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ITEM #: 6.
DATE: 03/07/2022

AI #:717
CITY COUNCIL ACTION REPORT
 
SUBJECT: DELEGATION OF AUTHORITY FOR AN ACQUISITION OF CONTROL
 
STAFF PRESENTER(S): Darcie McCracken, City Clerk

SUMMARY

Delegate authority to approve or be opposed to the acquisition of control for a liquor license.

Recommendation

ADOPT RESOLUTION NO. 2022-2215, DELEGATING AUTHORITY TO THE CITY CLERK TO MAKE RECOMMENDATIONS REGARDING LIQUOR LICENSE ACQUISITIONS OF CONTROL AND PROVIDING FOR AN EFFECTIVE DATE. (Darcie McCracken, City Clerk)

FISCAL IMPACT

There is no fiscal impact associated with the delegation of authority for a liquor license.

BACKGROUND AND PREVIOUS ACTIONS

On August 20, 2018, Council adopted Resolution 2018-1889 delegating authority to the City Clerk to make recommendations regarding special event liquor licenses, applications for temporary extension of premises, fair licenses, and craft distillery fair licenses. 

Arizona Revised Statute 4-203(F) provides that the local governing body, or the governing body's designee, may provide the director with a recommendation when the controlling parties change on a liquor license.  An acquisition of control occurs when the controlling parties change, including the percentage of the controlling interest.  This does not impact the location of the license. 

STAFF ANALYSIS

The current process includes a review by the Police Department, Planning and Zoning, Code Compliance and Building Safety, which will continue.  As is the current practice when Special Event liquor licenses are approved, or the other actions the Clerk is authorized to determine, Council will be notified of any recommendation. 

Since people change and controlling interests change in businesses, acquisitions of control have started coming in more regularly.  As a result of this delegation, the city's application process will be streamlined resulting in faster approvals and better customer service.

This Resolution has no impact on new liquor license applications. The City Council will still be responsible for reviewing new applications and providing a recommendation to the Arizona Department of Liquor Licenses and Control. 

Current temporary actions are as follows:
Liquor License Applications FY2019-20 FY2020-21 FY2021-22 Total
Special Event Liquor License* 11 10 7 28
Temporary Extension of Premise* 1 1 0 2
Festival/Fair* 0 0 0 0
Craft Distillery* 0 0 0 0
Acquisitions of Control 1 1 3 5

*Currently approved by the City Clerk.

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