Liquor Control Board - April 16, 2025 Minutes

Liquor Control Meeting
Date: April 16, 2025 Time: 1:32 PM CDT Location: Fargo, North Dakota
Attendees: Commissioner Dave Piepkorn, Scott Brekke, Mark Doyle
Absent: Robert Nelson, Tatiana Hackman

The meeting was called to order at approximately 1:32 PM.
1. Approval of Minutes – March 19, 2025 Regular Meeting
A motion was made to approve the minutes of the March 19, 2025 regular meeting. The motion made by Brekke was seconded by Doyle. There were no changes, corrections, or further discussion. The motion carried unanimously.
2. Review Liquor Applications – Issuance of a Class F License
• Applicant: Nicole's Fine Pastry LLC d/b/a Nicole's Fine Pastry and Cafe
• Location: 13 8th Street South
• Steve Sprague presented the application. He explained that Nicole Henson, the operator, currently holds a wine license. An opportunity arose for her to lease the adjacent vacant building, prompting her to seek an upgrade to a Class F license to enhance her full-service dining offerings. A Class F license requires food sales to exceed alcohol sales, a condition Nicole's Fine Pastry has historically met. All other standard alcohol license requirements have been fulfilled, and a police background check revealed no issues. Mr. Sprague recommended approval.
• Piepkorn noted the business is locally owned, in a great downtown Fargo location, and has generally had a good record, aside from a significant past fine related to the proportion of alcohol sales.
• A motion was made to approve the issuance of the Class F license to Nicole's Fine Pastry LLC. The motion made by Brekke was seconded by Doyle. There was no further discussion. The motion carried unanimously.
3. Police Department Monthly Report – General Report
• Chief Zibolski presented the police department's monthly report. The primary item of interest was an incident involving an 18-year-old in a downtown establishment who became intoxicated and required hospitalization. The individual will be referred to the city attorney for being underage.
• There were no further questions for Chief Zibolski. Piepkorn thanked him for the report.
4. Other Items
A. Request to Add FA Golf to the Class E Permit
• Steve Sprague provided background on the FA Golf license, established in 2005. Key features include the requirement for a USGAA-approved course with at least nine holes. During the non-golf season, food sales must exceed alcohol sales, while during the golf season, food sales can be as low as 25% of total sales. FA Golf licensees can have carts or permanent stands on the course. The initial fee for this license is $60,000.
• Mr. Sprague noted that initial restrictions on gaming for FA Golf licenses have been removed, aligning with FA restaurants. The current request concerns adding the FA Golf license to the list eligible for Class E off-site permits.
• He explained that the State of North Dakota prohibits local government units from holding liquor licenses, necessitating the Park District to find operators for alcohol sales at its three golf courses: Osgood, Edgewood, and Rose Creek.
• The operator at Rose Creek requested the ability to obtain Class E permits for catering events, allowing them to serve alcohol off-site in conjunction with their food service. Mr. Sprague personally did not see significant harm in this proposal.
• Piepkorn inquired whether a Class E license was currently an option, to which Mr. Sprague clarified that the city ordinance would need to be amended to include FA Golf licenses.
• Piepkorn expressed a desire to hear from existing license holders before taking action, as the proposal was new. Mr. Sprague confirmed that any action to approve would require the City Commission to direct the City Attorney to amend the ordinance, involving a process of receive and file, first reading, and second reading, taking approximately one month.
• Despite the timeline, Piepkorn suggested having the item on a future liquor control agenda for further discussion and input from other license holders.
• Keith Stensgard from Edgewood Tavern addressed the commission. He explained that his FA Golf license, acquired with the understanding it would include off-site privileges (based on his 15 years of experience with a similar license at Sidestreet), currently does not allow for Class E permits. This is impacting his ability to fulfill existing off-site event commitments, causing potential issues for clients, including NDSU events. He believed the $60,000 license fee implied such privileges.
• Mr. Stensgard expressed urgency due to the limited North Dakota summer season and the number of off-site events he typically handles. He requested immediate action.
• A motion was made by Doyle and seconded by Brekke to continue the discussion on adding FA Golf to the Class E permit to the next liquor control meeting to allow for input from other license holders. The motion carried unanimously. The commission acknowledged the potential impact on Mr. Stensgard's business and stated they would try to expedite the matter.
B. Further Discussion Needed
• Mr. Sprague informed the commission that during the City Commission meeting on Monday, April 14th, a motion was made to direct the City Attorney to modify Section 25-1512 regarding extensions for not selling alcohol, formalizing the current practice of a defined six-month period.
• Mr. Sprague also raised a discussion from the City Commission regarding the difference in how current and older liquor licenses are held (city vs. personally) and the potential need for future conversion. He noted this was a topic for future consideration and awareness for license holders, potentially impacting future business decisions. Staff is developing scenarios to address this.
• Finally, Mr. Sprague mentioned a preliminary concept to offer a $25 buy-back program for fake IDs as a way to indirectly address underage drinking, complementing the current focus on penalizing liquor license holders. Staff will work on funding options and bring this back for future discussion.
Adjournment
With no further action items, the meeting was adjourned at 1:49 PM CDT.