back.  Police Department 15 Washington St. Vermillion, SD 57069 Phone (605)677-7070 Fax (605)677-7166 www.Vermillionpd.org August 22, 2024 To: Katie Redden, Finance Director From: Crystal Brady, Chief of Police Re: Owner Transfer of Retail (on sale) Liquor License until December 31, 2024; Retail (on-off) Wine and Cider License until December 31, 2024; and Retail (on-off sale) Malt Beverage & SD Farm Wine License until June 30, 2025: to Cee Cee’s Hospitality, Inc from Red Steakhouse. This is a transfer of ownership from a business to another business. The Liquor License, Wine and Cider License, and Malt Beverage & SD Farm Wine License are currently active and owned by Red Steakhouse, which is owned by Jerad Higman and Peggy Higman. Red Steakhouse is located at 1 East Main St. The new owners of the Retail (on sale) Liquor License, Retail (on-off) Wine and Cider license, and Retail (on-off sale) Malt Beverage & SD Farm Wine license will be Cee Cee’s Hospitality, owned by Joshua Scherrer and Amberly Baus. A check of the Vermillion Police Department Records does not show any contacts with the new owners that would preclude the business or the owners of the business from receiving the transferred licenses. There was one underage alcohol compliance check conducted at Red Steakhouse/Cee Cee’s Hospitality in the past 18 months and the business passed the compliance check. Joshua Scherrer and Amberly Baus have submitted their information for the FBI and DCI background checks. I have not yet received the results of those checks. At this time, I have no information that would negatively affect this transfer. Sister City to Ratingen, Germany  NOTICE OF PUBLIC HEARING OF APPLICATIONS FOR SALE OF ALCOHOLIC BEVERAGES NOTICE IS HEREBY GIVEN THAT the Vermillion City Council on the 26th day of August, 2024 at the hour of 12:00 P.M. in the City Hall Powell Conference Room, 25 Center Street will meet in special session to consider the following application for an alcoholic beverage license to operate within the municipality for the licensing period stated below, which has been presented to the City Council and filed in the Finance Officer's Office: Transfer of Retail on sale liquor license until December 31, 2024; Retail (on-off) Wine and Cinder until December 31, 2024; and retail (on-off) Malt Beverage & SD Farm Wine until June 30, 2025: Transfer to Cee Cee’s Hospitality Inc at 1 E Main Street from Red’s Steakhouse NOTICE IS FURTHER GIVEN THAT any person, persons, or their attorney may appear and be heard at said scheduled public hearing who are interested in the approval or rejection of any such application. Dated at Vermillion, South Dakota this 13th day of August, 2024. ___________________________________ Katie E Redden, Finance Officer Publish: August 16th, 2024 Published once at the approximate cost of ___________.