Liquor license quota increase, change in licensure authority move closer to approval

By Kim McDarison

Two ordinances amending city code, one allowing an increase in Class A liquor licenses issued by the city and a second giving the authority to issue operators licenses to the city clerk, passed a second reading during the Fort Atkinson City Council meeting held May 4. 

A first reading of both ordinances was approved by council during its meeting held April 20. 

Ordinances, and amendments that change them, within the city of Fort Atkinson are subject to three readings unless council opts to waive future readings. 

A third reading for both ordinances will likely come during council’s next meeting. 

Establishing new quotas

Language approved by council would increase the number of “Class A” licenses offered by the city by six new licenses, allowing for a total number of 16. The new language allows the city to offer licenses at a rate of 1 for every 750 city residents. The former formula, which, according to City Clerk Michelle Ebbert, has been in place since 2004, allowed the city to offer one license for every 1,250 people living in the city. The formula allowed the city to issue a total of 10 licenses. Currently, all are in use, Ebbert said during the April 20 meeting. 

Ebbert noted that “Class A” licenses issued by the city are for intoxicating liquor sales through a retailer where the liquor will be consumed “off premise,” and is typically applied for by such businesses as grocery stores, liquor stores and gas stations. 

The new quota system, if council chooses to approve the language during a third reading, will allow the quota used for “Class A” licenses to match the quota currently in place for Class “A” licenses, which, according to Ebbert, are defined as licenses used by the same types of businesses looking to sell beer. 

Looking at the history associated with Class “A” licenses, Ebbert said during the April 20 meeting, in 2004, the city’s population was 11,943 and the city allowed one Class “A” license for every 750 people living in the city. The city currently has 17 licenses available under that quota system of which 13 are in use. 

The proposed language, if a third reading is approved, will only affect “Class A” licenses. 

During the April 20 meeting, Ebbert noted that 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. 

The Ordinance Committee, which has also reviewed the language, recommended to council that it create the same standard for both “Class A” liquor and Class “A” beer licenses, Ebbert noted. 

Authority to issue operators licenses

In a separate action, council approved the second reading of language that changes the authority to issue operators licenses from the city council to the city clerk. 

During the April 20 meeting, 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, which was shared with council on April 20. 

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. 

The language must pass a third reading before it is added to city code. 

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