Liquor Control Board Minutes - July 16, 2025

Date: July 16, 2025
Time: 1:30 PM CDT
Attendees: Commissioner Dave Piepkorn, Mark Doyle, Robert Nelson, Scott Breeke, Tatiana Hackman

1. Approval of Minutes from June 18, 2025 Regular Meeting
• Motion: to approve the minutes: Brekke
• Second: Doyle
• Vote: Motion carried
2. Review Liquor Applications
a. Application to Transfer a Class FA Alcoholic Beverage License from Mexican Village to Phoenix Buffet
• Location: 3155 45th Street South
• Discussion: Steve Sprague presented the application, noting that the Mexican Village license was issued before the 2014 change, making it transferable. A local contact for Golden Empire has been identified and has passed a background check, addressing an initial concern from the Chief. The background check for the business raised no concerns. There was a question regarding the license's transferability in perpetuity, which Steve will review with Nancy. Phoenix Buffet is aware of all Class FA requirements, including server training.
• Motion: to approve the transfer: Hackman
• Second: Nelson
• Vote: Motion carried.
b. Application to Transfer a Class FARZ Alcoholic Beverage License from The Toasted Frog to The Toasted Frog Part 2
• Location: 305 Broadway
• Discussion: Steve Sprague explained that FARZ licenses were created during Mayor Furness's term to revitalize downtown Fargo but are no longer issued due to sufficient activity. While generally non-transferable, three exceptions allow for transfer:
1. Business and ownership remain the same, but location changes (e.g., Pounds).
2. Ownership and location remain the same, but the name changes (e.g., Twist to Marg's Bar).
3. Location and business name remain the same, but ownership changes (a "going concern" transfer, as in this case). This transfer falls under the third exception, allowing the Toasted Frog brand to continue operation under new ownership. The background check was approved. A board member expressed appreciation for the continuation of the business downtown and the preservation of "fried pickles."
• Motion: to approve the transfer: Brekke
• Second: Hackman
• Vote: Motion carried.
3. Police Department Monthly Report
• Presenter: Chief Zibolski
• Discussion: The Chief reported one incident involving potential overserving at Windbreak, pending a court decision, noting its significance. He also highlighted a recurring issue in compliance checks: servers looking at underage IDs (18-19 year olds) and serving them anyway. He suggested increasing fines for servers who serve underage individuals, as it puts businesses and owners in difficult positions.
• Action: No specific action item was assigned, but the suggestion for increased fines for servers was noted.

4. Compliance Checks and License Considerations
a. Failed Compliance Checks and Administrative Penalties
• Businesses that failed: Applebee's North, Applebee's 13th Avenue, Applebee's 45th Street, Chili's, Bismarck Tavern, Empire Tavern.
• Recommendation: Apply a $500 administrative penalty to each business.
• Discussion: Steve Sprague confirmed proper notice was sent to all businesses. The previous discussion about leniency for first-time offenders or a driver's license-like system was revisited, but legal challenges remain.
Commissioner Piepkorn expressed concern about the $500 fine being substantial and emphasized the lack of punishment for minors involved in fake ID incidents. They advocated for punishment for minors and encouraged the use of ID readers to reduce mistakes, acknowledging the difficulty in staffing.
Brekke agreed that it puts owners in a difficult situation, as employees' conscious decisions to serve underage individuals often lead to the employee's termination and increased work for the owner.
The idea of a "buyback" or incentive program for bars that confiscate fake IDs was suggested to promote positive results.
City Prosecutor Will Wischer clarified minor penalties: Common charges for minors (in premise, fake ID, intoxication) are infractions, typically resulting in fines between $300 and $500 in municipal court. These usually arise when police make contact due to another crime or when a bar/liquor store alerts the police about a fake ID.
Steve Sprague then listed businesses that passed compliance checks, including both Sickies locations, Rick's Bar, VFW, Royal Liquors, Double Down, Three Happy Harry's locations, Spicy Pie, Boiler Room, Spaghetti, Western, Nova Eateries, Northport Liquors, Excalibur, Buffalo Wild Wings (North Side), Tropical Spice, Chubs Pub, Wurst, Sports, Fort Knox, the Elks Lodge, Wild Terra, Duffy's, and Royal Liquors. He noted VFW's improvement after implementing card readers.
Discussion ensued about encouraging the use of card readers. Steve stated that forensic card readers (approx. $5,000-$6,000) are available through Cass Public Health and Robin Litke Sall. A former owner suggested standardizing card readers if mandated, while a board member favored encouraging their use, especially for businesses with compliance issues, as the free available readers are effective.
• Motion: to apply the $500 administrative penalty to the listed businesses: Hackman
• Second: Brekke
• Vote: All in favor. Motion carried.
b. Consider Add-on License to Allow Limited Off-Sale
• Presenter: Steve Sprague
• Discussion: This item follows up on a previous discussion about a limited off-sale add-on license. Steve met with proposers and presented potential limitations and costs. He sought to determine if the board wanted to pursue this, which would involve recommending to the City Commission to direct the City Attorney to draft an ordinance.
Proposed Parameters:
Utilize an existing Class D license (beer off-sale, currently none issued, $1,500 original fee, $200 annual).
Not a standalone license; must be issued with an existing license (e.g., food percentage license, adding alcohol sales).
Allow beer and wine in limited quantities.
Square footage display limit: Approximately 100 sq. ft.
Must meet the "100-foot rule" separating groceries from alcohol.
Alcohol sales area must be a 21+ section.
Intent: Convenience for customers, not to increase the number of off-sale businesses.
Address situations where customers have ordered wine at a restaurant/event and cannot take unfinished bottles home (current code requires uncorking, recorking, bagging, and receipting).
Limit to 12 bottles or cans per transaction.
Commission Piepkorn questioned the common sense of requiring repackaging of unfinished bottles.
Nelson acknowledging the value of the presenting restaurateurs and retailers, expressed concern about blurring the lines between "on-premise" and "off-premise" sales, which could create issues. They noted that the repackaging requirement is a Century Code item. They also raised concerns about the "wine education license" being potentially misused. They suggested that this discussion would require a longer, more detailed examination to establish proper and strict limitations, fearing that otherwise, it could lead to numerous "little ABs" with significantly lower license fees than a full AB license. They cited the "hairdressers thing" as an example of a carve-out that, while seemingly minor, could have unforeseen consequences.
It was clarified that the recommendation would be to start drafting an ordinance. A board member felt comfortable making such a motion to facilitate further discussion with owners and bring the draft back to the Liquor Control Board before going to the City Commission.
• Action: The discussion is ongoing, and the next step would be to propose to the City Commission to direct the City Attorney to draft an ordinance.

Meeting adjourned at 2:11 p.m.