By Kim McDarison
The Fort Atkinson City Council approved on Tuesday a first reading of an ordnance amending the city’s code to allow for an increase in Class A liquor licenses.
The approval moves to a second reading the addition of six Class A Intoxicating Liquor licenses which could be made available to businesses within the city looking to sell liquor for consumption off-premise, typically in such places as gas stations, grocery stores, and liquor stores.
In a second action, the council approved the first reading of an amendment to city code, changing the authority to issue operators licenses from the city council to the city clerk.
A second reading of both amendments will likely come before council during its next meeting.
Ordinances, and amendments that change them, within the city of Fort Atkinson are subject to three readings unless council opts to waive future readings.
Defining alcohol licenses
During discussion associated with the consideration of increasing the number of Class A liquor licenses, City Clerk Michelle Ebbert noted that liquor licenses available within the city come in three classifications: A, B and C.
Class A and B licenses differ by the location in which the alcohol will be consumed. Class A licenses are issues to retailers who sell alcohol for consumption away from their premise, such as grocery stores, liquor stores and gas stations, while Class B licenses are issued to those selling alcohol for consumption on premise, such as restaurants, bowling alleys and bars.
Class C licenses pertain strictly to wine sales with consumption on-site in a restaurant, Ebbert said.
“Alcohol licenses are further defined by the quotation marks used. For example, ‘Class A’ refers to intoxicating liquor while Class ‘A’ refers to fermented malt beverages. These licenses can also be issued together as a combination license, most common for grocery stores,” Ebbert wrote in a memo to council.
Establishing quotas
In her memo, Ebbert noted that while state statutes establish quotas for Class B licenses within municipalities, they do not provide quotas for Class A.
Municipalities are able to establish their own quotas under state law.
In 2004, the city of Fort Atkinson reviewed quotas for Class A licensure and adjusted its numbers to reflect increases in population, which is the metric used to establish the number of available licenses offered within the city.
In 2004, the city’s population was 11,943, and the city made available 17 Class “A” Fermented Malt Beverages (beer) licenses. An ordinance adopted in that year allowed the city to issue one license for every 750 people living within the city. The number has not been adjusted since that time. Ebbert said, adding that during the 2020-2021 licensure year, 13 of the available licenses are in use.
Using the same population metric, in 2004, the city made available one “Class A” Intoxicating Liquor license for every 1,250 people living within the city. At the time, the city was able to offer 10 licenses. During the 2020-2021 licensure year, all 10 are in use.
Ebbert described the city’s population as “fluctuating” since quotas were established in 2004. In order to create an additional “Class A” Intoxicating Liquor license, she said, the city’s population would need to show an increase of 1,258 residents.
Over the last three years, the city has received two inquiries from retailers whom, Ebbert said, “have purchased properties and invested significant resources to make improvements.”
Ebbert noted that both the city’s License Committee and Ordinance Committee had reviewed three options that would allow the city to increase the number of available “Class A” licenses.
The three options take into consideration an increase in the city’s population, now estimated at 12,295 residents. They are:
Option 1: offering one license per 1,000 city residents for a total number of 12 licenses, which is an increase of 2 licenses since quotas were set in 2004.
Option 2: offering one license per 750 city residents for a total number of 16 licenses, which is an increase of 6 licenses since quotas were set in 2004.
Options 3: removal of the quota system entirely.
Those receiving a “Class A” license through the city are charged $500 per licensing period, running from July 1 to June 30. Fees are determined by state statute, Ebbert wrote.
The Ordinance Committee, after reviewing the options, recommended to council that it enact Options 2, creating the same standard for both Class A Liquor and Class A Beer licenses, Ebbert noted.
Authority to issue operators licenses
In a second action, the council approved a first reading, allowing the city clerk to approve applications for operators licenses.
The change would allow the city clerk to issue operators licenses, including those issued on a temporary or provisional basis.
During discussion, City Manager Rebecca LeMire noted that a change in state statutes was enacted in 2019, allowing municipal governing bodies to authorize a designated official, such as a clerk, to issue operators licenses.
Currently, she said, such licenses are approved by the city council.
An operators license, after approval, is issued to any person who wishes to sell, manufacture, brew or serve alcohol at a location within the city.
Those seeking a license are subject to review from city staff, including a background check made by the city’s police department, treasurer and municipal court, to, according to a memo to council written by LeMire, “ensure that the individual seeking the license does not owe any monies to the city.”
Applicants must be at least 18, may not have been convicted of a felony, or be considered a “habitual law offender,” and must complete a responsible beverage server training course. Those renewing their operators license must take the training course every two years. They are exempt from taking the course if they have held an operators license anywhere within the state of Wisconsin within the last two years, LeMire wrote in her memo.
While reviewing the changes to the city’s licensing ordinance, LeMire said, staff found that the ordinance lacked some details associated with the process used for issuing licenses at the local level.
Several points, relating to process, have been updated within the draft language, she said.
While changing the authority of issuing licenses from the council to the clerk was not expected to impact the city financially, LeMire said, it would save time for the applicants and establishments seeking licensed operators by removing a need to include application materials on city council agendas.
For those applicants denied a permit by the city clerk, new language within the drafted ordinance amendment establishes an appeal process which would bring the matter before city council, LeMire noted.
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