City Council Meeting Date: March 3, 2026
To: Mayor and City Council
City Administrator
From: Lynette Peterson, City Clerk
Jeff Schroepfer, Chief of Police
Subject:
TITLE
Consideration of New Liquor License for El Tequila Northfield Inc. DBA El Tequila at 1010 Highway 3 South.
BODY
Action Requested:
The Northfield City Council approves a motion to approve the new liquor license including On-Sale Intoxicating Liquor and Sunday Liquor for El Tequila Northfield Inc. dba El Tequila, subject to the following conditions:
1. Liquor licenses will be issued upon receipt of:
• All required documents
• Payment of all delinquent taxes, assessments, utility bills or other financial claims of the city
• Payment of all liquor license fees
• Approval of the State Alcohol and Gambling Enforcement Division
• Final inspection of premises
Summary Report:
This item is separate from the liquor license renewals because the owner of El Tequila has sold the business to another member of their family. As a result, the name of the corporation for the business has changed; however, the DBA will remain the same.
Pursuant to City Code, a public hearing is not required when the exact location has held a liquor license within the previous 12 months. It has been City protocol, when an establishment is transferred to another family member and there have been no compliance or enforcement issues at the location, to forego the public hearing for that premises. The Police Department completed the required background check on the new owners and identified no issues or concerns.
The City Council is being asked to consider the new liquor license request. City staff checks applications for compliance, which covers the provisions of Minnesota State law and City Code. These provisions include:
• Background investigations on licensees
• Review of premises layout
• Review of liquor law violations for the previous five years
• Review of insurance certificates
• Review of delinquent utilities, taxes, assessments or other financial claims
Periodically questions are raised regarding statutory restrictions on the number of on-sale intoxicating liquor licenses that may be issued in Northfield. If this license is approved, Northfield will have 18 on-sale intoxicating liquor license holders. Northfield is a city of the second class and therefore may issue not more than 18 on-sale intoxicating liquor licenses, subject to very broad exclusions. The applicable statute is 340A.413, Subd. 1 (3). However, 340A.413, Subd. 4, excludes the following from the restrictions stated in Subd. 1:
• clubs
• restaurants
• establishments that are licensed to sell wine under section 340A.404, Subd. 5
• theaters that are issued licenses under section 340A.404
• hotels, and
• bowling centers
The existing on-sale intoxicating liquor licenses in Northfield fall within the categories noted above and are therefore excluded from the statutory limitation.
Once approved by the City Council, the license will be forwarded to the Minnesota Department of Public Safety - Alcohol and Gambling Enforcement Division (DPS-AGE) for review and approval. Licenses will be issued upon receipt of all required documentation, payment of any delinquent amounts, successful completion of background checks, and completion of a pre-issuance walk-through of the facility.
Alternative Options:
None.
Financial Impacts:
City liquor licenses are $3,000 for on-sale intoxicating and $200 for Sunday liquor for a total of $3,200. The license fees will be not be prorated as this new license is in our regular licensing period of April 1, 2026 through March 31, 2027.
Tentative Timelines:
If approved, certification and license application will be sent to the Department of Public Safety Alcohol & Gambling Enforcement Division for review and approval. Once the Alcohol & Gambling Division approves the license, final documents are submitted, and the final inspection of the premises has been completed, the liquor licenses will be issued.